Ebensteiner Co., Inc. v. Chadmar Group

In Ebensteiner Co., Inc. v. Chadmar Group (2006) 143 Cal.App.4th 1174, the plaintiff filed a second amended complaint (SAC) alleging causes of action for constructive fraud, conspiracy to defraud, and breach of fiduciary duty against the defendant. (Ebensteiner, supra, 143 Cal.App.4th at p. 1176.) The trial court sustained the defendant's demurrer to the SAC and entered an order of dismissal. While the plaintiff's appeal was pending, the parties entered into a settlement agreement, whereby the plaintiff released the defendant of all causes of action and agreed to dismiss the SAC. (Id. at pp. 1176-1177.) The court dismissed the appeal on the ground that the settlement agreement "rendered moot the issue of whether the demurrer dismissal should have been entered." (Id. at p. 1176.) The Court or Appeal dismissed an appeal from a judgment entered after the trial court sustained a demurrer without leave to amend. While the appeal was pending, the parties agreed to a settlement that resolved their dispute and released the defendant from liability. (Id. at p. 1176.) In dismissing the appeal, the Ebensteiner court explained it could not grant the plaintiff any effective relief because even if the court concluded the plaintiff had adequately alleged a claim to overcome the defendant's demurrer that claim nonetheless would be barred by the parties' settlement and release. (Id. at p. 1180.)