Judge: David Sotelo, Case: 20STCV40995, Date: 2022-08-09 Tentative Ruling



Case Number: 20STCV40995    Hearing Date: August 9, 2022    Dept: 40

MOVING PARTY:               Defendants Carol Singleton and Beverly Alexander.

 

Plaintiff Jose Mejia brought this action against Defendants Willie Bluitt Estates Corporation, Carol Singleton, and Beverly Alexander (the “Defendants”) on the grounds that Defendants—who were Mejia’s employers and landlords before Mejia was terminated from his employment and vacated the Subject Premises pursuant to an unlawful detainer stipulated judgment (“Unlawful Detainer Action” and “Stipulated Judgment”)—engaged in conduct amounting to various habitability, FEHA, and Labor Code violations against Plaintiff Mejia.

 

Defendants Carol Singleton and Beverly Alexander now bring this Motion for Judgment on the Pleadings, challenging all fourteen causes of action on the grounds that the claims are barred under the principles of (1) forfeiture of employee and tenant rights by Mejia pursuant to a Stipulated Judgment between the parties in the separate Unlawful Detainer Action and (2) res judicata and collateral estoppel. Mejia filed an untimely Opposition arguing the merits of his Complaint. The Defendants have since replied, and the Court requested supplemental briefing on the res judicata grounds supporting the Motion. After review of these papers, and because Defendants Carol Singleton and Beverly Alexander’s judicially noticed evidence does not show that the claims pleaded by Plaintiff Mejia in the Complaint for this action were (1) forfeited or (2) barred under principles of res judicata or collateral estoppel subject the Stipulated Judgment in the Unlawful Detainer Action, the Court DENIES Motion for Judgment on the Pleadings.

 

Background

 

Beginning on or around June 7, 2017, Plaintiff Jose Mejia began working as an employee and began living as a tenant of Defendants Willie Bluitt Estates Corporation, Carol Singleton, and Beverly Alexander (the “Defendants”), working and residing at 823 West 81st Street, Los Angeles California (the “Subject Premises”).

 

In his employment for the Defendants, Mejia executed duties including those of maintenance worker, fumigator, exterminator, plumber, and on-site property manager. In exchange, the Defendants provided Mejia with a residential leasehold at the subject premises in place of rent payment ($900 a month).

 

Mejia alleges that Defendants did not pay him any salary beyond the rental unit valued at a rental price of $900.00 per month. Further, Mejia alleges that the rental unit given to him in lieu of wages contained numerous habitability defects, including a deficient water supply system and defective plumbing, gas, and heating facilities, as well as mold, leaks, and general dilapidation. Despite Mejia’s requests for repair, these issues were not remediated by the Defendants.

 

On or about April 18, 2019, due to plumbing, extermination of roaches and bedbugs at the Subject Premises, Mejia suffered abdominal epigastric pain, gastritis, dyspepsia, constipation, diarrhea, enteritis, nausea, vomiting, hyperechoic stranding of the pancreatic parenchyma, gastric antral mottling, anxiety, depression and other work injuries. Mejia reported these injuries to the Defendants and underwent treatment. Upon his return to work that same day, Defendants informed Mejia that Defendants were terminating his employment.

 

On June 7, 2019, Singleton and Alexander filed an unlawful detainer action against Plaintiff (LASC Action No. 19STUD05403 or “Unlawful Detainer Action”). Mejia filed his Answer to the Unlawful Detainer Action Complaint on July 29, 2019.

 

On August 22, 2019, Defendants and Mejia entered an Unlawful Detainer Stipulation and Judgment (“Stipulated Judgment”). This Stipulated Judgment awarded $6,060.00 in damages to Defendants Singleton and Alexander as plaintiffs in the Unlawful Detainer Action and forfeited Mejia’s rights under his lease agreement with the Defendants. The Stipulated Judgment also provided that Singleton and Alexander agreed waive their money judgment based on Mejia “vacating timely with all occupants and leaving no excessive damage” to his rental unit. (The pleadings and papers before the Court appear to plead or show that Mejia vacated the premises according to the Stipulated Judgment.)

 

On October 26, 2020, Mejia filed this action, alleging fourteen causes of action against Defendants Willie Bluitt Estates Corporation, Singleton, and Alexander as based on the foregoing facts: (1) Negligence; (2) Breach of Warranty of Habitability; (3) Breach of Covenant of Quiet Enjoyment; (4) Premises Liability; (5) Nuisance; (6) Failure to Obtain Workers’ Compensation Insurance Policy; (7) Workplace Discrimination Based on Disability; (8) Retaliatory Termination; (9) Severe and Pervasive Workplace Harassment; (10) Wrongful Termination in Violation of Public Policy; (11) Failure to Furnish Timely and Accurate Wage Statements; (12) Failure to Pay Minimum Wage; (13) Failure to Pay Overtime Worked; and (14) Intentional Infliction of Emotional Distress.

 

All Defendants Willie Bluitt Estates Corporation, Singleton, and Alexander now bring the instant Motion for Judgment on the Pleadings, challenging the sufficiency of the claims alleged by Plaintiff Mejia in his Complaint for this action on two grounds: (1) the Stipulated Judgment demonstrates that Plaintiff Mejia forfeited his rights to any claims alleged in the instant Complaint; and (2) the claims brought forth in this action should have been brought forth in the Unlawful Detainer Action and therefore are barred under principles of res judicata and collateral estoppel. Plaintiff Mejia filed an untimely Opposition on Tuesday, June 28, 2022. (Nine court days before this Hearing pursuant to Code of Civil Procedure Section 1005, subdivision (b) was Monday, June 27, 2022.) The Defendants have filed a Reply.

 

On July 11, 2022, the Court held a hearing on this Motion and requested further briefing from the parties relating to whether the Unlawful Detainer Action here precludes the claims in Mejia’s Complaint. Mejia and the Defendants have filed supplemental briefing as requested.

 

Judicial Notice

 

The Court TAKES Judicial Notice as requested by Defendants Carol Singleton and Beverly Alexander. (Evid. Code, §§ 452, subd. (d), 453.)

 

Motion for Judgment on the Pleadings: DENIED

 

Legal Standard: Either prior to trial or at the trial—and barring statutory provisions otherwise—the plaintiff or the Defendants may move for judgment on the pleadings where the appropriate ground for such a motion is the same as that arguable by general demurrer, namely, the failure to state a cause of action or defense. (Dobbins v. Hardister (1966) 242 Cal.App.2d 787, 791.) A general demurrer for sufficiency tests whether the complaint states a cause of action.¿ (Hahn v. Mirda (2007) 147 Cal.App.4th 740, 747; see Code Civ. Proc., § 430.10, subd. (e).)¿ This device can be used only to challenge defects that appear on the face of the pleading under attack or from matters outside the pleading that are judicially noticeable.¿ (Blank v. Kirwan (1985) 39 Cal.3d 311, 318.)¿ “To survive a [general] demurrer, the complaint need only allege facts sufficient to state a cause of action; each evidentiary fact that might eventually form part of the plaintiff’s proof need not be alleged.”¿ (C.A. v. William S. Hart Union High School Dist. (2012) 53 Cal.4th 861, 872.)¿ In testing the sufficiency of the cause of action, the demurrer admits the truth of all material facts properly pleaded.¿ (Aubry v. Tri-City Hospital Dist. (1992) 2 Cal.4th 962, 966-67.)¿ A demurrer, however, “does not admit contentions, deductions or conclusions of fact or law.”¿ (Daar v. Yellow Cab Co. (1967) 67 Cal.2d 695, 713.)¿ When considering demurrers, courts read the allegations liberally and in context.¿ (Taylor v. City of Los Angeles Dept. of Water and Power (2006) 144 Cal.App.4th 1216, 1228, disapproved on other grounds, Jones v. Lodge at Torrey Pines Partnership (2008) 42 Cal.4th 1158, 1162.)¿ The face of the complaint includes exhibits attached to the complaint.¿ (Frantz v. Blackwell (1987) 189 Cal.App.3d 91, 94.)¿ If facts appearing in the exhibits contradict those alleged, the facts in the exhibits take precedence.¿ (Holland v. Morse Diesel Intern., Inc. (2001) 86 Cal.App.4th 1443, 1447.)

 

Analysis: Defendants Singleton and Alexander argue that the claims alleged here are subject to a general demurrer for sufficiency under the principles of a motion for judgment on the pleadings because (1) the Stipulated Judgment in the Unlawful Detainer Action provides a forfeiture of rights under the tenancy by Plaintiff Mejia and (2) Plaintiff Mejia could have or in fact did bring the claims alleged in this action previously in the Unlawful Detainer Action, and therefore, the claims in this action are barred under res judicata and collateral estoppel. (Demurrer, 5:16-6:23, 6:24-8:16.)

 

Despite the Court’s judicial notice of the Stipulated Judgment in the Unlawful Detainer Action, the Court finds both positions unavailing and therefore DENIES Defendants Singleton and Alexander’s Demurrer.

 

Defendants Singleton and Alexander’s first position on Motion for Judgment on the Pleadings is not helpful because the forfeiture in the Stipulated Judgment refers to U.D. Plaintiff Mejia’s forfeiture of his tenant rights in the Premises pursuant to the Stipulated Judgment’s terms—stating only “Defendant(s) rights under lease or rental agreement are forfeited”—and thus does not relate to Mejia’s right to file a separate lawsuit against these same Defendants for employment, FEHA, and Labor Code violations. (Demurrer, RJN, Ex. B, ¶ 2 [Stipulated Judgment’s checked off box within standard court form showing quoted language]; see Cavanaugh v. High (1960) 182 Cal.App.2d 714, 723 [Language stating that lease agreement was forfeited means only “that defendant’s tenancy created by the agreement is forfeited”]; see also Needelman v. DeWolf Realty Co. (2015) 239 Cal.App.4th 750, 758-59 [Stipulated judgment in unlawful detainer action resulted in forfeiture of rights to wrongful eviction and other habitability and tort claims because, inter alia, the parties’ stipulated judgment went beyond mere possessory rights and further “waived any causes of action related to any alleged wrongful eviction or related to [the tenant’s] tenancy at the Greenwich apartment”].)

 

Defendants’ second position on Motion for Judgment on the Pleadings is unavailing because neither res judicata nor collateral estoppel apply to the fourteen claims alleged by Mejia in this action. The Unlawful Detainer Action and its Stipulated Judgment do not show a waiver of any claims beyond Mejia’s right to possession of his rental unit at the Subject Premises, e.g., no waiver of affirmative defenses raised in the Unlawful Detainer Action. (Demurrer, RJN, Ex. B, ¶ 2.) Neither does Singleton and Alexander’s evidence on Motion for Judgment on the Pleadings show that full and fair litigation occurred as to the affirmative defenses raised or that could have been raised by Mejia in the Unlawful Detainer Action. (Demurrer, RJN, Ex. B, ¶ 2.) Therefore, unlike in Needelman, the issues at the heart of the causes of action in Plaintiff Mejia’s Complaint for this action were not argued or decided within the context of the Unlawful Detainer Action nor did the Stipulated Judgment contain a waiver of claims stated in the affirmative defenses made by Mejia. (See Needelman, supra, 239 Cal.App.4th at p. 758.)

 

On supplemental briefing, Singleton and Alexander double down on Needelman, arguing that the case is directly on point because “[t]he Needleman court held that res judicata applied to bar a tenant’s claims against his former landlord in a civil suit where all of the claims could have been raised as defenses in the unlawful detainer action or were addressed and settled by the stipulated judgment.” (Jul. 15 Defense Brief, 2:24-27; see Needelman, supra, 239 Cal.App.4th at pp. 757, 759.) However, Singleton and Alexander’s interpretation of Needelman does not match with that of the Court.

 

The burden of proving that the requirements for application of res judicata have been met is upon the party seeking to assert it as a bar or estoppel. (Vella v. Hudgins (1977) 20 Cal.3d 251, 257.) “Res judicata, or claim preclusion, prevents relitigation of the same cause of action in a second suit between the same parties or parties in privity with them” and “applies when (1) the issues decided in the prior adjudication are identical with those presented in the later action; (2) there was a final judgment on the merits in the prior action; and (3) the party against whom the plea is raised was a party or was in privity with a party to the prior adjudication.” (Needelman, supra, 239 Cal.App.4th at p. 757.)

 

Because an unlawful detainer action is a summary procedure involving only claims bearing directly upon the right of immediate possession, a judgment in unlawful detainer has very limited res judicata effect. (Pelletier v. Alameda Yacht Harbor (1986) 188 Cal.App.3d 1551, 1557 [citing to Vella, supra, 20 Cal.3d at p. 255].) Legal and equitable claims—such as questions of title and affirmative defenses—are not conclusively established unless they were fully and fairly litigated in an adversarial hearing. (Pelletier, at p. 1557 [citing to Vella, at p. 255].)

 

“‘[F]ull and fair’ litigation of an affirmative defense[—]even one not ordinarily cognizable in unlawful detainer[—] [exists where] … [the defense] is raised without objection, and [where] … a fair opportunity to litigate … will result in a judgment conclusive upon issues material to that defense.” (Vella, supra, 20 Cal.3d at pp. 256-57.) “In a summary proceeding such circumstances are uncommon.”

 

Needelman explains that Needelman “had an opportunity to litigate his defenses to the unlawful detainer action.” (Needelman, supra, 239 Cal.App.4th at p. 759.) Needleman makes this conclusion based on Needelman “appear[ing] in the unlawful detainer action and chos[ing] to sign the stipulated agreement, which specifically waived any claims related to his personal property left at the residence, as well as all his defenses to the unlawful detainer action.” (Id. at p. 760.)

 

Needelman also contrasted its facts with case law that did not involve preclusive effect, e.g., no preclusive effect where a “stipulated judgment [resolving an unlawful detainer action] … made no mention of a relinquishment by the [tenants] of claims arising from a retaliatory eviction” and where “[t]he retaliation defense was not fully and fairly litigated in an adversary hearing, and thus was not conclusively established.” (Pelletier, 188 Cal.App.3d at p. 1557; see Needelman, supra, 239 Cal.App.4th at p. 760 [referencing Pelletier as contrast].)

 

Here—as argued by Mejia in supplemental opposition (Jul. 19 Mejia Opp’n, 4:19-5:3)—Singleton and Alexander have failed to show that the facts here have left the ambit of Pelletier and entered the ambit of Needelman. Needelman expressly relied on the tenant there (who was also an attorney) entering a Stipulated Judgment that “waived any claims related to his … defenses to the unlawful detainer action” and that this conduct, in addition to filing an Answer in the unlawful detainer action, “distinguish[ed] Needelman’s situation from that of the litigants in [Pelletier],” where no preclusive effect was found in despite a stipulated judgment. (Needelman, supra, 239 Cal.App.4th at p. 760; cf. Pelletier, 188 Cal.App.3d at p. 1557.)

 

Nothing in the Stipulated Judgment entered via a standard court form between Mejia and the defendants in the Unlawful Detainer Action, nor anything in the associated forms, indicate that a waiver of all claims related to affirmative defenses raised by Mejia in the Unlawful Detainer Action occurred. (See Mot., RJN, Ex. B.) Neither does the evidence presented by Singleton and Alexander on motion show that the affirmative defenses raised by Mejia in the Unlawful Detainer Action were fully and fairly litigated in an adversarial hearing. (See Mot., RJN, Ex. B [no evidence of any kind of adjudication or hearing as to affirmative defenses raised by Mejia to Unlawful Detainer Action]; Pelletier, 188 Cal.App.3d at p. 1557 [full and fair litigation of claims required].) Indeed, the only waiver in the Stipulated Judgment—outside of release of tenant rights—related to Defendants agreeing to waive their money judgment based on Mejia “vacating timely with all occupants and leaving no excessive damage” to his rental unit. (See Mot., RJN, Ex. B.)

 

To the extent Singleton and Alexander rely on Mejia’s filing of an Answer in the Unlawful Detainer Action in support of applying preclusion to the affirmative defenses stated therein (Jul. 15 Def. Brief, 3:12-14), the Court notes that the filing of an Answer in an unlawful detainer action, by itself, does not constitute full and fair litigation of those issues as to command preclusive effect. (See, e.g., Pelletier, 188 Cal.App.3d at pp. 1554, 1557 [no preclusive effect to affirmative defense raised in answer to unlawful detainer action despite answer being filed].)

 

Under such circumstances, the Court finds that the facts of this case more closely resemble Pelletier and contrast Needelman because neither the Stipulated Judgment in the Unlawful Detainer Action nor any other evidence provided by Singleton and Alexander show that Mejia’s affirmative defenses in the Unlawful Detainer Action were fully and litigated, despite the Stipulated Judgment.

 

Singleton and Alexander’s final argument—judicial estoppel prevents this action from proceeding because Plaintiff has taken inconsistent positions as to the habitability of the Subject Premises, (Jul. 15 Def. Brief, 7:27-8:18)—fails, as the Court finds nothing inconsistent between Mejia’s stipulation to leave the Subject Premises in good condition and Mejia’s allegations that the same Premises were uninhabitable during the time, he was tenant.

 

Paragraph 45 of the Complaint pleads a right to sue letter. (Complaint, ¶ 45, Ex. A [not attached to electronic filing of Complaint].)

 

Conclusion

 

Defendants Carol Singleton and Beverly Alexander’s Motion for Judgment on the Pleadings is DENIED because a judicially noticed Stipulated Judgment between the parties in a separate Unlawful Detainer Action does not show that the claims pleaded in the Complaint for this action were (1) forfeited by Plaintiff Mejia or (2) barred under principles of res judicata or collateral estoppel, given that the Stipulated Judgment in the Unlawful Detainer Action Mejia only forfeited his right to tenancy of the Subject Premises and given that Mejia did not have an opportunity to fully and fairly litigate his affirmative defenses in the Unlawful Detainer Action.