Judge: Ashfaq G. Chowdhury, Case: 23GDCV02492, Date: 2024-03-08 Tentative Ruling
Case Number: 23GDCV02492 Hearing Date: March 8, 2024 Dept: E
Case No: 23GDCV02492
Hearing Date: 03/08/2024 – 8:30am
Trial Date: UNSET
Case Name: HILDA KASIMIAN, an individual; and STEPAN
KASIMIAN, an individual; v. ARMET ALARM & ELECTRONICS, INC., a Corporation;
GENERAL MONITORING SERVICES, INC., a Corporation; and DOES 1-100 inclusive
[2 - TENTATIVE RULINGS
ON DEMURRERS & MOTIONS TO STRIKE]
DEMURRER 1
Moving Party: Defendant, General Monitoring Services, Inc.
(GMS or General)
Responding Party: Plaintiffs,
Hilda Kasimian and Stepan Kasimian
Moving
Papers: Notice/Demurrer
Opposition
Papers: Opposition
Reply
Papers: Reply
RELIEF REQUESTED
Defendant, GMS, moves this Court for an order sustaining its demurrer to the
First Amended Complaint (FAC) as to the first cause of action for breach of
contract.
This Demurrer is made
pursuant to California Code of Civil Procedure §§ 430.10(e) and (f) on
the grounds that the First Cause of Action in the FAC fails to state facts
sufficient to constitute any cause of action against this demurring Defendant
and because such cause of action is uncertain.
This demurrer is made
pursuant to California Code of Civil Procedure §§ 430.10(e) and (f), and
will be based on this Notice; the appended Memorandum of Points and
Authorities; the Declaration of Sabryne Coleman concurrently filed herewith;
the pleadings, records and files in this action; and such other materials as
may be judicially noticed, or presented to the Court at or before, or in
connection with, the hearing on this demurrer.
BACKGROUND
Plaintiffs, Kilda
Kasimian and Stepan Kasimian filed their original Complaint on 11/22/2023.
On 01/05/2024,
Plaintiffs filed a First Amended Complaint (FAC) alleging three causes of
action for: (1) Breach of Contract, (2) Negligence, and (3) Negligent
Misrepresentation. All three causes of action are alleged against both Defendants,
Armet Alarm & Electronics, Inc. (Armet) and General Monitoring Services,
Inc. (GMS or General).
Plaintiffs allege that Armet
is in the business of providing and installing alarm security services for
residential and commercial properties. (FAC ¶4.)
Plaintiffs allege that
GMS is in the in the business of monitoring security systems. (FAC ¶5.)
Plaintiffs also allege that
Defendants, at all relevant times, were acting as actual agents, conspirators,
ostensible agents, partners and/or joint ventures and co-employees of all other
DEFENDANTS, and that all acts alleged herein occurred within the course and
scope of said agency, employment, partnership, joint venture, conspiracy, and/or
enterprise, and with the express Co-Defendants. (FAC ¶7.)
The General Allegations
in the FAC allege as follows:
9. This action arises
out of a burglary and vandalism that occurred on or about November 25, 2021 (the
"INCIDENT") at the PROPERTY.
10. Prior to the
burglary and vandalism, on or about September 24, 2018, PLAINTIFFS entered into
a contract with ARMET in which ARMET was to install a security alarm system at the
PROPERTY in order to provide PLAINTIFFS with a peace of mind that their
PROPERTY would be protected from burglaries, deter burglaries, or in the event
of a burglary, the alarm system would trigger, resulting in PLAINTIFFS and the
local police department(s) to be notified and/or dispatched. (Attached hereto
as "EXHIBIT A" is a true and correct copy of the contract
between PLAINTIFFS and ARMET).
11. PLAINTIFFS entered
into a contract with GENERAL in which GENERAL was to monitor the security
system that was installed at the PROPERTY, specifically for burglary protection
and fire protection. (Attached hereto as "EXHIBIT B" is a true
and correct copy of the contract between PLAINTIFFS and GENERAL).
12. On its website,
ARMET markets itself as a provider of the "highest quality service"
and advertises that their "trained alarm monitoring professionals are
cautiously watching over your home or business 24 hours a day, 7 days a week
and they are ready to contact the appropriate emergency agencies, if
necessary." ARMET further advertises that "with alarm system
monitoring services from Armet Alarm & Electronics, Inc. you can rest
assured that prompt and dependable service is always just the push of a button
or a phone call away." That was not the case here.
13. ARMET was to install
the security system at the PROPERTY in a professional manner and assure that
the alarm system would work and be free from defects in parts and materials.
14. PLAINTIFFS became
aware of the INCIDENT after the fact and upon notification from their neighbors
when a broken point of entry was discovered by the police department. ARMET and
GENERAL had not performed their duties because the security system was neither
installed, maintained, monitored, and/or repaired properly nor did it trigger
upon the occurrence of the INCIDENT.
15. Following the
burglary and vandalism, PLAINTIFFS filed a first party insurance claim with
their homeowner's insurance company and were able to recover monies from their
insurance policy. However, the policy contained limitations on the items
stolen, thereby PLAINTIFFS were not made whole.
(FAC ¶¶9-15.)
PROCEDURAL ANALYSIS
Proof of Service Timely Filed (CRC Rule
3.1300): Ok
16/21 Court Days Lapsed (CCP 1005(b)): Ok
Proper Address (CCP §1013, §1013a, §1013b):Yes–
Meet and Confer
A party filing a
demurrer “shall meet and confer in person or by telephone with the party who
filed the pleading that is subject to demurrer for the purpose of determining
whether an agreement can be reached that would resolve the objections to be
raised in the demurrer.” (Code Civ.
Proc., §430.41, subd. (a).) “The parties
shall meet and confer at least five days before the date the responsive
pleading is due. If the parties are not able to meet and confer at least five
days prior to the date the responsive pleading is due, the demurring party
shall be granted an automatic 30-day extension of time within which to file a
responsive pleading, by filing and serving, on or before the date on which a
demurrer would be due, a declaration stating under penalty of perjury that a
good faith attempt to meet and confer was made and explaining the reasons why
the parties could not meet and confer.”
(Code Civ. Proc., §430.41, subd. (a)(2).)
Failure to sufficiently
meet and confer is not grounds to overrule or sustain a demurrer. (Code Civ.
Proc., §430.41(a)(4).)
Here, GMS’s counsel,
Coleman, alleges that a meet and confer occurred, but a resolution was not able
to be met. (Coleman Decl. ¶3.)
LEGAL STANDARDS FOR
DEMURRERS
Demurrer – Sufficiency
A demurrer for
sufficiency tests whether the complaint states a cause of action. (Hahn v. Mirda, (2007) 147 Cal.App.4th
740, 747.) 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.) The court “treat[s]
the demurrer as admitting all material facts properly pleaded, but not
contentions, deductions or conclusions of fact or law ….” (Berkley v. Dowds (2007) 152
Cal.App.4th 518, 525.) In a demurrer
proceeding, the defects must be apparent on the face of the pleading or via
proper judicial notice. (Donabedian
v. Mercury Ins. Co. (2004) 116 Cal.App.4th 968, 994.) A demurrer tests the pleadings alone and
not the evidence or other extrinsic matters; therefore, it lies only where the
defects appear on the face of the pleading or are judicially noticed. (Code Civ. Proc., §§ 430.30, 430.70.) The only issue involved in a demurrer hearing
is whether the complaint, as it stands, unconnected with extraneous matters,
states a cause of action. (Hahn, supra, 147 Cal.App.4th at
747.)
The general rule is that
the plaintiff need only allege ultimate facts, not evidentiary facts. (Doe v. City of Los Angeles (2007) 42
Cal.4th 531, 550.) “All that is required
of a plaintiff, as a matter of pleading … is that his complaint set forth the
essential facts of the case with reasonable precision and with sufficient
particularity to acquaint the defendant with the nature, source and extent of
his cause of action.” (Rannard v.
Lockheed Aircraft Corp. (1945) 26 Cal.2d 149, 156-157.)
On demurrer, a trial
court has an independent duty to “determine whether or not the … complaint
alleges facts sufficient to state a cause of action under any legal
theory.” (Das v. Bank of America,
N.A. (2010) 186 Cal.App.4th 727, 734.)
Demurrers do not lie as to only parts of causes of action, where some
valid claim is alleged but “must dispose of an entire cause of action to be
sustained.” (Poizner v. Fremont
General Corp. (2007) 148 Cal.App.4th 97, 119.) “Generally it is an
abuse of discretion to sustain a demurrer without leave to amend if there is
any reasonable possibility that the defect can be cured by amendment.” (Goodman v. Kennedy (1976) 18 Cal.3d
335, 349.)
Demurrer – Uncertainty
A special demurrer for uncertainty, CCP section 430.10(f), is disfavored
and will only be sustained where the pleading is so bad that defendant cannot
reasonably respond—i.e., cannot reasonably determine what issues must be
admitted or denied, or what counts or claims are directed against
him/her. (Khoury v. Maly’s of Calif., Inc. (1993) 14
Cal.App.4th 612, 616.) Moreover, even if the pleading is somewhat vague,
“ambiguities can be clarified under modern discovery procedures.” (Ibid.)
ANALYSIS
First
Cause of Action – Breach of Contract
GMS
does not demur to the second and third causes of action in the FAC. GMS demurs only
to the first cause of action for breach of contract as against GMS on grounds
of failure to state sufficient facts and on grounds of uncertainty. (See Dem.
p.1-2.)
The elements
of a cause of action for breach of contract are “(1) the existence of the
contract, (2) plaintiff’s performance or excuse for nonperformance, (3)
defendant’s breach, and (4) resulting damages to the plaintiff.” (Oasis West
Realty, LLC v. Goldman (2011) 51 Cal.4th 811, 821.)
(1) The
Existence of the Contract
A cause of action for breach of contract is subject to
demurrer if “it cannot be ascertained from the pleading whether the contract is
written, is oral, or is implied by conduct.”
(Code Civ. Proc., §430.10(g).) A written contract must be pled verbatim
in the body of the complaint, be attached to the complaint and incorporated by
reference, or be pled according to its legal effect. (Bowden v. Robinson (1977) 67
Cal.App.3d 705, 718.) An allegation of
an oral agreement must “set[] forth the substance of its relative terms.” (Gautier
v. General Tel. Co. (1965) 234 Cal.App.2d 302, 305.)
In ¶11 of
the FAC, Plaintiffs allege, “PLAINTIFFS entered into a contract with GENERAL in
which GENERAL was to monitor the security system that was installed at the
PROPERTY, specifically for burglary protection and fire protection. (Attached
hereto as "EXHIBIT B" is a true and correct copy of the contract
between PLAINTIFFS and GENERAL).” (FAC ¶11.)
Paragraph 11
of the FAC is incorporated into the first cause of action for breach of
contract via Paragraph 16 of the FAC.
Further,
Plaintiffs attached to the FAC an Exhibit B which is the document that
Plaintiffs allege is the contract entered into between Plaintiffs and GMS.
Thus,
Plaintiffs alleged this element of a breach-of-contract cause of action.
(2)
Plaintiff’s Performance or Excuse for Nonperformance
Plaintiffs allege in ¶18 of the FAC, “PLAINTIFFS faithfully
performed all obligations required to be performed by them under the terms of
the contract, except to the extent performance may have been excused by, among
other things, ARMET'S and GENERAL'S breach of their respective duties and
obligations under the contract.” (FAC ¶18.)
Thus,
Plaintiffs alleged this element of a breach-of-contract cause of action.
(3)
Defendant’s Breach
Plaintiffs allege in ¶20 of the FAC, “GENERAL breached its
responsibilities and obligations by failing to monitor the security alarm
system at the PROPERTY, directly violating the explicit terms of the contract.
GENERAL failed to timely notify PLAINTIFFS of the INCIDENT, as expressly
required by the terms of the contract, thereby affording the intruders an
extended window of opportunity to break in, vandalize and steal. Specifically,
GENERAL, as required by the terms of the contract attached hereto as EXHIBIT B
and incorporated herein by reference in its entirety, failed to provide
burglary protection to the PROPERTY. GENERAL'S breach facilitated the theft of
an increased quantity of items from the home as well as vandalism.” (FAC ¶20.)
Thus,
Plaintiffs alleged this element of a breach-of-contract cause of action.
(4)
Resulting Damages to the Plaintiff
Plaintiffs allege in ¶21 of the FAC, “As a direct, proximate,
and legal result of ARMET'S and GENERAL'S breach of the contract with
PLAINTIFFS, PLAINTIFFS have been and continue to be damaged in an amount in
excess of the jurisdictional limits of this Court, including but not limited to
the value of the stolen personal property not covered by PLAINTIFFS'
homeowner's insurance company.” (FAC ¶21.)
Thus,
Plaintiffs alleged this element of a breach-of-contract cause of action.
Overall,
Plaintiffs appear to have alleged each element of a breach-of-contract cause of
action.
Demurring
Defendant, GMS’s, arguments on failure of Plaintiffs to allege breach of
contract- Exhibit B
GMS argues
that Exhibit B does not constitute a contract between Plaintiffs and GMS;
therefore, GMS argues that Plaintiffs did not allege the first element –
existence of a contract – for a breach-of-contract cause of action.
In
particular, GMS argues Exhibit B is merely an Alarm System Certificate issued
by GMS three years after the installation of the Armet alarm system certifying
that GMS had installed an Armet alarm system for Plaintiffs on September 24,
2018.
Further, GMS
argues that Exhibit B does not include any consideration allegedly paid by
Plaintiffs, nor does it include any terms under which Plaintiffs are bound and
is not signed by either Plaintiffs or GMS.
After making
the aforementioned arguments, GMS then concludes, “Under well-recognized
contract principles, the facts are clear that the Certificate does not
constitute an enforceable contract between Plaintiffs and GMS. If there is in
fact a contract between Plaintiffs and GMS, which GMS does not admit or deny,
it is not represented by Exhibit B and is not sufficiently alleged in the body
of the FAC.” (Dem. p. 5-6.)
The Court
does not find GMS’s arguments availing for several reasons.
First, as
moving party, GMS makes nearly all of its arguments without providing legal
authority to support its arguments.
For example,
GMS argues that Exhibit B does not
(1) include consideration allegedly paid by Plaintiffs,
(2) include any terms under which Plaintiffs are bound, and
(3) is not signed by Plaintiffs or GMS.
While these
assertions may be true, GMS provides no legal authority as to what specifically
must be alleged to withstand the pleading stage as to the first element of the
existence of a contract in a breach-of-contract cause of action.
Here,
Plaintiffs alleged the existence of the contract as Exhibit B and attached
Exhibit B to the FAC.
Further, GMS
provides no legal authority that consideration, the terms, and a signature must
be pled, nor does GMS provide legal authority that the Court is to look to the
judicially noticed exhibit containing the contract at the pleading stage to
determine if these elements are in fact in the contract.
Second, many
of GMS’s arguments appear to be outside the scope of a demurrer at the pleading
stage. The crux of GMS’s arguments does not appear to be that Plaintiffs did
not plead the existence of a contract, but rather that Plaintiffs’ Exhibit
B does not in fact constitute a contract.
It does not
appear that a plaintiff need attach a written contract to a complaint to
proceed on a breach-of-contract claim.
Presumably,
GMS is attempting to make the argument that Exhibit B is not in fact a contract
at the pleading stage (as opposed to making this argument at an evidentiary
stage, such as in a motion for summary judgment) by relying on Cohen v.
Ratinoff (1938) 147 Cal.App.3d 321.
GMS does not
cite to a specific page in Cohen v. Ratinoff, but argues that the case
supports the position that the face of the pleadings includes a written
instrument attached as an exhibit and incorporated into it by proper reference.
While the
Court does not disagree with GMS as to its argument on Cohen v. Ratinoff,
the Court is hesitant to sustain the demurrer in light of the following: “Where
the existence of a contract is at issue and the evidence is conflicting or
admits of more than one inference, it is for the trier of fact to determine
whether the contract actually existed. But if the material facts are certain or
undisputed, the existence of a contract is a question for the court to decide.”
(HM DG, Inc. v. Amini (2013) 219 Cal.App.4th 1100, 1109.)
Further, “[t]he
question of adequacy of consideration is generally considered as a question of
fact….” (Henderson v. Fisher (1965) 236 Cal.App.2d 468, 475.)
Again, this is
a hearing on a demurrer, not on a motion for summary judgment, and the Court
has concerns about GMS’s arguments about whether Exhibit B actually constitutes
a contract since this case is at the pleading stage.
A court
“treat[s] the demurrer as admitting all material facts properly pleaded, but
not contentions, deductions or conclusions of fact or law ….” (Berkley v. Dowds (2007) 152
Cal.App.4th 518, 525.)
Assuming the
truth of Plaintiffs’ allegations, it appears as if Plaintiffs have successfully
alleged a breach-of-contract cause of action.
Demurring
Defendant GMS’s arguments on failure of Plaintiffs to allege breach of
contract- Exhibit A
GMS further argues that with respect to Exhibit A, Plaintiffs
and the other Defendant, Armet, are the only two parties to the contact in
Exhibit A.
The Court is
uncertain as to why GMS is raising this argument.
GMS states,
“As noted above, with respect to Exhibit A, the FAC is unequivocal that
such document is exclusively a contract between Plaintiffs and Armet.” (Dem. p.
5.)
If GMS is arguing
that it is unequivocal that Exhibit A is exclusively a contract between
Plaintiffs and Armet, then it seems as if it would be unnecessary for GMS to
make arguments as to a contract exclusively between Armet and Plaintiffs. Or to
phrase it differently, wouldn’t Armet need to be the demurring party to the
breach-of-contract cause of action pertaining to Exhibit A if that exhibit is
unequivocally a contract exclusively between Armet and Plaintiffs?
While it is
unclear as to the legal significance of GMS’s arguments about Exhibit A, some
of their arguments also seem to not be entirely accurate.
For example,
GMS argues that the only signatories to the alleged contract in Exhibit A are
Plaintiffs and Armet. GMS points to ¶10 of the FAC which states, “Prior to the
burglary and vandalism, on or about September 24, 2018, PLAINTIFFS entered into
a contract with ARMET in which ARMET was to install a security alarm system at
the PROPERTY in order to provide PLAINTIFFS with a peace of mind that their
PROPERTY would be protected from burglaries, deter burglaries, or in the event
of a burglary, the alarm system would trigger, resulting in PLAINTIFFS and the
local police department(s) to be notified and/or dispatched. (Attached hereto
as "EXHIBIT A" is a true and correct copy of the contract between
PLAINTIFFS and ARMET).” (FAC ¶10.)
GMS also
points to page 2 of Exhibit A to support its assertion that the alleged
contract in Exhibit A is only between Armet and Plaintiffs.
While
Exhibit A, page 2, does seem to only have Armet and Hilda Kasimian as the
signatories to Exhibit A, and while ¶10 seems to allege that Exhibit A is a
contract between Armet and Plaintiffs, GMS ignores the agency allegations in ¶7
of the FAC.
Paragraph 7
of the FAC states, “PLAINTIFFS are informed, believe, and thereon allege that
DEFENDANTS, including the fictitious DOE DEFENDANTS, were at all relevant times
acting as actual agents, conspirators, ostensible agents, partners and/or joint
ventures and co-employees of all other DEFENDANTS, and that all acts alleged
herein occurred within the course and scope of said agency, employment,
partnership, joint venture, conspiracy, and/or enterprise, and with the express
and/or implied permission, knowledge, consent, authorization and ratification
of their co-DEFENDANTS.” (FAC ¶7.)
While it is
not clear if GMS is attempting to argue that it cannot be held liable for
Exhibit A because it is not a signatory, GMS provides no legal authority for
its argument, and it appears that the Civil Code and case law state that GMS
could potentially be held liable under an agency theory.
Under Civil
Code § 2330, “An agent represents his principal for all purposes within the
scope of his actual or ostensible authority, and all the rights and liabilities
which would accrue to the agent from transactions within such limit, if they
had been entered into on his own account, accrue to the principal.”
The case of Michelson v. Hamada helps explain the principle:
Civil Code section
2295 states: “An agent is one who represents another, called the
principal, in dealings with third persons. Such representation is called
agency.” (3) Any
person may be authorized to act as an agent, including an adverse party to a
transaction. (See Naify v. Pacific Indemnity Co. (1938) 11
Cal.2d 5, 7 [76 P.2d 663, 115 A.L.R. 476]; Orfanos v. California
Insurance Co. (1938) 29 Cal.App.2d 75, 78-81 [84 P.2d
233]; 2 Witkin, Summary of Cal. Law (9th ed. 1987) Agency and Employment,
§ 33, p. 47.) “Whether a person performing work for another is an agent ...
depends primarily upon whether the one for whom the work is done has the legal
right to control the activities of the alleged agent. [Citations.]” (Malloy
v. Fong (1951) 37 Cal.2d 356, 370 [232 P.2d 241].) An
agent is a fiduciary. (Kennard v. Glick (1960) 183
Cal.App.2d 246, 250-251 [agent entrusted with duty of receiving and
disbursing moneys and keeping accurate records of the transactions]; Estate
of Arbuckle (1950) 98 Cal.App.2d 562, 569-570 [220 P.2d 950, 23
A.L.R.2d 372] [business manager unable to produce will entrusted to him];
2 Witkin, Summary of Cal. Law, supra, Agency and Employment, §§ 41,
43 et seq., pp. 53, 55.) Agency may be implied from the circumstances and
conduct of the parties (see Bergtholdt v. Porter Bros. Co. (1896)
114 Cal. 681, 685-688 [46 P. 738]; Brand v. Mantor (1935)
6 Cal.App.2d 126, 130; Pollack v.
Lytle (1981) 120 Cal.App.3d 931, 940; Brea v. McGlashan (1934)
3 Cal.App.2d 454, 464 [39 P.2d 877].) (4) When the principal in
reliance on the agent does not have the service performed by others, the agent
is liable for failure to perform. (See Lab. Code, § 2851; Poile v.
Stockton Merchants Assn. (1959) 176 Cal.App.2d 100,
104 [collection agency liable for amount of check it failed to collect and
was under duty to inform principal of failure]; Rest.2d Agency, § 378; 2
Witkin, Summary of Cal. Law, supra, Agency and Employment, § 62, p.
68.) (5) A contract between parties that includes the rendering of
services does not preclude recovery for breach of a confidential relationship
where property is misappropriated. (Agair Inc. v. Shaeffer (1965)
232 Cal.App.2d 513, 517 [42 Cal.Rptr. 883].)
(Michelson v. Hamada (1994)
29 Cal.App.4th 1556, 1579-80.)
“An allegation of agency
is an allegation of ultimate fact that must be accepted as true for purposes of
ruling on a demurrer.” (City of Industry v. City of Filmore (2011) 198
Cal.App.4th 191, 212-13.) “We have already noted, however, that an allegation
of agency as such is a statement of ultimate fact. Consequently further
allegations explaining how this fact of agency originated become unnecessary.”
(Skopp v. Weaver (1976) 16 Cal.3d 432, 439.)
GMS also argues, with
respect to Exhibit A, “Additionally, there are no facts or allegations in the
FAC as pled that GMS is a third-party beneficiary. To the extent Plaintiffs in
their Opposition argue that GMS was a third-party beneficiary to the contract
between Plaintiffs and Armet represented in Exhibit A, such arguments should be
disregarded as no facts are alleged in the FAC to support this theory.1”
(Dem. p. 5.)
[The Court notes that
GMS’s footnote 1 states, “This theory was raised for the first time in meet and
confer conversations between counsel in connection with this demurrer and is
inconsistent with the express allegations in the FAC, which expressly relies on
the Certificate attached as Exhibit B as the basis for Plaintiffs’ breach of
contract claim against GMS. A copy of the meet and confer communications
between counsel is attached as Exhibit A to the accompanying Declaration of
Sabryne Coleman filed concurrently herewith.”]
As to this argument on third-party
beneficiary, GMS provides no legal authority in support of its argument.
Overall, the Court fails
to follow GMS’s arguments about Exhibit A.
If Exhibit A is
exclusively between Plaintiffs and Armet, then the Court is unclear why this
argument would be relevant to GMS’s demurrer that is directed at the breach-of-contract
cause of action alleged against GMS.
Further, even if
Plaintiffs did not successfully allege a cause of action against GMS with
respect to breach of contract and Exhibit A, as long as Plaintiffs alleged a
breach-of-contract cause of action against GMS under one theory,
it seems as if that would be enough to overrule GMS’s demurrer directed at the
breach-of-contract cause of action directed at GMS.
On demurrer, a trial
court has an independent duty to “determine whether or not the … complaint
alleges facts sufficient to state a cause of action under any legal
theory.” (Das v. Bank of America,
N.A. (2010) 186 Cal.App.4th 727, 734.)
Because Plaintiffs
appeared to at least allege a breach-of-contract cause of action with respect
to Exhibit B, it appears as if this demurrer should be OVERRULED. Not to
mention, it also appears as if Plaintiffs can potentially hold GMS
liable under a theory of agency.
Uncertainty
GMS’s notice
of demurrer also demurred on grounds of uncertainty. Problematic with GMS’s demurrer
is that it did not provide any arguments with respect to uncertainty. This
alone – the lack of argumentation as to why the FAC is uncertain – tends to
weigh in favor of overruling the demurrer on this ground.
As noted in the
Court’s previous section on Exhibit A, GMS argued that Exhibit A is exclusively
a contract between Plaintiffs and Armet.
The Court
can see why GMS makes this argument because in the General Allegations portion
of the FAC, Paragraph 10 alleges that Exhibit A is between Plaintiffs and Armet.
Paragraph 11 then alleges that Exhibit B is the contract between GMS and
Plaintiffs.
Based on
Paragraphs 10 and 11, it would appear that Plaintiffs are alleging that Armet
and Plaintiffs entered into the alleged contract in Exhibit A and GMS and
Plaintiffs entered into the alleged contract in Exhibit B. Or, phrased differently,
it appears as if Plaintiffs are alleging that each defendant entered into a
different contract.
Further, it
appears that Plaintiffs are alleging that each defendant entered into a
different contract when reading Paragraphs 19 and 20 in the FAC that are listed
under the first cause of action for breach of contract.
Paragraph 19
alleges that Armet breached the terms of Exhibit A, whereas Paragraph 20
alleges that GMS breached Exhibit B. These allegations also suggest that, when
reading the FAC as a whole, the Plaintiffs appear to be attempting to state
that each Defendant entered into a different contract.
However, Paragraph
17 is in the section of the FAC that falls under the first cause of action for
breach of contract. That paragraph states:
As alleged
hereinabove, on or about September 24, 2018, PLAINTIFFS entered into a written
contract with ARMET and GENERAL. Pursuant to the contract, ARMET would install
a functional alarm system consisting of installation and services for (1)
burglary; (2) digital control panel; (3) keypad; (4) wireless receiver; (5)
door and window wired sensors; (6) motion sensor; (7) indoor and outdoor
sirens, with strobe lights pursuant to the terms and provisions of EXHIBIT A
attached hereto and incorporated herein by reference. Pursuant to the contract,
GENERAL would monitor the security system that was installed.
(FAC ¶17.)
This allegation in ¶17 adds uncertainty and ambiguity to the
FAC because it alleges that Plaintiffs entered into a single contract with
Armet and GMS.
This allegation also adds uncertainty and ambiguity because in
the last sentence of ¶17 the FAC alleges, “Pursuant to the contract, GENERAL
would monitory the security system that was installed.”
Paragraph 17 appears to allege that a sole contract exists
that both Defendants entered into with Plaintiff. This is contradictory to
¶10-11 in the General Allegations and ¶19-20 in the first cause of action that indicates
that Plaintiffs entered into individual and different contracts with each
Defendant.
Further, ¶17
indicates that this sole contract is Exhibit A. This makes little sense that
the sole contract is Exhibit A in light of Paragraphs 19-20, which indicate
that each Defendant breached a different contract.
It is unclear
whether Plaintiffs are alleging one contract exists that binds all the parties.
It is also unclear if Plaintiffs are alleging that this sole contract is
Exhibit A. And it is unclear whether Plaintiffs
are alleging that each Defendant entered into individual and different contracts
with Plaintiffs.
Adding
further confusion is Plaintiffs’ Opposition, which states as follows:
While it is
true that Plaintiffs entered into an initial contract with Defendant Armet as
described in “Exhibit A” to the FAC, in the contract, Plaintiffs were to pay
Armet $25.00 per month for “Monitoring Services.” The monitoring services were
provided by Defendant General pursuant to “Exhibit B” to the FAC in which it
states: “This is to certify that General Monitoring Service, Inc. UL listed
Central Station is monitoring a Security System that has been installed at the
below address.” For General to argue that there was no contract with Plaintiffs
is clearly false. Although in the FAC, Plaintiffs alleged that “Exhibit A”
pertains to Armet and “Exhibit B” pertains to General, both exhibits pertain to
General. The fact that “Exhibit B” is dated December 23, 2021 is irrelevant.
The installation took place on September 24, 2018 and Plaintiffs were making a
monthly payment of $25.00 for monitoring services since that date.
(Oppo. p.
5.)
It appears
as if many of these points brought up are not alleged in the FAC.
Again, the Opposition
does not make it clear as to what parties entered into which contracts.
The
Opposition uses words like “pertain,” but it is unclear if the Opposition is
attempting to state that GMS entered into the “contract” in Exhibit A with
Plaintiffs and also the “contract” at Exhibit B with Plaintiffs, or if
Plaintiffs are attempting to state that GMS entered into just one contract with
Plaintiffs and that that one contract is comprised of both Exhibits A and B.
A special
demurrer for uncertainty, CCP § 430.10(f), is disfavored and will only be
sustained where the pleading is so deficient that defendant cannot reasonably
respond—i.e., cannot reasonably determine what issues must be admitted or
denied, or what counts or claims are directed against him/her.
(Khoury v. Maly’s of Calif., Inc. (1993) 14 Cal.App.4th 612,
616.) Moreover, even if the pleading is somewhat vague, “ambiguities can
be clarified under modern discovery procedures.” (Ibid.)
The Court is
inclined to overrule the demurrer made on grounds of uncertainty because it
appears that Plaintiffs alleged a cause of action against GMS at least under
one theory.
Further, GMS
made no arguments on grounds of uncertainty despite their notice indicating
that it demurred on grounds of uncertainty.
As a
practical matter, it may make sense for Plaintiffs to amend their FAC for the
sake of clarity for all parties and the Court. If Plaintiffs prefer to amend
their FAC now by means of the Court sustaining the demurrer on grounds of
uncertainty, the Court will hear argument from both parties. This may
potentially be more efficient than the parties clarifying the ambiguities
through discovery and Plaintiffs later having to file a noticed motion for
leave to amend.
“It is often said that leave to amend a complaint
should be liberally granted, particularly with respect to a party’s initial
complaint.” (City of Torrance v. Southern California
Edison Company (2021) 61 Cal.App.5th 1071, 1091.) “The policy favoring
amendment is so strong that it is a rare case in which denial of leave to amend
can be justified.” (City of Torrance v. Southern California Edison Company (2021)
61 Cal.App.5th 1071, 1091 citing Howard v. County of San Diego (2010)
184 Cal.App.4th 1422, 1428.) “If there is any reasonable possibility that
plaintiff can state a good cause of action, it is error and an abuse of
discretion to sustain the demurrer without leave to amend.” (City of
Torrance v. Southern California Edison Company (2021) 61 Cal.App.5th 1071,
1091 citing Campaign for Quality Education v. State of California (2016)
246 Cal.App.4th 896, 904.)
TENTATIVE
RULING DEMURRER 1
The Court tentatively plans to OVERRULE GMS’s demurrer on
grounds of uncertainty and failure to state sufficient facts as to the breach-of-contract
cause of action alleged against GMS.
The Court
will hear argument about the issue of granting leave to amend if Plaintiffs
seek to amend the FAC to clear up the potential ambiguities in the FAC.
MOTION
1 - MOTION TO STRIKE
Moving
Party: Defendant, General Monitoring
Services, Inc. (GMS)
Responding
Party: Plaintiffs, Hilda Kasimian and Stepan Kasimian
Moving
Papers: Notice/Motion to Strike
Opposition
Papers: Opposition
Reply
Papers: Reply
RELIEF REQUESTED
Defendant, GMS, moves this Court for an order striking portions of the
FAC.
By way of the accompanying Motion to Strike,
GMS submits that the following bolded language should be stricken from
Plaintiffs’ FAC at Paragraph 2 of the FAC’s Prayer for Relief on the grounds
that attorneys’ fees are not recoverable on the breach-of-contract cause of
action against GMS: “For attorneys’ fees as a result of the breach-of-contract
cause of action.”
“This Motion is made pursuant to California
Code of Civil Procedure §§ 435 and 436 on the grounds that the allegations
sought to be stricken are improper and not drawn in conformity with California
law. This Motion is based upon this Notice; the appended Memorandum of Points
and Authorities; Declaration of Sabryne Coleman concurrently filed herewith;
the accompanying Demurrer filed concurrently herewith; the pleadings, records
and files in this action; and such other materials as may be judicially noticed,
or presented to the Court at or before, or in connection with, the hearing on
this demurrer.”
Procedural
Proof of Service Timely Filed (CRC Rule
3.1300): Ok
16/21 Court Days Lapsed (CCP 1005(b)): Ok
Proper Address (CCP §1013, §1013a, §1013b): Ok -
Meet and Confer
Before filing a motion to strike pursuant to
this chapter, the moving party shall meet and confer in person or by telephone
with the party who filed the pleading that is subject to the motion to strike
for the purpose of determining if an agreement can be reached that resolves the
objections to be raised in the motion to strike. If an amended pleading is
filed, the responding party shall meet and confer again with the party who
filed the amended pleading before filing a motion to strike the amended
pleading. (CCP §435.5(a).)
The Court notes as follows, “A determination by
the court that the meet and confer process was insufficient shall not be
grounds to grant or deny the motion to strike.” (CCP §435.5(a)(4).)
Here, GMS’s counsel, Coleman, alleges that a
meet and confer occurred, but a resolution was not met. (Coleman Decl. ¶3.)
Legal Standard – Motion
to Strike
Any party, within the
time allowed to respond to a pleading may serve and file a notice of motion to
strike the whole or any part thereof. (CCP § 435(b)(1); Cal. Rules of Court,
Rule 3.1322(b).) The court may, upon a motion or at any time in its discretion
and upon terms it deems proper: (1) strike out any irrelevant, false, or
improper matter inserted in any pleading; or (2) strike out all or any part of
any pleading not drawn or filed in conformity with the laws of California, a
court rule, or an order of the court. (CCP §§ 436(a)-(b); Stafford v. Shultz
(1954) 42 Cal.2d 767, 782 [“Matter in a pleading which is not essential to the
claim is surplusage; probative facts are surplusage and may be stricken out or
disregarded”].)
The grounds for moving
to strike must appear on the face of the pleading or by way of judicial
notice. (Code. Civ. Proc. § 437; Turman v. Turning Point of
Central California, Inc. (2010) 191 Cal.App.4th 53, 63 [“judges read
allegations of a pleading subject to a motion to strike as a whole, all parts
in their context, and assume their truth”].)
TENTATIVE RULING MOTION
1 - MOTION TO STRIKE
“Except
as attorney’s fees are specifically provided for by statute, the measure and
mode of compensation of attorneys and counselors at law is left to the
agreement, express or implied, of the parties; but parties to actions or
proceedings are entitled to their costs, as hereinafter provided.” (CCP §1021.)
As
indicated by GMS, this FAC does not seek attorney’s fees as provided by a
statute, but seeks attorney’s fees as a result of a contract.
Many
of GMS’s arguments in its motion appear to be irrelevant as it argues about
issues raised in the demurrer.
However,
what GMS accurately points out is that neither contract attached to the FAC
contains a provision for attorney’s fees.
In
Opposition, Plaintiffs argue that where a plaintiff pleads the contract
entitles it to attorneys’ fees and attaches the same to the complaint, the
motion to strike is improper.
Plaintiffs
cite Wiley v. Rhodes (1998) 223 Cal.App.3d 1470, 1474 to support their
argument. However, Wiley does not fully state what Plaintiffs allege it
to state. Wiley simply held that an award of attorney fees should not
have been awarded because the complaint did not allege entitlement to attorney
fees. Wiley does not support Plaintiffs’ interpretation – that even if
the attached contracts to the complaint do not contain a provision for
attorney’s fees, the request for attorney’s fees cannot be stricken simply
because Plaintiffs allege the contract contains an attorney’s fees provision.
In
Opposition, Plaintiffs admit that they were not able to locate the full
contract for Exhibit A which they argue would support their request for
attorney’s fees. Plaintiffs argue that page two of Exhibit A refers to a
reverse side; however, at the moment they are unable to locate the reverse
side, but Plaintiffs believe the additional pages would include a provision for
attorney’s fees.
Plaintiffs
state that they requested a copy of the agreement by Armet so that it could be
determined if the agreement contains a provision for attorney’s fees.
Plaintiffs
also argue that if the Court strikes the request for attorney’s fees, the Court
should strike it without prejudice to reassert the request for attorney’s fees
on motion if Plaintiffs later discover that the contract supports their
request.
Here,
the Court tentatively plans to GRANT the motion to strike the request for
attorney’s fees in Plaintiffs’ Prayer for Relief as Plaintiffs admitted that
the attached exhibits to the FAC do not currently contain a provision allowing
for recovery of attorney’s fees.
Plaintiffs’
argument – that if the Court is inclined
to grant the motion to strike, the Court should grant it without prejudice to
seek leave to amend the FAC – appears to be reasonable. Even the Reply admits
that the proper course of action would be to file a motion for leave to amend
to seek attorney’s fees if Plaintiffs find this alleged provision for
attorney’s fees in the contract.
“Where
the defect raised by a motion to strike or by demurrer is reasonably capable of
cure, ‘leave to amend is routinely and liberally granted to give the plaintiff
a chance to cure the defect in question.’” (Velez v. Smith (2006) 142
Cal.App.4th 1154, 1174.)]
The
Court notes that GMS’s notice of motion to strike requests striking ¶2 in the
Prayer for Relief requesting attorney’s fees. The Court notes that it is in
fact ¶3 in the Prayer for Relief that requests attorney’s fees.
GMS’s
motion to strike ¶3 in the Prayer of the FAC stating, “For attorneys’ fees as a
result of the breach-of-contract cause of action;” is GRANTED without prejudice
to Plaintiffs’ ability to seek leave to amend the FAC to reassert the request
for attorney’s fees upon discovery of evidence of the contract containing an
attorney’s fee provision.
DEMURRER 2
Moving Party: Defendant, Armet Alarm & Electronics, Inc.
(Armet)
Responding Party: Plaintiffs,
Hilda Kasimian and Stepan Kasimian
Moving Papers: Proof
of Service; Notice; Memorandum; Schmid Declaration; Proposed Order;
Opposition Papers: Opposition
Reply Papers: Reply
RELIEF REQUESTED
Defendant, Armet, demurs to the FAC.
“This
Demurrer is made pursuant to Code of Civil Procedure § 430.10(e) on the grounds
that Plaintiffs failed to state facts sufficient to constitute causes of action
for Negligence or Negligent Misrepresentation against Armet. This Demurrer is
also made pursuant to Code of Civil Procedure § 430.10(f) on the grounds that
Plaintiffs failed to plead their Negligent Misrepresentation cause of action
with the required specificity and particularity and it is therefore uncertain.
Armet complied with the meet and confer requirements of Code of Civil Procedure
section 430.41. (See Declaration of Jeffrey C. Schmid, ¶¶ 3-4.)
This
Demurrer is based upon this Notice of Demurrer and Demurrer, the Memorandum of
Points and Authorities attached hereto, the Declaration of Jeffrey C. Schmid,
Plaintiff’s First Amended Complaint, and upon such further evidence and
argument as may hereafter be presented at the hearing on this matter.”
PROCEDURAL ANALYSIS
Proof of Service Timely Filed (CRC Rule
3.1300): Ok
16/21 Court Days Lapsed (CCP 1005(b)): Ok
Proper Address (CCP §1013, §1013a, §1013b): This demurrer was allegedly served
electronically to Plaintiffs’ counsel. Plaintiffs’ counsel’s email address on
eCourt is listed as hgk@keosianlaw.com; however, moving counsel allegedly
served hgk@kewosianlaw.com. Despite this discrepancy, Plaintiffs’ counsel
appears to have still received the instant demurrer because an Opposition was submitted.
Therefore, there does not appear to be a service issue with the instant
demurrer.
Meet and Confer
A party filing a
demurrer “shall meet and confer in person or by telephone with the party who
filed the pleading that is subject to demurrer for the purpose of determining
whether an agreement can be reached that would resolve the objections to be
raised in the demurrer.” (Code Civ.
Proc., §430.41, subd. (a).) “The parties
shall meet and confer at least five days before the date the responsive
pleading is due. If the parties are not able to meet and confer at least five
days prior to the date the responsive pleading is due, the demurring party
shall be granted an automatic 30-day extension of time within which to file a
responsive pleading, by filing and serving, on or before the date on which a
demurrer would be due, a declaration stating under penalty of perjury that a
good faith attempt to meet and confer was made and explaining the reasons why
the parties could not meet and confer.”
(Code Civ. Proc., §430.41, subd. (a)(2).)
Failure
to sufficiently meet and confer is not grounds to overrule or sustain a
demurrer. (Code Civ. Proc., §430.41(a)(4).)
Here,
Armet’s counsel, Schmid, alleges a meet and confer occurred but an agreement
was not met. (Schmid Decl. ¶¶3-4.)
LEGAL STANDARDS FOR DEMURRERS
Demurrer
– Sufficiency
A demurrer for
sufficiency tests whether the complaint states a cause of action. (Hahn v. Mirda, (2007) 147 Cal.App.4th
740, 747.) 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.) The court “treat[s] the demurrer as admitting
all material facts properly pleaded, but not contentions, deductions or
conclusions of fact or law ….” (Berkley
v. Dowds (2007) 152 Cal.App.4th 518, 525.)
In a demurrer proceeding, the defects must be apparent on the face of
the pleading or via proper judicial notice.
(Donabedian v. Mercury Ins. Co. (2004) 116 Cal.App.4th 968, 994.) A demurrer tests the pleadings alone and not
the evidence or other extrinsic matters; therefore, it lies only where the
defects appear on the face of the pleading or are judicially noticed. (Code Civ. Proc., §§ 430.30, 430.70.) The only issue involved in a demurrer hearing
is whether the complaint, as it stands, unconnected with extraneous matters,
states a cause of action. (Hahn, supra, 147 Cal.App.4th at
747.)
The
general rule is that the plaintiff need only allege ultimate facts, not
evidentiary facts. (Doe v. City of
Los Angeles (2007) 42 Cal.4th 531, 550.)
“All that is required of a plaintiff, as a matter of pleading … is that
his complaint set forth the essential facts of the case with reasonable
precision and with sufficient particularity to acquaint the defendant with the
nature, source and extent of his cause of action.” (Rannard v. Lockheed Aircraft Corp.
(1945) 26 Cal.2d 149, 156-157.)
On
demurrer, a trial court has an independent duty to “determine whether or not
the … complaint alleges facts sufficient to state a cause of action under any
legal theory.” (Das v. Bank of
America, N.A. (2010) 186 Cal.App.4th 727, 734.) Demurrers do not lie as to only parts of
causes of action, where some valid claim is alleged but “must dispose of an
entire cause of action to be sustained.”
(Poizner v. Fremont General Corp. (2007) 148 Cal.App.4th 97,
119.) “Generally it is an abuse of
discretion to sustain a demurrer without leave to amend if there is any
reasonable possibility that the defect can be cured by amendment.” (Goodman v. Kennedy (1976) 18 Cal.3d
335, 349.)
Demurrer – Uncertainty
A special demurrer for uncertainty, CCP § 430.10(f), is disfavored and will
only be sustained where the pleading is so bad that defendant cannot reasonably
respond—i.e., cannot reasonably determine what issues must be admitted or
denied, or what counts or claims are directed against him/her.
(Khoury v. Maly’s of Calif., Inc. (1993) 14 Cal.App.4th 612,
616.) Moreover, even if the pleading is somewhat vague, “ambiguities can
be clarified under modern discovery procedures.” (Ibid.)
ANALYSIS
Third Cause of Action – Negligent
Misrepresentation
“The
elements of negligent misrepresentation are well established. A plaintiff must
prove the following in order to recover. ‘Misrepresentation of a past or
existing material fact, without reasonable ground for believing it to be true,
and with intent to induce another’s reliance on the fact misrepresented;
ignorance of the truth and justifiable reliance on the misrepresentation by the
party to whom it was directed; and resulting damage…’” (Hydro-Mill Co., Inc.
v. Hayward, Tilton & Rolapp Ins. Associates, Inc. (2004) 115
Cal.App.4th 1145, 1154.)
The alleged negligent misrepresentations in the FAC
appear to be at paragraphs 12 and 35. Paragraph 12 is contained in the General
Allegations of the FAC and are incorporated into the third cause of action via
¶33. Paragraph 35 is located within the third cause of action of the FAC.
Paragraph 12 alleges:
On its website,
ARMET markets itself as a provider of the "highest quality service"
and advertises that their "trained alarm monitoring professionals are
cautiously watching over your home or business 24 hours a day, 7 days a week
and they are ready to contact the appropriate emergency agencies, if
necessary." ARMET further advertises that "with alarm system
monitoring services from Armet Alarm & Electronics, Inc. you can rest
assured that prompt and dependable service is always just the push of a button
or a phone call away." That was not the case here.
(FAC ¶12.)
Paragraph 35 appears
to be nearly identical to ¶12, except ¶35 does not mention that these
representations were on the website, as mentioned in ¶12, and Plaintiffs remove
words like “markets” and “advertises” from ¶12 when making the allegations in
¶35. For reference, ¶35 alleges:
PLAINTIFFS relied
on ARMET's written and verbal representations as hereinabove referenced, namely
that ARMET was a provider of the "highest quality service" and that their
"trained alarm monitoring professionals are cautiously watching over your
home or business 24 hours aday,7 days a week and they are ready to contact the
appropriate emergency agencies, if necessary." ARMET and its
representatives further represented that "with alarm system monitoring
services from Armet Alarm & Electronics, Inc. you can rest assured that
prompt and dependable service is always just the push of a button or a phone
call away." That was not the case here.
(FAC ¶35.)
Armet argues that the law is well established that
actionable misrepresentations must pertain to past or existing material facts.
Armet argues that the misrepresentations at issue here do not pertain to past
or existing material facts.
Armet also argues that statements of predictions
regarding future events are deemed to be mere opinions which are not
actionable. Armet argues that these statements are not actionable
misrepresentations because they are either mere opinions or predictions
regarding future events.
In Opposition, Plaintiffs does not address Armet’s
arguments about the alleged misrepresentations not being actionable.
TENTATIVE RULING – THIRD CAUSE OF ACTION –
NEGLIGENT MISREPRESENTATION
“To
be actionable, a negligent misrepresentation must ordinarily be as to past or
existing material facts.” (Tarmann v. State Farm Mut. Auto. Ins. Co. (1991)
2 Cal.App.4th 153, 158.) “[P]redictions as to future events, or statements as
to future action by some third party, are deemed opinions, and not actionable
fraud.” (Id.)
Here, Plaintiffs’ third cause of action appears to
rely not on misrepresentations of past or then current facts, but on a belief
that Defendant would perform in the future. (See FAC ¶12,35.) This suggests
that the cause of action is one for negligent false promise, a claim not
recognized as actionable.
In relevant part of Tarmann:
To maintain an
action for deceit based on a false promise, one must specifically allege and
prove, among other things, that the promisor did not intend to perform at the
time he or she made the promise and that it was intended to deceive or induce
the promisee to do or not do a particular thing. [Citations omitted.] Given
this requirement, an action based on a false promise is simply a type of intentional misrepresentation,
i.e., actual fraud. The specific intent requirement also precludes
pleading a false promise claim as a negligent misrepresentation, i.e., “The
assertion, as a fact, of that which is not true, by one who has no reasonable
ground for believing it to be true.” [Citation omitted.] Simply put, making a
promise with an honest but unreasonable intent to perform is wholly different
from making one with no intent to perform and, therefore, does not constitute a
false promise. Moreover, we decline to establish a new type of actionable deceit:
the negligent false promise.
(Tarmann v.
State Farm Mut. Auto. Ins. Co. (1991) 2 Cal.App.4th 153, 159 [italics in
original, footnote omitted].)
Not only did the
Opposition not make any arguments as to this point, but the Opposition also failed
to explain why it should be granted leave to amend as to this cause of action.
As
stated in Dalton v. East Bay Mun. Utility Dist. (1993) 18 Cal.App.4th
1566, 1570-71:
If the complaint, liberally construed, can state
a cause of action, or if it is reasonably possible that the plaintiffs can cure
the complaint by amendment, the trial court should not sustain a demurrer
without leave to amend. (Heckendorn v. City of San Marino (1986) 42
Cal.3d 481, 486 [229 Cal.Rptr. 324, 723 P.2d 64].) The burden is on
the plaintiffs to establish the reasonable possibility that the defect is
curable. (Blank v. Kirwan, supra, 39 Cal.3d at p. 318.) A
demurrer is properly sustained without leave to amend if it appears that under
applicable substantive law there is no reasonable possibility that *1571 an
amendment could remedy the defects. (Heckendorn v. City of San Marino, supra,
42 Cal.3d at p. 486.)
(Dalton v. East Bay Mun. Utility Dist. (1993)
18 Cal.App.4th 1566, 1570-71.)
Armet’s demurrer
as to the third cause of action for negligent misrepresentation is SUSTAINED.
The Court will hear argument as to whether amend should be granted or denied.
Second Cause of
Action – Negligence
“To
state a cause of action for professional negligence, a party must show “(1) the
duty of the professional to use such skill, prudence and diligence as other
members of the profession commonly possess and exercise; (2) breach of that
duty; (3) a causal connection between the negligent conduct and the resulting
injury; and (4) actual loss or damage resulting from the professional
negligence.”[Citation omitted.]” (Giacometti v. Aulla, LLC (2010) 187
Cal.App.4th 1133, 1137.)
With respect to
how Armet’s duty arises, Plaintiffs allege:
ARMET had a duty
to install a functional security alarm system on the PROPERTY. ARMET further
had a duty of care to use the degree of care and skill that a reasonable and
prudent alarm installing company would use under similar circumstances and as
specifically described on its own website and in its representation to
PLAINTIFFS, as well as in the contract attached hereto as EXHIBIT A.
(FAC ¶23.)
Armet attacks only
the duty element of the negligence cause of action. Armet argues that
Plaintiffs did not allege the element of duty because Plaintiffs failed to
state that Armet breached any legal duty independent of the contract that was
allegedly breached. Armet cites several cases that allegedly stand for the
proposition that a person may not recover in tort for the breach of duties that
merely restate contractual obligations.
TENTATIVE RULING –
SECOND CAUSE OF ACTION – NEGLIGENCE
The
Court does not find Armet’s arguments persuasive.
Armet argues that Plaintiffs
did not allege a duty independent of the contract that was allegedly breached.
Paragraph 23 of
the FAC alleges:
ARMET had a duty to install a functional
security alarm system on the PROPERTY. ARMET further had a duty of care to use
the degree of care and skill that a reasonable and prudent alarm installing
company would use under similar circumstances and as specifically described on
its own website and in its representation to PLAINTIFFS, as well as in the
contract attached hereto as EXHIBIT A.
(FAC ¶23.)
The Court fails to
understand Armet’s arguments. The allegations in ¶23 appear to allege, in
addition to the duty arising from the contract, a duty arising from the degree
of care and skill that a reasonable and prudent alarm installing company would
use.
Of all the cases
that both Armet and Plaintiffs cited, Plaintiffs’ case citation to Zurich appears
to be the most on point.
As stated in Zurich:
Appellant further contends that the trial court
improperly designated Kings' conduct as a breach of contract and negligence.
This determination is not a contradiction in terms. “The same act may be both a
tort and a breach of contract. [Citation.] Even where there is a contractual
relationship between the parties, a cause of action in tort may sometimes arise
out of the negligent manner in which the contractual duty is performed, or out
of a failure to perform such duty. [Citations.]” (Eads v. Marks, 39 Cal.2d 807,
810-811 [249 P.2d 257].)
(Zurich Ins. Co. v. Kings Industries,
Inc. (1967) 255 Cal.App.2d 919, 923.)
Further, as stated in Michaelis, “A
contract to perform services gives rise to a duty of care which requires that
such services be performed in a competent and reasonable manner. A negligent
failure to do so may be both a breach of contract and a tort.” (Michaelis v.
Benavides (1998) 61 Cal.App.4th 681, 687-688.)
Although Armet
argues that several cases have disallowed negligence claims because those
plaintiffs failed to allege the breach of a duty outside of the contractual
obligations, the Court does not follow Armet’s arguments in the context of the
case law that Armet cites.
Armet cites
several cases that appear to be inapposite or have very little to do with the
arguments that Armet is asserting and focuses on liquidated damages, equitable
subrogation, and various issues that don’t appear to be relevant to the
argument that Armet is trying to make. Further, some of the cases cited by
Armet appear to be at a different procedural posture than the pleading stage.
Armet’s demurrer to the second cause of action
is OVERRULED.
MOTION 2 - MOTION TO STRIKE
Moving Party: Defendant, Armet Alarm & Electronics, Inc.
(Armet)
Responding Party: Plaintiffs,
Hilda Kasimian and Stepan Kasimian
Moving Papers: Proof
of Service; Notice; Memorandum; Schmid Declaration; Proposed Order;
Opposition Papers: Opposition
Reply Papers: Reply
RELIEF REQUESTED
Defendant, Armet, moves to strike the request
for attorneys fees’ from Plaintiffs’ FAC.
“This Motion is made
pursuant to California Code of Civil Procedure §§ 435 and 436 on the grounds
that Plaintiffs’ First Amended Complaint provides no legal basis for the
recovery of attorney’s fees. Armet complied with the meet and confer
requirements of Code of Civil Procedure section 430.41. (See Declaration of
Jeffrey C. Schmid, ¶¶ 3-4.)
This Motion is based
upon this Notice of Motion and Motion, the Memorandum of Points and Authorities
attached hereto, the Declaration of Jeffrey C. Schmid, Plaintiff’s First
Amended Complaint, and upon such further evidence and argument as may hereafter
be presented at the hearing on this matter.”
Procedural
Proof of Service
Timely Filed (CRC Rule 3.1300): Ok
16/21 Court Days Lapsed (CCP 1005(b)): Ok
Proper Address (CCP §1013, §1013a, §1013b): This motion to strike was allegedly
served electronically to Plaintiffs’ counsel. Plaintiffs’ counsel’s email
address on eCourt is listed as hgk@keosianlaw.com; however, moving counsel
allegedly served hgk@kewosianlaw.com. Despite this discrepancy, Plaintiffs’
counsel appears to have still received the instant motion to strike because an
Opposition was submitted. Therefore, there does not appear to be a service
issue with the instant motion to strike.
Meet and Confer
Before filing a motion to strike pursuant to
this chapter, the moving party shall meet and confer in person or by telephone
with the party who filed the pleading that is subject to the motion to strike
for the purpose of determining if an agreement can be reached that resolves the
objections to be raised in the motion to strike. If an amended pleading is
filed, the responding party shall meet and confer again with the party who
filed the amended pleading before filing a motion to strike the amended
pleading. (CCP §435.5(a).)
The Court notes as
follows, “A determination by the court that the meet and confer process was
insufficient shall not be grounds to grant or deny the motion to strike.” (CCP
§435.5(a)(4).)
Defendant, Armet’s,
counsel alleged he met and conferred but an agreement could not be reached.
(Schmid Decl. ¶¶3-4.)
Legal Standard – Motion to Strike
Any party, within the
time allowed to respond to a pleading may serve and file a notice of motion to
strike the whole or any part thereof. (CCP § 435(b)(1); Cal. Rules of Court,
Rule 3.1322(b).) The court may, upon a motion or at any time in its discretion
and upon terms it deems proper: (1) strike out any irrelevant, false, or
improper matter inserted in any pleading; or (2) strike out all or any part of
any pleading not drawn or filed in conformity with the laws of California, a
court rule, or an order of the court. (CCP §§ 436(a)-(b); Stafford v. Shultz
(1954) 42 Cal.2d 767, 782 [“Matter in a pleading which is not essential to the
claim is surplusage; probative facts are surplusage and may be stricken out or
disregarded”].)
The
grounds for moving to strike must appear on the face of the pleading or by way
of judicial notice. (Code. Civ. Proc. § 437; Turman v. Turning
Point of Central California, Inc. (2010) 191 Cal.App.4th 53, 63 [“judges
read allegations of a pleading subject to a motion to strike as a whole, all
parts in their context, and assume their truth”].)
TENTATIVE RULING MOTION 2 - MOTION TO STRIKE
Armet
seeks to strike the request for attorney’s fees in the Prayer based on similar
arguments explained in the tentative ruling on Motion 1’s Motion to Strike.
Opposition provided similar arguments asserted in the Opposition to Motion 1’s
Motion to Strike.
The Court adopts the same reasoning explained in the
tentative ruling for Motion 1’s Motion to strike.
Armet’s motion to strike ¶3 in the Prayer of the FAC
stating, “For attorneys’ fees as a result of the breach-of-contract cause of
action;” is GRANTED without prejudice to Plaintiffs’ ability to seek leave to
amend the FAC to reassert the request for attorney’s fees upon discovery of
evidence of the contract containing an attorney’s fee provision.