Eitani

BACKGROUND

A. Eitani Sues Simayof and Cohen for Breach of Contract In 2008, Eitani, acting through her company Kroger Gems, entered into a series of consignment agreements with SIMSF, Inc., a retail jewelry company owned and operated by Simayof. Pursuant to the consignment agreements, Eitani provided Simayof with loose diamonds valued at approximately $462,000; Simayof agreed to pay for the diamonds when he sold them or return the diamonds to Eitani. Cohen, an attorney licensed to practice law in California, is Simayof’s sister. In 2010, Eitani accepted post-dated checks for $170,000, executed by Cohen in her capacity as chief executive officer of World of Charms (WOC), a Nevada corporation, and provided additional diamonds to Simayof on consignment in reliance on these checks. SIMSF, Inc. failed to either pay Eitani or return the diamonds to her. Eitani filed suit in the Superior Court for the City and County of San Francisco on March 12, 2012, for conversion, fraud, breach of fiduciary duty, common counts, and breach of contract against Simayof, as an individual, and against the following businesses associated with Simayof: SIMSF, Inc.; Simayof, Inc.; GISF, Inc.; and YDAF, Inc.…