Thomas E. Fraysse SBN Reid M. Miller SBN Ryan G. Jacobson SBN 0 KNOX RICKSEN LLP One Kaiser Plaza, Suite Oakland, CA Telephone: () -00 Facsimile: () -0 Attorneys for Plaintiffs SUPERIOR COURT OF THE STATE OF CALIFORNIA ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - ALLSTATE INSURANCE COMPANY, ALLSTATE INDEMNITY COMPANY, ALLSTATE PROPERTY AND CASUALTY INSURANCE COMPANY, DEERBROOK INSURANCE COMPANY, ALLSTATE COUNTY MUTUAL INSURANCE COMPANY, ALLSTATE FIRE AND CASUALTY INSURANCE COMPANY, and ALLSTATE NEW JERSEY INSURANCE COMPANY, vs. Plaintiffs, DANIEL H. DAHAN, DEVORAH DAHAN, also known as DEBORAH DAHAN and DEBRA DAHAN, SHERRY BURCHELL, and DOES ONE through FIFTY, inclusive, FOR THE COUNTY OF LOS ANGELES Case No. BC0 FIRST AMENDED COMPLAINT TO SET ASIDE FRAUDULENT TRANSFERS, CONSTRUCTIVE TRUST, EQUITABLE LIEN, AND FOR UNLIMITED CIVIL ACTION Defendants. / Plaintiffs complain of the Defendants above-named, and each of them, and allege as follows: GENERAL ALLEGATIONS 1. Plaintiff ALLSTATE INSURANCE COMPANY is a corporation organized and existing under the laws of the State of Illinois with its principal place of business in the State of - 1 -
Illinois. Plaintiff ALLSTATE INSURANCE COMPANY is an insurance company which, inter alia, issues automobile insurance policies and is licensed to conduct business in the State of California.. Plaintiff ALLSTATE INDEMNITY COMPANY is a corporation organized and existing under the laws of the State of Illinois with its principal place of business in the State of Illinois. Plaintiff ALLSTATE INDEMNITY COMPANY is an insurance company which, inter alia, issues automobile insurance policies and is licensed to conduct business in the State of California.. Plaintiff ALLSTATE PROPERTY AND CASUALTY INSURANCE COMPANY is ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - a corporation organized and existing under the laws of the State of Illinois with its principal place of business in the State of Illinois. Plaintiff ALLSTATE PROPERTY AND CASUALTY INSURANCE COMPANY is an insurance company which, inter alia, issues automobile insurance policies and is licensed to conduct business in the State of California.. Plaintiff DEERBROOK INSURANCE COMPANY is a corporation organized and existing under the laws of the State of Delaware with its principal place of business in the State of Illinois. Plaintiff DEERBROOK INSURANCE COMPANY is an insurance company which, inter alia, issues automobile insurance policies and is licensed to conduct business in the State of California.. Plaintiff ALLSTATE COUNTY MUTUAL INSURANCE COMPANY is a company organized and existing under the laws of the State of Texas with its principal place of business in the State of Texas. Plaintiff Allstate ALLSTATE COUNTY MUTUAL INSURANCE COMPANY is an insurance company which, inter alia, issues automobile insurance policies and is licensed to conduct business in the State of Texas.. Plaintiff ALLSTATE FIRE AND CASUALTY INSURANCE COMPANY is a corporation organized and existing under the laws of the State of Virginia with its principal place of business in the State of Illinois. Plaintiff ALLSTATE FIRE AND CASUALTY INSURANCE COMPANY is an insurance company which, inter alia, issues automobile insurance policies and is licensed to conduct business in several states including Virginia and Florida. - -
. Plaintiff ALLSTATE NEW JERSEY INSURANCE COMPANY is a wholly owned subsidiary of Allstate Insurance Company, Inc. with its principal place of business in the State of New Jersey. Plaintiff ALLSTATE NEW JERSEY INSURANCE COMPANY is an insurance company which, inter alia, issues automobile insurance policies and is licensed to conduct business in the State of New Jersey.. Plaintiffs are informed and believe and on that basis allege that Defendants DANIEL H. DAHAN and DEVORAH DAHAN, also known as DEBORAH DAHAN and DEBRA DAHAN (hereinafter DEVORAH DAHAN ), are individuals residing in Los Angeles County, California and are husband and wife. ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA -. Plaintiffs are informed and believe and on that basis allege that Defendant SHERRY BURCHELL is an individual residing in Los Angeles County, California and is the sister-in-law of Defendant DANIEL H. DAHAN and the sister of Defendant DEVORAH DAHAN.. The true names and capacities, whether individual, corporate, associate or otherwise, of the Defendants named as DOES 1 through 0, inclusive, are unknown to Plaintiffs who therefore sue said Defendants by such fictitious names, and Plaintiffs will amend this First Amended Complaint to show such true names and capacities when the same have been ascertained.. Plaintiffs are informed and believe and on that basis allege that at all times herein mentioned in this First Amended Complaint Defendants, and each of them, were acting as the agents, servants and employees of the remaining Defendants, and were acting within the purpose and scope of said agency and employment.. On September, 0, an action was commenced by PEOPLE OF THE STATE OF CAIFORNIA, EX. REL. ALLSTATE INSURANCE COMPANY, ALLSTATE INDEMNITY COMPANY, ALLSTATE PROPERTY AND CASUALTY COMPANY, DEERBROOK INSURANCE COMPANY, ALLSTATE COUNTY MUTUAL INSURANCE COMPANY, AND ALLSTATE FIRE AND CASUALTY INSURANCE COMPANY, against Defendant DANIEL H. DAHAN and his affiliated corporation, Progressive Diagnostic Imaging, Inc., a California corporation, in the Superior Court of the State of California for the County of Los Angeles, Case No. BC- in the files and records of this court (the California Action ). The Complaint - -
stated causes of action for violation of the California Insurance Frauds Prevention Act, violation of the California Unfair Competition Act, fraud and deceit, constructive trusts, and equitable lien. A third and final Amended Complaint was filed in said action on June, 0. The matter came on regularly for trial on April, in Department of this Court. Judgment in said action was duly rendered in favor of the Plaintiffs herein and against Defendant herein DANIEL H. DAHAN and entered on November,, in the total sum of $,0,.0. The Judgment became final on February, and prior to the filing of this action. The Judgment has never been appealed, the time for appealing the judgment has expired, and said Judgment has never been vacated or modified. Plaintiffs herein are still the owner of the Judgment and as of the date of filing this First ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - Amended Complaint $0,1. has been collected in enforcement proceedings and applied to pay down the interest accruing on the Judgment. A true and accurate copy of the Judgment is attached hereto as Exhibit A and made a part hereof.. On, or about, October,, Plaintiffs ALLSTATE INSURANCE COMPANY, ALLSTATE INDEMNITY COMPANY and ALLSTATE NEW JERSEY INSURANCE COMPANY commenced a civil action against Defendants DANIEL H. DAHAN and his affiliated companies Practice Perfect and Medical Neurological Diagnostics, Inc. (MNDI), and other defendants, in the Superior Court of the State of New Jersey, Morris County, under docket number MRS-L-- (the New Jersey Action ). Among other things, the complaint stated causes of action for violations of the New Jersey Insurance Fraud Prevention Act, N.J.S.A. :A-1, et. seq, (hereinafter, the IFPA ).. On May,, the Hon. Stephan C. Hansbury, J.S.C. granted the Plaintiffs Motion for Partial Summary Judgment finding that Defendants DANIEL H. DAHAN and MNDI violated the IFPA. On June,, a trial of this matter commenced before Judge Hansbury, sitting without a jury.. On January,, Judge Hansbury issued an Order of Judgment and Statement of Reasons on the issue of liability finding that Defendants DANEIL H. DAHAN, Practice Perfect and Robert P. Borsody, Esq., violated the IFPA and damaged the plaintiffs.. On September,, Judge Hansbury issued an Order of Judgment and - -
Statement of Reasons on the issue of the Plaintiffs' damages and entered judgment in the plaintiffs favor as follows: 1) against Defendants DANIEL H. DAHAN, and Borsody, jointly and severally, in the amount $,1,0.; and ) against Defendants DANIEL H. DAHAN and MNDI in the amount of $,.0.. On October,, Judge Hansbury amended his September th Order of Judgment to include Defendant Practice Perfect as being jointly and severally liable to the Plaintiffs, along with Defendants DANIEL H. DAHAN and Borsody, in the above-stated amount of $,1,0.. This October th Amended Order of Judgment further restated that judgment be entered in the Plaintiffs favor against Defendants DANIEL H. DAHAN and MNDI in the amount ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - of $,.0.. On December,, pursuant to New Jersey Court Rule :, the Clerk of the Superior Court of the State of New Jersey entered that October, judgment in the civil docket under Judgment No. J-. Rule : provides that the notation of a judgment in the Civil Docket constitutes the entry of the judgment, and the judgment shall not take effect before such entry. The Judgment is currently under appeal before the Appellate Division of the Superior Court of the State of New Jersey under consolidated docket no. A-000-T. New Jersey Court Rule :- provides, in pertinent part, that [a] judgment or order in a civil action adjudicating liability for a sum of money which is the subject of an appeal or certification proceedings shall be stayed only upon the posting of a supersedeas bond or other form of security pursuant to Rule :- or a cash deposit pursuant to Rule 1:-(c), unless the court otherwise orders To date, no supersedeas bond, other security, or cash deposit has been posted, and no Order has been issued staying enforcement of the aforementioned judgments. Moreover, to date, the aforementioned judgment has not been vacated, or modified, except as described herein.. Plaintiffs ALLSTATE INSURANCE COMPANY, ALLSTATE INDEMNITY COMPANY and ALLSTATE NEW JERSEY INSURANCE COMPANY are still the owner of the Judgment and as of the date of filing this First Amended Complaint $,0. has been collected in enforcement proceedings. Of that $,0., $,000 was applied in full satisfaction of that - -
portion of the Judgment in the amount of $,.0, and the balance of $,0. was applied to pay down the interest accruing on that portion of the Judgment in the amount of $,1,0.. A true and accurate copy of the Judgment in the New Jersey Action is attached hereto as Exhibit B and made a part hereof.. On or about December,, in with regard to the Judgment in the New Jersey Action, Plaintiffs ALLSTATE INSURANCE COMPANY, ALLSTATE INDEMNITY COMPANY and ALLSTATE NEW JERSEY INSURANCE COMPANY, filed an Application for Entry of Judgment on Sister State Judgment with the Los Angeles County Superior Court in Action No. BS0, a true and accurate copy of which is attached hereto as Exhibit C and made a part ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - hereof.. On or about January,, the Clerk of the Los Angeles County Superior Court entered the Judgment Based on Sister State Judgment in said Action No. BS0. On or about January,, Defendant DANIEL H. DAHAN was personally served with a Notice of Entry of Judgment on Sister-State Judgment in Action No. BS0, a true and accurate copy of which is attached hereto as Exhibit D, and made a part hereof. Pursuant to CCP.0 and., said Judgment in Action No. BS0 became final when Defendant DANIEL H. DAHAN failed to bring a motion to vacate the Judgment within the time provided for by law. FIRST CAUSE OF ACTION (TO SET ASIDE FRAUDULENT TRANSFER OF REAL PROPERTY [Civ. Code.0(a)(1)] (ACTUAL FRAUDLENT INTENT) ). Plaintiffs refer to the allegations set forth in paragraphs 1 through of the General Allegations of this First Amended Complaint and incorporate those allegations herein as if set forth in full.. Plaintiffs are informed and believe and on that basis allege that prior to Plaintiffs filing the New Jersey and California Actions as described hereinabove, that Defendant DANIEL H. DAHAN and his wife, Defendant DEVORAH DAHAN, were the owners and in possession and control of that certain residential real property situated in Los Angeles County, City of Long Beach, commonly known as Cedar Avenue, Long Beach, California, and more particularly described - -
as follows: Lot, Block, Tract No., filed in Map Book, Pages and, Los Angeles County Records. Assessor s Parcel No. 0-00-0. Plaintiffs are informed and believe and on that basis allege that title to Cedar Avenue, Long Beach, CA, was originally vested in Defendants DANIEL H. DAHAN and his wife, Defendant DEVORAH DAHAN by that certain Grant Deed dated August, 0, a true and accurate copy of which is attached hereto as Exhibit E, and made a part hereof.. Plaintiffs are informed and believe and on that basis allege that in January, 0, ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - Defendant DANIEL H. DAHAN purported to deed all of his rights, title, and interest in Cedar Avenue, Long Beach, CA, without consideration, to his wife, Defendant DEVORAH DAHAN by that certain Individual Grant Deed dated January, 0, a true and accurate copy of which is attached hereto as Exhibit F and made a part hereof.. Plaintiffs are informed and believe, and on that basis allege that in January, 0, Defendant DEVORAH DAHAN deeded title to Cedar Avenue, Long Beach, CA, without consideration, back to Defendant DANIEL H. DAHAN and Defendant DEVORAH DAHAN by that certain Individual Grant Deed dated January, 0, a true and accurate copy of which is attached hereto and marked Exhibit G and made a part hereof. Plaintiffs are informed and believe and on that basis allege that the reason DANIEL H. DAHAN, conveyed all of his rights, title and interest, without consideration, in Cedar Avenue, Long Beach, CA, to Defendant DEVORAH DAHAN, was to hinder, delay, or defraud the Plaintiffs in the enforcement of the judgments that Defendants knew Plaintiffs would ultimately secure against Defendant DANIEL H. DAHAN in both the California and New Jersey Actions. Plaintiffs are informed and believe and on that basis allege that the reason Defendant DEVORAH DAHAN conveyed, without consideration, Cedar Avenue, Long Beach, CA, back to Defendants DANIEL H. DAHAN and DEVORAH DAHAN is because said Defendants were advised by counsel that the conveyance of the property from Defendant DANIEL H. DANAN to Defendant DEVORAH DAHAN was clearly a fraudulent transfer to avoid enforcement of Plaintiffs judgments against said property. - -
. Plaintiffs are informed and believe and on that basis allege that on or about September, Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, transferred by Grant Deed Cedar Avenue, Long Beach, CA to Defendant DANIEL H. DAHAN s sister-in-law and Defendant DEVORAH DAHAN s sister, Defendant SHERRY BURCHELL. A true and accurate copy of the Grant Deed is attached hereto as Exhibit H and made a part hereof. Plaintiffs are informed and believe and on that basis allege that from September,, the date of the purported transfer of their residence to Defendant SHERRY BURCHELL, Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, have continued to retain possession and control of said real property transferred to Defendant SHERRY ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - BURCHELL pursuant to a purported lease back arrangement.. Plaintiffs are informed and believe and on that basis allege that at the time Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN transferred their residential real property to Defendant SHERRY BURCHELL, that it was in anticipation of the fact that liability would be imposed upon Defendant DANIEL H. DAHAN in the above-described California and New Jersey Actions that Plaintiffs had pending against Defendant DANIEL H. DAHAN. Plaintiffs are informed and believe and on that basis allege that Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN therefore transferred their residential real property to Defendant SHERRY BURCHELL with actual intent to hinder, delay or defraud the Plaintiffs herein in the enforcement of the judgments that Plaintiffs would ultimately secure against Defendant DANIEL H. DAHAN in the California and New Jersey Actions. 0. Plaintiffs are informed and believe and on that basis allege that in consideration for the aforementioned transfer of real property, Defendant SHERRY BURCHELL allegedly paid $00,000.00 to Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN. At the time of the transfer of said real property, Plaintiffs are informed and believe and on that basis allege that the true fair market value of the property was not less than $1,,000. Plaintiffs are informed and believe and on that basis allege that Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, did not receive reasonably equivalent value in exchange for the transfer of their residential real property to Defendant SHERRY BURCHELL. - -
1. Plaintiffs are informed and believe and on that basis allege that the transfer of Cedar Avenue, Long Beach, CA, by Defendants DANIEL H. DAHAN AND DEVORAH DAHAN to Defendant SHERRY BURCHELL was marked by the following badges of fraud : There had been a prior attempt to fraudulently transfer the property from Defendant DANIEL H. DAHAN to Defendant DEVORAH DAHAN; The property was transferred to an insider in that Defendant SHERRY BURCHELL is the sister in law of Defendant DANIEL H. DAHAN and the sister of Defendant DEVORAH DAHAN; Defendants DANIEL H. DAHAN and DEVORAH DAHAN retained control and possession over the real property after the alleged transfer; the consideration paid was significantly below fair market value; and Defendant DANIEL H. DAHAN had been sued ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - by Plaintiffs and was facing significant liability before the transfer of the property was made.. Plaintiffs are informed and believe and on that basis allege that the above-described residential real property was transferred to Defendant SHERRY BURCHELL with her knowledge that Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, had an actual intent to hinder, delay or defraud the Plaintiffs herein in the enforcement of the judgments that they would ultimately secure against Defendant DANIEL H. DAHAN in said California and New Jersey Actions. Plaintiffs are informed and believe and on that basis allege that Defendant SHERRY BURCHELL had such knowledge by virtue of the fact that prior to the transfer of the real property to her she was aware that Plaintiffs had pending litigation against her brother-in-law, Defendant DANIEL H. DAHAN, wherein he was facing the imposition of substantial liability; that Defendant SHERRY BURCHELL was aware that Defendants DANIEL H. DAHAN and DEVORAH DAHAN were experiencing severe financial problems due in no small part to defending the litigation brought against Defendant DANIEL H. DAHAN by Plaintiffs in both California and New Jersey; and Defendant SHERRY BURCHELL knew that the $00,000 she allegedly paid for the purchase of Cedar Avenue, Long Beach, CA, was significantly below the fair market value of the property. In addition, the alleged purchase transaction bore none of the indicia of a legitimate real estate transaction in that: there was no written purchase agreement; no title report; no title insurance; no written disclosures; no physical inspections of the property were conducted; no termite report was prepared; no title company or escrow service was utilized; and the Grant Deed - -
conveying title to the property to Defendant SHERRY BURCHELL was hurriedly and crudely written out by hand.. Plaintiffs are informed and believe and on that basis allege that as alleged in detail above, on or about September,, Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN and Defendant SHERRY BURCHELL agreed to knowingly and willfully conspire among themselves to hinder, delay and defraud Plaintiffs herein in the enforcement of the judgment Plaintiffs would ultimately secure against Defendant DANIEL H. DAHAN in the California and New Jersey Actions.. Plaintiffs are informed and believe and on that basis allege that under this ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - conspiracy, the above named Defendants agreed to transfer Defendant DANIEL H. DAHAN s and his wife Defendant DEVORAH DAHAN s residential real property to Defendant SHERRY BURCHELL for significantly less than reasonably equivalent value in order to hinder, delay or defraud the Plaintiffs herein in the enforcement of the judgment Plaintiffs would ultimately secure against Defendant DANIEL H. DAHAN in the California and New Jersey Actions.. Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN and Defendant SHERRY BURCHELL did the acts and things herein alleged pursuant to and in furtherance of, the conspiracy and agreement alleged above.. As a direct and proximate result of the transfer by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN s residential real property to Defendant SHERRY BURCHELL for less than reasonably equivalent value, Plaintiffs have been damaged in a sum of not less than $1,,000, and Plaintiffs will seek leave of this court to amend this Complaint when the precise nature and amount of said damages have been ascertained.. The acts and conduct of Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, and Defendant SHERRY BURCHELL, as described herein, were intentional and done with malice, oppression or fraud, thereby entitling Plaintiffs to punitive damages in an amount as determined by this court. WHEREFORE, Plaintiffs pray for Judgment as hereinafter set forth. SECOND CAUSE OF ACTION (TO SET ASIDE FRAUDULENT TRANSFER OF REAL PROPERTY [Civ. Code - -
.0(a)()(B) (Constructive Fraud)]. Plaintiffs refer to the allegations set forth in paragraphs 1 through of this Complaint and incorporates those allegations herein as if set forth in full.. At the time Defendants DANIEL H. DAHAN and DEVORAH DAHAN made the aforementioned transfer of Cedar Avenue, Long Beach, CA to Defendant SHERRY BURCHELL, all said Defendants either believed or reasonably should have believed that Defendant DANIEL H. DAHAN would thereafter incur liability in the California and New Jersey Actions Plaintiffs had pending against him and that it would be beyond his ability to satisfy those judgments. ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - 0. As a direct and proximate result of the transfer by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN s residential real property to Defendant SHERRY BURCHELL for less than reasonably equivalent value, Plaintiffs have been damaged in a sum of not less than $1,,000, and Plaintiffs will seek leave of this court to amend this First Complaint when the precise nature and amount of said damages have been ascertained. WHEREFORE, Plaintiffs pray for Judgment as hereinafter set forth. THIRD CAUSE OF ACTION (TO SET ASIDE FRAUDULENT TRANSFER OF PERSONAL PROPERTY [Civ. Code.0(a)(1)] (ACTUAL FRAUDLENT INTENT) ) 1. Plaintiffs refer to the allegations set forth in paragraphs 1 through 0 of this Complaint and incorporate those allegations herein as if set forth in full.. Plaintiffs are informed and believe and on that basis allege that in, on a date presently unknown to Plaintiffs, Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN transferred to Defendant SHERRY BURCHELL the sum of $0,000.00. Plaintiffs are informed and believe and on that basis allege that Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN received no consideration in return for the transfer of said funds to Defendant SHERRY BURCHELL.. Plaintiffs are informed and believe and on that basis allege that the transfer by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN of $0,000.00 to Defendant - -
SHERRY BURCHELL without receiving consideration in return, was done with an actual intent to hinder, delay or defraud the Plaintiffs in the enforcement of the judgments that Plaintiffs would ultimately secure against Defendant DANIEL H. DAHAN in the California and New Jersey Actions that Plaintiffs had pending against him. Plaintiffs are informed and believe and on that basis allege that the transfer of $0,000 by Defendants DANIEL H. DAHAN and DEVORAH DAHAN to Defendant SHERRY BURCHELL was marked by the following badges of fraud : The funds were transferred to an insider, in that Defendant SHERRY BURCHELL, is the sister- in- law of Defendant DANIEL H. DAHAN and the sister of Defendant DEVORAH DAHAN; In September 0, Defendants DANIEL H. DAHAN and DEVORAH DAHAN had fraudulently ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - transferred the real property located at Cedar Avenue, Long Beach, CA, to Defendant SHERRY BURCHELL; the transfer of the $0,000 to Defendant SHERRY BURCHELL was without consideration; and Defendant DANIEL H. DAHAN had been sued by Plaintiffs and all Defendants knew he was facing significant liability before the transfer of the $0,000 was made.. Plaintiffs are informed and believe and on that basis allege that the above-described $0,000 was transferred to Defendant SHERRY BURCHELL with her knowledge that Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, had an actual intent to hinder, delay or defraud the Plaintiffs herein in the collection of the judgments that they would ultimately secure against Defendant DANIEL H. DAHAN in said California and New Jersey Actions. Plaintiffs are informed and believe and on that basis allege that Defendant SHERRY BURCHELL had such knowledge by virtue of the fact she was an insider with a relationship of trust and confidence with the Defendants in that she is Defendant DANIEL H. DAHAN s sister-in-law and Defendant DEVORAH DAHAN S sister; that prior to the transfer of the $0,000 to her she was aware that Plaintiffs had pending litigation against her brother-in-law, Defendant DANIEL H. DAHAN, wherein he was facing the imposition of substantial liability; that Defendant SHERRY BURCHELL was aware that Defendants DANIEL H. DAHAN and DEVORAH DAHAN were experiencing severe financial problems due in no small part to defending the litigation brought against Defendant DANIEL H. DAHAN by Plaintiffs in both California and New Jersey; that Defendant SHERRY BURCHELL was aware that in September 0, Defendants DANIEL H. DAHAN and - -
DEVORAH DAHAN had fraudulently transferred to her the residential real property located at Cedar Avenue, Long Beach, CA; and Defendant SHERRY BURCHELL knew that the $0,000 was transferred to her without any consideration.. Plaintiffs are informed and believe and on that basis allege that as alleged in detail above, in, on a date presently unknown to Plaintiffs, Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN and Defendant SHERRY BURCHELL agreed to knowingly and willfully conspire among themselves to hinder, delay and defraud Plaintiffs herein in the enforcement of the judgments Plaintiffs would ultimately secure against Defendant DANIEL H. DAHAN in the California and New Jersey Actions. ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA -. Plaintiffs are informed and believe and on that basis allege that under this conspiracy, the above named Defendants agreed to transfer from Defendant DANIEL H. DAHAN s and his wife Defendant DEVORAH DAHAN s to Defendant SHERRY BURCHELL $0,000 without consideration in order to hinder, delay or defraud the Plaintiffs herein in the collection of the judgment Plaintiffs would ultimately secure against Defendant DANIEL H. DAHAN in the California and New Jersey actions.. Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN and Defendant SHERRY BURCHELL did the acts and things herein alleged pursuant to and in furtherance of, the conspiracy and agreement alleged above.. As a direct and proximate result of the transfer by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN of $0,000 to Defendant SHERRY BURCHELL without receiving consideration in return, Plaintiffs have been damaged in a sum of not less than $0,000, and Plaintiffs will seek leave of this court to amend this First Amended Complaint when the precise nature and amount of said damages have been ascertained.. The acts and conduct of Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, and Defendant SHERRY BURCHELL, as described herein, were intentional and done with malice, oppression or fraud, thereby entitling Plaintiffs to punitive damages in an amount as determined by this court. 0. Plaintiffs are informed and believe and on that basis allege that with the $0,000 - -
that was transferred from Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to Defendant SHERRY BURCHELL that the Defendants, and each of them, acquired title to real property, personal property, and have deposited funds in various accounts, including, but not limited to, checking accounts, savings accounts, mutual fund accounts and other accounts. Thus Defendants, and each of them, are involuntary trustees holding said property and profits in constructive trust for Plaintiffs with a duty to convey the same to Plaintiffs forthwith. 1. Plaintiffs are informed and believe and on that basis allege that Defendant SHERRY BURCHELL used the $0,000 that was transferred to her without consideration by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to acquire title to real property, including, ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - but not limited to, the real property commonly known as Piper Lane, Tustin, California. The basis of said information and belief is that on April,, Defendant DANIEL H. DAHAN stated, under oath, that Defendant SHERRY BURCHELL used the $0,000 that he had transferred to her to purchase Piper Lane, Tustin, California. Plaintiffs are thus entitled to and request, equitable relief in the form of a constructive trust upon said real property in the sum of $0,000.. Plaintiffs are presently unaware of the other possible locations where Defendants may have concealed the $0,000 transferred by Defendants DANIEL H. DAHAN and DEVORAH DAHAN to Defendant SHERRY BURCHELL. As further investigation and discovery is conducted in this matter, Plaintiffs will amend this First Amended Complaint to allege other possible locations of said $0,000.. Plaintiffs are informed and believe and on that basis allege that due to the nature of the Defendants conduct alleged herein, Plaintiffs have not been able to identify all real property, personal property, or accounts acquired by Defendants and each of them, with the $0,000 which was transferred by Defendants DANIEL H. DAHAN and DEVORAH DAHAN to Defendant SHERRY BURCHELL as alleged herein; and Plaintiffs are entitled to, and request, equitable relief in the form of a constructive trust, upon all real property, personal property, and accounts which are identified at the time of trial.. Plaintiffs are informed and believe and on that basis allege that the $0,000 - -
transferred by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to Defendant SHERRY BURCHELL can be traced to the purchase, improvement, betterment or deposit into real property, personal property, or accounts at banks, savings & loans, mutual fund companies, corporations, partnerships or other accounts or business entities.. The retention by Defendants, and each of them, of the real property, personal property or accounts purchased, improved, bettered or added to with the $0,000 that Defendants DANIEL H. DAHAN and DEVORAH DAHAN transferred to Defendant SHERRY BURCHELL without consideration would result in unjust enrichment.. Plaintiffs are entitled to, and request, equitable relief in the form of an equitable lien, ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - upon all real property, including but not limited to, the real property commonly known as Piper Lane, Tustin, California, personal property and accounts identified above, which were acquired with the $0,000 as alleged above.. Plaintiffs are entitled to, and request, equitable relief in the form of an equitable lien, upon all real property, including but not limited to, the real property commonly known as Piper Lane, Tustin, California, personal property and accounts identified above, which were acquired with the $0,000 as alleged above.. Plaintiffs are informed and believe and on that basis allege that due to the nature of the Defendants conduct alleged herein, Plaintiffs have not been able to identify all real property, personal property, or accounts acquired by Defendants with the $0,000 transferred by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, to Defendant SHERRY BURCHELL; and Plaintiffs are entitled to, and request, equitable relief in the form of an equitable lien, upon all real property, personal property, and accounts which are identified at the time of trial. WHEREFORE, Plaintiffs pray for Judgment as hereinafter set forth. FOURTH CAUSE OF ACTION (TO SET ASIDE FRAUDULENT TRANSFER OF PERSONAL PROPERTY [Civ. Code.0(a)()(B) (Constructive Fraud)]. Plaintiffs refer to the allegations set forth in paragraphs 1 through of this Complaint and incorporates those allegations herein as if set forth in full. 0. At the time Defendants DANIEL H. DAHAN and DEVORAH DAHAN made the - -
aforementioned transfer of $0,000 to Defendant SHERRY BURCHELL, all said Defendants either believed or reasonably should have believed that Defendant DANIEL H. DAHAN would thereafter incur liability in the California and New Jersey Actions Plaintiffs had pending against him and that it would be beyond his ability to satisfy when the judgments were enforced. 1. As a direct and proximate result of the transfer by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN of $0,000 to Defendant SHERRY BURCHELL without receiving consideration in return, Plaintiffs have been damaged in a sum of not less than $0,000, and Plaintiffs will seek leave of this court to amend this First Amended Complaint when the precise nature and amount of said damages have been ascertained. ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA -. Plaintiffs are informed and believe and on that basis allege that with the $0,000 that was transferred from Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to Defendant SHERRY BURCHELL that the Defendants, and each of them, acquired title to real property, personal property, have deposited funds in various accounts, including, but not limited to, checking accounts, savings accounts, mutual fund accounts and other accounts. Thus Defendants, and each of them, are involuntary trustees holding said property and profits in constructive trust for Plaintiffs with a duty to convey the same to Plaintiffs forthwith.. Plaintiffs are informed and believe and on that basis allege that Defendant SHERRY BURCHELL used the $0,000 that was transferred to her without consideration by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to acquire title to real property, including, but not limited to, the real property commonly known as Piper Lane, Tustin, California. Plaintiffs are thus entitled to and request, equitable relief in the form of a constructive trust upon said real property in the sum of $0,000.. Plaintiffs are presently unaware of the other possible locations where Defendants may have concealed the $0,000 transferred by Defendants DANIEL H. DAHAN and DEVORAH DAHAN to Defendant SHERRY BURCHELL. As further investigation and discovery is conducted in this matter, Plaintiffs will amend First Amended Complaint to allege other possible locations of said $0,000.. Plaintiffs are informed and believe and on that basis allege that due to the nature of - -
the Defendants conduct alleged herein, Plaintiffs have not been able to identify all real property, personal property, or accounts acquired by Defendants and each of them, with the $0,000 which was transferred by Defendants DANIEL H. DAHAN and DEVORAH DAHAN to Defendant SHERRY BURCHELL as alleged herein; and Plaintiffs are entitled to, and request, equitable relief in the form of a constructive trust, upon all real property, personal property, and accounts which are identified at the time of trial.. Plaintiffs are informed and believe and on that basis allege that the $0,000 transferred by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to Defendant SHERRY BURCHELL can be traced to the purchase, improvement, betterment or deposit into real ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - property, personal property, or accounts at banks, savings & loans, mutual fund companies, corporations, partnerships or other accounts or business entities.. The retention by Defendants, and each of them, of the real property, personal property or accounts purchased, improved, bettered or added to with the $0,000 that Defendants DANIEL H. DAHAN and DEVORAH DAHAN transferred to Defendant SHERRY BURCHELL without consideration would result in unjust enrichment.. Plaintiffs are entitled to, and request, equitable relief in the form of an equitable lien, upon all real property, including but not limited to, the real property commonly known as Piper Lane, Tustin, California, personal property and accounts identified above, which were acquired with the $0,000 as alleged above.. Plaintiffs are entitled to, and request, equitable relief in the form of an equitable lien, upon all real property, including but not limited to, the real property commonly known as Piper Lane, Tustin, California, personal property and accounts identified above, which were acquired with the $0,000 as alleged above. 0. Plaintiffs are informed and believe and on that basis allege that due to the nature of the Defendants conduct alleged herein, Plaintiffs have not been able to identify all real property, personal property, or accounts acquired by Defendants with the $0,000 transferred by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN, to Defendant SHERRY BURCHELL; and Plaintiffs are entitled to, and request, equitable relief in the form of an equitable lien, upon all - -
real property, personal property, and accounts which are identified at the time of trial. PRAYER WHEREFORE, Plaintiffs pray for Judgment against Defendants as follows: On the First and Second Causes of Action Against Defendants, and Each of Them, as Follows: 1. That the conveyance from Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to Defendant SHERRY BURCHELL of the residential real property located at Cedar Avenue, Long Beach, California 00 be set aside and declared void as to Plaintiffs herein to the extent necessary to satisfy Plaintiffs Judgment in the California Action in sum of ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - $,0,.0, plus interest thereon at the rate of % per annum according to proof at trial, less any amounts collected in enforcement proceedings according to proof at trial and to the extent necessary to satisfy Plaintiff s Judgment in the New Jersey Action in the sum of $,1,0., plus interest thereon at the rate of % per annum from according to proof at trial, less any amounts collected in enforcement proceedings according to proof at trial;. For general damages in a sum of not less than $1,,000, the precise amount to be determined according to proof at trial; On the First and Third Causes of Action Against Defendants, and Each of Them as Follows:. For exemplary or punitive damages in amount according to proof at trial; On the Third and Fourth Causes of Action Against Defendants, and Each of Them as Follows:. That the $0,000 transferred from Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN to Defendant SHERRY BURCHELL be set aside as to the Plaintiffs herein to the extent necessary to satisfy Plaintiffs Judgment in the California Action in sum of $,0,.0, plus interest thereon at the rate of % per annum from according to proof at trial, less any amounts collected in enforcement proceedings according to proof at trial and to the extent necessary to satisfy Plaintiff s Judgment in the New Jersey Action in the sum of $,1,0., plus interest thereon at the rate of % per annum from according to proof at trial, less any amounts collected in enforcement proceedings according to proof at trial; - -
. For general damages in a sum of not less than $0,000, the precise amount to be determined according to proof at trial;. That the court impose a constructive trust on Defendants, as constructive trustees, for the benefit of Plaintiffs, with respect to any real property, including but not limited to Piper Lane, Tustin, California, or personal property, to prevent the transfer, concealment and/or dissipation of property that was acquired with the $0,000 that was transferred by Defendants DANIEL H. DAHAN and DEVORAH DAHAN to Defendant SHERRY BURCHELL;. That the court impose an equitable lien on Defendants, and each of them, to prevent said Defendants from retaining and enjoying the benefits of any property acquired with the ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - $0,000 that was transferred from Defendants DANIEL H. DAHAN and DEVORAH DAHAN to Defendant SHERRY BURCHELL without consideration. On the All Causes of Action Against Defendants, and Each of Them as Follows:. That the hereinabove real and personal property in the hands of Defendant SHERRY BURCHELL be attached in accordance with provisions of sections 1.0 through.00 of the Code of Civil Procedure;. That Defendant SHERRY BURCHELL be restrained from disposing of the hereinabove real and personal property transferred to her by Defendants DANIEL H. DAHAN and his wife DEVORAH DAHAN;. That a Temporary Restraining Order be granted Plaintiffs enjoining and restraining Defendant SHERRY BURCHELL and her representatives, attorneys, servants and agents from selling, transferring, conveying or otherwise disposing of any of the hereinabove described property transferred to her;. That an Order Pendente Lite be granted to Plaintiffs enjoining and restraining Defendant SHERRY BURCHELL and her representatives, attorneys, servants and agents from selling, transferring, conveying or otherwise disposing of any of the hereinabove described property transferred to her;. That the judgment herein be declared a lien on the property transferred;. That an order be made declaring that Defendant SHERRY BURCHELL holds all of - -
the above-described transferred property in trust for Plaintiffs;. That Defendant SHERRY BURCHELL be required to account to Plaintiffs for all profits and proceeds earned from or taken in exchange for the hereinabove property described above;. For costs of suit herein incurred; and. For such other and further relief as the court may deem proper. Dated: June, KNOX RICKSEN LLP ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - By: Reid M. Miller Attorneys for Plaintiffs - -
Re: Allstate Insurance. Co., et al v. Daniel H. Dahan, et al. Los Angeles County Superior Court No.: BC0 Our File No.: Allst-00 PROOF OF SERVICE Civil [Code of Civ. Proc.,, 1a,.] 1. I am a citizen of the United States and am employed in the County of Alameda, State of California. I am over the age of years and not a party to the within action.. My place of employment is One Kaiser Plaza, Suite, Oakland, CA.. On the date set forth below, I caused to be served a true and correct copy of the document(s) described as: ONE KAISER PLAZA SUITE OAKLAND, CALIFORNIA - FIRST AMENDED COMPLAINT TO SET ASIDE FRAUDULENT TRANSFERS, CONSTRUCTIVE TRUST, EQUITABLE LIEN, AND FOR. I served the document(s) on the persons below, as follows: Steven R. Friedman, Esq. Law Offices of Steven R. Friedman 0 Century Park East, Suite Los Angeles, CA 00 Attorney for Defendant Sherry Burchell Kenneth E. McDonald, Esq. John C. Scholz, Esq. Lerner & McDonald Hutton Centre Drive, Suite Santa Ana, CA 0 Attorneys for Defendants Daniel H. Dahan and Devorah Dahan. The document was served BY UNITED STATES MAIL. I enclosed the documents in a sealed envelope or package addressed to the persons at the addresses in item and (specify one): (1) deposited the sealed envelope with the United States Postal Services, with the postage fully prepaid. () placed the envelope for collection and mailing, following our ordinary business practices. I am readily familiar with this business s practice for collecting and processing correspondence for mailing. On the same day that correspondence is placed for collection and mailing, it is deposited in the ordinary course of business with the United States Postal Service, in a sealed envelope with postage fully prepaid. (State) I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. (Federal) I declare that I am employed in the offices of a member of the bar of this court at whose direction this service was made. I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct. Executed on June,, at Oakland, California. Maria L. Calpe - -