Scholz Recycling GmbH v. Zhou Yizhou

I. Introduction

On October 29, 2020, Scholz Recycling GmbH (“SRG”) and Scholz Hong Kong Limited (“Scholz HK”) (collectively, “Plaintiffs”) brought this action against Zhou Yizhou (“Mr. Zhou”), Liu Qingxian (“Ms. Liu”), Zhou Yuan (“Ms. Zhou”), Star Achievement Group, Inc. (“Star”), Outer Marino Investments, LLC (“Outer Marino”), and Does 1 through 100 in the Los Angeles Superior Court. Dkt. 1-5. On January 13, 2021, Mr. Zhou, Ms. Liu, Ms. Zhou and Outer Marino removed the action. Dkt. 1.

On February 22, 2021, Plaintiffs filed a First Amended Complaint (the “FAC”), which is the operative one. Dkt. 18. The FAC advances two causes of action: (i) voidable transfer under Cal. Civ. Code §§ 3439 et seq., and (ii) constructive trust under Cal. Civ. Code §§ 2223-24. Id. ¶¶ 54-67. The FAC named Mr. Zhou, Ms. Liu, Ms. Zhou, Star, Outer Marino and Does 1 through 10 as defendants. Id. Subsequently, Plaintiffs voluntarily dismissed the claims against Star. Dkt. 53. Consequently, the only remaining Defendants are Mr. Zhou, Ms. Liu, Ms. Zhou, Outer Marino and Does 1 through 10 (collectively, “Defendants”).

On March 8, 2021, Defendants filed a “Motion to Dismiss First Amended Complaint…