Judge: Armen Tamzarian, Case: 24STCV30406, Date: 2025-05-14 Tentative Ruling

Case Number: 24STCV30406    Hearing Date: May 14, 2025    Dept: 52

Defendants’ Demurrer and Motion to Strike Portions of Complaint         

Demurrer

            Defendants K Rad Development Inc. and Kevin Radzinsky demur to all four causes of action alleged by plaintiffs David D. Kremenetsky and Tatyana Belenkaya.

1st Cause of Action: Breach of Contract

            Plaintiffs allege sufficient facts for this cause of action.  The elements of breach of contract are: “(1) the existence of the contract, (2) plaintiff’s performance or excuse for nonperformance, (3) defendant’s breach, and (4) the resulting damages to the plaintiff.”  (Oasis West Realty, LLC v. Goldman (2011) 51 Cal.4th 811, 821.) 

Defendants challenge the first element.  They argue the complaint is uncertain because it refers to three separate contracts.  A complaint alleging breach of contract “may plead the legal effect of the contract” and is not required to attach the contract or plead its terms verbatim.  (Construction Protective Services, Inc. v. TIG Specialty Ins. Co. (2002) 29 Cal.4th 189, 199.)  The complaint alleges, “Plaintiffs entered into three separate written contracts with” defendants “for work on the house at the Subject Property, which included, but was not limited to, the following: stucco, weep screed, drywall, insulation, texture, prime, painting and caulking… .”  (Comp., ¶ 7.)  Regardless of the number of contracts, the legal effect is clear enough: plaintiffs agreed to pay defendants to perform various repairs or renovations on their property.  Plaintiffs allege defendants breached the contracts in several ways, which can be summarized as doing poor work on the project.  (Comp., ¶ 9.)  The complaint is sufficiently certain as to this cause of action.

2nd Cause of Action: Fraud

            Plaintiffs do not allege fraud with the specificity required.  The elements of fraud are: “(a) misrepresentation; (b) defendant’s knowledge of the statement’s falsity; (c) intent to defraud (i.e., to induce action in reliance on the misrepresentation); (d) justifiable reliance; and (e) resulting damage.”  (Hunter v. Up-Right, Inc. (1993) 6 Cal.4th 1174, 1184.)  “[F]raud must be pled specifically.”  (Lazar v. Superior Court (1996) 12 Cal.4th 631, 645.)  “ ‘This particularity requirement necessitates pleading facts which show how, when, where, to whom, and by what means the representations were tendered.’ ”  (Ibid.) 

The complaint alleges, “[I]n or about August or September of 2022, RADZINSKY communicated to Plaintiffs both orally and in writing that Contractor Defendants were capable of repairing all of the issues for which Plaintiffs contracted on the Project.  Furthermore, in or about the same time and the same manner, RADZINSKY communicated to Plaintiffs that the work Contractor Defendants were performing on the Project was being conducted pursuant to professional contractor standards and consistent with the applicable building codes.  However, these representations were false and untrue.”  (¶ 13.)  “If Plaintiffs had known of the falsity of the representations made by RADZINSKY and the material facts concealed by him … Plaintiffs would not have entered into the three written contracts with Contractor Defendants … and would not have allowed them to work on the Project.”  (¶ 14.)

These allegations are not sufficiently specific.  Allegations merely stating that someone made false promises or never intended to perform “are the very sort of general and conclusory allegations that are insufficient to state a fraud claim.”  (Reeder v. Specialized Loan Servicing LLC (2020) 52 Cal.App.5th 795, 804.)  A fraud claim fails where the “plaintiff has alleged no facts or circumstances suggesting defendants’ intent not to perform the alleged promise when it was made.  ‘It is insufficient to show an unkept but honest promise, or mere subsequent failure of performance.’  [Citation.]  Plaintiff has alleged no facts or surrounding circumstances suggesting anything more.”  (Ibid.)  

When pleading promissory fraud, “it is indispensable to set forth the falsity of the promise at the time it was tendered.  [Citation.]  In so differentiating a false promise from the great bulk of broken promises, the allegations necessary to show contemporaneous intention not to perform should be clear, specific, and unequivocal.”  (Hills Transp. Co. v. Southwest Forest Industries, Inc. (1968) 266 Cal.App.2d 702, 708.)  A complaint is insufficient when it lacks “any statement of fact to back up its claim of a false promise made with intent to deceive and without intent to perform.”  (Ibid.)

Plaintiffs allege no facts or surrounding circumstances suggesting more than contractors doing bad work on their property.  Plaintiffs “ha[ve] done nothing more than recast” their other claims “in the traditional words of fraud, without any supporting facts.”  (Goldrich v. Natural Y Surgical Specialties, Inc. (1994) 25 Cal.App.4th 772, 783.)

3rd Cause of Action: “Property Damage”

Plaintiffs do not allege sufficient facts for this purported cause of action.  There is no such cause of action or tort as “property damage.”  The complaint’s third cause of action asserts nothing different from the fourth cause of action for negligence. 

Plaintiffs’ opposition argues the claim is based on private nuisance.  The complaint does not allege that.  Moreover, private nuisance is “a nontrespassory interference with the private use and enjoyment of land.”  (San Diego Gas & Electric Co. v. Superior Court (1996) 13 Cal.4th 893, 937.)  It requires “interference with the plaintiff’s use and enjoyment of [his or her] property.”  (Ibid.)  Plaintiffs’ complaint alleges defendants physically damaged structures on their real property, not that defendants interfered with plaintiff’s use and enjoyment of their land.

4th Cause of Action: Negligence

            Plaintiffs allege sufficient facts for this cause of action.  Defendants contend the claim is wholly duplicative of the first cause of action for breach of contract.  “[T]he same wrongful act may constitute both a breach of contract and an invasion of an interest protected by the law of torts.”  (North American Chemical Co. v. Superior Court (1997) 59 Cal.App.4th 764, 774.)

Plaintiffs’ complaint alleges one of the classic exceptions to the general distinction between contract and tort law: damage to other property that was not the subject of the contract.  “ ‘In general, there is no recovery in tort for negligently inflicted “purely economic losses,” meaning financial harm unaccompanied by physical or property damage.’ ”  (Rattagan v. Uber Technologies, Inc. (2024) 17 Cal.5th 1, 20; accord Jimenez v. Superior Court (2002) 29 Cal.4th 473, 482-484.) 

Here, plaintiffs allege more than that defendants failed to live up to their contractual obligations.  They allege that, in performing the project, defendants damaged other parts of the house that were not the subject of the contract.  For example, “Contractor Personnel used jack hammers to remove the existing stucco, which shook the entire house to such an extent that it created cracks and damage throughout the house, including, but not limited to, the roof, chimney, fireplace, all fourteen windows on that side of the house, trims, moldings and wood floors.”  (Comp., ¶ 9(c).)  “Contractor Personnel damaged the custom wood cabinets” and “custom wood railings” in the house’s den.  (¶ 9(i).)  Their work also allegedly “resulted in water seeping into and under the wood floor in the Den Area.”  (¶ 9(k).)  These allegations suffice for negligence based on breach of independent tort duties.

Motion to Strike

            Defendants K Rad Development Inc. and Kevin Radzinsky move to strike portions of plaintiffs’ complaint.  First, defendants move to strike the entire second, third, and fourth causes of action.  Rather than a motion to strike, the demurrer is the appropriate procedure for challenging an entire cause of action.  (Quiroz v. Seventh Ave. Center (2006) 140 Cal.App.4th 1256, 1281 [“it is improper for a court to strike a whole cause of action of a pleading under Code of Civil Procedure section 436… .  Where a whole cause of action is the proper subject of a pleading challenge, the court should sustain a demurrer to the cause of action rather than grant a motion to strike”].) 

Defendants also move to strike two portions of the complaint pertaining to punitive damages.  Courts may strike allegations regarding punitive damages where the facts alleged “do not rise to the level of malice, oppression or fraud necessary” to recover punitive damages under Civil Code section 3294.  (Turman v. Turning Point of Central California, Inc. (2010) 191 Cal.App.4th 53, 64.)  The complaints’ allegations do not rise to that level.  As discussed above, plaintiffs do not allege sufficient facts for fraud.  Plaintiffs’ allegations amount to breach of contract and negligence, not malice, oppression, or fraud.

Disposition

            Defendants K Rad Development Inc. and Kevin Radzinsky’s demurrer to plaintiffs David D. Kremenetsky and Tatyana Belenkaya’s second and third causes of action is sustained with leave to amend.  Defendants’ demurrer to the first and fourth causes of action is overruled.

Defendants’ motion to strike portions of plaintiffs’ complaint is granted in part, with leave to amend, as to portions of the complaint regarding punitive damages.  The court hereby strikes the following portions of plaintiffs’ complaint with leave to amend:

(1) “The aforementioned conduct of RADZINSKY was an intentional misrepresentation, deceit, or concealment of material facts known to RADZISKY with the intention on the part of RADZINSKY of thereby depriving Plaintiffs of property or legal rights or otherwise causing injury, and was despicable conduct that subjected Plaintiffs to a cruel and unjust hardship in conscious disregard of Plaintiffs’ rights, so as to justify an award of exemplary and punitive damages.” (Comp., ¶ 16, p. 6, lines 23-28.)

(2) “For punitive and exemplary damages.”  (Comp., prayer ¶ 4, p. 10, line 12.)

Plaintiffs shall file any first amended complaint within 20 days.





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