Judge: Joseph Lipner, Case: 24STCV11374, Date: 2024-07-29 Tentative Ruling

Case Number: 24STCV11374    Hearing Date: July 29, 2024    Dept: 72

 

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

 

DEPARTMENT 72

 

TENTATIVE RULING

 

JOHN B. SCHRIMPF,

 

                                  Plaintiff,

 

         v.

 

 

PANAVISION INTERNATIONAL, L.P., et al.,

 

                                  Defendants.

 

 Case No:  24STCV11374

 

 

 

 

 

 Hearing Date:  July 30, 2024

 Calendar Number:  7

 

 

 

Defendants Panavision International, L.P. (“Panavision”), Panavision GP Inc. (“GP Inc.”), and Panavision GP LLC (“GP LLC”) (collectively, “Defendants”) demur to the first, second, third, fourth, fifth, sixth, seventh, twelfth, and thirteenth claims in the Complaint filed by Plaintiff John B. Schrimpf (“Plaintiff”). Defendants additionally move to strike portions of the Complaint regarding Plaintiff’s demand for punitive damages.

 

The Court SUSTAINS the demurrer to Plaintiff’s third, fourth, and thirteenth claims WITH LEAVE TO AMEND.

 

The Court OVERRULES the demurrer to the remaining claims.

 

The Court GRANTS the motion to strike WITH LEAVE TO AMEND.

 

Background

 

This is an employment case. The following facts are taken from the allegations of the Complaint, which the Court accepts as true for the purposes of the demurrer.

 

Plaintiff was employed by Defendants for 39 years. Plaintiff was terminated on May 5, 2023, at the age of 71. At the time of his termination, Plaintiff held the title of “VP US Regional Operations Manager.”

 

Over the course of several years prior to 2022, Plaintiff developed medical problems with his hip, but delayed treatment so that he could continue working for Defendants. In 2022, Plaintiff was finally forced to deal with his medical issues, which required various surgeries and leaves of absence.

 

Plaintiff planned to undergo hip surgery in August 2022, but underwent an emergency surgery prior to August 2022 which delayed this plan. Plaintiff informed his executive team and provided medical records regarding his condition and treatment.

 

A September 27, 2022 note submitted to Defendants from Plaintiff’s medical care provider indicated he may return to work “once he is sitting over 4 hours twice daily on 10-3-22 and may return to full time work when he is sitting at least 8 hours twice daily on 10-10-22.” (Complaint ¶ 32.) After recovering from the emergency surgery, Plaintiff returned to work.

 

Plaintiff underwent the hip surgery on February 28, 2023. Approximately one week later, he suffered severe complications including intestinal Covid-19 and Ketoacidosis. As a result of the complications, Plaintiff nearly died and was in a coma for several days. During this period, James Fin, Defendants’ Marketing/Sales Executive, regularly visited Plaintiff’s bedside and kept Defendants up to date regarding Plaintiff’s condition.

 

On March 27, 2023, Plaintiff was authorized by his medical provider to work light duty, working from home for up to 4 hours daily beginning March 28, 2023. These restrictions remained in place through the date of Plaintiff’s termination.

 

On May 1, 2023, Defendants scheduled a meeting with Plaintiff where Plaintiff was informed that his employment would be terminated due to “reorganization.” (Complaint ¶ 36.) Plaintiff alleges that the termination decision was made in California. (Complaint ¶ 37.) Defendants terminated Plaintiff’s employment effective May 5, 2023.

 

Plaintiff filed this action against Defendants on May 6, 2024, raising claims for (1) disability discrimination under FEHA; (2) age discrimination under FEHA; (3) failure to accommodate under FEHA; (4) failure to engage in a timely and good-faith interactive process under FEHA; (5) retaliation under FEHA; (6) failure to prevent/remedy discrimination, harassment, or retaliation under FEHA; (7) wrongful discharge under FEHA; (8) age discrimination under ADEA; (9) retaliation under ADEA; (10) disability discrimination under ADA; (11) retaliation in violation of ADA; (12) wrongful discharge in violation of public policy; and (13) intentional infliction of emotional distress (“IIED”).

 

Defendants filed the demurrer and motion to strike on July 3, 2024. Plaintiff filed an opposition to each, and Defendants filed a reply to each.

 

Request for Judicial Notice

 

The Court grants Defendants’ request for judicial notice and takes notice of the requested materials as public records.

 

Legal Standard

 

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

 

FEHA Standing

 

            “[T]he Fair Employment and Housing Act was not intended to apply to nonresidents where, as here, the tortious conduct took place out of this state's territorial boundaries.” (Campbell v. Arco Marine, Inc. (1996) 42 Cal.App.4th 1850, 1852.)

 

Defendants argue that Plaintiff does not allege standing to assert his FEHA claims. Plaintiff does not allege that he lives in California. Defendants contend that Plaintiff worked outside of California.

 

            Plaintiff alleges that he worked for Defendants at their Woodland Hills, California headquarter office, their Dallas, Texas office, and various regions across the United States. (Complaint ¶ 1.) Plaintiff alleges that his job duties regularly required him to work at the California headquarters. (Complaint ¶ 23.) Plaintiff alleges that the decision to terminate his employment took place in California. (Complaint ¶ 37.)

 

            Defendants argue that these allegations do not provide adequately specific facts. However, “an allegation is one of ultimate fact and good against a general demurrer[.]” (South Shore Land Co. v. Petersen (1964) 226 Cal.App.2d 725, 737.)

 

            The Court therefore finds that Plaintiff has adequately alleged standing under FEHA.

 

            The Court therefore overrules the demurrer as to the first, second, fifth, sixth, and seventh claims.

 

Failure to Accommodate – Third Claim

 

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.)

 

Defendants argue that Plaintiff has not alleged denial of accommodations and has not alleged his ability to perform his job with accommodations.

 

Plaintiff has alleged that he was able to perform his job with accommodations. (Complaint ¶ 57.) Plaintiff alleges that he needed to be accommodated by being permitted at various times to work from home and engage in light work only. Plaintiff alleges that Defendants failed to accommodate his job restrictions, but does not allege what accommodations he was denied. (Complaint ¶ 78.)

 

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

 

Failure to Engage in a Timely and Good-Faith Interactive Process – Fourth Claim

 

“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.’” [Citation.] 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. [Citation.] (Swanson v. Morongo Uni¿ed School Dist. (2014) 232 Cal.App.4th 954, 971–972.)

 

Plaintiff alleges that “Defendants failed to continue engaging in a timely, good faith interactive process with Plaintiff at all required times. If Defendants subsequently decided that the then-existing accommodations were not working, it should have, but failed to, engage in a further interactive process to find reasonable accommodations allowing Plaintiff to continue performing his essential job functions. Instead, it terminated [Plaintiff].” (Complaint ¶ 85.)

 

These allegations do not properly support Plaintiff’s interactive process claim or give Defendants notice of the nature of the claim. Plaintiff only needs to plead ultimate facts, but must in fact plead those facts stating when Defendants did or did not engage in a good faith interactive process to accommodate Plaintiff’s medical conditions and disabilities.

 

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

 

Wrongful Discharge in Violation of Public Policy – Twelfth Claim

 

“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.)


            Plaintiff alleges that his termination violated the public policy embodied in FEHA.

 

Defendants argue that this claim fails because Plaintiff lacks standing under FEHA and because Plaintiff cannot establish a prima facie case for violations of FEHA in the absence of standing. Because the Court finds that Plaintiff has alleged adequate facts to establish standing under FEHA, the Court overrules the demurrer to this claim.

 

Intentional Infliction of Emotional Distress – Thirteenth Claim

 

“The elements of a prima facie case for the tort of intentional infliction of emotional distress are: (1) extreme and outrageous conduct by the defendant with the intention of causing, or reckless disregard of the probability of causing, emotional distress; (2) the plaintiff’s suffering severe or extreme emotional distress; and (3) actual and proximate causation of the emotional distress by the defendant’s outrageous conduct. Conduct to be outrageous must be so extreme as to exceed all bounds of that usually tolerated in a civilized community.” (Wilson v. Hynek (2012) 207 Cal.App.4th 999, 1009, citation and ellipses omitted.)

 

Plaintiff’s basis for alleging extreme and outrageous conduct by Defendants is that Defendants terminated Plaintiff based on his age and disability. Plaintiff alleges that “Defendants did not even have the decency to have Chief Human Resources Officer, Sandy Ferguson, conduct the termination meeting, and instead had a new VP Plaintiff did not even know participate.” (Opposition at p. 10:7-9.)

 

“Managing personnel is not outrageous conduct beyond the bounds of human decency, but rather conduct essential to the welfare and prosperity of society. A simple pleading of personnel management activity is insufficient to support a claim of intentional infliction of emotional distress, even if improper motivation is alleged. If personnel management decisions are improperly motivated, the remedy is a suit against the employer for discrimination.” (Janken v. GM Hughes Electronics (1996) 46 Cal.App.4th 55, 80.) Thus, Plaintiff has not alleged extreme and outrageous conduct.

 

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

 

Motion to Strike

 

Punitive damages are appropriate when a defendant acted with malice, oppression, or fraud. (Civ. Code, § 3294, subd. (a).) “Malice” is defined as conduct intended to cause injury to a person or despicable conduct carried on with a willful and conscious disregard for the rights or safety of others. (Turman v. Turning Point of Cent. Cal., Inc. (2010) 191 Cal.App.4th 53, 63.) “Oppression” means despicable conduct subjecting a person to cruel and unjust hardship, in conscious disregard of the person’s rights. (Ibid.) “Fraud” is an intentional misrepresentation, deceit, or concealment of a material fact known by defendant, with intent to deprive a person of property, rights or otherwise cause injury. (Ibid.)

 

“In order to survive a motion to strike an allegation of punitive damages, the ultimate facts showing an entitlement to such relief must be pled by a plaintiff.” (Clauson v. Superior Court (1998) 67 Cal.App.4th 1253, 1255.) “In passing on the correctness of a ruling on a motion to strike, judges read allegations of a pleading subject to a motion to strike as a whole, all parts in their context, and assume their truth.” (Ibid.) “In ruling on a motion to strike, courts do not read allegations in isolation.” (Ibid.) Conclusory allegations, devoid of any factual assertions, are insufficient to support a conclusion that parties acted with oppression, fraud or malice. (Smith v. Superior Court (1992) 10 Cal.App.4th 1033, 1042.)

 

“An employer shall not be liable for damages pursuant to subdivision (a), based upon acts of an employee of the employer, unless the employer had advance knowledge of the unfitness of the employee and employed him or her with a conscious disregard of the rights or safety of others or authorized or ratified the wrongful conduct for which the damages are awarded or was personally guilty of oppression, fraud, or malice. With respect to a corporate employer, the advance knowledge and conscious disregard, authorization, ratification or act of oppression, fraud, or malice must be on the part of an officer, director, or managing agent of the corporation.” (Civ. Code, § 3294, subd. (b).)

 

Plaintiff alleges at various points in the Complaint that Defendants acted with malice, fraud, oppression, recklessness, and conscious disregard for Plaintiff’s rights and safety. Plaintiff does not need to provide evidentiary facts, but must at least plead ultimate facts showing these conclusions to be accurate. Plaintiff’s Complaint does not plead actions by Defendants that go above and beyond the commission of a tort.

 

The Court therefore grants the motion to strike with leave to amend.