Judge Elaine W. Mandel, Case 21SMCV01519 2023-03-01 Tentative Ruling

Judge: Elaine W. Mandel, Case: 21SMCV01519, Date: 2023-03-01 Tentative Ruling

Case Number: 21SMCV01519 Hearing Date: March 1, 2023 Dept: P

Tentative Ruling

Eckhaus v. Rolls-Royce Motor Cars et al., Case No. 21SMCV01519

Hearing Date March 1, 2023

Defendant McLaren Automotive’s Motion to Reclassify Unlimited Civil Case to Limited Civil Case (Supplemental Briefing)

Plaintiff Eckhaus’ Motion for Leave to File First Amended Complaint

Plaintiff Eckhaus leased an allegedly defective vehicle from defendants. She alleges she returned the vehicle multiple times for repairs, but defendants failed to fix it. Eckhaus sues for breach of the warranty of merchantability under Cal. Civ. Code §1791 et seq., the Song-Beverly Act. Defendant McLaren Automotive (MAI) argues discovery revealed Eckhaus suffered no damages, making no lease payments or incurring any other expenses related to the vehicle. MAI seeks to reclassify the matter as limited civil. On January 13, 2021, the court issued a tentative ruling granting the motion. The hearing was continued to allow plaintiff to provide evidence of damages.

Motion to Reclassify

A limited civil is a case where the value of the property in controversy amounts to $25,000 or less. Cal. Code of Civ. Proc. §86(a)(1). A party may seek reclassification of a case from unlimited to limited jurisdiction upon a showing of good cause. Cal. Code of Civ. Proc. §403.040. When a party shows that a verdict is more than $25,000 is “virtually unobtainable,” reclassification to limited jurisdiction is appropriate. Walker v. Superior Court (1991) 53 Cal.3d 257, 262.

According to the supplemental brief, Eckhaus stated at deposition that she had not made any “payment on the lease” because she believed the question referred only to monthly payments due after the lease was signed. In her declaration, Eckhaus clarifies she paid $15,000 upon forming the lease. Supplemental decl. ¶2. This is supported by a copy of the agreement with MAI, which names Irit Eckhaus as the lessee and indicates $15,000 is to be paid at the time of signing. Eckhaus, exh. 1 ¶10. Eckhaus provides a copy of a Chase Bank statement, indicting that between August 31 and December 30, 2022 (after the deposition where she stated she had not made any monthly payments), she made five loan payments of approximately $4,000 each. Id. In her declaration, Eckhaus states these were vehicle lease payments to MAI. Id.

This creates an issue as to whether Eckhaus personally paid more than $25,000 in connection with the lease. Additionally, as she provided evidence of actual damages, she may be entitled to statutory damages under Song-Beverly. An award above the jurisdictional minimum is not “virtually impossible,” and the matter will not be reclassified. DENIED.

Leave to Amend

Amendment to pleadings should be liberally allowed at any time before trial or during trial. Cal. Code of Civ. Proc. §576, Singh v. Southland Stone, U.S.A., Inc. (2010) 186 Cal.App.4th 338. Unwarranted delay is a valid basis for denying leave. P&D Consultants, Inc. v. City of Carlsbad (2010) 190 Cal.App.4th 1332, 1345.

Eckhaus requests leave to amend to include BBAM, an entity which allegedly made all payments on the lease prior to August 2022, as a plaintiff. Defendants oppose on grounds of prejudice, futility and unjustified delay. They argue Eckhaus has been aware of the BBAM payments since the lease’s inception in 2020, and there is no justification for the delay in seeking to add the BBAM to the lawsuit, which was filed 9/15/21, one and a half years ago. Defendants argue prejudice, since they would need to propound discovery and take depositions with trial set for 5/1/23, only two months away.

Eckhaus has not justified the delay in seeking leave to amend, nor alleged she was unaware of the entity’s identity. Eckhaus consented to BBAM making lease payments on her behalf over two years ago. She could have included BBAM as a plaintiff when this matter was filed or sought leave to amend earlier. The request to add BBAM is not the result of newly discovered information, but seemingly a belated reaction to the motion to reclassify. DENIED.