KG Investment, LLC v. Chen CA4/2

I. INTRODUCTION

In 2017, plaintiff and appellant KG Investment, LLC (plaintiff) discovered that

one of its residential properties (the property) was used by a tenant to illicitly grow

marijuana, causing damage to the property. As a result, plaintiff filed suit against the

tenant,1 as well as several real estate professionals and business entities. Plaintiff

alleged: (1) its real estate agent and broker, defendant and respondent Andy Chen

(defendant Chen), failed to properly screen the tenant’s application to lease the property;

(2) defendant Chen and his property management company, defendant and respondent

Sunny Hills Property Management Group (SHPMG), failed to conduct an inspection of

the property during the tenancy; and (3) defendant and respondent Chino Capital, Inc.

d.b.a. Coldwell Banker Top Team was vicariously liable for the conduct of defendant

Chen.2 Based upon these allegations, plaintiff alleged causes of action for (1) breach of

contract, (2) “concealment,” (3) breach of fiduciary duty, and (4) professional negligence

against these defendants.

The parties tried the matter in a bench trial, and the trial court issued a judgment in

defendants’ favor. As…