Cohen v. Kabbalah Ctr. Int'l, Inc.
246 Cal. Rptr. 3d 774
| Cal. Ct. App. 5th | 2019Background
- Carolyn Cohen and her company donated roughly $477,000 to Kabbalah Centre International: $452,000 to a Building Fund and $25,000 to a "Spirituality for Kids" program.
- Cohen alleges Centre leaders (the Shvilis) pressured wealthy members to give, promising use/return conditions for donations.
- Cohen helped scout buildings for Centre (as its realtor) from ~2003–2011 but later concluded the building search was a front.
- Centre discontinued the kids program in 2007 and never reinstated it.
- Cohen sued on multiple claims (breach of contract, fraud, breach of fiduciary duty, Penal Code § 496) after extensive pleadings; the trial court granted summary judgment/adjudication against her on most claims.
- On appeal the Court of Appeal affirmed most rulings but reversed as to Cohen’s contract claim over the $25,000 kids-program donation and remanded that claim for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of oral contract for Building Fund | Cohen: an oral promise required return if funds not used for a building | Centre: no admissible evidence of such a contract; Cohen changed her story to avoid deposition admissions | Affirmed for Centre — plaintiff’s contradictory declaration was disregarded; no evidence of the 2004 contract as pleaded |
| Existence of oral contract for $25,000 Kids Program | Cohen: oral contract (circa 2003) requiring return of unused kids-program funds | Centre: no contract / barred by limitations | Reversed for remand — genuine dispute of material fact exists as to the 2003 kids-program contract |
| Fraud (building fund and kids program) | Cohen: Centre knowingly misrepresented intended use to induce donations | Centre: lacked scienter; had honest intent and conducted real property searches; plaintiff admitted lack of knowledge about fund use | Affirmed for Centre — no evidence of scienter re building fund; no misrepresentation re kids program because Cohen admitted she did not know how funds were used |
| Breach of fiduciary duty and Penal Code § 496 claim | Cohen: Centre owed fiduciary duties and unlawfully took donations | Centre: no fiduciary duty (solicitations within charitable membership exempt); no actionable fraud so § 496 fails | Affirmed — no fiduciary duty; § 496 dismissal harmless because fraud claims fail |
Key Cases Cited
- Aguilar v. Atl. Richfield Co., 25 Cal.4th 826 (explains burdens and shifting on summary judgment)
- Castillo v. Barrera, 146 Cal.App.4th 1317 (court may disregard post-deposition contradictory declarations)
- Conroy v. Regents of Univ. of California, 45 Cal.4th 1244 (elements of fraud)
- DiCola v. White Bros. Performance Prod., Inc., 158 Cal.App.4th 666 (issue forfeiture for failing to raise argument below)
- Reid v. Google, Inc., 50 Cal.4th 512 (criticizes overbroad evidentiary-objection practices in summary judgment practice)