Lee v. Yang CA2/4
Plaintiff Caroline Lee appeals from an order sustaining without leave to amend the demurrer of David Yang and Christopher Rivas to the Racketeer Influenced and Corrupt Organization (RICO; 18 U.S.C.A., §§ 1961 et seq.) cause of action alleged in her third amended complaint. Because Lee alleged an additional cause of action (breach of fiduciary duty) against Yang, the trial court entered a judgment of dismissal as to Rivas only; Yang remains a defendant.
In her RICO claim, Lee alleges she and Yang as partners owned three Los Angeles rental properties, which Yang and Rivas represented they would manage honestly and competently, but instead they misappropriated rent proceeds, failed to make necessary repairs and allowed tenancies to become unregistered, threatening her with foreclosure and government sanctions. As a result of this extortion, she alleges, she incurred code enforcement expenses, lost rental proceeds and lost property value.
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