Optional Capital, Inc. v. DAS Corp.

Opinion

JOHNSON, J.

Plaintiffs appeal judgment of dismissal of their action for conversion and fraudulent conveyance against defendant DAS Corporation. The trial court granted defendant’s special motion to strike pursuant to Code of Civil Procedure section 425.16 1 and sustained defendant’s demurrer to plaintiffs’ complaint, finding that plaintiffs’ causes of action arose out of DAS’s settlement of litigation, which was protected activity under section 425.16, and further that Optional’s claims were barred by the litigation privilege. We reverse.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

This…