Northeast Securities Co. v. Que CA6
H051832
Cal. Ct. App.Jun 10, 2025Background
- Northeast Securities Co., Ltd. (Northeast), a Chinese corporation, sought recognition of a monetary judgment issued by the High People’s Court of Jilin Province, China, against Que Wenbin and He Xiaolan under California's Uniform Foreign-Country Money Judgments Recognition Act (UFCMJRA).
- The judgment stemmed from Que’s default on two equity repurchase agreements and He’s guaranty, involving a principal debt of RMB 500 million, with shares in Hengkang Medical Group as collateral.
- Both Que and He claimed to be residents/citizens outside the U.S. (Hong Kong and Canada), but owned real property in Palo Alto and Atherton, California, either personally or through a trust.
- Northeast attempted to serve Que and He multiple times in California; ultimately, the court authorized alternate service due to reasonable diligence after personal service attempts failed.
- The trial court granted Northeast’s applications for right to attach orders, allowing attachment of Que and He’s California property, which Que and He appealed on grounds of jurisdiction, service, and merits of the underlying claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held (Court Ruling) |
|---|---|---|---|
| Jurisdiction (quasi in rem) | Property in CA gives court quasi in rem jurisdiction | Defendants not domiciled in CA, no substantial CA contacts | Court had quasi in rem jurisdiction over property |
| Sufficiency of service | Reasonable attempts; alternative service permissible | Hague Service Convention applies; alternative service improper | Hague Convention did not apply; service proper |
| Probable validity of Chinese judgment | Judgment is final, conclusive, enforceable | Challenge to translation validity; service defects in China | Substantial evidence supports validity |
| Compliance with UFCMJRA recognition | Judgment meets UFCMJRA requirements | Improper service in Chinese court; judgment not enforceable | UFCMJRA requirements met, objections forfeited |
Key Cases Cited
- Jameson v. Desta, 5 Cal.5th 594 (Cal. 2018) (appellate presumption of correctness; appellant's burden)
- Nakasone v. Randall, 129 Cal.App.3d 757 (Cal. Ct. App. 1982) (quasi in rem jurisdiction for nonresident attachment)
- Kott v. Superior Court, 45 Cal.App.4th 1126 (Cal. Ct. App. 1996) (reasonable diligence for service of process standard)
- Rreef America Reit II Corp v. Samsara Inc., 91 Cal.App.5th 609 (Cal. Ct. App. 2023) (standards for right to attach order and probable validity)
- Manco Contracting Co. v. Bezdikian, 45 Cal.4th 192 (Cal. 2008) (standards for recognizing foreign-country money judgments under UFCMJRA)