Judge: Cherol J. Nellon, Case: 23STC44389, Date: 2024-09-24 Tentative Ruling

Case Number: 23STC44389    Hearing Date: September 24, 2024    Dept: 14

#10

Case Background

Plaintiff alleges that she was raped by one of the doctors at the hospital where she worked. She further alleges that when she reported the assault, she was transferred and her hours were cut, while nothing at all happened to the doctor.

On December 22, 2021 Plaintiff filed her Complaint for (1) Sexual Harassment, (2) Sexual Assault & Battery, (3) Employment Discrimination, (4) Failure to Provide Reasonable Accommodation, (5) Failure to Engage in a Timely Good Faith Interactive Process, (6) Retaliation, (7) Failure to Prevent, (8) Defamation, and (9) Intentional Infliction of Emotional Distress (“IIED”) against Defendants White Memorial Medical Center (“White Memorial”), Adventist Health California Medical Group, Inc., Adventist Health Care Network, Inc., Adventist Health White Memorial, Salman Khan (“Khan”); and DOES 1-80.

On July 26, 2023, the Court granted White Memorial’s motion for judgment on the pleadings and struck Plaintiff’s demand for punitive damages because Plaintiff never filed a motion for leave to bring a claim for punitive damages against it under Code Civ. Proc., section 425.14.

On December 14, 2023, Plaintiff filed a First Amended Complaint, which contains a demand for punitive damages.

On July 10, 2024, the Court granted White Memorial’s motion for summary judgment in part.

On August 12, 2024, Defendant White Memorial filed this motion for clarification of court order and for relief under Code Civ. Proc., section 473.

On September 4, 2024, White Memorial filed an opposition to the motion to amend the Complaint.

 On September 4, 2024, Plaintiff filed an opposition to the motion for clarification.

Instant Pleading

Plaintiff moves for leave to pursue her claim for punitive damages against Defendant White Memorial.

Defendant White Memorial moves for clarification of the Court’s July 10, 2024 motion granting summary judgment.

Decision

Plaintiff’s motion for leave to pursue her claim for punitive damages against Defendant White Memorial is DENIED.

Plaintiff’s claim for punitive damages is stricken from the FAC at the Court’s discretion under Code Civ. Proc., section 435.

Defendant White Memorial’s motion for clarification and relief under Code Civ. Proc., section 473 is DENIED.

Discussion

1.     Motion for leave to make a claim for punitive damages against a religious corporation.

Although styled as a motion for leave to amend the Complaint, Plaintiff represents that there is nothing to amend and that she is merely seeking leave of Court to pursue her claims for punitive damages against Defendant White Memorial. The Court previously granted White Memorial’s motion for judgment on the pleadings and struck the demand for punitive damages because Plaintiff failed to file a motion under Code Civ. Proc., section 425.14 for leave to include a claim for punitive damages against a religious corporation. By filing the FAC with a claim for punitive damages against White Memorial, a religious corporation, Plaintiff again failed to file a motion under section 425.14. Plaintiff’s motion here is astern because the FAC has already been filed. Nevertheless, the Court will consider Plaintiff’s motion for leave to make a claim for punitive damages under section 425.14.

A claim for punitive damages against a religious corporation may not be included in a complaint or any other pleading, unless a judge enters an order allowing an amended pleading to be filed that includes such a claim.  (Code Civ. Proc., section 425.14.)  Such motion will be granted if the court finds, on the basis of the supporting and opposing affidavits presented, that the plaintiff's evidence meets the clear and convincing standard of proof under Civil Code section 3294.  (Ibid.)   

Civil Code section 3294 authorizes the recovery of punitive damages in non-contract cases “where it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice.”  (Civ. Code, section 3294(a).) Malice is defined as “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).) “[T]o establish malice, it is not sufficient to show only that the defendant’s conduct was negligent, grossly negligent or even reckless.  There must be evidence that defendant acted with knowledge of the probable dangerous consequences to plaintiff’s interests and deliberately failed to avoid these consequences.”  (Flyer’s Body Shop Profit Sharing Plan v. Ticor Title Ins. Co. (1986) 185 Cal.App.3d 1149, 1155.)  Oppression is defined as “despicable” conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person’s rights.”  (Civ. Code, section 3294(c)(2).)  Conduct is despicable when it can be characterized as “so vile, base, contemptible, miserable, wretched or loathsome that it would be looked down upon and despised by ordinary decent people,” or “having the character of outrage frequently associated with a crime.”  (Tomaselli v. Transamerica Ins. Co. (1994) 25 Cal.App.4th 1269, 1287.)  Whereas “malice” requires willful conduct, “oppression” does not.  (See Major v. Western Home Ins. Co. (2009) 169 Cal.App.4th 1197, 1225-1226.) 

When ruling on a motion for leave per Code of Civil Procedure section 425.14, the court need not make a factual determination or become involved in any further weighing process beyond that necessarily involved in deciding whether a prima facie case for punitive damages exists.  (Rowe v. Superior Court (1993) 15 Cal.App.4th 1711, 1723 [“In making this judgment, the trial court's consideration of the defendant's opposing affidavits does not permit a weighing of them against the plaintiff's supporting evidence, but only a determination that they do not, as a matter of law, defeat that evidence.”].) 

“[T]he imposition of punitive damages upon a corporation is based upon its own fault. It is not imposed vicariously by virtue of the fault of others.” (City Products Corp. v. Globe Indemnity Co. (1979) 88 Cal.App.3d 31, 36.) “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. But the law does not impute every employee’s malice to the corporation. Instead, the punitive damages statute requires proof of malice among corporate leaders: the ‘officer[s], director[s], or managing agent[s].’” (Cruz v. Home Base (2000) 83 Cal.App.4th 160, 167 [citation omitted].)

Here, Plaintiff provides the following evidence in support of her claim for punitive damages:

a.      Notes taken by an investigator who interviewed witnesses who made complaints against Defendant Khan (Exhibits 1-3, 5, 6.) The notes reflect that Khan yelled at and was rude to other nurses.

b.     Transcripts from the depositions of other nurses who corroborate that they made reports because Khan yelled and was rude to them. (Exhibits 4, 7, 9, 10, 14, 15.)

c.      A record of incident reports. (Exhibit 8.)

d.     The transcript of the deposition of Jocelyn Cajanapo-Gantman, who testified that incident reports are shared with managers in the employee health and nursing departments, with clinical managers, and with risk managers. (Exh. 12.)

e.      The transcript of the deposition of Rebecca Berberian, White Memorial’s Director of Risk Management. Berberian oversees and reviews incident reports at the hospital. Berberian was not involved in this matter because the medical staff office and human resources took over after she received notification of Plaintiff’s incident report. Berberian informed the Chief Operations Officer of Plaintiff’s incident report. (Exh. 13.)

Plaintiff’s evidence shows that other nurses made complaints about Khan related to his rude behavior and that various managerial staff were aware of Plaintiff’s complaint against Khan. The evidence is insufficient to show that White Memorial’s officers, directors, or managing agents engaged in malicious conduct because the evidence only shows that they were aware of Plaintiff’s complaint and other complaints made about Khan.

Plaintiff argues on reply that there is no such requirement that she must prove any individuals named in her motion were directors or managing agents. However, Plaintiff is required by Code Civ. Proc., section 425.14 to establish a prima facie case for punitive damages against White Memorial. Because the imposition of punitive damages against a corporate defendant must rest on the conduct of its corporate leaders, Plaintiff was required to show that an officer, director, or managing agent engaged in malicious or other qualifying conduct as defined by Civ. Code, section 3294.

Because there is no evidence that these managerial employees ratified Khan’s conduct, Plaintiff fails to establish, with clear and convincing evidence, a prima facie case for punitive damages against White Memorial as required by Code Civ. Proc., section 425.14.

Plaintiff’s motion for leave to include a claim for punitive damages is DENIED because Plaintiff fails to establish a prima facie case for punitive damages with clear and convincing evidence. The Court will act in its discretion under Code Civ. Proc., section 436 to strike Plaintiff’s claim for punitive damages from the FAC because it was improperly included without a court order permitting the claim under section 425.14.

2.     Motion for Clarification

Defendant White Memorial moves for clarification of the Court’s July 10, 2024 order granting summary judgment in part in favor of White Memorial. Defendant argues clarification is warranted to confirm that the Court did not find that White Memorial made a judicial admission or waiver with respect to Defendant Khan’s employment or agency relationship with White Memorial.

The Court’s July 10, 2024 order stated that there is a triable issue of material fact as to Khan’s employment status and relationship with Defendant White Memorial because Khan admitted to being an employee or agent of White Memorial in a prior pleading. For this reason, the Court denied White Memorial’s motion for summary adjudication of Plaintiff’s first cause of action. The order was not unclear or ambiguous and does not require clarification. The Court declines to consider whether the statement made in a previous pleading regarding Khan’s employment or agency status is a judicial admission because there is no legal authority authorizing the Court to make such a finding. White Memorial’s motion for clarification is DENIED.

Relief is not available under Code Civ. Proc., section 473 because that statute governs relief from a judgment, dismissal, order, or other proceeding taken against the moving party. White Memorial moves for relief from a portion of the Court’s analysis in an order partially granting summary adjudication. The Court’s analysis is not a judgment, dismissal, order, or proceeding taken against White Memorial. Therefore, White Memorial’s motion for relief under section 473 is DENIED.

Conclusion

Plaintiff’s motion for leave to pursue her claim for punitive damages against Defendant White Memorial is DENIED.

Plaintiff’s claim for punitive damages is stricken from the FAC at the Court’s discretion under Code Civ. Proc., section 435.

Defendant White Memorial’s motion for clarification and relief under Code Civ. Proc., section 473 is DENIED.