Judge: Bruce G. Iwasaki, Case: 23STCV19807, Date: 2023-11-28 Tentative Ruling
Case Number: 23STCV19807 Hearing Date: November 28, 2023 Dept: 58
Judge Bruce G. Iwasaki
Department 58
Hearing Date: November
28, 2023
Case Name: Guzman
v. 600 Tower, LLC
Case No.: 23STCV19807
Motion: Demurrer
and Motion to Strike
Moving Party: Defendant FPI Management, Inc.
Opposing Party: Plaintiffs
Byron Guzman and Nakeela Dillard
Tentative Ruling: The
Demurrer to the Complaint is sustained in its entirety. Plaintiffs shall have
leave to amend except as to the tenth cause of action. The motion to strike is granted
with leave to amend.
On August 18, 2023, Plaintiffs Byron Guzman and Nakeela Dillard (Plaintiffs)
filed a Complaint for (1.) Violation of Civil Code §1942.4, (2.) Tortious
Breach of the Warranty Of Habitability, (3.) Private Nuisance, (4.) Business and
Professions Code Section 17200, (5.) Negligence., (6.) Breach of Covenant of
Quiet Enjoyment, (7.) Intentional Infliction of Emotional Distress, (8.) Violation
of Consumer Legal Remedies Act, (9.) Violation of Los Angeles Tenant
Anti-Harassment Ordinance, (10.) False Advertising in Violation of Business and
Professions Code § 17500, et seq., (11.) Negligent Hiring, Retention, and
Supervision, and (12.) Intentional Influence to Vacate. Plaintiffs allege that Defendants caused
uninhabitable conditions in their apartment.
On October 13, 2023, Defendant FPI Management, Inc. (FPI) demurred
to the first, second, third, fourth, sixth, seventh, eighth, ninth, tenth,
eleventh and twelfth causes of action in the Complaint. Defendant FPI also moved
to strike the request for punitive damages, from the Complaint. Plaintiffs
opposed the demurrer and the motion to strike.
The Court sustains the demurrer in
its entirety. The motion to strike is granted in part and is moot as to the
remaining part.
Demurrer
A
demurrer is an objection to a pleading, the grounds for which are apparent from
either the face of the complaint or a matter of which the court may take
judicial notice. (Code Civ. Proc., § 430.30, subd. (a); see also Blank v.
Kirwan (1985) 39 Cal.3d 311, 318.) The purpose of a demurrer is to
challenge the sufficiency of a pleading “by raising questions of law.” (Postley
v. Harvey (1984) 153 Cal.App.3d 280, 286.) “In the construction of a
pleading, for the purpose of determining its effect, its allegations must be
liberally construed, with a view to substantial justice between the parties.” (Code
Civ. Proc., § 452.) 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.)
Analysis
Defendant
FPI demurs to the Complaint on the grounds that it fails to plead facts
sufficient to state a cause of action against it.
As a
preliminary matter, the Complaint fails to allege any specific facts as to
Defendant FPI. In fact, the only specific citation to FPI is in the Caption of
the Complaint and Paragraph 3 where Plaintiffs allege that Defendant FPI and
all the other ten other Defendants – which includes both corporations and
individuals – would be referred to “Defendants” in the Complaint. This way of
pleading renders the allegations vague and uncertain; it is entirely unclear what
conduct is alleged as to specific parties and how they are liable for the
other’s conduct. In a sense, Defendant FPI has been deprived of an ability to
mount a defense against specific allegations of misconduct.
This pleading
defect alone is ground to sustain the demurrer to the Complaint. The Court
nevertheless addresses the individual causes of action.
First Cause of Action for Violation of
Civil Code section 1942.4:
Defendant
FPI argues this claim has not been pled with sufficient particularity as to all
of the elements.
Civ. Code § 1942.4 provides, in relevant part:
“(a) A landlord of a
dwelling may not demand rent, collect rent, issue a notice of a rent increase,
or issue a three-day notice to pay rent or quit
pursuant to subdivision (2) of Section 1161 of the Code of Civil Procedure, if
all of the following conditions exist prior to the landlord’s demand or
notice:
(1) The dwelling
substantially lacks any of the affirmative standard characteristics listed in
Section 1941.1 or violates Section 17920.10 of the Health and Safety Code, or
is deemed and declared substandard as set forth in Section 17920.3 of the
Health and Safety Code because conditions listed in that section exist to an
extent that endangers the life, limb, health, property, safety, or welfare of
the public or the occupants of the dwelling.
(2) A public officer or
employee who is responsible for the enforcement of any housing law, after
inspecting the premises, has notified the landlord or the landlord’s agent in
writing of his or her obligations to abate the nuisance or repair the substandard
conditions.
(3) The conditions have
existed and have not been abated 35 days beyond the date of service of the
notice specified in paragraph (2) and the delay is without good cause. For
purposes of this subdivision, service shall be complete at the time of deposit
in the United States mail.
(4) The conditions were
not caused by an act or omission of the tenant or lessee in violation of
Section 1929 or 1941.2.”
Stated
more succinctly, Civil Code section1942.4 states that a landlord of a dwelling
may not demand rent if (1) the dwelling substantially lacks specific
affirmative characteristics, (2) a public officer has notified the landlord in
writing of an obligation to abate the nuisance or repair the substandard
conditions, (3) the conditions have existed and not been abated 35 days beyond
the date of the service of the notice from the public officer, and (4) the
conditions were not caused by an act or omission of the tenant or lessee.
Statutory
causes of action, such as this one cause of action, must be pleaded with
particularity. (Hood v. Hacienda La Puente Unified School District
(1998) 65 Cal.App.4th 435, 439 [“the general rule [is] that statutory causes of
action must be pleaded with particularity”].)
Here, Plaintiffs
have not adequately pled the requirements of Civil Code section 1942.4. With
respect to the requirement that a public officer has notified the landlord or the landlord’s agent in
writing of his or her obligations to abate the nuisance or repair the
substandard conditions
subsection, Plaintiffs allege “on information and belief” the Property has been
subject to multiple inspections by the Los Angeles Housing and Community
Investment Department “Housing Department” that resulted in citations against
the Defendant for multiple violations. (Compl., ¶17.) Moreover, with respect to
the third requirement that Plaintiffs plead conditions
have existed and have not been abated 35 days beyond the date of service of the
notice specified, Plaintiffs
again alleges “on information and belief” that “Defendants failed to abate or
repair the conditions identified in one or more of the Notice and Orders to
Comply within 35 days of receiving the notice…” (Compl., ¶ 87).
These
allegations do not satisfy Plaintiffs’ pleading burden. First, allegations made
on information and belief are insufficient if asserted without alleging the
information that led Plaintiffs to believe the allegations are true. (Gomes
v. Countrywide Home Loans, Inc. (2011) 192 Cal.App.4th 1149, 1158-1159 [“A
‘ “[p]laintiff may allege on information and belief any matters that are not
within his personal knowledge, if he has information leading him to believe
that the allegations are true” ’].) Here, Plaintiffs only allege the conclusory
statutory elements without any specific factual grounds for the belief and
further fail to include any specific allegations such as the date noticed in
the citations that start the 35 days clock.
Instead,
seemingly conceding this insufficiency in opposition, Plaintiffs “maintain and
pleads the delayed discovery rule.” (Opp. 3:4.) Plaintiff then cites Norgart v. Upjohn Co. (1999) 21 Cal.4th 383 for the
proposition that “[T]he plaintiff discovers the cause of action when he at
least suspects a factual basis, as opposed to a legal theory, for its elements,
even if he lacks knowledge thereof… He has reason to discover the cause of
action when he has reason at least to suspect a factual basis for its elements.
He has reason to suspect when he has ‘notice or information of circumstances to
put a reasonable person on inquiry’; he need not know the ‘specific “facts”
necessary to establish’ the cause of action; rather, he may seek to learn such
facts through the ‘process contemplated by pretrial discovery…’” (Id. at
397-398.)
Plaintiffs
misunderstand the application of the delayed discovery doctrine as it has no
application in determining the sufficiency of a pleading outside the context of
pleading around a statute of limitations affirmative defense. The doctrine does
not relax the general pleading standard.
The
demurrer to the first cause of action is well taken. Plaintiffs have failed to plead
this cause of action with adequate particularity. The demurrer is sustained.
Second Cause of Action for Breach of
Warranty of Habitability:
Defendant
FPI argues that the second cause of action fails because Plaintiffs have failed
to alleged the existence of a contract between themselves and FPI.
There
is “a common law implied warranty of habitability in residential leases in
California . . ..” (Fairchild v. Park (2001) 90 Cal.App.4th 919, 924; Green
v. Superior Court (1974) 10 Cal.3d 616, 619.)
In the present case, Plaintiffs
“did assert a contractual cause of action: breach of the implied warranty of
habitability.” (Allstate Ins. Co. v. Loo (1996) 46 Cal.App.4th 1794,
1798.) Specifically, the Complaint alleges that Defendants have breached the
warranty of habitability implied in all rental contracts under California law.
(Compl., ¶ 98.)
However, Plaintiffs have
failed to attach a copy of the contract to the Complaint and have also failed
to state any material terms of the alleged contract that demonstrate the
existence of a contract between FPI and Plaintiffs. As such, Plaintiffs cannot
allege Defendant FPI is bound by any implied covenant arising from the parties’
contract.
In opposition,
Plaintiffs again rely on the inapplicable delayed discovery rule and argue they
intend to obtain a copy of the Lease at the time of discovery.
Plaintiffs have failed
to state a claim against FPI. The demurrer to the second cause of action is sustained
on this ground.
Third Cause of Action for Nuisance:
Defendant
FPI argues the third cause of action for nuisance fails to state a cause of
action against FPI because the claim is based on the same facts as and is duplicative
of the negligence cause of action.
The
elements of private nuisance claims are that the alleged nuisance activities
cause (1) an interference with the plaintiff’s use and enjoyment of their
property, (2) that the invasion must be substantial such that actual damages
occur, and (3) that the interference must be unreasonable. (See, e.g.,
Wilson v. Southern California Edison Co. (2018) 21 Cal. App. 5th 786, 802-803.)
The
nuisance cause of action alleges the “Property suffered conditions including
but not limited to: improper weatherproofing, holes on the ceiling, peeling
paint, cockroach infestation, inoperable heater/air conditioner, inconsistent
hot water supply, inoperable smoke alarms, mold contamination, leaking pipes,
dysfunctional plumbing systems, deficient fire alarms, broken elevators, unsafe
parking lot, inadequate security.” (Compl., ¶ 103.) The nuisance cause of
action attributes the creation of the uninhabitable conditions to “Defendants’
failure to provide repairs, their refusal to comply with complaints and/or
government citations, and their lack of urgency in providing repairs.” (Compl.,
¶ 105.) The negligence cause of action contains identical allegations. (Compl.,
¶¶ 129; see also 127.)
In
opposition, Plaintiffs argue that negligence cause of action is based more
broadly on Defendant’s failure to meet their duty to exercise reasonable care
in the ownership, management, and control of the Property.
In El Escorial Owners’ Assn. v. DLC Plastering, Inc. (2007) 154 Cal.App.4th 1337,
the court held that a nuisance claim for toxic mold contamination
could not exist separate from the plaintiff's negligence claim. (Id. at p. 1348.)
The court explained that the definition of nuisance is “so broad
that it could be “ ‘applied indiscriminately to everything.” ’ ” (Id. at p. 1348
[quoting City of San Diego v. U.S. Gypsum Co. (1995) 30
Cal.App.4th 575, 585].) The court explained that permitting traditional torts
to be litigated as nuisance claims “would allow nuisance to “ ‘become
a monster that would devour in one gulp the entire law of tort.” ’ ” (El Escorial, at p. 1348.)
In El Escorial,
the “factual allegations incorporated into the nuisance cause of
action involved negligence and defective workmanship.” The court
concluded that, “[w]here negligence and nuisance causes of action rely on the
same facts about lack of due care, the nuisance claim is
a negligence claim.” (El Escorial, supra, 154 Cal.App.4th at p. 1349;
see Melton v. Boustred (2010) 183 Cal.App.4th 521, 542–543 [nuisance claim
failed with negligence claim where the nuisance claim
relied on the same facts].)
The
importance of preventing the broad label of “nuisance” from swallowing the
elements of a negligence claim is particularly pronounced here, where,
in contrast to a negligence claim, liability
for nuisance does not depend on the defendant's ability to control
the property creating the nuisance. (See Melton, supra, 183
Cal.App.4th at p. 542.) That is, nuisance liability “does not hinge on whether the defendant owns,
possesses or controls the property, nor on whether he is in a position to abate
the nuisance; the critical question is whether the defendant created or
assisted in the creation of the nuisance.” (City of Modesto Redevelopment
Agency v. Superior Court (2004) 119 Cal.App.4th 28, 38.)
Plaintiffs’
opposition does not cite any allegations from the Complaint which supports
their argument that the nuisance claim is based on different facts from the
negligence claim. Rather, Plaintiffs
argue that the negligence and private nuisance causes of action rely on some of
the same facts about lack of due care; however, the negligence cause of action
is premised on additional separate facts. That is, Plaintiffs concede, in
effect, that the nuisance claim is duplicative of the negligence claim.
The
demurrer to the nuisance cause of action is sustained.
Sixth
Cause of Action for Breach of Quiet Enjoyment:
Defendant FPI demurs to this cause of action on
the grounds that Plaintiffs have failed to allege the existence of a contract
between the parties.
Under California law, every lease
includes an implied covenant of quiet possession and enjoyment. (Civ. Code, §
1927.) This covenant is breached upon actual or constructive eviction of the
tenant. (McAlester v. Landers (1886) 70 Cal. 79, 82.) “Any interference
by the landlord that deprives the tenant of the beneficial enjoyment of the
premises or renders the premises unfit for the purposes for which they are let
amounts to a constructive eviction if the tenant so elects and vacates within a
reasonable time.” (Erlach v. Sierra Asset Servicing, LLC (2014) 226
Cal.App.4th 1281, 1299; Kulawitz v. Pacific Woodenware Paper Co. (1944)
25 Cal.2d 664, 670; Pierce v. Nash (1954) 126 Cal.App.2d 606, 612–613.)
“ ‘It has long been the rule that in the
absence of language to the contrary, every lease contains an implied covenant
of quiet enjoyment. [Citations.] Initially, the covenant related solely to the
right of possession and only protected the lessee against any act of
molestation committed by the landlord or anyone claiming under him, or by
someone with paramount title, which directly affected the tenant's use and
possession of the leased premises; the covenant was construed to protect the
lessee against physical interference only. [Citation.] In recent years, the
covenant of quiet enjoyment has been expanded, and in this state, for example,
it insulates the tenant against any act or omission on the part of the
landlord, or anyone claiming under him, which interferes with a tenant’s right
to use and enjoy the premises for the purposes contemplated by the tenancy.
[Citations.]’ [Citations.]” (Nativi v. Deutsche Bank National Trust Company (2014)
223 Cal.App.4th 261, 291–292.)
Simply put, “ ‘[A]ny disturbance of
the tenant's possession by the lessor or at his procurement ... which has the
effect of depriving the tenant of the beneficial enjoyment of the premises,
amounts to a constructive eviction, provided the tenant vacates the premises
within a reasonable time. [Citations.]’ [Citations]. The Supreme Court stated
in Standard Live Stock Co. v. Pentz (1928) 204 Cal. 618, 625, 269 P. 645
... that ‘the covenant of quiet possession in a lease is not breached until
there has been an actual or constructive eviction.’ Nevertheless, some
authorities recognize that a tenant may sue for breach of the covenant while
remaining in possession. [Citations.]” (Nativi, supra, at p. 292, 167
Cal.Rptr.3d 173.)
The only allegation asserting the
existence of a lease between any parties in this case is as follows:
“Plaintiffs have resided in the home since in or around 2017 pursuant to a
lease agreement.” (Complaint, ¶55.) There is no indication of who entered into
the written lease or what the terms of that lease was. Thus, the demurrer to
this cause of action is sustained for the same reason as the second cause of
action.
Seventh
Cause of Action for Intentional Infliction of Emotional Distress:
Defendant
FPI contends the intentional infliction of emotional distress claim must fail
because it is devoid of any factual allegations about outrageous conduct or the
alleged severe emotional distress.
The
elements of intentional infliction of emotional distress are (1) extreme and
outrageous conduct (2) directed to the plaintiff by defendant, (3) with the
intention of (4) causing, or reckless disregard of the probability of causing,
(5) severe or extreme emotional distress. (Christensen v. Superior Court
(1991) 54 Cal. 3d 868, 903.) For conduct to be outrageous it must be so extreme
as to exceed all bounds of that usually tolerated in a civilized community. (Ess
v. Eskaton Properties, Inc. (2002) 97 Cal. App. 4th 120, 130.)
The
Complaint alleges “Defendant landlord’s practice/conduct of ignoring these
conditions and/or otherwise failing to make any repairs, under the
circumstances, is extreme and outrageous.” (Compl., ¶ 143.)
The
demurrer is well taken. As previously noted, the Complaint fails to attribute
any specific conduct to FPI and fails to allege any specific extreme emotional
distress that resulted from Defendant FPI’s actions. The demurrer to the seventh cause of action is
sustained.
Eighth Cause of Action for Violation of California
Consumer Legal Remedies Act (CLRA), California Civil Code section 1750, et.
seq.:
Defendants
argue this cause of action fail because Plaintiffs do not allege the
lease of a “good.”
The CLRA prohibits “unfair methods
of competition and unfair or deceptive acts or practices...undertaken by any
person in a transaction intended to result or which results in the sale or
lease of goods or services to any consumer...” (Civ. Code, § 1770, subd.
(a) [emphasis added].) Under the CLRA, “goods” are defined as “tangible
chattels bought or leased for use primarily for personal, family, or household
purposes...” (Civ. Code, § 1761, subd. (a).)
The Complaint alleges a violation of
Civil Code section 1770 on the grounds that Defendants leased the Property – a
good under Civil Code section 1761 – and represented the good was fit for “for
human occupation to the public, and to the Plaintiffs.” (Compl., ¶¶ 154-156.)
Here,
the lease was for real property, not chattel. The Opposition fails to address
the argument made on demurrer; Plaintiffs have failed to state a claim. The
demurrer to the CLRA claim is sustained.
Ninth Cause of Action for Violation of
Los Angeles Municipal Code section 45.33:
Los
Angeles Municipal Code (LAMC) section 45.33 is a
tenant harassment statute that prohibits landlords from knowingly and willfully
committing certain conduct against tenants that serves no lawful purpose. Additionally, LAMC section 45.35, subdivision (F), states that “A
civil proceeding or small claims case initiated under this article alleging any
violation of Section 45.33 may be commenced only after the tenant provides
written notice to the landlord of the alleged violation, and the landlord fails
to remedy the repair or maintenance issue within a reasonable period of time.”
First, Defendant FPI
argue that the Complaint fails to allege compliance with the written notice
requirement of LAMC Section 45.35, subdivision (F). In opposition, Plaintiffs
do not identify any specific allegation in the Complaint that satisfies this
element but instead argues, in opposition, that “Plaintiffs have cried, begged,
and complained to the Defendants for years now about the issues with the
property and they have been ignored.” (Opp. 9:14-15.) Contrary to Plaintiffs
assertion, this argument in the Opposition does not satisfy the requirement of
the local ordinance.
Further, the allegations
that purportedly alleges violations of some of the sixteen stated actions
listed under LAMC section 45.33 are conclusory and fail to specify what
specific conduct by FPI violated what specific provision of the law.
The demurrer to this cause
of action is sustained.
Eleventh Cause of Action for Negligent
Hiring, Retention, and Supervision:
Defendant
FPI demurs on the grounds that Plaintiffs have not alleged sufficient facts to
apprise FPI of the factual basis for Plaintiffs’ negligent hiring claim.
“Negligence
liability will be imposed on an employer if it ‘knew or
should have known that hiring the employee created a particular risk or hazard
and that particular harm materializes.’” (Phillips v. TLC Plumbing, Inc.
(2009) 172 Cal-App.4th 1133, 1139.)
The
Complaint purports to allege negligent misconduct by Defendant Lea Kim,
individual, and Shandie Gairson, another individual. (Complaint ¶¶ 183-188).
The Complaint alleges that Kim refused to turn over video surveillance footage
of an accident in the Property’s parking lot and failed to provide “assistance”
to tenant requesting such help for burglaries that occurred in the parking lot.
(Compl., ¶¶ 184-185.) The Complaint alleges that “Defendant Lea Kim was hired
to be the manager at said Property by the Corporation Defendant.” (Compl., ¶ 183).
On
demurrer, Defendant FPI argues that Plaintiffs have failed to adequately allege
that it is the employer of Lea; nor do any of these allegations amount to
negligence; specifically, Plaintiffs fail to set out how FPI allegedly knew
hiring an individual employee “created a particular risk or hazard.” (Dem.
14:25-26.)
In
opposition, Plaintiffs contend “[d]iscovery will ascertain the truth, the whole
truth, and nothing but the truth. However, for now, paragraphs 182 through 190
clearly set out the factual analysis, in addition to the facts incorporated by
reference.” (Opp. 9:21-23.)
The allegations
are insufficient to show that FPI “knew or should have known that hiring” Kim
“created a particular risk or hazard” or that any particular “harm
materialized” as result of Kim’s employment. The demurrer to the eleventh cause
of action is sustained.
Twelfth Cause of Action for Intentional
Influence to Vacate (Violation of Civil Code section 1940.2):
Defendant
FPI argues that – like Plaintiffs’ other statutory claims – Plaintiffs have not
alleged this claim with sufficient particularity.
Section 1940.2 of the
Civil Code prohibits landlords from taking certain actions for the purpose of
influencing a tenant to vacate a dwelling. Civil Code section 940.2,
subdivision (a), states: “It is unlawful for a landlord to do any of the
following for the purpose of influencing a tenant to vacate a dwelling: (1)
Engage in conduct that violates subdivision (a) of Section 484 of the Penal
Code. (2) Engage in conduct that violates Section 518 of the Penal Code. (3) Use, or threaten to use, force, willful threats, or
menacing conduct constituting a course of conduct that interferes with the
tenant's quiet enjoyment of the premises in violation of Section 1927 that
would create an apprehension of harm in a reasonable person. Nothing in
this paragraph requires a tenant to be actually or constructively evicted in
order to obtain relief. (4) Commit a significant and intentional violation of
Section 1954. (5) Threaten to disclose information regarding or relating to the
immigration or citizenship status of a tenant, occupant, or other person known
to the landlord to be associated with a tenant or occupant. This paragraph does
not require a tenant to be actually or constructively evicted in order to
obtain relief.”
The Complaint alleges
that “Defendants” refused to provide repairs with the intention of rendering
tenancy in the Property oppressive and burdensome. (Compl., ¶ 105.) Further,
Defendants intimidated Plaintiff Guzman and prevented her from entering the
leasing office, forcing her to put her rental check in a different box.
(Compl., ¶ 196.)
The demurrer is well
taken. Plaintiffs’ allegations do not satisfy the requirement of Section 1940.2
as they do not constitute the “[u]se, or [a] threat[] to use, force, willful
threats, or menacing conduct constituting a course of conduct that interferes
with the tenant's quiet enjoyment of the premises in violation of Section 1927 that
would create an apprehension of harm in a reasonable person.” (Civ. Code, §
1940.2.) The demurrer is sustained.
Fourth Cause of Action for Violation of Business and Professions Code section 17200 and Tenth Cause of
Action for Violation of Business and Professions Code section 17500:
With respect to the fourth cause of action, the UCL does not proscribe
specific activities, but in relevant part broadly prohibits “any unlawful,
unfair or fraudulent business act or practice.” (Bus. & Prof. Code, §
17200.) “Because . . . section 17200 is written in the disjunctive, it
establishes three varieties of unfair competition—acts or practices which are
unlawful, or unfair, or fraudulent. In other words, a practice is prohibited as
‘unfair’ or ‘deceptive’ even if not ‘unlawful’ and vice versa.” (Aleksick v.
7-Eleven, Inc. (2012) 205 Cal.App.4th 1176, 1184 [citing Cel–Tech
Communications, Inc. v. Los Angeles Cellular Telephone Co. (1999) 20
Cal.4th 163, 180].) The UCL incorporates by reference the False Advertising
Act. (See Bus. & Prof. Code, § 17200 [UCL prohibits “any unlawful, unfair
or fraudulent business act or practice and unfair, deceptive, untrue or
misleading advertising and any act prohibited by Chapter 1 (commencing with
Section 17500) of Part 3 of Division 7 of the Business and Professions
Code.”].)
“[W]hen the underlying
legal claim fails, so too will a derivative UCL claim.” (AMN Healthcare,
Inc. v. Aya Healthcare Services, Inc. (2018) 28 Cal.App.5th 923, 950.)
Here, Plaintiff’s Section 17200 claim fails as dependent on and derivative of
Plaintiffs’ defective remaining claims.
There
are no allegations about any purported actor on the part of any of the
Defendants. Almost all of Plaintiffs’ allegations in these causes of action are
made against “Defendants” as a collective – even though seven of the eleven
defendants are business entities who were involved with the Property in some
way at different times.
The
Complaint alleges that “[t]hroughout Defendants’ ownership of the Property,
Defendants have advertised the Property for rent….” (Compl., ¶ 175.) The
Complaint continues “Defendants have engaged in the advertising herein
alleged...” (Compl., ¶ 177.)
As argued by
Defendant FPI, Plaintiffs seek to bring each of these causes of action against
multiple, separate business entity defendants and four individuals, but fail to
distinguish the grounds of those causes of action as against any specific
defendants. As a result of the lack of specificity in pleading this statutory
claim and the failure of the underlying derivative claims, Plaintiffs have failed
to state a claim under Business and Professions Code sections 17200 and 17500.
The demurrer to these two causes of action are sustained – as to the fourth
cause of action with leave to amend, but as to the tenth cause of action without
leave to amend.
Legal Standard for Motions to
Strike
“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 FPI moves to strike
punitive damages, request for attorneys’ fees, civil penalties pursuant to
violation of Los Angeles Municipal Code section 45.35, special damages pursuant
to a violation of Civil Code section 1942.4(b)(1), and restitution of rent
monies pursuant to Business and Professions Code Section 17200 in the
Complaint.
As the Court has sustained the
demurer to all but the fifth cause of action for negligence, the motion to strike is largely moot. Plaintiffs have not stated a
cause of action under Civil Code section 1942.4, Civil Code section 1780,
subdivision (e), Los Angeles Municipal Code Section 45.35, Civil Code section 1942.5
or Business and Professions Code section 17200. Thus, Plaintiffs have not
stated a statutory basis for the recovery of attorneys’ fees, civil penalties,
special damages or restitution.
Moreover, with respect
to the punitive damages request, Plaintiffs have further failed to
plead the request for these damages with the heightened particularity required
for pleading punitive damages against FPI, a corporate employer.
Punitive
damages are recoverable where the defendant has been guilty of oppression,
fraud, or malice, express or implied. (Civ. Code, § 3294.) “Something more than
the mere commission of a tort is always required for punitive damages. There
must be circumstances of aggravation our outrage, such as spite or malice, or a
fraudulent or evil motive on the part of the defendant, or such a conscious and
deliberate disregard of the interests of others that his conduct may be called
willful or wanton.” (Taylor v. Superior
Court (1979) 24 Cal.3d 890, 894.) Specific intent to injure is not
necessary for a showing of malice—it is sufficient that the defendant’s conduct
was so “wanton or so reckless as to evince malice or conscious disregard of
others’ rights.” (McConnell v. Quinn (1925)
71 Cal. App. 671, 682.)
A request
for punitive damages that is not supported with specific allegations of
oppression, fraud, or malice is subject to a motion to strike. Conclusory
allegations that defendants acted “willfully,” “maliciously,” or with
“oppression, fraud, or malice” are not, without more, sufficient to give rise
to a claim for punitive damages, but such language is permissible where the
complaint contains sufficient factual support for the conclusions. (Perkins v. Superior Court (1981) 117
Cal.App.3d 1, 6-7.)
Further,
Civil Code section 3294, subdivision (b), provides as follows: “An employer
shall not be liable for damages pursuant to subdivision (a), based upon acts of
an employee of the employer, unless the employer had advance knowledge of the
unfitness of the employee and employed him or her with
a conscious disregard of the rights or safety of others or authorized or
ratified the wrongful conduct for which the damages are awarded or was
personally guilty of oppression, fraud, or malice. With respect to a corporate
employer, the advance knowledge and conscious disregard, authorization,
ratification or act of oppression, fraud, or malice must be on the part of an
officer, director, or managing agent of the corporation.”
The
Complaint is devoid of any allegation showing that Defendant FPI had advance
knowledge, employed any individual with a conscious disregard of the rights or
safety of others or authorized or ratified any wrongful conduct. Accordingly, the
motion to strike is granted as to the request for punitive damages.
Conclusion
The demurrer is sustained in its
entirety. Plaintiffs shall have leave to amend except as to the tenth cause of
action. The motion to strike is granted with leave to amend. An amended
complaint shall be filed and served by December 28, 2023.