January 14, 2022 |

Kibler Fowler & Cave Team’s Demurrer Sustained as to Entirety of FAC Alleging Seven Causes of Action Against 19 Defendants

Kibler Fowler & Cave’s Cannabis Litigation practice group successfully demurred to a First Amended Complaint (“FAC”) that alleged seven causes of action related to purported contractual and fiduciary breaches against 19 separate defendants.

Plaintiffs alleged in the FAC that they invested $2 million in Defendants’ cannabis business and that, after this investment, Defendants committed myriad of unspecified wrongs. Plaintiffs alleged causes of action for account stated, money had and received, recission, breach of contract, breach of fiduciary duty, fraud, and declaratory relief.

The Demurrer argued that each claim failed as a matter of law, that the entirety of the FAC was uncertain, and that the alter ego allegations pleaded were insufficient.

The Honorable Irma Asberry, Judge of the Riverside County Superior Court, sustained Defendants’ Demurrer in its entirety, calling Plaintiffs’ vague allegations “problematic” and “insufficient” and ruling that the FAC was uncertain. Earlier in the litigation KF&C successfully moved to expunge a lis pendens in the action, resulting in an award of attorneys’ fees, and a removal of the improperly filed lien.

The litigation team is comprised of Partner John Fowler, Counsel Cristyn Chadwick, Associate Zien Halwani (all members of the Cannabis Litigation practice group), Senior Litigation Paralegal Samantha Ahlheim, and Paralegal Praveeta Garcia.

The Court’s decision is available here (see item 1).

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