Judge: Anne Richardson, Case: 22STCV37273, Date: 2023-04-11 Tentative Ruling
Case Number: 22STCV37273 Hearing Date: April 11, 2023 Dept: 40
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NEFER FERNANDEZ, an individual Plaintiff, v. JAVIER MEIER BORRANI, an individual; RFRM COLLECTIVE, an entity
form unknown; JMB STUDIO INC, a California corporation; DOES 1 through 20,
inclusive, Defendants. |
Case No.: 22STCV37273 Hearing Date: 4/11/23 Trial Date: N/A [TENTATIVE] RULING RE: Defendants Javier
Meier Borrani, RFRM Collective, and JMB Studio, Inc.’s Demurrer to Complaint. |
Plaintiff Nefer Fernandez sues Defendants Javier Meier Borrani, RFRM
Collective, and JMB Studio, Inc.
pursuant to the following allegations.
Plaintiff Nefer Fernandez and
Defendant Javier Meier Borrani attended architectural school together between
2010 and 2014 with Borrani graduating in 2014 and Fernandez graduating in 2015.
Fernandez and Borrani began working
together on architectural projects named “NF House,” “BR16,” and “BR17” in,
around, or after this time.
On March 1, 2021, Fernandez and
Borrani, either individually or with Defendant JMB Studio, entered into a
partnership agreement under the name RFRM Collective for the purpose of
providing architectural services. (The Complaint attaches the agreement as
Exhibit 1 to the Complaint.)
The terms of the partnership
provided that Fernandez would contribute his labor to the partnership from
March 1, 2021 to November 26, 2021, consisting of 70-hour workweeks, for no
compensation, in exchange for a 50% interest in the partnership, and that
Fernandez would share profits and losses equally and share in the management of
RFRM Collective.
During the partnership, Fernandez (1)
provided architectural services, servicing RFRM’s clients and co-managing RFRM
Collective with Borrani, including hiring and terminating employees, and (2)
was given the title of “partner,” being represented as a partner for RFRM
Collective to clients and employees, representations which Borrani, RFRM
Collective, and JMB Studio ratified.
On or about September 16, 2022,
Borrani informed Fernandez that he was terminated from the RFRM Collective
partnership to the exclusion of Fernandez’s clients and all partnership assets
and materials.
Based on these allegations, on
November 28, 2022, Fernandez sued Borrani, RFRM Collective, and JMB Studio
pursuant to a Complaint alleging seven causes of action: (1) Breach of
Partnership Agreement; (2) Breach of Fiduciary Duty; (3) Fraud; (4) Fraudulent
Misrepresentation; (5) Partnership Accounting; (6) Declaratory Relief by
Wrongfully Excluded Partner; and (7) Injunctive Relief. The Complaint’s prayer
for relief seeks damages in an amount exceeding $700,000 or an amount to be
proven at trial, interest from the date of breach of the partnership agreement
or other date approved by the Court, and other and further relief deemed proper
by the Court.
On January 20, 2023, Defendants
Borrani, RFRM Collective, and JMB Studio demurred to the Complaint’s seven
causes of action on various grounds.
On March 28, 2023, Plaintiff
Fernandez opposed the demurrer.
On April 4, 2023, Boranni, RFRM
Collective, and JMB studio filed a reply for the March 28th opposition.
The demurrer is now before the
Court.
The Court DECLINES to take judicial
notice of the Fictitious Business Name Statements stating that RFRM Collective
was the dba for JMB Studio because the Court analyzes the demurrer strictly
based on the pleadings and exhibits attached thereto. (See Opp’n, RJN; see also
Evid. Code, §§ 452, subd. (h), 453; see also Blank v. Kirwan (1985) 39
Cal.3d 311, 318 [a demurrer can be used only to challenge defects that appear
on the face of the pleading under attack, or from matters outside the pleading
that are judicially noticeable, connoting the use of judicial notice is to show
the insufficiency of the pleadings in a complaint through the recognition of
contradictory information contained in a judicially noticeable source rather
than to bolster the complaint’s allegations through extrinsic evidence].)
Defendant Javier Meier Borrani’s Objections
to Exhibits 1 and 2 of the Opposition Request for Judicial Notice are SUSTAINED
for the reasons stated above.
Preliminary Consideration – Timeliness of Demurrer
Though not raised by the parties,
the Court notes that although Defendant Meier acknowledges the untimeliness of
his demurrer through counsel (Demurrer, Yun Decl., ¶¶ 1-6), Plaintiff Fernandez
has put the demurrer at issue by responding to the demurrer on the merits. (Alliance
Bank v. Murray (1984) 161 Cal.App.3d 1, 7 [waiver of any objection to
late-filed motion based on response to the motion on the merits]; Carlton v.
Quint (2000) 77 Cal.App.4th 690, 697 [no waiver to late-filed motion where
opposition was comprised of mere objections, and raised no arguments on the
merits].)
Misjoinder of Parties Demurrer Standard and Analysis
A defendant can file a special
demurrer to a complaint on the ground that there is a defect or misjoinder of
parties. (Code Civ. Proc., § 430.10, subd. (d).) A defect of parties means that
there is a person or entity that should be a party to the action but is not,
i.e., a necessary or indispensable party. (See Union Carbide Corp. v. Superior
Court (1984) 36 Cal.3d 15, 19 [demurrer brought for nonjoinder of
indispensable parties]; see also Van Zant v Apple, Inc. (2014) 229
Cal.App.4th 965, 973.)
Defendant Borrani, RFRM Collective,
and JMB Studio demur to the Complaint on the ground that the Complaint exhibits
a “nonjoinder of the partnership,” apparently arguing that “JMB Studio” was not
properly joined to the Complaint. (Demurrer, 7:2-10.)
The Court finds this argument
unavailing because Borrani, RFRM Collective (the partnership referred to in the
Complaint), and JMB Studio were all joined to this action as defendants. If Borrani,
RFRM Collective, and JMB Studio are instead arguing that one or more of them
are not proper defendants in this action because, for example, they were not a
party to the RFRM Collective partnership agreement between Fernandez and Borrani,
misjoinder of parties is not the proper ground to challenge the Complaint on
those grounds.
The demurrer is therefore OVERRULED
insofar as it is premised on misjoinder of parties grounds.
Demurrer Uncertainty Standard
A demurrer to a pleading lies where
the pleading is uncertain, ambiguous, or unintelligible. (Code Civ. Proc. §
430.10, subd. (f).) “A demurrer for uncertainty is strictly construed, even
where a complaint is in some respects uncertain, because ambiguities can be
clarified under modern discovery procedures.” (Khoury v. Maly's of
California, Inc. (1993) 14 Cal.App.4th 612, 616.)
While the notice for the demurrer
provides Code of Civil Procedure section 430.10, subdivision (f) as a ground therefor,
and while the Legal Standard section of the demurrer mentions this statutory
subdivision, arguments related thereto are not properly elaborated in the
points and authorities to support a determination sustaining the demurrer on
these grounds.
The demurrer is therefore OVERRULED
insofar as it is premised on uncertainty in pleading grounds.
Unascertainable Contract Demurrer Standard
In a contract action, a defendant
can file a special demurrer to a complaint on the ground that it cannot be
determined from the pleadings whether the contract is written, oral, or implied
by conduct. (Code Civ. Proc., § 430.10 (g); see Holcomb v. Wells Fargo Bank
(2007) 155 Cal.App.4th 490, 500-01.)
While the notice for the demurrer
provides Code of Civil Procedure section 430.10, subdivision (g) as one of its grounds,
and while the Legal Standard section of the demurrer mentions this statutory
subdivision, arguments related thereto are not properly elaborated in the
points and authorities to support a determination sustaining the demurrer on
these grounds.
Further, the type of contract at
issue in the Complaint is clear: the RFRM Collective partnership agreement
executed by Plaintiff Fernandez and Defendant Borrani is attached to the
Complaint as Exhibit 1.
The demurrer is therefore OVERRULED
insofar as it is premised on unascertainable type of contract grounds.
Remaining Discussion
The remainder of this discussion
analyzes the demurrer in light of Code of Civil Procedure section 430.10,
subdivision (e), sufficiency of pleading.
Demurrer Sufficiency Standard
A demurrer for sufficiency tests
whether the complaint states a cause of action. (Hahn v. Mirda (2007)
147 Cal.App.4th 740, 747; see Code Civ. Proc., § 430.10, subd. (e).) This
device can be used only to challenge defects that appear on the face of the
pleading under attack or from matters outside the pleading that are judicially
noticeable. (Blank v. Kirwan, supra, 39 Cal.3d at p. 318.) “To
survive a [general] demurrer, the complaint need only allege facts sufficient
to state a cause of action; each evidentiary fact that might eventually form
part of the plaintiff’s proof need not be alleged.” (C.A. v. William S. Hart
Union High School Dist. (2012) 53 Cal.4th 861, 872.) In testing the
sufficiency of the cause of action, the demurrer admits the truth of all
material facts properly pleaded. (Aubry v. Tri-City Hospital Dist.
(1992) 2 Cal.4th 962, 966-67.) A demurrer, however, “does not admit
contentions, deductions or conclusions of fact or law.” (Daar v. Yellow Cab
Co. (1967) 67 Cal.2d 695, 713.) When considering demurrers, courts read the
allegations liberally and in context. (Taylor v. City of Los Angeles Dept.
of Water and Power (2006) 144 Cal.App.4th 1216, 1228, disapproved on other
grounds, Jones v. Lodge at Torrey Pines Partnership (2008) 42 Cal.4th
1158, 1162.) The face of the complaint includes exhibits attached to the
complaint. (Frantz v. Blackwell (1987) 189 Cal.App.3d 91, 94.) If facts
appearing in the exhibits contradict those alleged, the facts in the exhibits
take precedence. (Holland v. Morse Diesel Intern., Inc. (2001) 86
Cal.App.4th 1443, 1447, superseded by statute on other grounds as stated in White
v. Cridlebaugh (2009) 178 Cal.App.4th 506, 521.)
Complaint, First Cause of Action, Breach of Partnership
Agreement [Corp. Code, § 16405, subd. (b)(1); Civ. Code, § 3300]: SUSTAINED
as to JMB Studio, With Leave to Amend.
The first cause of action is
pleaded against Borrani, RFRM Collective, JMB Studio, and Does 1 through 20 and
alleges breach of partnership agreement pursuant to Corporations Code section
16405, subdivision (b)(1) and Civil Code section 3300 on the grounds that they “breached the Partnership by repudiating the
existence of the Partnership and denying Plaintiff’s interest in the
Partnership business and Partnership assets, and by converting Partnership
assets to its own use, those assets consisting of the Partnership’s account
receivables, clients, and good will, among others.” (Complaint, ¶ 18.)
Defendants Borrani, RFRM
Collective, and JMB demur to the first cause of action on the grounds that the
claim is defectively pleaded against JMB Studio where the “alleged partnership
agreement attached as Exhibit 1 to Plaintiff’s complaint fails to identify
Defendant JMB Studio, Inc. as a part to the agreement” contemplated as breached
in the first cause of action. (Demurrer., 7:2-7.)
In opposition, Plaintiff argues in
relevant part that the first cause of action is properly pleaded because the
claim incorporates prior allegations made in the Complaint, which include
allegations that JMB Studio was one of the parties that entered into the
partnership agreement. (See Opp’n, 11:6-12:12 [citing paragraph 10 of the
Complaint in particular for the pleading that “on or about March 1, 2021,
FERNANDEZ and BORRANI, either individually or with JMB STUDIO, entered into the
Partnership, under the name RFRM COLLECTIVE, to provide architectural services”].)
Plaintiff also refers the Court to documents attached to his request for
judicial notice showing that JMB Studio has filed Fictitious Business Name
Statements with the County of Los Angeles indicating that it operates as RFRM
Collective. (Opp’n, 12:12-13:11; see Opp’n, RJN, Exs. 1-2.) The Court notes,
however, that such documents are not a part of the face of the Complaint,
either through pleading or attachment of exhibits. (See Complaint generally;
see also Judicial Notice discussion supra.)
In reply, Defendants Borrani, RFRM
Collective, and JMB argue in relevant part that Plaintiff ignores the scope of
the partnership agreement attached to the Complaint and instead improperly points
the Court to extrinsic evidence that should not be considered on demurrer, and
even were such evidence considered, it fails to tie JMB Studio to the
partnership agreement because JMB Studio was not a party thereto and the
partnership agreement contemplates a “Reform Collective,” not “RFRM
Collective.” (Reply, 2:22-3:22.)
The Court agrees with Defendants to
a point.
The Court notes that the Complaint
sufficiently pleads that the partnership agreement at Exhibit 1 is an agreement
relating to a partnership under the name of RFRM Collective because such
pleadings are a reasonable construction of the partnership agreement.
However, the Court agrees that the
partnership agreement undercuts the pleadings in the body of the Complaint as
to JMB Studio.
The face of the Complaint includes
the partnership agreement attached to the Complaint as Exhibit 1. (Frantz v.
Blackwell, supra, 189 Cal.App.3d at p. 94.) Facts appearing therein
supersede allegations in the body of the Complaint to the extent the two
contradict one another. (Holland v. Morse Diesel Intern., Inc., supra,
86 Cal.App.4th at p. 1447.) The Complaint alleges that JMB Studio is a party to
the agreement. (Complaint, ¶ 18.) Yet, a review of the partnership agreement
fails to show that JMB Studio is tied to the agreement, instead showing
signatures by Plaintiff Fernandez and Defendant Borrani, with Defendant RFRM
Collective arguably being the overall partnership contemplated by the agreement
itself. (See Complaint, Ex. 1.) Because the partnership agreement and
allegations in the body of the Complaint contradict each other as to whether
JMB Studio is a party to the agreement, the copy of the agreement takes
precedence. (Holland v. Morse Diesel Intern., Inc., supra, 86
Cal.App.4th at p. 1447.) The face of the Complaint therefore fails to show JMB
Studio is a party to the partnership agreement, for which reason JMB Studio
cannot be liable for the breach of partnership agreement contemplated in the
Complaint’s first cause of action.
Plaintiff Fernandez’s Fictitious
Business Name Statements are not attached to the Complaint. Therefore, they are
not part of the pleadings and not considered in analyzing Defendants’ demurrer.
(See Judicial Notice discussion supra.)
Defendant Boranni, RFRM Collective,
and JMB Studio’s demurrer to the first cause of action is thus SUSTAINED as to
JMB Studio, With Leave to Amend.
Complaint, Second Cause of Action, Breach of Fiduciary
Duty [Corp. Code, §§ 16404, subd. (c), 16405, subd. (b)(2)(A): SUSTAINED
as to JMB Studio, With Leave to Amend.
The Complaint’s second cause of
action is pleaded against Defendants Borrani, RFRM Collective, JMB Studio, and
Does 1 through 20 and alleges breach of fiduciary duty on the grounds that
Defendants “breached their fiduciary duty to Plaintiff by removing him from the
Partnership for their own personal gain, greed and profit, thereby taking a[n]
improper and illegal adverse interest to a partner of the Partnership,” by “intentionally
repudiating the existence of the Partnership and denying Plaintiff’s interest
in the Partnership business, and by converting Partnership assets to its own
use.” (Complaint, ¶¶ 22-23.)
Defendants Borrani, RFRM
Collective, and JMB Studio demur to the second cause of action on the grounds
that “Plaintiff cannot come close to satisfying the standards for stating a
cause of action against JMB Studio, Inc. for a breach of fiduciary duty” where
“[t]here are no facts ple[ade]d in either the summary of facts (Complaint ¶¶
7-14) or in the Second Cause of Action for Breach of Fiduciary Duty (Complaint
¶¶ 21-26) that identify any legally-imposed fiduciary relationship between
FERNANDEZ and Defendant JMB STUDIO, INC.” (Demurrer, 7:24-28.)
In opposition, Plaintiff references
the paragraphs in the Complaint stating the elements of breach of fiduciary
duty against JMB Studio and further references JMB Studio’s dba filings as
evidence that JMB Studio in fact operated as RFRM Collective. (See Opp’n,
13:19-14:11.)
In reply, Defendants Borrani, RFRM
Collective, and JMB Studio argue that “Plaintiff has not alleged anything more
than a duplicative claim for contract damages” and cannot show JMB Studio “is …
a party to the subject contract identified in Exhibit 1 to Plaintiff s
Complaint.” (Reply, 3:23-4:6.)
The Court agrees with Defendants’
argument as to JMB Studio not owing Plaintiff Fernandez fiduciary duties based
on the face of the Complaint.
The Court adopts its discussion as
to the first cause of action concluding that JMB Studio is not shown by the
face of the Complaint to be a party to the partnership agreement attached as
Exhibit 1 to the Complaint. If fiduciary duties to Plaintiff flow from that
agreement (see Complaint, ¶¶ 7-14, 21-26), JMB Studio’s non-party status to the
agreement defeats any breach of fiduciary duty claim against it.
Defendant Boranni, RFRM Collective,
and JMB Studio’s demurrer to the second cause of action is thus SUSTAINED as to
JMB Studio, With Leave to Amend.
Complaint, Third Cause of Action, Fraud [Corp. Code, §§
1709, 3333]: SUSTAINED as to JMB Studio, With Leave to Amend.
The Complaint’s third cause of
action is pleaded against Defendants Borrani, RFRM Collective, JMB Studio, and
Does 1 through 20 and alleges fraud on the grounds that “[b]y entering into the
Partnership agreement, Defendants promised that Defendants and Plaintiff would share
equally in the ownership of the Partnership business and assets and in the
profits and losses of the Partnership business,” which was false. (Complaint, ¶
28.)
In relevant part, Defendants
Borrani, RFRM Collective, and JMB Studio demur to the third cause of action on
the grounds that “there are zero facts whatsoever as to any alleged statements
or acts committed by Defendant JMB STUDIO, INC. to support Plaintiff’s
fraud-related claims.” (Demurrer, 9:21-13.)
In opposition and in relevant part,
Plaintiff argues that that the Complaint properly pleads misrepresentations by
JMB Studio at paragraph 28 of the Complaint. (Opp’n, 15:9-11.)
In reply, Defendants Borrani, RFRM
Collective, and JMB Studio argue that “Plaintiff was unable to cite to specific
facts pled in the Complaint to support the[] two [fraud claims] against
Defendant JMB Studio.” (Reply, 4:16-17.)
The Court agrees with Defendants.
The Complaint pleads allegations directly
naming JMB Studio in paragraphs 4, 10, 14, 18, 23, and 32. None of these
pleadings specifically state what misrepresentations JMB Studio made to
Plaintiff Fernandez. (See Complaint, ¶¶ 4, 10, 14, 18, 23, 32.) To the extent
that paragraph 28 is relied on to support the fraud claim, such allegations are
insufficient to properly plead this cause of action against JMB Studio.
Paragraph 28 merely argues that the collective Defendants made
misrepresentations as to benefits Plaintiff would receive by entering the
partnership agreement. (See Complaint, ¶ 28.) However, the Court has determined
that JMB Studio is not shown by the pleadings to have been a party to the
partnership agreement at issue. (See First Cause of Action discussion supra;
see also Complaint, Ex. 1.) As a result, paragraph 28 of the Complaint rings
hollow as a ground for arguing that the pleadings allege that JMB Studio was
tied to the misrepresentations allegedly made to Plaintiff Fernandez.
Defendant Boranni, RFRM Collective,
and JMB Studio’s demurrer to the third cause of action is thus SUSTAINED as to
JMB Studio, With Leave to Amend.
Complaint, Fourth Cause of Action, Fraudulent
Misrepresentation [Civ. Code, §§ 1567, 1571, 1572]: SUSTAINED as to All
Defendants, With Leave to Amend.
The Complaint’s fourth cause of
action is pleaded against Defendants Borrani, RFRM Collective, JMB Studio, and
Does 1 through 20 and alleges fraudulent misrepresentation on the grounds that these
Defendants owed fiduciary duties to Plaintiff Fernandez by virtue of the
partnership agreement, that Defendants breached such duties by excluding
Plaintiff from the partnership business and assets and by securing an advantage
over Plaintiff by misleading him to his prejudice, and that Plaintiff placed
confidence and relied on Defendants through September 16, 2022, when Plaintiff
discovered Defendants’ actions related to breach of their fiduciary duties.
(Complaint, ¶¶ 36-38.)
In relevant part, Defendants
Borrani, RFRM Collective, and JMB Studio demur to the fourth cause of action on
ground that the fourth cause of action is duplicative to the second cause of
action for breach of fiduciary duty. (Demurrer, 8:6-9:8.)
In opposition, Plaintiff argues in
relevant part that Plaintiff may plead causes of action in the alternative, for
which reason the fourth cause of action may survive demurrer. (Opp’n,
16:21-25.)
In reply, Defendants Borrani, RFRM
Collective, and JMB Studio fail to argue duplicativeness as to the fourth cause
of action. (Reply, 4:10-24.)
The Court agrees with Defendants.
A general demurrer for sufficiency
may be sustained against duplicative claims. (Palm Springs Villas II
Homeowners Assn., Inc. v. Parth (2016) 248 Cal.App.4th 268, 290 [“a cause
of action for breach of governing documents [that] appear[ed] to be duplicative
of [a] cause of action for breach of fiduciary duty” is “recognized … as a
basis for sustaining a demurrer”]; Rodrigues v. Campbell Industries
(1978) 87 Cal.App.3d 494, 501 [finding demurrer was properly sustained without
leave to amend as to cause of action that contained allegations of other causes
and “thus add[ed] nothing to the complaint by way of fact or theory of
recovery”]; see also Award Metals, Inc. v. Superior Court (1991) 228
Cal.App.3d 1128, 1135 [demurrer should have been sustained as to duplicative
causes of action].)
The fourth cause of action is
pleaded under a header for fraudulent misrepresentation but reads like a breach
of fiduciary duty claim unconvincingly dressed as a fraud claim. (Compare
Complaint, ¶¶ 36-38, with Complaint, ¶¶ 22-23 [fiduciary duties based on
partnership agreement and harm to Plaintiff based on breach thereof].) As
pleaded, the fraudulent misrepresentation claim therefore merely restates the
breach of fiduciary duty claim, making it subject to general demurrer. (Palm
Springs Villas II Homeowners Assn., Inc. v. Parth, supra, 248
Cal.App.4th at p. 277.)
Defendant Boranni, RFRM Collective,
and JMB Studio’s demurrer to the fourth cause of action is thus SUSTAINED as to
All Defendants, With Leave to Amend.
Complaint, Fifth Cause of Action, Partnership Accounting
[Corp. Code, § 1405, subd. (b)]: SUSTAINED as to JMB Studio, With Leave
to Amend.
The Complaint’s fifth cause of
action is pleaded against Defendants Borrani, RFRM Collective, JMB Studio, and
Does 1 through 20 and alleges partnership accounting on the grounds that on or
about September 16, 2022, Defendants “assumed sole possession and control of
the Partnership to the exclusion of Plaintiff … without making any accounting
to Plaintiff of the income or disbursements, or of the net profits or losses
realized by the Partnership,” “conduct [which was] wrongful, in that it was [a]
violation of the Partnership agreement, (which gives each partner equal rights
in the management and conduct of the partnership business,) and was a breach of
Defendants’ fiduciary duties of loyalty and care to Plaintiff.” (Complaint, ¶
43.)
Defendants Borrani, RFRM
Collective, and JMB Studio demur to the fifth cause of action on the grounds
that Plaintiff seeks an accounting from JMB Studio where there are no facts to
support any partnership between these two parties and where Exhibit 1 to the
Complaint does not identify JMB Studio as a party to the partnership agreement.
(Demurrer, 10:7-11.)
In opposition and in relevant part,
Plaintiff argues that JMB is properly tied to the fifth cause of action as a
pleaded partner in RFRM Collective. (Opp’n, 17:1-8 [citing to paragraph 10 of
the Complaint to tie JMB Studio as party to partnership agreement].)
In reply, Defendants Borrani, RFRM
Collective, and JMB Studio argue that “Plaintiff relies upon one paragraph to
support his claim that Defendant JMB Studio was a party to an alleged
partnership agreement,” i.e., paragraph 10, but where JMB Studio is not shown
to be a party to that agreement by Exhibit 1 to the Complaint. (Reply,
4:27-5:2.)
The Court agrees with Defendants.
The Court adopts its discussion as
to the first cause of action to find that because the face of the Complaint, as
shaped by Exhibit 1 to the Complaint, fails to plead that JMB Studio was a
party to the partnership agreement at issue, JMB Studio cannot owe an
accounting duty to Plaintiff related to the RFRM Collective partnership. (See
First Cause of Action discussion supra.)
Defendant Boranni, RFRM Collective,
and JMB Studio’s demurrer to the fifth cause of action is thus SUSTAINED as to
JMB Studio, With Leave to Amend.
Complaint, Sixth Cause of Action, Declaratory Relief by
Wrongfully Excluded Partner [Corp. Code, §§ 16401, subd. (f), 16405, subd.
(b)(1): SUSTAINED as to JMB
Studio, With Leave to Amend.
The sixth cause of action is
pleaded against Defendants Borrani, RFRM Collective, JMB Studio, and Does 1
through 20 and alleges a claim for Declaratory Relief on the grounds that a
controversy exists between the parties as to issues related to the partnership
agreement attached as Exhibit 1 to the Complaint. (See Complaint, ¶¶ 47-50.)
In relevant part, Defendants
Borrani, RFRM Collective, and JMB Studio demur to the sixth cause of action on
the ground that JMB Studio is not a party to the partnership agreement pursuant
to a reading thereof. (See Demurrer, 10:23-24; see also Complaint, Ex. 1.)
In opposition and in relevant part,
Plaintiff again relies on the extrinsic dba filings by JMB Studio to support an
argument that JMB Studio is properly tied to the partnership agreement. (Opp’n,
19:2-8.)
In reply, Defendants Borrani, RFRM
Collective, and JMB Studio argue that the sixth cause of action fails where
“the written contract attached as Exhibit 1 to the Complaint fails to identify
JMB Studio, Inc. as a party to the contract.” (Reply, 5:6-9.)
The Court agrees with Defendants.
The Court adopts its discussion as
to the first cause of action to find that if JMB Studio is not properly shown by
the face of the Complaint to be a party to the partnership agreement at issue,
there can be no controversy related to rights and duties between Plaintiff and JMB
Studio as to the RFRM Collective partnership. (See First Cause of Action
discussion supra.)
Defendant Boranni, RFRM Collective,
and JMB Studio’s demurrer to the sixth cause of action is thus SUSTAINED as to
JMB Studio, With Leave to Amend.
Complaint, Seventh Cause of Action, Injunctive Relief:
SUSTAINED as to JMB Studio, With Leave to Amend.
The seventh cause of action is
pleaded against Defendants Borrani, RFRM Collective, JMB Studio, and Does 1
through 20 and alleges a claim for Injunctive Relief seeking to restrain these
Defendants’ ability to engage in damaging behavior to Plaintiff by continuing
to operate the RFRM partnership to Plaintiff’s detriment. (See Complaint, ¶¶ 52-56.)
In relevant part, Defendants
Borrani, RFRM Collective, and JMB Studio demur to the seventh cause of action
on the same ground as their demurrer to the sixth cause of action: JMB Studio
is not a party to the partnership agreement pursuant to a reading thereof. (See
Demurrer, 10:23-24; see also Complaint, Ex. 1.)
In opposition and in relevant part,
Plaintiff argues that the Complaint properly pleads allegations that JMB Studio
is a party to the partnership agreement (see, e.g., Complaint, ¶ 10), and
further argues that the extrinsic dba filings by JMB Studio support this
conclusion by showing the RFRM Collective partnership is a dba for JMB Studio.
(Opp’n, 19:10-20:6.)
In reply, Defendants Borrani, RFRM
Collective, and JMB Studio argue that the seventh cause of action fails where
“the written contract attached as Exhibit 1 to the Complaint fails to identify
JMB Studio, Inc. as a party to the contract.” (Reply, 5:6-9.)
The Court agrees with Defendants.
The Court adopts its discussion as
to the first cause of action to find that if JMB Studio is not properly shown
by the face of the Complaint to be a party to the partnership agreement at
issue, there can be no grounds to restrain JMB Studio’s behavior related to the
RFRM Collective partnership. (See First Cause of Action discussion supra.)
Defendant Boranni, RFRM Collective,
and JMB Studio’s demurrer to the seventh cause of action is thus SUSTAINED as
to JMB Studio, With Leave to Amend.
Defendants Javier Meier Borrani, RFRM Collective, and JMB Studio,
Inc.’s Demurrer to Complaint is SUSTAINED, in Full, With Leave to Amend,
because the seven causes of action pleaded therein do not sufficiently allege
how Defendant JMB Studio, Inc. should be tied the partnership agreement that
undergirds all seven claims.
Plaintiff is given FOURTEEN CALENDAR DAYS to file an amended pleading.