Judge: Bruce G. Iwasaki, Case: 23STCV03818, Date: 2023-08-29 Tentative Ruling



Case Number: 23STCV03818    Hearing Date: August 29, 2023    Dept: 58

Judge Bruce G. Iwasaki

Department 58


Hearing Date:             August 29, 2023

Case Name:                Burs v. David Klass Wholesale Jewelry

Case No.:                    23STCV03818

Matter:                        Motion to Strike

Moving Party:             Defendant David Klass Wholesale Jewelry

Responding Party:      Plaintiff Anne Burs


Tentative Ruling:       The motion to strike is granted with leave to amend.


 

This case arises out of an employment dispute. Plaintiff Anne Burs (Plaintiff) alleges that she was employed by Defendant David Klass Wholesale Jewelry (Defendant Employer) from approximately August 2019 through November 2022; she alleges that Defendant Employer violated numerous labor laws and unlawfully terminated her in retaliation for her reporting the sexual harassment committed by Defendant Elad Iton, an alleged “business partner” of Defendant Employer. (Compl., ¶ 10.)

 

The Complaint contains causes of action for (1) Misclassification as an Independent Contractor; (2) Failure to Provide Meal Breaks; (3) Failure to Provide Rest Breaks; (4) Failure to Prevent Harassment; (5) Retaliation; (6) Wrongful Termination in Violation of Public Policy; (7) Failure to Timely Pay Wages Upon Termination; (8) Assault; and (9) Sexual Battery.   

 

            On April 14, 2023, Defendant Employer moved to strike the request for punitive damages. Plaintiff opposed the motion to strike.

 

            The motion to strike is granted with leave to amend.

 

LEGAL STANDARD

 

“The court may, upon a motion made pursuant to Section 435, or at any time in its discretion, and upon terms it deems proper: (a) Strike out any irrelevant, false, or improper matter inserted in any pleading. (b) Strike out all or any part of any 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.) “Immaterial” or “irrelevant” matters include allegations not essential to the claim, allegations neither pertinent to nor supported by an otherwise sufficient claim or a demand for judgment requesting relief not supported by the allegations of the complaint. (Code Civ. Proc. § 431.10, subds. (b)(1)-(3).)

 

DISCUSSION

 

            Defendant Employer moves to strike the request for punitive damages. In opposition, Plaintiff argues that she has pled sufficient facts to support the request for punitive damages.

 

A claim for punitive damages in a complaint must allege that the defendant “has been guilty of oppression, fraud or malice.” (Civ. Code § 3294, subd. (a).) “Oppression’ means despicable conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person's rights.” (Civ. Code § 3294¿subd. (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,¿subd. (c)(3).) “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¿subd. (c)(1); see Taylor v. Superior Court (1979) 24 Cal.3d 890, 895-896.)

 

            To survive a motion to strike allegations of punitive damages, “the ultimate facts showing an entitlement to such relief must be pled by a plaintiff.  [Citations.]  In passing on the correctness of a ruling on a motion to strike, judges read allegations of a pleading subject to a motion to strike as a whole, all parts in their context, and assume their truth.  [Citations.]  In ruling on a motion to strike, courts do not read allegations in isolation. [Citation.]” (Clauson v. Superior Court (1998) 67 Cal.App.4th 1253, 1255.)¿“The mere allegation an intentional tort was committed is not sufficient to warrant an award of punitive damages.¿ [Citation.] ¿Not only must there be circumstances of oppression, fraud or malice, but facts must be alleged in the pleading to support such a claim.” (Grieves v. Superior Court. (1984) 157 Cal.App.3d 159, 166.)¿ Further, a¿plaintiff’s “conclusory characterization of defendant’s conduct as intentional, willful and fraudulent is a patently insufficient statement of ‘oppression, fraud,¿or malice, express or implied,¿within the meaning of section 3294.”¿(Brousseau v. Jarrett¿(1977) 73 Cal.App.3d 864, 872.)

 

            The Complaint here alleges that Defendant Iton repeatedly touched Plaintiff in a sexual manner without her consent while she was working for Defendant Employer. (Compl., ¶ 16.) The Complaint alleges that Plaintiff reported Defendant Iton’s misconduct to Defendant Employer; Defendant Employer failed to prevent the harassment and, instead, terminated Plaintiff’s employment. (Compl., ¶¶ 17-19.)

 

            “Civil Code section 3294, subdivision (b), provides that a corporate employer is not liable for punitive damages based upon the acts of its employees unless the acts were committed, authorized, or ratified by a corporate officer, director, or managing agent.” (Powerhouse Motorsports Group, Inc. v. Yamaha Motor Corp., U.S.A. (2013) 221 Cal.App.4th 867, 885.) “Corporations are legal entities which do not have minds capable of recklessness, wickedness, or intent to injure or deceive. An award of punitive damages against a corporation therefore must rest on the malice of the corporation's employees.” (Cruz v. HomeBase (2000) 83 Cal.App.4th 160, 167.)

 

Here, the allegations for misconduct against Defendant Employer are entirely conclusory and contains no specific actions of any employee of Defendant Employer that could constitute oppression, fraud or malice for the purposes of Civil Code section 3294, subdivision (b). The allegations in the Complaint are insufficient to establish that ‘the advance knowledge and conscious disregard, authorization, ratification or act of oppression, fraud, or malice [is] on the part of an officer, director, or managing agent of” Defendant Employer (Civ. Code § 3294, subd. (b).)

 

CONCLUSION

 

The motion to strike is granted with leave to amend. The Amended Complaint shall be served and filed on or before September 19, 2023.