Judge: H. Jay Ford, III, Case: 22SMCV01734, Date: 2023-01-17 Tentative Ruling

Case Number: 22SMCV01734    Hearing Date: January 17, 2023    Dept: O

22SMCV01734 PATRICK BERTRANOU vs KOUROS ETEMADMOGHDAM, et al.

Defendants' Demurrer to the Complaint is OVERRULED.  Defendants to answer in 10 days.  

 Plaintiff alleges causes of action for breach of contract and waste.  Defendant Kouros Etemadmoghadam demurs on grounds that he was not a party to the contract, nor did he ever occupy the premises on which Defendants allegedly committed waste.  However, Plaintiff sufficiently alleges that Defendant Diversified, a party to the agreement, was Kouros' alter ego.  Plaintiff alleges sufficient ultimate facts to plead alter ego, including unity of interest based on inadequate capitalization and failure to adhere to corporate formalities and resulting injustice if the corporate form were recognized.  See Complaint, para. 5; Rutherford Holdings, LLC v. Plaza Del Rey (2014) 223 Cal.App.4th 221, 236 (plaintiff need only allege ultimate facts to plead alter ego and survive demurrer).  In addition, the contract is signed by Kouros personally as "owner," as opposed to in a corporate capacity on behalf of Diversified.  See Complaint, Ex. 1.

Defendants' Motion to Strike Punitive Damages and Attorney's Fees is GRANTED.  

 Punitive damages are not recoverable in an action for an ordinariy breach of contract outside of the insurance context. CC s. 3294(a)("In an action for the breach of an obligation not arising from contract...").  Plaintiff also fails to allege any facts indicating malice, fraud or oppression in connection with the waste cause of action.  At best, Plaintiff's waste cause of action is based on negligence, not fraud, malice or oppression.  Plaintiff's claim for attorney's fees is also stricken.  Plaintiff fails to allege any basis for recovery of fees.  The contract attached as Exhibit 1 does not contain an attorney's fees provision, nor does the complaint allege any other basis to recover