HILLTOP 5, LLC VS. JIANGUANG ZHANG, ET AL.

June 23, 2026 Law and Motion Calendar PAGE 43 Judge: HONORABLE NANCY L. FINEMAN, Department 04 ________________________________________________________________________

2:00 PM LINE 19 26-CIV-03692 HILLTOP 5, LLC VS. JIANGUANG ZHANG, ET AL.

HILLTOP 5, LLC KEVIN S EIKENBERRY JIANGUANG ZHANG

DEFENDANT ZERS DOUGLAS, LLC’S MOTION TO EXPUNGE LIS PENDENS

TENTATIVE RULING:

Defendant Zers Douglas, LLC (“Zers LLC”) moves for an order expunging a lis pendens filed by Plaintiff Hilltop 5, LLC, pursuant to Code of Civil Procedure section 405.30 on real property located at 524 Oak Grove Avenue, Burlingame, CA (the Property).

A party to an action who asserts a “real property claim” may record a notice of pendency of action (“lis pendens”) in the office of the recorder of each county in which the real property is situated. (Code Civ. Proc., § 405.20.) A “real property claim” is defined as “[a] cause or causes of action in a pleading which would, if meritorious, affect (a) title to, or the right to possession of, specific real property or (b) the use of an easement identified in the pleading.” (Code Civ. Proc., § 405.4.)

Defendant argues that Plaintiff’s pleading does not contain a real property claim because Plaintiff seeks only declaratory relief and that Plaintiff’s ultimate objective is not to take title but to satisfy a money judgment. The Court disagrees because the declaratory relief claim is based upon a real property claim that supports a valid lis pendens.

Plaintiff obtained an abstract judgment against Defendant Zhang and recorded it with the San Mateo County Recorder’s Office, creating a judgment lien against Defendant Zhang that attaches to all interests in real property held by Zhang. (Eikenberry Decl., ¶ 10, Ex. C, Recorded Abstract Judgment; See also, Code Civ. Proc., §§ 697.310, subd. (a), 697.340, subd. (a).) Plaintiff’s complaint alleges that Defendant Zhang is using Defendant Zers LLC as an alter-ego to hold title to real property such that the property cannot be reached by Plaintiff and other creditors.

A successful judgment in this action would result in the property being treated as belonging to Defendant Zhang and thus subject to Plaintiff’s judgment lien. Such a judgment would affect the title of the Property. For the purpose of this motion, the allegations in the Complaint sufficiently support the claim that Zhang has used Zers LLC as an alter-ego and that the latter holds title to the Property for the benefit of Zhang.

Under Code of Civil Procedure section 405.33, the Court shall order a conditional expungement where “the real property claim has probably validity, but adequate relief can be secured to the claimant by the giving of an undertaking.” Here, a conditional expungement is appropriate because the real property claim has probable validity but Plaintiff is interested only in the monetary value of the property. (See Trapasso v. Superior Court (1977) 73 Cal.App.3d 561, 567-

June 23, 2026 Law and Motion Calendar PAGE 44 Judge: HONORABLE NANCY L. FINEMAN, Department 04 ________________________________________________________________________ 68 [where complaint established that plaintiff was only interested in the monetary value of the property, trial court did not abuse its discretion by determining that plaintiff would be afforded adequate relief by defendant’s furnishing security].)

Here, both parties seek an order expunging the lis pendens, conditioned on the deposit of the net sellers proceeds into an interest-bearing trust account. However, the parties disagree as to the amount of the proceeds.

The preliminary title report on the Property indicates that it is subject to a mechanics lien of $104,151.50, recorded on April 17, 2025, a $1,350,000 deed of trust recorded on April 25, 2025, and the lis pendens recorded in this action on May 11, 2026. (Eikenberry Decl., ¶ 15, Ex. D, Preliminary Report, at p. 4-5.) Plaintiff does not propose including those amounts in the net seller’s proceeds.

The Estimated Seller’s Closing Statement shows net sellers proceeds of $917,624.67. It also shows three payoffs totaling $1,720,646.10 for the following: • an estimated $1,416,000.00 to Mahmoud Ghezavat; • an estimated $102,053.44 to GC Alminim, Inc.; and • an estimated $202,592.78 to Xanadu Construction.

(Eikenberry Decl., ¶18, Ex. E, Estimated Seller’s Closing Statement, at p. 1)

Plaintiff argues that the three payoffs are of “questionable validity.” The Xanadu lien was recorded on April 17, 2025. Under Civil Code 8460(a), Xanadu was required to file a lawsuit to foreclose its lien by July 16, 2025. Plaintiff alleges it has not done so; thus the lien is invalid. Plaintiff characterizes the payouts to Mahmoud Ghezavat and CG Alminim, Inc., as “a mystery.” The Preliminary Title Report does not show any liens or other exceptions to title in favor of those two payees. Plaintiff asserts that Zers LLC (through Zhang or judgment debtor Zers Development Inc.) likely caused deeds of trust in favor of Mahmoud Ghezavat and CG Alminim Inc. to be recorded in the San Mateo County Recorder’s Offices on June 1, 2026, and June 3, 2026, as Instruments #2026-031232 and 2026-031824, respectively.

Plaintiff does not have copies of those recorded deeds of trust and claims they have not yet been imaged by the county recorder and made public. (Eikenberry Decl., ¶¶ 19.)

Plaintiff alleges that as a result of its efforts to enforce and collect the subject judgment, Zhang and judgment-debtor Zers Development, Inc. have caused Zers LLC to take action – by not contesting the Xanadu lien and by signing and recording two deeds of trust on the property on June 1 and June 3, 2026, to shield, divert and abscond with $1,720,646.10 in net sellers proceeds – to reduce the net sellers proceeds from the sale of the property. (Eikenberry Decl., ¶ 20.)

Absent the above three payoffs, the total net sellers proceeds would be $2,638,270.77 ($1,720,646.10 + $917,624.67). Given the requirement that an undertaking be sufficient to “indemnify the claimant for all damages proximately resulting from the expungement,” the Court finds $2,638,270.77 to be an appropriate amount to be held in escrow pending resolution of this

June 23, 2026 Law and Motion Calendar PAGE 45 Judge: HONORABLE NANCY L. FINEMAN, Department 04 ________________________________________________________________________ matter, as a condition to expunging the lis pendens on the Property. (See Code Civ. Proc., § 405.33.)

Accordingly, the Court GRANTS Defendant’s Application for Expungement of Lis Pendens on the following conditions:

1. The Lis Pendens recorded by Plaintiff Hilltop 5, LLC in this action on May 11, 2026 as Instrument No. 2026-026767 of the San Mateo County Recorder’s Office against the real property commonly known as 524 Oak Grove Avenue, Burlingame, CA 94010 (APN-029- 083-020) is expunged effective upon the performance of the conditions set forth below;

2. Upon the close of the pending sale of the Property, pursuant to Old Republic Title Company Escrow No. 1115040918-CT, net seller’s proceeds of $2,638, 270.77 shall be disbursed from and paid out of escrow in the form of a check payable to “Clerk, San Mateo County Superior Court” with a memo notation on said check “for deposit in case # 26-CIV-03692.” Said check shall be delivered by messenger to the Clerk at the Clerk’s office located on the first floor of the courthouse located at 400 County Center, Redwood City, CA.

The Clerk shall issue a receipt for said check and provide the receipt to the messenger. A copy of said check and the receipt issued by the Clerk shall be forward by Old Republic Title Company to counsel for Plaintiff Hilltop 5, LLC by email sent to Kevin@EikenberryLawFirm.com and to counsel for Defendant Zers Douglas LLC by email to Janry.mak@gmail.com. Once net seller’s proceeds are paid and received by the Court they shall be deposited into an interest-bearing account until such time as the Court in this action determines entitlement thereto; and

3. Contemporaneously with the close of the pending sale of the Property, the mechanics lien recorded on the Property on April 17, 2025 as Instrument No. 2025-18492 of the San Mateo County Recorder’s Office, the deed of trust recorded on the Property on June 1, 2026 as Instrument No. 2026-031232 of the San Mateo County Recorder’s Office, and the deed of trust recorded on the Property on June 3, 2026 as Instrument No. 2026-031824 of the San Mateo County Recorder’s Office are removed, reconveyed and extinguished as liens that encumber the Property.

To the extent that any or all of those recorded documents create any lien rights, such lien rights are transferred to the net seller’s proceeds of $2,638,270,77 deposited with the Court. Counsel for the parties are to meet-and-confer for the proper form of any documents that need to be recorded and to effectuate the signing and filing of the documents.

The Court separately orders that plaintiff serve Xanadu Construction, Mahmoud Ghezavat, and CG Alminim with notice of this Order and the Complaint in this action and file proofs of service with the Court within 14 days of notice of entry of this order.

If the tentative ruling is uncontested, it shall become the order of the Court. Thereafter, counsel for Plaintiff shall prepare for the Court’s signature a written order and judgment in two separate documents consistent with the Court’s ruling, pursuant to California Rules of Court, rule 3.1312,

June 23, 2026 Law and Motion Calendar PAGE 46 Judge: HONORABLE NANCY L. FINEMAN, Department 04 ________________________________________________________________________ and provide written notice of the ruling to all parties who have appeared in the action, as required by law and by the California Rules of Court.