A recent court ruling has upheld a judgment against an individual accused of committing financial elder abuse, shedding light on the exploitation of vulnerable seniors. The complaint was filed by Grace S. Hwang in the Superior Court of Los Angeles County on July 12, 2024, against Hoon Sil Baik.
The case revolves around allegations that Baik manipulated James Dukhwan Tak, an elderly widower in his 80s and stepfather to Hwang, into creating a trust that transferred ownership of his primary asset—a condominium—to Baik. The court found that Baik used undue influence and fraudulent intent to become the sole beneficiary and successor trustee of Mr. Tak's estate. After Mr. Tak's death, Baik allegedly ignored his wishes to leave $100,000 to his church and $50,000 to Hwang, instead selling the condominium to a family member without proper appraisal and keeping the proceeds for herself. Additionally, she collected $9,700 from Mr. Tak’s life insurance policy.
Hwang’s lawsuit included six causes of action but proceeded solely on the claim of financial elder abuse after dismissing the other claims before trial. Following a nine-day bench trial, Judge Michael L. Stern ruled in favor of Hwang, awarding her $318,000 in compensatory damages and $50,000 in punitive damages. The court found substantial evidence supporting that Baik had taken advantage of Mr. Tak's vulnerability following his wife's death by misleading him about potential government seizure of his assets unless he created a trust.
Baik appealed the decision on several grounds: questioning Hwang’s standing to file the claim; arguing insufficient evidence for financial elder abuse; and claiming both compensatory and punitive damages were excessive and unsupported by evidence. However, these arguments were dismissed as meritless by the appellate court.
The appellate court affirmed that Hwang had standing as an intestate heir affected by Mr. Tak’s estate distribution under California law since Mr. Tak had no biological children at his death. The court also upheld findings that Baik exploited Mr. Tak’s lack of English proficiency and vulnerability due to age and health issues through misrepresentations about asset protection via a trust.
In terms of relief sought by Hwang beyond monetary compensation for damages suffered due to Baik's actions, she requested attorney fees which were granted by statute given her successful proof of financial elder abuse under California Welfare & Institutions Code section 15657.5.
The attorneys involved include Jennifer R. Lucas and Jessica M. Di Palma from Ferber Law representing Baik while Wendy S. Albers and Judith E. Posner from Benedon & Serlin represented Hwang.