Sup A
Sup A
159556)
pmurphy@murphyrosen.com
2 DANIEL N. CSILLAG (State Bar No. 266773)
dcsillag@murphyrosen.com
3 STELLA CHANG (State Bar No. 335851)
schang@murphyrosen.com
4 MURPHY ROSEN LLP
100 Wilshire Boulevard, Suite 1300
5 Santa Monica, California 90401-1142
Telephone: (310) 899-3300
6 Facsimile: (310) 399-7201
7 Attorneys for Defendant and
Cross-Complainant Angelina Jolie
8
21
22
23
24
25
26
27
28
11
12
TELEPHONE 310-899-3300; FACSIMILE 310-399-7201
100 WILSHIRE BOULEVARD, SUITE 1300
13
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
6 Dominguez v. Bonta,
87 Cal.App.5th 389 (2022) ...................................................................................................... 6
7
Drink Tank Ventures LLC v. Real Soda in Real Bottles, Ltd.,
8 71 Cal.App.5th 528 (2021) .................................................................................................... 11
9 Greenspan v. LADT LLC,
10 191 Cal.App.4th 486 (2003) .................................................................................................... 5
Horath v. Hess,
100 WILSHIRE BOULEVARD, SUITE 1300
24 Statutes
25 California Corporations Code § 17703.04(a)(2) ............................................................................ 4
26 California Corporations Code § 17704.01(a)................................................................................. 4
27
28
13 (2000). Because Jolie is not a party to the Quimicum Articles, Mondo attempts to manufacture a
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 contractual relationship by claiming that Jolie, as Nouvel’s alter ego, breached the covenant of
15 good faith and fair dealing in the Quimicum Articles. But the Corporations Code does not
16 permit alter ego liability to attach to an LLC’s member “solely by reason of the member acting
17 as a member.” Corp. Code § 17703.04(a)(2). Mondo’s only response to Jolie’s reliance on this
18 section is to call it “contrived” in a footnote, (Opp. at 11 n.3), but the statute says what it says.
19 Pitt’s only other response is to argue that he established a unity of interest between Jolie
20 and Nouvel by alleging Jolie formed Nouvel to hold assets and to “hide” her name. (Opp. at 9.)
21 But these are completely legitimate and acceptable reasons for forming an LLC. Every LLC is
22 obviously going to hold assets—and in the case of single-member LLCs, the purpose will always
23 be to benefit the single member. California law specifically recognizes single-member LLCs as
24 legitimate enterprises too. Corp. Code § 17704.01(a). If Mondo’s theory is actionable, every
25 single-member LLC automatically satisfies the unity of interest factor even though it fully
26 complies with the statute. That is not the law and Mondo cites no authority for the proposition.
27 Moreover, members of LLCs routinely use this corporate form to protect their personal
28 privacy by using a corporate name that is different from their own, and there is absolutely
13 meaning of that word. A shell is an entity with no assets, but by Mondo’s own admission,
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 Nouvel held and still holds extremely valuable assets, including real property, 50% of
15 Quimicum’s shares worth tens of millions of dollars, and millions of dollars of loans receivables
16 due from Quimicum. (Demurrer at 11; TAC ¶¶ 35, 112, 180.) That is simply not a shell. In its
17 Opposition, Mondo completely ignored Jolie’s arguments on this point.
18 Mondo also does not dispute that Nouvel is appropriately capitalized. (See Opp. at 10.)
19 Instead, Mondo argues—without citing any allegations in the TAC—that Nouvel’s lack of debt
20 somehow supports alter ego. (See id.) But it is exactly the opposite. By being debt-free while
21 holding tens of millions of dollars in assets, this is further confirmation that Nouvel remains a
22 free-standing, solvent entity, giving this Court no reason to disregard its corporate form.
23 Injustice: Pitt and Jolie both utilized LLCs to purchase Miraval in 2008. In 2013, those
24 LLCs executed a written contract, the Quimicum Articles, outlining their rights and
25 responsibilities as Quimicum shareholders. Despite both parties knowing that the LLCs were
26 owned by Pitt and Jolie, they chose not to include the individual owners as parties to the
27 Quimicum Articles. That choice has consequences.
28 Mondo now pleads that it would nonetheless be unfair if Jolie is not held to be Nouvel’s
13 In her demurrer, Jolie cited Dominguez v. Bonta, 87 Cal.App.5th 389, 398 (2022), for the
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 proposition that the Court does not accept as true unsupported speculation, even on demurrer.
15 (Demurrer at 12.) Mondo did not respond to this authority. And even if Nouvel’s new owner
16 later strips it of assets, Jolie has no control over Nouvel, and cannot be held to be the alter ego of
17 a formerly owned company because somebody else might later transfer those assets to some
18 other person or entity. And while it is true that Mondo’s inability to plead inadequate assets does
19 not, alone, destroy its alter-ego theory, it certainly guts Mondo’s argument that alter-ego liability
20 is necessary to guard against unfairness or an empty judgment.
21 The Court was right to sustain Jolie’s demurrer to Mondo’s alter-ego theory before, and it
22 should do so again. As the TAC admits, the parties always treated Nouvel as an entity separate
23 from Jolie—evidenced by Mondo’s decision to contract with Nouvel and not with Jolie. The
24 Court should sustain Jolie’s demurrer to the implied covenant claim for this reason alone.
25 2. Mondo Bongo’s Implied Covenant Claim Fails on the Merits.
26 The implied covenant claim also fails on the merits. It is undisputed that the Quimicum
27 Articles prohibit only one thing relevant here: “Shares (parts sociales) may not be transferred
28 inter vivos to non-shareholders unless shareholders representing at least three-quarters of the
13 and for which neither one received any consideration. Had the parties intended this transfer
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 restriction to apply to Jolie and Pitt, the Quimicum Articles would have expressly stated this and
15 required both Pitt and Jolie to sign the contract. Having failed to contractually bind Pitt and
16 Jolie, the Court is without power to expand the transfer restriction to include these non-parties.
17 See Guz v. Bechtel Nat’l, Inc., 24 Cal.4th 317, 349-50 (2000) (implied covenant “cannot impose
18 substantive duties or limits on the contracting parties beyond those incorporated in the specific
19 terms of their agreement”).
20 Mondo has no answer to the Quimicum Articles’ simple provision, so it tries to muddy
21 the waters by arguing that the word “transfer” is somehow ambiguous. (Opp. at 13.) It is not.
22 A transfer of stock is just that—a transfer from one shareholder to another party. It is not an
23 “indirect” sale of a corporate owner of the shares. The Court need look no further than the
24 transfer restriction section in the Quimicum Articles to demonstrate the point. Throughout the
25 section, entitled “Transfer of Shares (parts sociales),” the articles repeatedly discuss transfers
26 of shares and their ramifications. For example, “Transfers of Shares (parts sociales) must be
27 recorded by notarial or private deed” and “recorded in the shareholders’ register in accordance
28 with Article 185 of the Law.” (TAC, Exh. 1 at Article 5.4, 5.4.4 and 5.6.) If transfers included
13 concluded that the ambiguity existed in a limited circumstance: only “where an agreement does
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 not specifically state that the right of first refusal applies to transfers of stock ownership.”
15 Mieuli v. DeBartolo, 2001 U.S. Dist. Lexis 22518, at *4 (N.D. Cal. Jan. 16, 2001) (emphasis
16 added). In Mieuli, the contract governed transfers of interests, not stock specifically, which
17 created the potential ambiguity. But here, the Quimicum Articles do in fact specifically state that
18 the transfer restriction applies to transfers of stock, so Mondo’s ambiguity argument fails even
19 under Mieuli. While Mondo engages in linguistic gymnastics (without directly quoting the case)
20 to try to claim that Mieuli actually helps their case (and that Jolie somehow mischaracterizes it),
21 Jolie encourages the Court to read the case. It says exactly what Jolie says it does.
22 Moreover, the ambiguity that Mondo alleges must still result in an objectively reasonable
23 interpretation. “When a dispute arises over the meaning of contract language, the first question to
24 be decided is whether the language is ‘reasonably susceptible’ to the interpretation urged by the
25 party. If it is not, the case is over.” Horath v. Hess, 225 Cal.App.4th 456, 464 (2014). Here, the
26 transfer restriction is not reasonably susceptible to Mondo’s interpretation because, as discussed
27 above, it ignores how the Quimicum Articles repeatedly use that same term, and would require
28 the Court to interpret the contract as binding non-parties and non-signatories to the contract. Yet,
13 sale made more costly or burdensome. (Demurrer at 16.) In its Opposition, Mondo failed the
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 challenge and was unable to cite any provision in the Quimicum Articles that Jolie disrupted—
15 whether by cost or through burden. Not one provision. Rather than address the dispositive
16 deficiency this Court already highlighted, Mondo pretended Jolie did not address disruption.
17 (Opp. at 15.) Not only did Jolie address it, but the Court also addressed it and made it the basis
18 of its last ruling. It was incumbent on Mondo to include new allegations addressing this point,
19 and then identify those allegations in response to Jolie’s demurrer. By failing to allege or
20 identify a single provision that Jolie’s sale made more difficult or costly (as opposed to actions
21 taken by the buyer thereafter), Mondo has not only effectively conceded that its claim is infirm
22 but that its allegations are not correctable by amendment.
23 As for actual breach, as Jolie demonstrated above, Nouvel did not breach the Quimicum
24 Articles when Jolie sold Nouvel. The transfer restriction applies to “shares,” Jolie is not a
25 signatory to the Quimicum Articles, and Jolie is not referenced anywhere in that document. As a
26 result, Nouvel could not breach the Quimicum Articles when its owner Jolie sold Nouvel.
27 Mondo also fails to explain how Jolie’s sale was “designed” to disrupt the Quimicum
28 Articles. Again, Mondo does not cite a single provision that was disrupted. As it acknowledges
13 Mondo the legal basis for its ruling and the guidance Mondo needed to fix its legal deficiencies
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 for this claim—if it could. Mondo tried and failed. The Court should now sustain Jolie’s
15 demurrer to this claim again, and this time without leave to amend.
16 C. Plaintiffs’ Interference With Prospective Business Relations Claim Fails.
17 Economic relationship with third party. The first element requires “an economic
18 relationship between the plaintiff and some third party, with the probability of future economic
19 benefit to the plaintiff.” Korea Supply v. Lockheed, 29 Cal.4th 1134, 1153 (2003). In her
20 demurrer, Jolie highlighted that Plaintiffs’ theory fails as a matter of law because Jolie is not
21 “some third party” to the disruption, but the counterparty to the negotiation that was allegedly
22 disrupted. In opposition, Pitt backpedals and claims that the disrupted negotiation was not with
23 Jolie but with Nouvel. (Opp. at 19.) The problem with this argument is that the TAC expressly
24 says otherwise: “In particular, but for Defendants’ tortious conduct, there was a reasonable
25 probability that Pitt would have purchased Nouvel’s Quimicum shares as a result of his
26 negotiations with Jolie and Nouvel.” (TAC ¶ 253 (emphasis added).) Far from trying to have it
27 both ways, Jolie is simply attacking the TAC’s express allegations. As Jolie stated in the
28 demurrer, there is no authority that permits a party disappointed with a failed deal to sue the
13 contractual relationship,’ that third party’s business is still up for grabs.” Drink Tank Ventures
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 LLC v. Real Soda in Real Bottles, Ltd., 71 Cal.App.5th 528, 539 (2021). Neither Jolie nor
15 Nouvel ever consummated a sale contract with Pitt or Mondo, so their business was “still up for
16 grabs.” Jolie was therefore free to pursue a transaction with another party to sell Nouvel itself
17 and did not interfere with the prospective relationship with Pitt and Mondo.
18 Designed to disrupt. Similarly, the TAC does not explain how Jolie’s decision to sell
19 Nouvel to Stoli instead of Pitt was specifically “designed” to disrupt Plaintiffs’ potential future
20 relationships with Chateau Miraval, S.A., Miraval Provence, Nouvel, Familles Perrin, and Marc
21 Perrin as part of the “family business” plan. The sale would not inherently do so, and the TAC
22 does not explain why the new owner would ever want to interfere with that plan or with the
23 prospective relationships with these other persons and entities. In fact, all that Plaintiffs can
24 manage to allege is not disruption of any identified potential economic relationships, but the
25 disruption of the same amorphous business plan “of holding Miraval as a family-owned and
26 operated business attached to Pitt’s celebrity image.” (TAC ¶ 253.). Plaintiffs not only failed to
27 allege what potential contractual relationships were interfered with because of the supposed
28 change of “plan,” they have not the alleged any design to disrupt that plan.
13 The only other independently wrongful acts plaintiffs allege are violations of French and
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 Luxembourgish law. Jolie’s demurrer demonstrated that she is not subject to either foreign law
15 under the analysis outlined by the California Supreme Court and the presumption that California,
16 as the forum, “‘can only apply its own law.’” Hurtado v. Superior Court, 11 Cal.3d 574, 581
17 (1974) (quoting Reich v. Purcell, 67 Cal.2d 551, 553 (1967)). See also Washington Mutual Bank
18 v. Superior Court, 24 Cal.4th 906, 914–15 (2001) (when “the action involves the claims of
19 residents from outside California, the trial court may analyze the governmental interests”).
20 Instead of addressing the detailed argument Jolie presented, Plaintiffs ignored it entirely,
21 claiming the Court has “already rejected Jolie’s precise argument” in a different demurrer that
22 Plaintiffs filed in response to Nouvel’s Cross-Complaint. (Opp. at 20 (citing page 9 of the
23 Court’s March 18, 2024 Order.) But in that separate demurrer, the Court never even considered
24 Jolie’s argument. As page 9 of that March 18, 2024 Order confirms, nowhere does the Court
25 analyze whether any party is subject to foreign law—and rightfully so: the Court found that
26 Nouvel pleaded independently wrongful conduct by alleging that Pitt and Mondo engaged in
27 “theft or conversion” and by “breaching their duty to act in the best interest of Chateau Miraval
28 to protect its assets.” (March 18, 2024 Order at 9.) With two legally recognized independently
13 corporate profits.”). Plaintiffs also cannot use the disruption of the negotiations with Jolie as a
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14 proximate cause for unspecified harm to Plaintiffs’ relationships with other Miraval-related
15 parties where Plaintiffs do not allege any actual disruption of those existing relationships, or
16 explain why Jolie’s sale is likely to interfere with the “multi-million global business” Plaintiffs
17 jointly created with them. (TAC ¶ 3.) Finally, interference with an alleged “business strategy,”
18 without factual allegations tying that change of strategy to some articulatable, proximately
19 caused economic detriment, is simply too speculative and undefined to be actionable.
20 Plaintiffs’ vague and shifting prospective economic advantage claim remains legally
21 infirm. The Court should sustain the demurrer to this cause of action without leave to amend.
22 III. CONCLUSION
23 Plaintiffs’ Opposition offers no new reasons for the Court to depart from its prior ruling
24 sustaining Jolie’s demurrer to all three of these claims. The Court should therefore sustain
25 Jolie’s demurrer, and this time without leave to amend.
26 DATED: August 13, 2024 MURPHY ROSEN LLP
~
27
f
By:
28 Paul D. Murphy, Daniel N. Csillag
Attorneys for Angelina Jolie
unsuccessful.
100 WILSHIRE BOULEVARD, SUITE 1300
13
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
[State] I declare under penalty of perjury under the laws of the State of California that
14 the above is true and correct.
15 Executed on August 13, 2024, at Santa Monica, California.
16
17 Christina M. Garibay
18
19
20
21
22
23
24
25
26
27
28
RAttarson@birdmarella.com
100 WILSHIRE BOULEVARD, SUITE 1300
13 kminutelli@birdmarella.com
MURPHY ROSEN LLP
SANTA MONICA, CA 90401-1142
14
Jonathan Moses Attorneys for Cross-Defendants Roland
15 Adam L. Goodman Venturini and Gary Bradbury appearing
Jessica L. Layden specially to challenge jurisdiction
16 Ioannis D. Drivas
WACHTELL, LIPTON, ROSEN & KATZ
17
51 West 52nd Street
18 New York, NY 10019
T: (212) 403-1000 F: (212) 403-2000
19 jmmoses@wlrk.com
algoodman@wlrk.com
20 jllayden@wlrk.com
iddrivas@wlrk.com
21
Attorneys for Cross-Defendants Roland
22 Laura W. Brill Venturini and Gary Bradbury appearing
Matthew P. Bernstein specially to challenge jurisdiction
23 Daniel Barlava
KENDALL BRILL & KELLY LLP
24 10100 Santa Monica Blvd., Suite 1725
25 Los Angeles, CA 90067
Telephone: (310) 556-2700
26 lbrill@kbkfirm.com
mbernstein@kbkfirm.com
27 dbarlava@kbkfirm.com
28
CRAVATH SWAINE AND MOORE LLP B.V., SPI Group Holding, Ltd., Yuri
14 825 Eighth Avenue Shelfer and Alexey Oliynik
New York, NY 10019
15 T: (212) 474-1000 F: (212) 474-3700
khummel@cravath.com
16 jcclarke@cravath.com
jmooney@cravath.com
17 Attorneys appearing specially to challenge
jurisdiction on behalf of Cross-Defendants
18 Mark T. Drooks Marc-Olivier Perrin, SAS Miraval
Debbie Throckmorton Provence, and SAS Familles Perrin
19 Assistant to Mark Drooks
BIRD MARELLA, BOXER, WOLPERT,
20 NESSIM, DROOKS, LINCENBERG &
RHOW, P.C.
21
1875 Century Park East, Suite 2300
22 Los Angeles, CA 90067
Tel: (310) 201-2100
23 Fax: (310) 201-2110
mdrooks@birdmarella.com
24 dthrockmorton@birdmarella.com
25
26
27
28