Judge: Joseph Lipner, Case: 22STCV35771, Date: 2024-12-17 Tentative Ruling

Case Number: 22STCV35771    Hearing Date: December 17, 2024    Dept: 72

 

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

 

DEPARTMENT 72

 

TENTATIVE RULING

 

10869 DRURY LANE PROP, LLC,

 

                                  Plaintiff,

 

         v.

 

 

ALEY & L GROUP, CORPORATION, et al.,

 

                                  Defendants.

 

 Case No:  22STCV35771

 

 

 

 

 

 Hearing Date:  December 17, 2024

 Calendar Number:  8

 

 

 

Defendants Luis Del Cid (“Luis”), and Maria Del Cid (“Maria”) demur to the second, third, fourth, and fifth claims in the First Amended Complaint filed by Plaintiff 10869 Drury Lane Prop LLC (“Plaintiff”) (the Court uses the parties’ first names for clarity only, and means no disrespect).

 

The Court OVERRULES the demurrer to the second claim.

 

The Court SUSTAINS the demurrer WITH LEAVE TO AMEND as to the third and fourth claims.  Plaintiff shall have 20 days to amend the complaint.

 

The Court SUSTAINS the demurrer WITHOUT LEAVE TO AMEND as to the fifth claim.

 

Background

 

This is a landlord-tenant case between Plaintiff 10869 Drury Lane Prop LLC and Defendants Aley & L Group, Corporation (“Aley”); Luis Del Cid; Maria Del Cid; and Monzon & Son Enterprises, Inc. (“Monzon”) (collectively, “Defendants”). The following facts are taken from the allegations of the FAC, which the Court accepts as true for the purposes of the demurrer.

 

This case concerns the commercial real property located at 10869 Drury Lane, Lynwood, California 90262 (the “Property”).

 

On May 18, 2020, Drury Lynwood LLC (“Drury Lynwood”), Plaintiff’s predecessor in interest, entered into an industrial/commercial single-tenant lease (the “Lease”) with Monzon whereby Monzon rented the Property from Drury Lynwood. (FAC, Ex. 1.)

 

On June 1, 2020, Monzon entered into a sublease agreement with Aley, which is owned by Luis and Maria. (FAC, Ex. 2.) The Lease provides at paragraph 12.1(a) that Monzon shall not sublease or assign any part of its interest in the Lease or in the Property without the lessor’s prior written consent. Neither Drury Lynwood nor Plaintiff has ever given Monzon express written consent to allow Monzon to sublease the Property.

 

On March 11, 2022, Plaintiff acquired the Property from Drury Lynwood.

 

On March 15, 2022, Plaintiff served all Defendants with a 30-Day Notice of Termination of Tenancy (“Notice to Quit”) instructing the Defendants to vacate the Property by the end of the day on April 14, 2022.

 

            Defendants did not vacate the premises by the end of April 14, 2022.

 

            On April 22, 2022, Plaintiff filed an unlawful detainer action against Defendants.

 

            On August 21, 2022, Defendants were evicted from the Property.

 

            Since it purchased the Property, Plaintiff has not received any rental payments from any Defendants or occupants of the Property at any time.

 

Plaintiff filed this action on November 14, 2022.

 

On September 6, 2024, the Court continued the trial that was then scheduled for September 23, 2024 to July 14, 2025 and granted Plaintiff’s motion for leave to amend to file a First Amended Complaint adding Monzon as a defendant and adding a claim for breach of lease against Monzon.

 

On September 11, 2024, Plaintiff filed the FAC, which is now the operative complaint. The FAC raises claims for (1) breach of written lease (against Monzon only); (2) trespass (against Aley, Luis, and Maria only); (3) intentional interference with prospective economic advantage; (4) negligent interference with prospective economic advantage; (5) unjust enrichment (against Aley, Luis, and Maria only); and (6) abuse of process (against Aley, Luis, and Maria only).

 

On October 16, 2024, Plaintiff filed a request for dismissal without prejudice as to the sixth claim for abuse of process. Dismissal of the claim was entered on October 21, 2024.

 

On October 17, 2024, Luis and Maria demurred to the FAC. Plaintiff filed an opposition and Luis and Maria filed a reply.

 

On October 21, 2024, Aley filed a demurrer and motion to strike against the FAC. Plaintiff filed an opposition to each. Aley filed a reply in support of the demurrer.

 

Legal Standard

 

“The party against whom a complaint or cross-complaint has been filed may object, by demurrer or answer as provided in Section 430.30, to the pleading on any one or more of the following grounds:

 

(a) The court has no jurisdiction of the subject of the cause of action alleged in the pleading.

(b) The person who filed the pleading does not have the legal capacity to sue.

(c) There is another action pending between the same parties on the same cause of action.

(d) There is a defect or misjoinder of parties.

(e) The pleading does not state facts sufficient to constitute a cause of action.

(f) The pleading is uncertain. As used in this subdivision, “uncertain” includes ambiguous and unintelligible.

(g) In an action founded upon a contract, it cannot be ascertained from the pleading whether the contract is written, is oral, or is implied by conduct.

(h) No certificate was filed as required by Section 411.35.”

 

(Code Civ. Proc., § 430.10.)

 

As a general matter, in a demurrer proceeding, the defects must be apparent on the face of the pleading or via proper judicial notice. (Donabedian v. Mercury Ins. Co. (2004) 116 Cal.App.4th 968, 994.) “A demurrer tests the pleading alone, and not the evidence or facts alleged.” (E-Fab, Inc. v. Accountants, Inc. Servs. (2007) 153 Cal.App.4th 1308, 1315.) The court assumes the truth of the complaint’s properly pleaded or implied factual allegations. (Ibid.) The only issue a demurrer is concerned with is whether the complaint, as it stands, states a cause of action. (Hahn v. Mirda (2007) 147 Cal.App.4th 740, 747.)

 

Where a demurrer is sustained, leave to amend must be allowed where there is a reasonable possibility of successful amendment. (Goodman v. Kennedy (1976) 18 Cal.3d 335, 348.) The burden is on the plaintiff to show the court that a pleading can be amended successfully. (Ibid.; Lewis v. YouTube, LLC (2015) 244 Cal.App.4th 118, 226.) However, “[i]f there is any reasonable possibility that the plaintiff can state a good cause of action, it is error to sustain a demurrer without leave to amend.” (Youngman v. Nevada Irrigation Dist. (1969) 70 Cal.2d 240, 245).

 

Discussion

 

Procedural Issues

 

Plaintiff argues that, under Code of Civil Procedure, section 430.41, subd. (b), Luis and Maria waived their arguments by failing to demur to the original Complaint.

 

“A party demurring to a pleading that has been amended after a demurrer to an earlier version of the pleading was sustained shall not demur to any portion of the amended complaint, cross-complaint, or answer on grounds that could have been raised by demurrer to the earlier version of the complaint, cross-complaint, or answer.” (Code Civ. Proc., § 430.41, subd. (b).)

 

Here, no demurrer was filed or sustained to the original Complaint. As a result, section 430.41(b) does not actually apply. The demurrers are therefore procedurally proper.

 

Merits of the Demurrer

 

Trespass – Second Claim

 

To set forth a cause of action for trespass, Defendants must allege (1) Defendants’ lawful possession or right to possession of real property; (2) Plaintiffs’ wrongful, intentional, reckless, or negligent act of trespass on the property; (3) Defendants did not give permission for the entry or scope of permission was exceeded; and (4) damage to Defendants caused by the trespass. (Ralphs Grocery Co. v. Victory Consultants, Inc. (2017) 17 Cal.App.5th 245, 262.)

 

Defendants argue that Plaintiff has not alleged lack of permission because the FAC admits the existence of a sublease. Here, Defendants retained possession of the Property after the termination of the Lease and against Plaintiff’s express request that they vacate the Property. Because the sublease could at most assign Monzon’s existing right to possess the Property, the right of the sublessees to enter the Property terminated with Monzon’s right to the same.

 

Luis and Maria argue that Plaintiff has not adequately alleged alter ego in order to hold them liable for the actions of Aley. However, Plaintiff has alleged that Luis and Maria also acted to occupy the property following the notice of termination. (FAC ¶ 48.)

 

The Court therefore overrules the demurrer to this claim with leave to amend.

 

Intentional Interference with Prospective Economic Advantage – Third Claim

 

The elements of a claim for intentional interference with prospective economic advantage include “(1) an economic relationship between the plaintiff and some third party, with the probability of future economic benefit to the plaintiff; (2) the defendant’s knowledge of the relationship; (3) intentional or negligent acts on the part of the defendant designed to disrupt the relationship; (4) actual disruption of the relationship; and (5) economic harm to the plaintiff proximately caused by the acts of the defendant.” (Crown Imports, LLC v. Superior Court (2014) 223 Cal.App.4th 1395, 1404 [citations, brackets, and quotation marks omitted].) Further, “the alleged interference must have been wrongful by some measure beyond the fact of the interference itself. For an act to be sufficiently independently wrongful, it must be unlawful, that is, it is proscribed by some constitutional, statutory, regulatory, common law, or other determinable legal standard.” (Ibid. [citation, ellipsis, and quotation marks omitted].)

 

Plaintiff alleges that Defendants interfered with Plaintiff’s economic relationships with actual and prospective tenants.

 

As to actual tenants, Plaintiff has not adequately alleged interference. Monzon only subleased the property that Monzon itself – and not another tenant – leased from Plaintiff. Plaintiff has not alleged how this interfered with any other tenants.

 

Further, as to potential tenants, Plaintiff has not alleged an existing relationship as required by the first element.

 

The Court therefore sustains the demurrer to this claim with leave to amend.

 

Negligent Interference with Prospective Economic Advantage – Fourth Claim

 

“The elements of negligent interference with prospective economic advantage are (1) the existence of an economic relationship between the plaintiff and a third party containing the probability of future economic benefit to the plaintiff; (2) the defendant’s knowledge of the relationship; (3) the defendant’s knowledge (actual or construed) that the relationship would be disrupted if the defendant failed to act with reasonable care; (4) the defendant’s failure to act with reasonable care; (5) actual disruption of the relationship; and (6) economic harm proximately caused by the defendant’s negligence.” (Redfearn v. Trader Joe’s Co. (2018) 20 Cal.App.5th 989, 1005.)

 

Plaintiff alleges that Defendants interfered with Plaintiff’s economic relationships with actual and prospective tenants.

 

As to actual tenants, Plaintiff has not adequately alleged interference. Monzon only subleased the property that Monzon itself – and not another tenant – leased from Plaintiff. Plaintiff has not alleged how this interfered with any other tenants.

 

Further, as to potential tenants, Plaintiff has not alleged an existing relationship as required by the first element.

 

The Court therefore sustains the demurrer to this claim.

 

Unjust Enrichment – Fifth Claim

 

“The elements for a claim of unjust enrichment are receipt of a benefit and unjust retention of the benefit at the expense of another. The theory of unjust enrichment requires one who acquires a benefit which may not justly be retained, to return either the thing or its equivalent to the aggrieved party so as not to be unjustly enriched.” (Lyles v. Sangadeo-Patel (2014) 225 Cal.App.4th 759, 769, quotation marks and citations omitted.)

 

Notably, “[u]njust enrichment is not a cause of action”; it is simply “a restitution claim.” (Hill v. Roll International Corp. (2011) 195 Cal.App.4th 1295, 1307; see also Melchior v. New Line Productions, Inc. (2003) 106 Cal.App.4th 779, 793 [“there is no cause of action in California for unjust enrichment”].)

 

Plaintiff argues that it can recover under this theory on the basis that Luis and Maria occupied the property for eight months without paying any rent to Plaintiff. Plaintiff alleges that Defendants subleased the property to other third-party occupants and collected rent from them during this time.

 

“ ‘As between [the landlord] and ... [the] sublessees there was neither privity of estate nor privity of contract.... [The landlord], therefore, could not sue the undertenants upon the original lessee's covenant to pay the rent, unless the undertenants had assumed the lease, nor could an action be maintained for the use and occupation of the premises, unless there had been an agreement for the use of the premises express or implied between the lessor and the sublessee....’ [Citation.] ” (Recorded Picture Co. v. Nelson Entertainment, Inc. (1997) 53 Cal.App.4th 350, 364 [emphasis added].)

 

Here, Luis and Maria were sublessees. Thus, while Plaintiff may be able to allege an unjust enrichment claim against Monzon, the original lessee, Plaintiff cannot state a claim against the sublessees.

 

            The Court therefore sustains the demurrer without leave to amend.