Chao Fu, Inc. v. Wen Ching Chen

Opinion

PREMO, J.

Plaintiff Chao Fu, Inc. (CFI), sued defendant Wen Ching Chen (also known as Dennis Chen) for wrongful foreclosure, quiet title, and related causes of action. The trial court granted Chen’s motion for summary judgment (Code Civ. Proc., § 437c),1 finding that the claims were barred by the compulsory cross-complaint statute (§ 426.30). We conclude that Chen failed to establish that section 426.30 bars this action as a matter of law. Accordingly, we shall reverse.

*51I. FACTS2

A. The $370,000 Note

CFI is a closely held corporation formed by Chung Mei Kuo, also known as Julia Kuo. One of…