Judge: Joseph Lipner, Case: 23STCV09343, Date: 2024-01-25 Tentative Ruling

Case Number: 23STCV09343    Hearing Date: January 25, 2024    Dept: 72

 

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

 

DEPARTMENT 72

 

TENTATIVE RULING

 

JUAN MENDOZA,

 

                                  Plaintiff,

 

         v.

 

 

ZIBAALI AUTOMOTIVE GROUP, INC., et al.,

 

                                  Defendants.

 

 Case No:  23STCV09343

 

 

 

 

 

 Hearing Date:  January 25, 2024

 Calendar Number:  9

 

 

 

Defendant Zibaali Automotive Group, Inc. (“Zibaali”) demurs to the Second Amended Complaint (“SAC”) filed by Plaintiff Juan Mendoza (“Plaintiff”).

 

The Court OVERRULES the demurrer.

 

The Court DENIES the motion to strike Plaintiff’s claims for punitive damages.

 

The Court GRANTS the motion to strike Plaintiff’s claim for attorney’s fees for the seventh cause of action for failure to provide meal and rest breaks.

 

Background

 

The following facts come from Plaintiff’s SAC.

 

Zibaali employed Plaintiff as a tire technician beginning around June 2016.

 

In September 2017, Plaintiff suffered an injury to his leg while on the job which required him to go to an Urgent Care location to receive treatment. Plaintiff informed his boss, Amir Doe (“Amir”) of the injury. The injury left Plaintiff with ongoing pain.

 

In June 2021, Plaintiff’s leg injury reopened, causing the pain to become unbearable. Plaintiff’s doctor prescribed Plaintiff a three-month leave of absence until October 2021 to allow Plaintiff’s leg wound to heal.

 

In October 2021, Plaintiff’s doctor prescribed an additional three-month leave of absence. Plaintiff informed Ross Doe (“Ross”), who Plaintiff alleges to be one of Zibaali’s owners, about this doctor’s advice. Ross told Plaintiff not to return to work, that he was “no longer needed,” that he “gets sick too much,” and that Plaintiff had already been replaced by another technician.

 

Plaintiff filed this action against Zibaali, Ross, and Amir on April 26, 2023. The operative complaint is now the SAC, which raises claims for (1) disability discrimination; (2) failure to participate in an interactive process; (3) failure to provide reasonable accommodation; (4) failure to prevent discrimination, harassment, and retaliation; (5) violation of the California Family Rights Act (“CFRA”); (6) wrongful termination in violation of public policy; (7) failure to provide meal and rest periods; and (8) failure to pay wages when due.

 

 

Legal Standard

 

Demurrer

 

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).

 

Motion to Strike

 

The court may, upon a motion, or at any time in its discretion, and upon terms it deems proper, strike any irrelevant, false, or improper matter inserted in any pleading. (Code Civ. Proc., § 436(a).) The court may also strike all or any part of any pleading not drawn or filed in conformity with the laws of this state, a court rule, or an order of the court. (Code Civ. Proc., § 436(b).) The grounds for a motion to strike are that the pleading has irrelevant, false or improper matter, or has not been drawn or filed in conformity with laws. (Code Civ. Proc., § 436.) The grounds for moving to strike must appear on the face of the pleading or by way of judicial notice. (Code Civ. Proc., § 437.)

 

Discussion

 

Zibaali’s Employer Status

 

Plaintiff has specifically alleged that Zibaali is an employer pursuant to FEHA.  He has also specifically alleged that he is an employer under various provisions of the Government Code and also for the purposes of the California Family Rights Act.  Plaintiff has adequately pled that Zibaali is an employer.

 

Disability Discrimination – First Cause of Action

 

“A prima facie case of disability discrimination under FEHA requires a showing that (1) the plaintiff suffered from a disability, (2) the plaintiff was otherwise qualified to do his or her job, with or without reasonable accommodation, and (3) the plaintiff was subjected to adverse employment action because of the disability.” (Castro-Ramirez v. Dependable Highway Express, Inc. (2016) 2 Cal.App.5th 1028, 1037.)

 

A person is “physically disabled” as defined by FEHA if, among other things, the individual:

 

(1) Has a physiological condition that both (a) affects a specific bodily system and (b) limits a major life activity;

(2) Has any other health impairment requiring special education or similar services;

(3) Has a “record or history of” such a physiological condition; or

(4) Is “regarded or treated by” the individual's employer as having, or having had, any condition that makes achievement of a major life activity difficult, or (5) as having, or having had, a physiological condition that is not presently disabling, but that may become so.

 

(Gov. Code, § 12926, subd. (m).)

 

Plaintiff has alleged that he had a long-term leg wound which reopened, causing him unbearable pain and requiring his absence from work to recover. This constitutes substantial interference with a major life activity. Plaintiff has therefore adequately alleged that he has a disability.

 

Plaintiff has alleged that “[t]hroughout Plaintiff’s employment with Defendants, he performed his duties and responsibilities in an exemplary manner.” (SAC at p. 3:14-17.) Plaintiff has thus adequately alleged that he was qualified to perform his duties.

 

Plaintiff has adequately alleged that he was subjected to adverse action as a result of the disability because he was terminated for taking leave to recover from it, being specifically told that he was sick too often.

 

The Court overrules the demurrer to this cause of action.

 

Failure to Participate in an Interactive Process – Second Cause of Action

 

“FEHA requires an informal process with the employee to attempt to identify reasonable accommodations, not necessarily ritualized discussions.” (Nealy v. City of Santa Monica (2015) 234 Cal.App.4th 359, 379.)

 

“Once initiated, the employer has a continuous obligation to engage in the interactive process in good faith. “Both employer and employee have the obligation to keep communications open’ and neither has a right to obstruct the process. Each party must participate in good faith, undertake reasonable efforts to communicate its concerns, and make available to the other information which is available, or more accessible, to one party. Liability hinges on the objective circumstances surrounding the parties’ breakdown in communication, and responsibility for the breakdown lies with the party who fails to participate in good faith.” (Swanson v. Morongo Uni¿ed School Dist. (2014) 232 Cal.App.4th 954, 971–972 [internal citations and quotation marks omitted].)

 

As discussed above, Plaintiff has adequately alleged that he had a disability requiring accommodation. Plaintiff has also alleged that Zibaali did not engage in an interactive process with him. Although the responsibility for the breakdown of an interactive process lies with whoever fails to engage in good faith, here, Zibaali did not start the process to begin with. The fact that Plaintiff does not allege to have provided Defendants with medical records thus does not factor into the equation at this point.

 

The Court overrules the demurrer to this cause of action.

 

Failure to Provide Reasonable Accommodations – Third Cause of Action

 

Under Government Code, section 12940, it is an unlawful employment practice “to fail to make reasonable accommodation for the known physical or mental disability of an applicant or employee” unless the employer demonstrates doing so would impose an undue hardship. “The essential elements of a failure to accommodate claim are: (1) the plaintiff has a disability covered by the FEHA; (2) the plaintiff is a qualified individual (i.e., he or she can perform the essential functions of the position); and (3) the employer failed to reasonably accommodate the plaintiff's disability.” (Wilson v. County of Orange (2009) 169 Cal.App.4th 1185, 1192.)

 

As discussed above, Plaintiff has adequately alleged that he had a disability requiring accommodation. Plaintiff has alleged that Zibaali terminated him instead of providing him with an accommodation in the form of time off from work to recover, as prescribed by his doctor. Plaintiff has thus adequately alleged this cause of action.

 

The Court overrules the demurrer to this cause of action.

 

Failure to Prevent Discrimination, Harassment, and Retaliation – Fourth Cause of Action

 

Failure to State a Claim

 

The elements of a cause of action for failure to prevent harassment or retaliation are: (1) actionable discrimination or harassment by employees or nonemployees; (2) defendant’s legal duty of care toward plaintiff (i.e., defendant is the plaintiff’s employer); (3) breach of that duty (i.e., failure to take all reasonable steps necessary to prevent discrimination and harassment from occurring); (4) legal causation; and (5) damages to plaintiff. (Trujillo v. North County Transit District (1998) 63 Cal.App.4th 280, 287, 289; Bradley v. Department of Corrections & Rehabilitation (2008) 158 Cal.App.4th 1612, 1630; Gov. Code, § 12940.)

 

As discussed above, Plaintiff has adequately alleged discrimination on the basis of his disability. Plaintiff has further alleged that Zibaali failed to properly train and supervise its supervisors and that Zibaali permitted its supervisors to discriminate against Plaintiff and terminate him because of his disability. Plaintiff has adequately pled this cause of action.

 

Administrative Exhaustion

 

Zibaali argues that Plaintiff has not exhausted his administrative remedies as to this cause of action because he did not include failure to prevent discrimination in his administrative complaint.

 

“The administrative exhaustion requirement is satisfied if the allegations of the civil action are within the scope of the EEOC charge, any EEOC investigation actually completed, or any investigation that might reasonably have been expected to grow out of the charge. Thus, the judicial complaint may encompass any discrimination like and reasonably related to the allegations of the EEOC charge. Administrative charges are to be construed liberally because they are often drafted by claimants without the assistance of counsel. Accordingly, [i]t is sufficient that the EEOC be apprised, in general terms, of the alleged discriminatory parties and the alleged discriminatory acts.” (Nazir v. United Airlines, Inc. (2009) 178 Cal.App.4th 243, 266-267 [citations and quotation marks omitted].)

 

Here, Plaintiff unambiguously exhausted as to his other claims for disability discrimination and failure to accommodate. Failure to prevent such discrimination is “like and reasonably related to” the discrimination itself, and investigation into that matter could reasonably be expected to grow out of the initial discrimination charge. (Nazir, supra, 178 Cal.App.4th at p. 266.)

 

The Court overrules the demurrer to this cause of action.

 

Violation of CFRA – Fifth Cause of Action

 

A cause of action for retaliation for taking CFRA medical leave is brought pursuant to  Government Code section 12945.2, subdivision (l), which provides that “[i]t shall be an unlawful employment practice for an employer to . . . discharge . . . or discriminate against, any individual because of . . . [¶] (1) An individual’s exercise of the right to family care and medical leave provided by” the CFRA. (Gov. Code, § 12945.2, subd. (l).) 

 

“The elements of a cause of action for retaliation in violation of CFRA are: ‘ “(1) the defendant was an employer covered by CFRA; (2) the plaintiff was an employee eligible to take CFRA [leave]; (3) the plaintiff exercised her right to take leave for a qualifying CFRA purpose; and (4) the plaintiff suffered an adverse employment action, such as termination, fine, or suspension, because of her exercise of her right to CFRA [leave].” ’ [Citation.] Similar to causes of action under FEHA, the McDonnell Douglas burden shifting analysis applies to retaliation claims under CFRA.” (Moore v. Regents of University of California (2016) 248 Cal.App.4th 216, 248.) 

 

Zibaali’s only objection to this claim is that Plaintiff has not adequately pled that FEHA applies. As discussed above, Plaintiff has adequately pled that FEHA applies.

 

The Court overrules the demurrer to this cause of action.

 

Wrongful Termination in Violation of Public Policy – Sixth Cause of Action

 

“The elements of a claim for wrongful discharge in violation of public policy are (1) an employer-employee relationship, (2) the employer terminated the plaintiff’s employment, (3) the termination was substantially motivated by a violation of public policy, and (4) the discharge caused the plaintiff harm. It is well established that a termination premised on an employee’s refusal to violate either a statute or an administrative regulation may support a claim for wrongful termination in violation of public policy.” (Nosal-Tabor v. Sharp Chula Vista Medical Center (2015) 239 Cal.App.4th 1224, 1234, citation omitted.)

 

Zibaali’s only arguments on this cause of action are (1) that Zibaali was not Plaintiff’s employer, and (2) that Zibaali did not violate public police. As discussed above, Plaintiff has adequately pled each of these issues.

 

The Court overrules the demurrer to this cause of action.

 

Failure to Provide Meal and Rest Periods – Seventh Cause of Action

 

Failure to State a Claim

 

An employer must give its employees a 30-minute meal within the first 5 hours of their shift and rest breaks. (Lab. Code, §§ 226.7(a), 512(a); IWC Wage Order No. 4-2001.) “The employer satisfies this obligation if it relieves its employees of all duty, relinquishes control over their activities and permits them a reasonable opportunity to take an uninterrupted 30-minute break, **537 and does not impede or discourage them from doing so.” (Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004, 1040.) As such, “an employee must show that he was forced to forego his meal [and rest] breaks as opposed to merely showing that he did not take them regardless of the reason.” (White v. Starbucks Corp. (N.D. Cal. 2007) 497 F.Supp.2d 1080, 1089.)

 

Plaintiff has pled this claim with adequate specificity. It is not necessary for Plaintiff to identify each day on which he was denied breaks at the pleading stage.

 

Statute of Limitations

 

Zibaali argues that section 226.7 is a penalty, and thus subject to a one-year statute of limitations under Code of Civil Procedure, section 340. The California Supreme Court has held that section 226.7 is a remedy, and not a penalty, and it is thus error to apply a one-year statute of limitations. (Murphy v. Kenneth Cole Productions, Inc. (2007) 40 Cal.4th 1094, 1114.)

 

Under the continuing violation doctrine, incidents for which the filing would be individually untimely can be considered if they are cumulatively part of an ongoing unlawful practice with incidents that do fall within the statute of limitations.  (Richards v. CH2M Hill, Inc. (2001) 26 Cal. 4th 798, 811-824.) Thus, as a liability created by statute, section 226.7 carries a 3-year statute of limitations. (Code Civ. Proc., § 338. subd. (a).)

 

The Court overrules the demurrer to this cause of action.

 

Failure to Pay Wages When Due – Eighth Cause of Action

 

Failure to State a Claim

 

It is well-settled policy in California that all of an employee’s earned wages must be fully and promptly paid. (Smith v. Superior Court (2006) 39 Cal.4th 77, 82.) Failure to promptly pay wages results in a waiting time penalty whereby the wages continue to accrue up to a maximum of 30 days. (Lab. Code § 203.)

 

“‘Wages’ includes all amounts for labor performed by employees of every description, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation.” (Lab. Code, § 200.) Bonuses are treated was wages when the bonus is promised as part of compensation and the employee fulfills any agreed-to conditions for the bonus. (Neisendorf v. Levi Strauss & Co. (2006) 143 Cal.App.4th 509, 522.)

 

All earned wages are due and payable immediately upon an employee’s termination. (Lab. Code, § 201, subd. (a).)

 

Plaintiff alleges that Zibaali failed to pay overtime wages that Plaintiff earned. (SAC at p. 23:7-10.)

 

Zibaali argues that this cause of action is a penalty and is therefore subject to the one-year statute of limitations. However, Plaintiff seeks the payment of overtime wages actually owed in addition to penalties, making this claim both remedial and punitive. The Court therefore overrules the demurrer.

 

Motion to Strike

 

Zibaali seeks to strike Plaintiff’s allegations of punitive damages and attorney’s fees.

 

Punitive Damages

 

Punitive damages require clear “clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice[.]” (Civ. Code, § 3294.)

 

Plaintiff has adequately pled facts showing malice. Here, according to Plaintiff, Defendants explicitly told Plaintiff that they terminated him for being sick too much. These facts are adequate to allege malice at the pleading stage. Plaintiff has also pled that Zibaali ratified this conduct, because it was conducted by Ross, an owner. The Court denies the motion to strike as to punitive damages.

 

Attorney’s Fees

 

Zibaali argues that attorney’s fees cannot be recovered in the seventh cause of action for failure to provide meal and rest breaks.

 

“[T]he Legislature intended section 226.7 claims to be governed by the default American rule that each side must cover its own attorney's fees.” (Kirby v. Immoos Fire Protection, Inc. (2012) 53 Cal.4th 1244, 1259, superseded by statute on other grounds as stated in USS-Posco Industries v. Case (2016) 244 Cal.App.4th 197, 216.) Section 226.7 is not an action for the nonpayment of wages, and therefore does not qualify for attorney’s fees under Labor Code, section 218.6. (Naranjo v. Spectrum Security Services, Inc. (2022) 13 Cal.5th 93, 122.) Although the Naranjo court found that missed-break premium pay constitutes wages for the purposes of assessing waiting time penalties (Id. at p. 117), the Court explicitly remained faithful to the reasoning set out in Kirby, whereby the action for failure to provide breaks is not an action for unpaid wages for the purposes of attorney’s fees or prejudgment interest. (Id. at p. 122.)

 

The Court therefore grants the motion to strike Plaintiff’s claim for attorney’s fees for the seventh cause of action.