Kim

STATEMENT OF THE CASE

I.

COMPLAINT AND ANSWER

On January 14, 2021, Kim filed a complaint against Koo, seeking enforcement of a $350,000 promissory note. The complaint alleged Kim and Koo created Damon Capital, LLC (Damon Capital) to operate a high-end bed and mattress store. Subsequently, Kim agreed to sell his 50 percent interest in Damon Capital to Koo. The complaint alleged the purchase price was $850,000. However, Kim could only obtain a $500,000 loan from Wells Fargo Bank. To facilitate the loan, on or about August 31, 2015, the parties executed a Transfer Agreement, a $500,000 promissory note, and a $350,000 promissory note. The Transfer Agreement and the $500,000 note were dated August 31, 2015, and the $350,000 note was dated September 1, 2015. The complaint further alleged that after the Transfer Agreement and the $500,000 note were submitted to Wells Fargo, the bank expressed concerns. The Transfer Agreement and the $500,000 note were revised to address Wells

2 Fargo’s concerns, but the $350,000 note was left unchanged. However, Koo never made any payments on the note. On April 1, 2021, Koo filed an answer generally denying the allegations and raising numerous…