Yue Ma and Lihong Zhao, through their companies Sunny West Coast Co. and Hua Ming Technology Co., have filed a complaint against Linghan "Hank" Cao and Ideal International Investment (Ideal), a trucking company, alleging breach of contract and other claims. The lawsuit was filed in the Superior Court of Los Angeles County on May 30, 2024.
The plaintiffs claim that they own a 35 percent interest in Ideal, while Cao owns the remaining 65 percent. The dispute centers around an agreement made in October 2018 to operate Ideal for three years, after which the parties were to decide whether to continue or dissolve the business. According to the plaintiffs, no decision was made at the three-year mark, requiring dissolution per their agreement. Instead, Cao allegedly continued operating Ideal without consent from his co-owners, removed assets from the business, and caused a breakdown in their relationship.
In response to these actions, plaintiffs assert multiple claims including breach of contract, breach of fiduciary duty, conversion, unfair business practices, and a request to dissolve Ideal. They argue that Cao's actions are depleting corporate assets and harming their investment. Specifically, they allege that Cao loaded forklifts onto a truck at Ideal’s warehouse in California to ship them out of state and even threatened one of the plaintiffs with a gun.
Cao and Ideal have countered with a cross-complaint accusing Ma's husband Jiafeng Yuan of unlawfully taking corporate funds and creating a competing business. They also allege that Yuan threatened Cao with a hammer during an altercation. Defendants argue that they did not breach any agreement by continuing operations as there was an understanding among investors to extend the company's term beyond three years.
The court issued a preliminary injunction preventing defendants from selling or transferring any assets belonging to Ideal until further notice. The trial court found that plaintiffs are likely to prevail on their breach of contract claim and would suffer greater harm if defendants continued transferring or hiding corporate assets.
Plaintiffs seek judgment from the court for damages related to breach of contract and other claims while requesting dissolution of Ideal International Investment. They also seek injunctive relief to prevent further asset depletion by defendants.
The case is being handled by Judge Gail Killefer in the Superior Court of Los Angeles County under Case ID B329293. Plaintiffs are represented by Paul P. Cheng & Associates while defendants are represented by KJC Law Group.