A real estate attorney's attempt to strike down allegations of intentional interference with contractual relations has been thwarted by the Superior Court of Los Angeles County. On September 16, 2024, Navigators Real Estate, Inc., doing business as Pinnacle Real Estate Group, filed a complaint against Jack W. Chao in the California Court of Appeal for the Second Appellate District.
The case revolves around a real estate transaction gone awry. On December 6, 2022, Jing Shao agreed to purchase Liping Huang’s property in Monrovia, California, with an escrow closing date set for December 26. Concurrently, Huang signed a contract with Pinnacle to pay them a commission on the sale. However, following Chao’s advice, Huang refused to complete the sale and did not pay the commission. Pinnacle subsequently filed a complaint on January 6, 2023, against Chao and others for breach of contract and intentional interference with contractual relations.
Pinnacle's complaint alleges that Chao acted in concert with Lina Ta to persuade Huang not to close escrow or pay the commission fee. They claim that Chao intended to become Huang’s real estate broker and sell the property himself while pocketing the commission. Shao also filed a similar complaint on January 27, 2023, accusing Chao and Ta of persuading Huang to cancel the purchase agreement and withhold Shao’s money in escrow.
Chao filed special motions to strike both complaints under California’s anti-SLAPP statute (Code Civ. Proc., § 425.16), arguing that his actions were protected litigation-related activities. He claimed he was retained by Huang as her attorney on December 16, 2022, after discovering issues with the contracts that posed risks to her interests. However, both motions were denied by Judge Margaret L. Oldendorf on grounds that Chao failed to demonstrate his conduct arose from protected activity under the anti-SLAPP statute.
Chao argued that his communications were part of settlement negotiations and thus protected by litigation privilege under Civil Code section 47(b). However, evidence indicated there was no pending or anticipated litigation at the time he advised Huang not to proceed with her contractual obligations. The court found no indication that litigation was seriously contemplated when Chao persuaded Huang not to fulfill her contracts.
The plaintiffs are seeking damages for breach of contract and intentional interference with contractual relations from Chao and other defendants involved in advising Huang against completing her obligations under valid agreements.
Representing Navigators Real Estate are attorneys Charles Pok from Law Office of Charles Pok and Associates and Laura E. Mascheroni from Mascheroni Law. Defendant Jack W. Chao is representing himself pro se in this matter.