Prof'l Tax Appeal v. Kennedy-Wilson Holdings, Inc.

*233 This is an appeal from the sustaining of a demurrer without leave to amend. Plaintiff and appellant Professional Tax Appeal entered a contract with the owner of vacant land by which plaintiff agreed on a contingent fee basis to seek 2009 and 2010 property tax reductions. The property tax appeals succeeded in reducing the assessed value of the vacant land by millions of dollars, with a reduction in taxes (and associated fees and penalties) of almost $140,000. Plaintiff was to receive 30 percent of the reduction, or almost $42,000, when the property owner received the tax refund or when the refund was applied to pay delinquent property taxes.

Before the tax refund was paid, the property was acquired in a nonjudicial foreclosure sale by defendant and respondent KW Victory Land Loan, LLC (KW Victory Land), and an affiliated entity, defendant and respondent Kennedy-Wilson Holdings, Inc. (Kennedy-Wilson) (collectively defendants). Upon assuming ownership, defendants paid the delinquent property taxes owed on the property, in the reduced amount achieved by plaintiff's successful tax appeals.

Plaintiff filed this action against defendants for unjust enrichment and conversion.…