Judge: Barbara M. Scheper, Case: 23STCV19265, Date: 2023-10-30 Tentative Ruling

Case Number: 23STCV19265    Hearing Date: October 30, 2023    Dept: 30

Dept. 30

Calendar No.

Davidov vs. Salimpour, et. al., Case No. 23STCV19265

 

Tentative Ruling re:  Defendant’s Motion to Strike

 

Defendant Pejman Salimpour, M.D. (Defendant) moves to strike the allegations and prayer for relief relating to punitive damages in the Complaint of Plaintiff Allan Davidov (Plaintiff). (Comp. ¶ 30, Prayer 2.) The motion is denied.

 

Any party may file a timely notice of a motion to strike the whole or any part of a pleading. (Code Civ. Proc., § 435, subd. (b).) The motion may seek to strike any “irrelevant, false or improper matter inserted in any pleading” or any part of the pleading “not drawn or filed in conformity with the laws of this state, a court rule, or an order of the court.” (Code Civ. Proc., § 436.) Irrelevant allegations include allegations that are not essential to the statement of a claim, allegations that are not pertinent to or supported by the claim and demands for judgment requesting relief not supported by the allegations. (Code Civ. Proc., § 431.10, subds. (b), (c).)

 

From March 2008 to March 2021, Plaintiff resided with his wife, Nilou Davidov (Nilou), at 104 S. Medio Drive, Los Angeles, CA (the Property). When Plaintiff and Nilou separated in March 2021, Plaintiff moved out of the Property, though Plaintiff and Nilou continued to co-own the Property and did not yet finalize their divorce. (Comp. ¶ 9.)   

Following the separation, Plaintiff became concerned about paying the two mortgages on the Property, particularly the second (subordinate) mortgage that would become due in December 2022. (Comp. ¶ 10.) Plaintiff warned Nilou that they should sell the Property in order to avoid having to sell the house in foreclosure, which would likely yield a lower price – in particular, due to significant investment in the Property’s internal components that would not be visible at a foreclosure auction. (Comp. ¶ 11.)

However, Nilou refused to sell the Property at the direction of Defendant, Nilou’s brother. (Comp. ¶ 14.) Defendant had learned of Plaintiff’s requests to sell the Property, and concocted a scheme to deprive Plaintiff of his fair share of the Property’s value. The scheme is described as follows: “[Defendant] himself would purchase the Second [mortgage] from the Second Lender, and thereafter foreclose on the Property, while instructing Nilou to (a) use her relationship with [Plaintiff] to acquire information about the identity of the Second Lender and other information as necessary for their scheme, and (b) refuse to allow any Ordinary Sale to go forward.” (Comp. ¶ 16.) Defendant “realized that as long as he could (a) foreclose on the Property and (b) keep Nilou from agreeing to put the Property up for sale, he could use his knowledge (from Nilou) of the interior of the Property and its recent remodeling to make a superior bid to purchase the Property at an auction.” (Comp. ¶ 17.)

            Defendant’s scheme was not only motivated by financial gain. Defendant also “desired to ‘punish’ [Plaintiff] for leaving Nilou,” knowing that obstructing a pre-foreclosure sale of the Property would place Plaintiff into financial distress and harm Plaintiff’s career as a real estate developer. (Comp. ¶ 19.)

            Defendant carried out his scheme; he persuaded Nilou to block any sale of the Property, instructed Nilou to ask Plaintiff for information about the lender of the second mortgage, used that information to purchase the second mortgage from the lender, and then filed a Notice of Foreclosure on the Property in January/February 2023. (Comp. ¶ 20.) The foreclosure has not yet gone forward, though is imminent. (Comp. ¶ 21.)

 

            Defendant moves to strike Plaintiff’s request for recovery of punitive damages (Comp. ¶ 30, Prayer 2), arguing that Plaintiff has not pled malice, oppression, or fraud.

Punitive damages may be imposed where it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice. (Civ. Code, § 3294, subd. (a).) “To support punitive damages, the complaint ... must allege ultimate facts of the defendant's oppression, fraud, or malice.” (Cyrus v. Haveson (1976) 65 Cal.App.3d 306, 316-17.)

“Malice” means conduct which is intended by the defendant to cause injury to the plaintiff or despicable conduct which is carried on by the defendant with a willful and conscious disregard of the rights or safety of others. (Civ. Code § 3294(c)(1).) “Oppression” is despicable conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person’s rights. (Civ. Code § 3294(c)(2).) “Fraud” means an intentional misrepresentation, deceit, or concealment of a material fact known to the defendant with the intention on the part of the defendant of thereby depriving a person of property or legal rights or otherwise causing injury. (Civ. Code § 3294(c)(3).)

            The allegations in the Complaint are sufficient to support recovery of punitive damages. Plaintiff alleges that Defendant specifically intended to cause Plaintiff harm and take advantage of Plaintiff’s financial distress in aiding Nilou’s tortious conduct. (Comp. ¶¶ 17-19.) These allegations show conduct intended to cause injury “with a willful and conscious disregard of the rights or safety of others,” supporting a finding of malice under Civ. Code § 3294. (See Roby v. McKesson Corp. (2009) 47 Cal.4th 686, 713 [relevant factors for reprehensibility of conduct include whether “the target of the conduct had financial vulnerability”].)