Case Explained: SERENITY INVESTMENTS, LLC, ET AL. V. SUN HUNG KAI STRATEGIC CAPITAL, LTD., ET AL.

Court: United States Court of Appeals for the Ninth Circuit Filed: 2026-07-29 Docket: 4:22-cv-01623- The Ninth Circuit reversed the district court’s grant of summary judgment in favor of third-party defendants Orrick, Herrington & Sutcliffe LLP and Scenic Advisement, Inc., holding that under California law, conversion is a strict liability tort for which equitable indemnity is available against negligent joint tortfeasors. The court reasoned that because conversion does not require proof of wrongful intent or motive, it lacks the social condemnation associated with intentional torts like fraud or battery, thereby permitting apportionment of liability under California’s comparative fault principles. Consequently, the case was remanded for further proceedings consistent with this ruling. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.