Judge: Elaine Lu, Case: 22STCV34620, Date: 2023-07-21 Tentative Ruling





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Case Number: 22STCV34620    Hearing Date: July 21, 2023    Dept: 26

 

 

 

 

Superior Court of California

County of Los Angeles

Department 26

 

 

HENRY PINEDA,

                        Plaintiff,

            v.

                

NKRUMAH ENTERPRISES, LLC; URBAN STREET VENTURES, INC.; ROSA HILL; CHARLES HILL, et al.,

                        Defendants.

 

  Case No.:  22STCV34620

 

  Hearing Date:  July 21, 2023

 

[TENTATIVE] ORDER RE:

CROSS-COMPLAINANT URBAN STREET VENTURES’ MOTION FOR LEAVE TO FILE A FIRST AMENDED CROSS-COMPLAINT

 

 

Procedural Background

            On October 28, 2022, Plaintiff Henry Pineda (“Plaintiff”) filed the instant Private Attorney General Act (“PAGA”) claim against Defendants Nkrumah Enterprises, LLC; Urban Street Ventures, Inc.; Rosa Hill; and Charles Hill.  On November 14, 2022, Plaintiff filed a Doe amendment naming Nkrumah Enterprises, Inc. as Doe 1. 

            On January 10, 2023, Defendant Urban Street Venutres, Inc. (“Cross-Complainant”) filed a cross-complaint against Cross- Defendants Nkrumah Enterprises, LLC, Rosa Hill, and Charles Hill seeking indemnity and declaratory relief.

            On July 11, 2023, Plaintiff filed the operative First Amended Complaint (“FAC”) against Defendants Nkrumah Enterprises, LLC; Nkrumah Enterprises, Inc.; Urban Street Ventures, Inc.; Rosa Hill; and Charles Hill.  The FAC asserts twelve causes of action for (1) Failure to Pay Minimum Wages, (2) Failure to Furnish Wage and Hour Statements, (3) Failure to Maintain Payroll Records, (4) Failure to Provide Meal and Rest Period Compensation, (5) Failure to Pay Overtime Compensation, (6) Failure to Pay Wages in a Timely Manner, (7) Waiting Time Penalties, (8) Violation of Business & Professions Code § 17200 et seq, (8) Wrongful Constructive Termination in Violation of Public Policy, (10) Whistleblower Retaliation, (11) Failure to Indemnify/Reimburse Necessary Expenditures Incurred During Discharge of Work Duties, and (12) Civil Penalties under PAGA. 

            On May 18, 2023, Cross-Complainant filed the instant motion for leave to file a First Amended Cross-Complaint.  No opposition has been filed.  On July 12, 2023, Cross-Complainant filed a notice of non-opposition.

 

Legal Standard

Code of Civil Procedure § 473, subdivision (a)(1) states: “The court may, in furtherance of justice, and on any terms, as may be proper, allow a party to amend any pleading or proceeding by adding or striking out the name of any party, or by correcting a mistake in the name of a party, or a mistake in any other respect; and may, upon like terms, enlarge the time for answer or demurrer.  The court may likewise, in its discretion, after notice to the adverse party, allow, upon any terms as may be just, an amendment to any pleading or proceeding in other particulars; and may upon like terms allow an answer to be made after the time limited by this code.” 

Code of Civil Procedure § 576 states that: “[a]ny judge, at any time before or after commencement of trial, in the furtherance of justice, and upon such terms as may be proper, may allow the amendment of any pleading or pretrial conference order.”

Judicial policy favors resolution of all disputed matters between the parties, and therefore, courts have held that “there is a strong policy in favor of liberal allowance of amendments.” (Mesler v. Bragg Management Co. (1985) 39 Cal.3d 290, 296-97; see also Ventura v. ABM Industries, Inc. (2013) 212 Cal.App.4th 258, 268) [“Trial courts are bound to apply a policy of great liberality in permitting amendments to the complaint at any stage of the proceedings, up to and including trial where the adverse party will not be prejudiced.”].)

Pursuant to California Rules of Court, rule 3.1324(a), a motion to amend must: (1) include a copy of the proposed amendment or amended pleading, which must be serially numbered; and (2) state what allegations are proposed to be deleted from or added to the previous pleading and where such allegations are located.  Rule 3.1324(b) requires a separate declaration that accompanies the motion, stating: “(1) the effect of the amendment; (2) why the amendment is necessary and proper; (3) when the facts giving rise to the amended allegations were discovered; and (4) the reason why the request for amendment was not made earlier.” 

 

Discussion

Proposed Amendments

            Cross-Complainant seeks to amend the complaint to add the amount of potential indemnity sought.  Specifically, Cross-Complainant seeks to add reference to the $1,000,000.00 in damages being claimed by Plaintiff and the $100,000.00 in attorney’s fees estimated to be incurred.  (Dreyfuss Decl. ¶ 3, Exh. A.)  Cross-Complainant’s counsel states that this amendment is necessary because Cross-Complainant did not originally specify any amount of potential liability for indemnity.  (Dreyfuss Decl. ¶ 2.)  Moreover, “[s]ince there are potential flaws in the answers filed by [cross-defendants] Nkrumah Enterprises LLC and Nkrumah Enterprises, Inc. because the general counsel who signed them did not show his State Bar Number or clearly indicate that he was filing them as attorney of record, it may be that they will be stricken with defaults entered. The amendment to the cross-complaint is for the purpose of specifying the potential indemnity amount in case of default.”  (Dreyfuss Decl. ¶ 2.)  Cross-Complainant has also provided a copy of the proposed First Amended Cross-Complaint.  (Dreyfuss Decl. ¶ 3, Exh. A.) 

 “[T]rial courts are to liberally permit such amendments, at any stage of the proceeding[.]”  (Hirsa v. Superior Court (1981) 118 Cal.App.3d 486, 488–489.)  Moreover, to justify a denial of a motion for leave to amend, the delay must have caused prejudice to the adverse parties.  (See Fair v. Bakhtiari (2011) 195 Cal.App.4th 1135, 1147, [“[W]here there is no prejudice to the adverse party, it may be an abuse of discretion to deny leave to amend.”].)  Here, the changes are minor and merely clarify potential damages sought in case of default.  Moreover, there is no indication of prejudice.  Accordingly, Cross-Complainant’s motion for leave to file a First Amended Cross-Complaint is GRANTED.

 

CONCLUSION AND ORDER

Based on the foregoing, Cross-Complainant Urban Street Ventures, Inc.’s motion for leave to file a First Amended Cross-Complaint is GRANTED.

Cross-Complainant is to file the proposed First Amended Cross-Complaint within five (5) days of notice of this order and serve the First Amended Cross-Complaint on all cross-defendants within 30 days.

Moving Party is to provide notice and file proof of service of such.

 

DATED: July ___, 2023                                                         ___________________________

                                                                                    Elaine Lu

                                                                                    Judge of the Superior Court