35 Cal.App.5th 13
Cal. Ct. App.2019Background
- Carolyn Cohen donated about $452,000 to Kabbalah Centre’s Building Fund and $25,000 to its "Spirituality for Kids" program, financing contributions partly by mortgaging her home.
- Cohen alleged Centre assigned her personal spiritual counselors who pressured her to "give money until it hurts," and that some donations were solicited under false pretenses.
- Cohen participated for years in scouting and negotiating for a San Diego building; by 2013 she concluded Centre was not actually buying a building.
- Centre discontinued the kids program in 2007 and never reinstated it; Cohen had helped run that program from 2004–2007.
- After multiple pleadings and discovery, Centre moved for summary judgment/adjudication; the trial court granted judgment on all claims. Cohen appealed, challenging adjudication of contract and fraud claims and demurrers to fiduciary duty and Penal Code §496 claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an oral contract required return of Building Fund donations | Cohen: She orally agreed Centre would return building donations if not used for a building | Centre: No admissible evidence of such an oral contract; plaintiff’s declaration contradicted prior pleadings/deposition | Affirmed: trial court properly disregarded inconsistent declaration; no evidence of a 2004 contract survives summary adjudication |
| Whether an oral contract required return of $25,000 kids-program donation | Cohen: Separate 2003 oral contract that unused funds would be returned | Centre: No enforceable contract / no evidence of the promise | Reversed in part and remanded: triable issue exists as Cohen’s pleading, deposition, and declaration are consistent for the $25,000 donation |
| Fraud re: Building Fund and Kids-program donations | Cohen: Centre knowingly misrepresented intent to use funds for stated purposes to induce donations | Centre: Evidence negates scienter (Shvili declarations and Cohen’s active role in searching/negotiating for property; Cohen admitted she did not know use of kids funds) | Affirmed: summary adjudication proper—no triable issue on scienter for building fund; no misrepresentation proof for kids program |
| Breach of fiduciary duty and Penal Code §496 demurrers | Cohen: Centre’s solicitations gave rise to fiduciary duties and the taking supports a theft/receipt of stolen property claim | Centre: Solicitation within a charitable organization is excluded from the statute; no fiduciary duty; no actionable theft because no proven fraud | Affirmed: demurrers sustained; no fiduciary duty and any error on §496 claim is harmless |
Key Cases Cited
- Aguilar v. Atl. Richfield Co., 25 Cal.4th 826 (2001) (summary judgment/adjudication burden-shifting framework)
- Conroy v. Regents of Univ. of California, 45 Cal.4th 1244 (2009) (elements of common-law fraud)
- Castillo v. Barrera, 146 Cal.App.4th 1317 (2007) (complaint allegations are judicial admissions for summary judgment purposes)
- Reid v. Google, Inc., 50 Cal.4th 512 (2010) (discouraging overbroad, prolific evidentiary objections in summary judgment practice)
- DiCola v. White Bros. Performance Prod., Inc., 158 Cal.App.4th 666 (2008) (failure to raise argument below forfeits it on appeal)
- Scott v. CIBA Vision Corp., 38 Cal.App.4th 307 (1995) (appellate courts generally ignore arguments raised for first time in reply brief)
- Int’l Bhd. of Teamsters, Local 848 v. City of Monterey Park, 30 Cal.App.5th 1105 (2019) (standards for independent appellate review of demurrers)
- Teresi v. State of California, 180 Cal.App.3d 239 (1986) (harmless error doctrine on demurrer rulings)
- Richelle L. v. Roman Catholic Archbishop, 106 Cal.App.4th 257 (2003) (discussing scope of fiduciary duties between clergy and congregants)
- In re Miller’s Estate, 16 Cal.App.2d 141 (1936) (fiduciary duty may arise where clergy render business advice to a vulnerable congregant)