Judge: Elaine W. Mandel, Case: 23SMCV04217, Date: 2024-03-07 Tentative Ruling

Case Number: 23SMCV04217    Hearing Date: March 7, 2024    Dept: P

Tentative Ruling

Ramos v. Wells Fargo LLC et al., Case No. 23SMCV04217

Hearing Date March 7, 2024

Defendant Wells Fargo Bank’s Demurrer to Complaint

Plaintiff Ramos, administrator of the estate of decedent Birgitta Sjostrand, alleges decedent suffered from advanced Alzheimer’s and defendant Hamid, a Wells Fargo banker, facilitated a fraudulent wire transfer from decedent to third-party Mitra. Plaintiff sues Hamid and Wells Fargo for fraud, elder abuse, intentional infliction of emotional distress and negligent infliction of emotional distress. Defendant Wells Fargo demurs.

Common Law Claims/UCC

Division 11 of the California Uniform Commercial Code displaces common law claims where provisions of the article cover the “circumstances giving rise to the common law claims[.]” Zengen v. Comercia Bank (2007) 241 Cal.4^th 239, 251-253. Successive sections of Division 11 address the liabilities of consumers and banks when an unauthorized wire transfer is made. Cal. Com. Code §§11202-11204.

Wells Fargo argues the UCC displaces Ramos’ common law claims. Since all the causes of action are based on alleged unauthorized wire transfers, they all fall within the scope of Division 11 and are therefore displaced. Ramos presents no substantive opposition. SUSTAINED without leave to amend, unless plaintiff can allege claims not covered by UCC Division 11.  

Elder Abuse

A claim for financial elder abuse lies when a person “[t]akes, secretes, appropriates, obtains, or retains real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud,” assists in doing so, or “takes, secrets, appropriates, or retains” property through undue influence. Cal. Welf. &. Inst. Code §15610.30(a). A cause of action based on “assisting” in a third party’s wrongful taking must allege defendant actually knew the transaction or transfer was wrongful. E.g., Das v. Bank of America, N.A. (2010) 186 Cal.App.4th 727, 745.

Wells Fargo argues the complaint does not allege Wells Fargo directly took any funds or knowingly assisted any third party’s wrongful conduct. The complaint alleges defendant Hamid and Wells Fargo “transferred $19,000 from Birgitta’s account to Garbita Mitra on 6/19/19 without the consent of Birgitta,” and “[d]efendants prepared a false outgoing wire transfer request to perform and report the transfer[.]” Complaint at ¶¶7, 9. The complaint does not allege Wells Fargo took funds, nor that it knew the transfer to Mitra was improper. SUSTAINED with ten days leave to amend.