Judge: Bruce G. Iwasaki, Case: 23STCV07224, Date: 2025-06-04 Tentative Ruling
Case Number: 23STCV07224 Hearing Date: June 4, 2025 Dept: 14
SUPERIOR COURT OF THE STATE OF
CALIFORNIA¿¿
FOR THE COUNTY OF LOS ANGELES
DEPARTMENT 14¿
¿
|
DAVID GRUNDFAST Individually and
as successor-in-interest to MICHAEL A. GRUNDFAST, Deceased, and ERIKA
CAMERON, Individually, Plaintiffs, v.¿ ¿ 3M COMPANY, et al., Defendants.¿¿ |
Case No. 23STCV07224 ¿¿¿¿ Hearing Date: June 4, 2025
Time:
9:00 a.m. ¿ [TENTATIVE] ORDER RE:¿ DEFENDANT UNION
CARBIDE CORPORATION’S MOTION FOR SUMMARY ADJUDICATION |
[TENTATIVE] ORDER RE MOTION FOR SUMMARY ADJUDICATION
On April 3, 2023, Plaintiffs David Grundfast and
Erika Cameron filed their complaint for wrongful death alleging Plaintiffs’
father, Michael Grundfast (“Mr. Grundfast”), developed mesothelioma from
occupational exposure to asbestos and asbestos-containing products while
working as a laborer, manager, and forklift operator in California from the
mid-1970s through 1990. As against Defendant the Union Carbide Corporation. (“UCC”
or “Defendant”) Plaintiffs allege that Mr. Grundfast was exposed to asbestos
supplied by UCC to an employer, Ball Industries, which mixed raw asbestos into
its products while Mr. Grundfast worked there in the mid-1970s.
On March 6, 2025, UCC
filed its motion for summary adjudication arguing that Plaintiffs’ discovery
responses are factually devoid as specific facts supporting Plaintiffs’ third
cause of action for false representation and fourth cause of action for
intentional tort/concealment. Specifically, Defendant argues that Plaintiffs’
discovery responses are factually devoid as to the reliance element required
for false representation and the special relationship required for fraudulent
concealment. On May 9, 2025, Plaintiffs filed their opposition arguing that
their discovery responses were not factually devoid, and in the alternative,
they present sufficient evidence to create a triable issue of material fact. On
May 19, 2025, Defendant filed its reply. On June 3, 2025, the court held a
hearing.
The court finds that
Plaintiffs’ discovery responses were factually devoid as to specific facts
supporting Plaintiffs’ third cause of action for false representation and
fourth cause of action for fraudulent concealment. The court also finds that
Plaintiffs fail to present admissible evidence sufficient to create a triable
issue of material fact as to Mr. Grundfast’s reliance on a false representation
by UCC or the existence of a special relationship between Mr. Grundfast and UCC.
Plaintiffs’ opposition fails
to offer a separate statement of assertedly disputed material facts. It largely
concedes that UCC’s statement of facts are undisputed. Much of Plaintiffs’ opposition brief recites
purported assertions wholly absent from any separate statement, and are grounded
in evidence the court strikes as lacking in foundation. The court disregards these
assertions. Plaintiffs fail to show that Mr. Grundfast relied on any purported
false statement by UCC. They also fail to show any transactional relationship between
Grundfast and Union Carbide that gave rise to a duty to disclose facts.
UCC’s motions for summary
adjudication as to Plaintiffs’ third cause of action for fraudulent
misrepresentation and fourth cause of action for fraudulent concealment are
granted.
Defendant’s Objections:
Sustained:
1. Exhibits 4, 7, and 12
to the Seitz declaration: “Deposition of Jack Walsh, taken on October 20, 2011
in Tankersley v. CSK Auto, Inc., et. al., Alameda Superior Court Case No.
RG1050610”; “Deposition of John Myers, taken on June 16, 2005, in In re
Asbestos Litigation, Harris County of Texas”; and “Deposition of John Myers,
taken in 2003” in an unspecified case are inadmissible hearsay. Plaintiffs fail
to rebut the general rule against the admissibility of former deposition
testimony. (Berroteran v. Superior Court (2022) 12 Cal.5th 867, 895
[“The party urging admission of deposition testimony bears the burden of
rebutting the general rule by submitting appropriate information justifying the
admission of designated deposition testimony.”].)
2. Exhibits 9, 11, and 21
to the Seitz declaration: “a true and correct copy of 1972 Letter from Castor
Oil Company to DuPont Company”; “a true and correct copy of Mellon Institute
Report, July 11, 1966”; “Verma & Middleton, Occupational Exposure to
Asbestos in the Drywall Taping Process, J. Am. Indus. Hygiene Ass’n (1980)” are
inadmissible hearsay. Plaintiffs present no argument or explanation to support
the admissibility of these documents.
3.
Defendant makes a blanket objection to Seitz exhibits 2, 5-6, 8, 10, 13-20, and
22-27. These blanket objections are not in the proper form. The text of
Defendant’s objection only addresses Exhibit no. 2 and does not discuss the
basis for its arguments as to any of the other exhibits. Nevertheless the court
rules as follows:
Exhibit 2: Overruled. Exhibit 5: Overruled. Exhibit 6:
Overruled. Exhibit 8: Sustained. Exhibit 10: Sustained. Exhibit 13: Overruled.
Exhibit 14: Sustained. Exhibit 15: Sustained. Exhibit 16: Sustained. Exhibit
17: Sustained. Exhibit 18: Sustained. Exhibit 19 (erroneously marked as Exhibit
18): Sustained. Exhibit 20: Sustained. Exhibit 22: Sustained. Exhibit 23: Overruled.
Exhibit 24: Overruled. Exhibit 25: Overruled. Exhibit 26: Overruled. Exhibit 27: Sustained.
A defendant seeking
summary judgment must “conclusively negate[] a necessary element of the plaintiff’s
case, or . . . demonstrate[] that under no hypothesis is there a material issue
of fact that requires the process of trial.”
(Guz v. Bechtel Nat. Inc. (2000) 24 Cal.4th 317, 334.) To show that a plaintiff cannot establish an
element of a cause of action, a defendant must make the initial showing “that
the plaintiff does not possess, and cannot reasonably obtain, needed evidence.” (Aguilar v. Atlantic Richfield Co. (2001)
25 Cal.4th 826, 854.) “The defendant
may, but need not, present evidence that conclusively negates an element of the
plaintiff’s cause of action. The defendant may also present evidence that the
plaintiff does not possess, and cannot reasonably obtain, needed evidence – as
through admissions by the plaintiff following extensive discovery to the effect
that he has discovered nothing.” (Id.
at p. 855.) “ ‘If plaintiffs respond to comprehensive interrogatories seeking
all known facts with boilerplate answers that restate their allegations, or
simply provide laundry lists of people and/or documents, the burden of
production will almost certainly be shifted to them once defendants move for
summary judgment and properly present plaintiff’s factually devoid discovery
responses.’ ” (Weber v. John Crane,
Inc. (2006) 143 Cal.App.4th 1433, 1440.)
In
an action for fraudulent or intentional misrepresentation, a plaintiff is
required to show (1) false representation; (2) knowledge of falsity; (3) intent
to defraud, i.e., to induce reliance; (4) justifiable reliance; and (5)
resulting damage. [citation.]” (Burch v. CertainTeed Corporation (2019)
34 Cal.App.5th 341, 353 citing Engalla v. Permanente Medical Group, Inc.
(1997) 15 Cal.4th 951, 974.) “ ‘It is settled that a plaintiff, to state a
cause of action for deceit based on a misrepresentation, must [prove] that he
or she actually relied on the misrepresentation.’ [Citation.].” (Id. at
p. 353, citing Mirkin v. Wasserman (1993) 5 Cal.4th 1082, 1089.)
Similarly, false representation
under Restatement of Torts section 402B establishes “liability for injuries caused
by justifiable reliance on false advertising.” (Westlye v. Look Sports, Inc.
(1993) 17 Cal.App.4th 1715, 1750.) Under this section “ ‘[o]ne engaged in the business
of selling chattels who, by advertising, labels, or otherwise, makes to the
public a misrepresentation of a material fact concerning the character or
quality of a chattel sold by him is subject to liability for physical harm to a
consumer of the chattel caused by justifiable reliance upon the misrepresentation,
even though [¶] (a) it is not made fraudulently or negligently, and [¶] (b) the
consumer has not bought the chattel from or entered into any contractual
relation with the seller.’ [Citation.]” (Id. at pp. 1750-1751.) “The
rule ‘is one of strict liability for physical harm to the consumer, resulting
from a misrepresentation of the character or quality of the chattel sold, even
though the misrepresentation is an innocent one, and not made fraudulently or
negligently.’ [Citation.]” (Hauter v. Zogarts (1975) 14 Cal.3d 104,
114.) Under section 402-B, the “‘reliance need not necessarily be that of the
consumer who is injured. It may be that of the ultimate purchaser of the
chattel . . . who because of such reliance passes it on to the consumer who is
in fact injured, but is ignorant of the misrepresentation.’ [Citation.]” (Westlye,
supra, 17 Cal.App.4th at p. 1751.)
Defendant argues that it is
entitled to summary adjudication of Plaintiffs’ third cause of action for false
representation because Plaintiff’s discovery responses are factually devoid as
to specific facts showing that Mr. Grundfast relied on any false
representations by Defendant. Specifically, Defendant argues: “UCC is entitled
to summary adjudication against the complaint’s third cause of action for false
representation because Plaintiffs lack competent evidence to prove that UCC
made an affirmative misrepresentation of fact to Mr. Grundfast that he then
actually and justifiably relied on.” (Motion at p. 14.)
UCC presents sufficient
evidence to make a prima facie showing that Plaintiffs lack and cannot
reasonably obtain needed evidence of Mr. Grundfast’s reliance upon any
representations made by Defendant. In support of its argument Defendant relies
on Plaintiffs’ special interrogatory responses and the deposition testimony,
including stipulations made during the depositions, of Plaintiffs two
identified witnesses James Hurst and Kelly Melton. Defendant does not appear to
have propounded a special interrogatory on Plaintiffs specifically directed to Plaintiffs’
fraud causes of action. Instead, Defendant directs the courts attention to
Plaintiffs’ responses to special interrogatories no. 1 and 2 which generally
asked Plaintiffs to identify the asbestos-containing products they allege Mr.
Grundfast was exposed to and the facts supporting Plaintiffs’ allegations that
UCC supplied the asbestos in those products. (Schultz Decl. Ex. C at p. 2-4.) As
pertinent to the issue of fraudulent misrepresentation, Plaintiffs responses
state:
“Plaintiffs allege that
Mr. Grundfast was exposed to Union Carbide’s Calidria asbestos through the
dumping of bags of asbestos for use in the products manufactured at Ball
Industries… [¶] As for witnesses, Mr. Grundfast unfortunately passed away
before he could be deposed. Plaintiffs identify James Hurts [sic] and Kelly
Melton, who were co-workers with Mr. Grundfast at Ball Industries. Plaintiffs
are not currently aware of the names of any other co-workers that will give
product identification testimony as to Defendant, but Plaintiffs are continuing
to investigate.” (Schultz Decl. Ex. C at p. 3.)
Defendant also directs
the court’s attention to deposition testimony from the two witnesses identified
in Plaintiffs’ special interrogatory responses, James Hurst and Kelly Melton.
During their depositions, counsel for Plaintiffs stipulated that neither Mr.
Hurst nor Mr. Melton would offer testimony in support of Plaintiffs’
intentional tort causes of action. (See Schultz Decl. Ex. D, Melton Depo, at
55:7-21 [“Defendants have met and conferred with plaintiffs, and we have come
up with the following stipulation. My understanding is plaintiffs will
stipulate that Mr. Kelly Melton will not be offering any product identification
testimony with regard to any products that were not identified during Mr.
Melton's direct examination today. Mr. Melton, likewise, will not be offering
any testimony in support of plaintiff's intentional tort or punitive damage
claims in this case. This stipulation applies to Mr. Melton at trial,
deposition and via declaration; is that correct? MS. VINOCUR: Yes, so
stipulated.”]; Ex. E, Hurst Depo, 50:10-21 [“plaintiffs stipulate that Mr.
Hurst will not offer any product identification testimony which applies to
equipment as well via deposition, at trial or via affidavit or declaration
regarding any of the defendants that were not identified during the direct exam
of Mr. Hurst's deposition just now. If I am correct, that stipulation also
includes that Mr. Hurst will not be providing any testimony either by a
deposition, declaration or trial regarding any intentional torts or punitive
damage allegations plaintiffs are alleging. MS. VINOCUR: True.”].)
In opposition, Plaintiffs
argue that their discovery responses were not factually devoid. Specifically,
Plaintiffs argue: “Defendant Union Carbide has not presented evidence showing
that Plaintiffs do not have and cannot reasonably obtain evidence needed to
establish their claims for false representation and concealment.” (Opposition
at pp. 15-16.) Plaintiffs further argue: “No matter how many times Defendant
Union Carbide claims that Plaintiffs do not have evidence to support their
case, the conclusion remains the same: Defendant Union Carbide has not
presented evidence showing that Plaintiffs do not have and cannot reasonably
obtain needed evidence. Thus, Defendant Union Carbide’s motion should be denied
because it has not satisfied its moving burden.” (Id. at p. 10.)
In
reply, Defendant maintains it satisfied its initial burden. Defendant argues: “Pages
9-12 of UCC’s motion discussed the evidence and multiple grounds that met UCC’s
initial burden of production to support the motion for summary adjudication.
The opposition ignores and hence does not dispute many of these grounds.”
(Reply at p. 6.) UCC further argues: “UCC’s Undisputed Fact Nos. 8, 10, 19, and
21 established that Plaintiffs stipulated their two witnesses (Kelly Melton and
James Hurst) had no information to support the fraud claims. This stipulation
alone met UCC’s initial burden of production based on the following cases that
the Opposition does not mention, let alone address.” (Ibid.)
The court finds that Plaintiffs’
discovery responses are factually devoid as to specific facts to support their
cause of action for intentional misrepresentation. To provide factually sufficient
discovery responses, Plaintiffs were required to provide specific facts to
support each of the elements of the negligent misrepresentation cause of
action, including Mr. Grundfast’s justifiable reliance on a misrepresentation
of fact by Defendant. (See Burch, supra, 34
Cal.App.5th at p. 353; Westlye, supra,
17 Cal.App.4th at pp. 1750-1751.) As a matter of common sense, the only parties
capable of competently testifying to Mr. Grundfast’s actual reliance on a
representation are Mr. Grundfast himself and the people who knew him during the
period he allegedly relied on those representations. Unfortunately, Mr.
Grundfast passed away before he could be asked whether he directly or
indirectly relied on any representations from UCC. Plaintiffs stipulated that
the only two witnesses identified in their written discovery responses would
not present evidence regarding Plaintiffs’ causes of action for fraud. (Schultz
Decl. Ex. D, Melton Depo, at 55:7-21; Ex. E, Hurst Depo at 50:10-21.) Therefore, while a lack of deposition testimony
on a topic is not always sufficient to give rise to the inference that a
plaintiff lacks and cannot reasonably obtain needed evidence, here Defendants
have presented sufficient evidence to show that Plaintiffs lack and cannot
reasonably obtain needed evidence. (See Weber, supra, 143
Cal.App.4th at 1442 [“We do not hold that a defendant never will be
able to meet its initial burden of persuasion without propounding special
interrogatories or engaging in extensive discovery. In [McGonnell v. Kaiser
Gypsum Co., Inc. (2002) 98 Cal.App.4th 1098], for example, the defendant
was able to negate causation simply by showing that the plaintiff would have
identified the defendant's product had the plaintiff been exposed to it.”].)
Plaintiffs fail to
present evidence sufficient to create a triable issue of material fact. In
opposition, Plaintiffs argue that they present a triable issue of material fact
as to fraudulent misrepresentation. Plaintiffs argue: “it is not necessary for
a misrepresentation to have been made directly to Mr. Grundfast. Defendant
Union Carbide is liable for misrepresentation with respect to any nondisclosure
or affirmative misrepresentation that it made to its customers or the public…
Defendant
Union Carbide sold asbestos-containing products, knew the hazards of asbestos,
and refused to disclose the hazards to its customers, including Mr. Grundfast’s
employer, who in turn did not provide warnings to end users like Mr. Grundfast.
As a result, Mr. Grundfast was unknowingly exposed to Union Carbide asbestos.
There is sufficient evidence for a jury to reasonably conclude Union Carbide
falsely represented its product to Mr. Grundfast.” (Opposition at p. 17.)
In reply, Defendant does
not dispute that Plaintiffs were not required to present evidence of a direct
misrepresentation from UCC to Mr. Grundfast. Instead, Defendant argues: “Hauter,
Mirkin, and Cadlo confirm the settled law that supports summary
adjudication against the third cause of action because there is no evidence
that UCC made a misrepresentation of fact that Michael Grundfast actually and
justifiably relied upon. (See OCM Principal Opportunities Fund v. CIBC World
Markets (2007) 157 Cal.App.4th 835, 864 [“A plaintiff asserting fraud by
misrepresentation is obliged to plead and prove actual reliance, that is, to
‘establish a complete causal relationship’ between the alleged
misrepresentations and the harm claimed to have resulted therefrom.”].) (Reply
at pp. 9-10.)
The court finds
Plaintiffs fail to establish a triable issue of material fact as Mr.
Grundfast’s justifiable reliance on a false representation of fact. In
opposition, Plaintiffs present 28 exhibits of documentary evidence, the vast
majority of which purport to be UCC corporate documents or depositions of UCC’s
corporate representatives from previous cases. The only case specific documents
from which Plaintiffs could present a triable issue of material fact as to the
existence of a misrepresentation upon which Mr. Grundfast relied are deposition
testimony of Mr. Kelly Melton (Seitz Decl. Ex. 1), and Plaintiffs’ own special
interrogatory responses (Seitz Decl. Ex. 28.) Plaintiffs may not rely upon
their own interrogatory responses as evidence. (Code Civ. Proc., § 2030.410 [“the
propounding party or any party other than the responding party may use any
answer or part of an answer to an interrogatory only against the responding
party.”] Moreover, as discussed, Plaintiffs counsel expressly stipulated during
Mr. Melton’s deposition that he would not present any evidence relating to
Plaintiffs’ causes of action for intentional tort. (See Schultz Decl. Ex. D,
Melton Depo, at 55:7-21.) The remaining admissible materials do nothing to show
Mr. Grundfast justifiably relied on any representation of fact either directly
or indirectly from UCC. There is, in short, no evidence in the record regarding
what representations, if any, UCC made to either Mr. Grundfast or his employer,
and no indication that Mr. Grundfast took any action in reliance on those
representations. In the absence of this evidence, Plaintiffs fail to present a
triable issue of material fact as their cause of action for fraudulent
misrepresentation.
The elements of a cause
of action for fraudulent concealment are: “(1) the defendant concealed or
suppressed a material fact; (2) the defendant was under a duty to disclose the
fact to the plaintiff; (3) the defendant intentionally concealed or suppressed
the fact with the intent to defraud the plaintiff; (4) the plaintiff was
unaware of the fact and would not have acted as they did if they had known of
the concealed or suppressed fact, and (5) as a result of the concealment or
suppression of the fact, the plaintiff sustained damage.” (Bigler-Engler v.
Breg, Inc. (2017) 7 Cal.App.5th 276, 310-311, citing Kaldenbach v.
Mutual of Omaha Life Ins. Co. (2009) 178 Cal.App.4th 830, 850.)
With respect to the
second element, sometimes referred to as the special relationship requirement,
there are four circumstances which can give rise to actionable fraud by
non-disclosure or concealment: “ ‘(1) when the defendant is in a fiduciary
relationship with the plaintiff; (2) when the defendant had exclusive knowledge
of material facts not known to the plaintiff; (3) when the defendant actively
conceals a material fact from the plaintiff; and (4) when the defendant makes
partial representations but also suppresses some material facts. [Citation.]’ ”
(LiMandri v. Judkins (1997) 52 Cal.App.4th 326, 336.) In the absence of
a fiduciary relationship between a plaintiff and a defendant,;\ “As a matter of
common sense, such a relationship can only come into being as a result of some
sort of transaction between the parties.” (Id. at p. 337.)
In Bader v. Johnson
& Johnson (2022) 86 Cal.App.5th 1094, 1132 the court considered whether
there was prejudicial error for defendant when the trial court failed to give a
jury instruction on the transaction requirement for fraudulent concealment. The
court held, even assuming that failing to give the instruction was error, there
was no prejudice because the plaintiffs had presented evidence: “that
[plaintiff] lived with her parents growing up, her mom used and kept JBP in the
house, and [plaintiff] used JBP on her siblings as a kid and then on herself
from age 11 to about age 13. There was also evidence showing that J&J was
involved in retail sales of JBP to consumers and profited therefrom.” (Bader,
supra, 86 Cal.App.5th at p. 1132) The court found this evidence
sufficient because it concluded the special relationship requirement of
fraudulent concealment may be satisfied even in the absence of a direct
transaction between Defendant and Plaintiffs where there is “similar evidence
of transactions, advertising, or [defendant’s] direct monetary benefit.” (Ibid.)
Here, Defendant argues
that Plaintiffs discovery responses are factually devoid because “there was no
transaction between UCC and Mr. Grundfast that is required to impose a duty to
disclose facts to him.” (Motion at p. 19.)
Defendant
satisfies its burden to show that Plaintiffs’ discovery responses were
factually devoid as to evidence of a transactional relationship between Mr.
Grundfast and UCC sufficient to give rise to a duty to disclose. The parties’
arguments regarding Defendant’s initial burden are identical as those discussed
regarding fraudulent misrepresentation. For the same reasons discussed, the
court finds the deposition testimony and stipulations of Mr. Melton and Mr.
Hurst, sufficient evidence to raise the inference that Plaintiffs’ lack and
cannot reasonably obtain needed evidence to support their cause of action for
fraudulent concealment.
Moreover, as pertinent to
fraudulent concealment, Plaintiffs’ discovery responses contain no specific
facts supporting the existence of a “special relationship” between Mr.
Grundfast and UCC. According to Plaintiffs’ discovery responses, Mr. Grundfast
was exposed to UCC’s asbestos from working for Ball Industries which purchased
asbestos for use in its products. (Schultz Decl. Ex. C at p. 3. [“Plaintiffs
allege that Mr. Grundfast was exposed to Union Carbide’s Calidria asbestos
through the dumping of bags of asbestos for use in the products manufactured at
Ball Industries.”].)
Plaintiffs’ discovery
responses are silent as to the existence of any kind of relationship between
Mr. Grundfast and Defendant. There is, for instance, no indication that Mr.
Grundfast purchased UCC’s products or was a customer for Calidria asbestos. In
the absence of specific facts to support the existence of a special
relationship between Mr. Grundfast and UCC, Plaintiffs’ discovery responses
support the reasonable inference that Plaintiffs lack and cannot reasonably
obtain needed evidence. Therefore, the burden passes to Plaintiffs to present
evidence sufficient to create a triable issue of material fact.
Plaintiffs
fail to present evidence sufficient to create a triable issue of material fact
as to their cause of action for fraudulent concealment. In opposition,
Plaintiffs argue: “There is a question of fact as to whether these ‘affirmative
statement[s] [were] so misleading that it [gave] rise to a fraud cause of
action even where the relationship or transaction would be insufficient to give
rise to a generalized duty to disclose.’ (Bigler-Engler, supra, 7
Cal.App.5th at p. 312.) The jury could reasonably conclude that Union Carbide
expected that by providing these mistruths to the its customers, like Ball
Industries, that its customers, like Ball Industries, would not properly warn
their employees or end users, like Mr. Grundfast. Union Carbide was aware of
the hazards faced by the end users, as evidenced by their provision of
protective equipment, including respirators, to its own employees and
calculated marketing techniques to undermine the toxicity and carcinogenicity
of their Calidria asbestos fiber, and so the jury could infer that Union
Carbide’s statements were directed at its customers, like Ball Industries, the
end users, like Mr. Grundfast.” (Opposition at p. 22.)
In
reply, Defendant maintains that Plaintiffs present no evidence sufficient to
support the existence of special relationship between Mr. Grundfast and UCC.
Defendant argues: “There is no document and no testimony attached to the
opposition to demonstrate UCC and Michael Grundfast entered into a transaction
with each other to support a claim that UCC had a duty to disclose facts to him.”
(Reply at p. 13.)
The
court finds that Plaintiffs fail to present evidence sufficient to create a
triable issue of material fact as to their fourth cause of action for
fraudulent concealment. As an initial matter, Plaintiffs improperly cite Kovich
v. Paseo Del Mar Homeowners' Assn. (1996) 41 Cal.App.4th 863, 866 for the
proposition “Liability for non-disclosure also arises in the absence of a
special relationship where the defendant has actively concealed material facts.”
(Opposition at p. 18) The relevant language in Kovich reads: “ ‘The
general rule for liability for nondisclosure is that even if material facts are
known to one party and not the other, failure to disclose those facts is not
actionable fraud unless there is some fiduciary or confidential relationship
giving rise to a duty to disclose. [Citation.] However, active concealment of
facts and mere nondisclosure of facts may under certain circumstances be
actionable without such a relationship. [Citation.] [¶] For example, a duty to
disclose may arise without a confidential or fiduciary relationship where the
defendant, a real estate agent or broker, alone has knowledge of material facts
which are not accessible to the plaintiff, a buyer of real
property. [Citation.]’ [Citation.]” (Ibid.) In full context, this
case stands for the uncontroversial proposition that a duty to disclose may
arise in the absence of a “confidential or fiduciary” relationship, not, as
Plaintiffs represent, in the absence of any “special relationship” at all.
Second,
Plaintiffs’ effort to distinguish Bigler-Engler are unavailing.
Plaintiffs argue: “This case is distinguishable from Bigler-Engler for
two reasons. First, unlike the defendant in Bigler-Engler who sold its
products and was unaware that it was being rented out to other consumers, Union
Carbide sold its asbestos for use in Ball Industries products, knowing that its
asbestos would be incorporated into products by employees of Ball Industries,
and knowing that the manufacturers, including Ball Industries, were relying on
them as to the hazards of their Calidria asbestos… Second, Union Carbide
downplayed the risks of its products when it had full knowledge of how
dangerous they were.” (Opposition at pp. 17-18) These efforts to distinguish Bigler-Engler
do not address the fundamental issue, the utter absence of evidence of a
relationship between Mr. Grundfast and UCC. As the court in Bigler-Engler stated:
“An essential element underlying Engler's claim for intentional concealment, a
duty to disclose, is absent here because there was no evidence of a
relationship between Engler (or her parents) and Breg sufficient to give rise
to a duty to disclose. (Bigler-Engler, supra, 7 Cal.App.5th at p.
314.) Here, as in Bigler-Engler, UCC did not transact with Mr. Grundfast
or Plaintiffs in any way. (Ibid. [“Breg did not transact with Engler or
her parents in any way”].) Mr. Grundfast’s exposure to UCC’s asbestos was a
result of Ball Industry’s purchase of UCC’s products not from any transaction
between Mr. Grundfast and UCC. (Ibid. [“Engler obtained her Polar Care
device from Oasis, based on a prescription written by Chao, all without Breg's
involvement.”] There is no evidence that UCC knew Mr. Grundfast would be
exposed to its asbestos. (Ibid. [“The evidence does not show Breg
knew—prior to this lawsuit—that Engler was a potential user of the Polar Care
device, that she was prescribed the Polar Care device, or that she used the
Polar Care device.”].) There is also no evidence that UCC advertised directly
to consumers or received direct monetary benefit from Mr. Grundfast’s use of or
exposure to its products. (Ibid. [“The evidence also does not show that
Breg directly advertised its products to consumers such as Engler or that it
derived any monetary benefit directly from Engler's individual rental of the
Polar Care device.”].)
In
sum, the evidence in the record does not support a finding, or a reasonable
inference, that there was a special relationship between Defendant and Mr.
Grundfast sufficient to support Plaintiffs’ fourth cause of action for
fraudulent concealment. Therefore, Defendant’s motion for summary adjudication
as to Plaintiffs’ fourth cause of action for fraudulent concealment is granted.
Defendant’s motion for
summary adjudication regarding Plaintiffs’ third and fourth causes of action
for fraudulent misrepresentation and fraudulent concealment are granted. Defendant
Union Carbide Corporation
is
ordered to give notice.