Judge: Katherine Chilton, Case: 22STLC00910, Date: 2023-05-10 Tentative Ruling

Case Number: 22STLC00910    Hearing Date: May 10, 2023    Dept: 25

MOTION FOR RECLASSIFICATION

(CCP § 403.040)

TENTATIVE RULING:

Plaintiff Interinsurance Exchange of the Automobile Club’s Motion to Reclassify is GRANTED. Plaintiff is ordered to pay the reclassification fee within ten (10) days of notice of this order.

SERVICE: 

[X] Proof of Service Timely Filed (CRC, rule 3.1300)                                         OK

[X] Correct Address (CCP §§ 1013, 1013a)                                                                         OK

[X] 16/21 Court Days Lapsed (CCP §§ 12c, 1005(b))                                             OK

OPPOSITION:          [   ] Late                      [X] None

REPLY:                     [   ] Late                      [X] None

ANALYSIS:

I.                Background

On February 14, 2022, Plaintiff Interinsurance Exchange of the Automobile Club (“Plaintiff”) filed an action for automobile subrogation against Defendants Courtney Tuhran Chandler, Jr. and Crystal Quigg (“Defendants”).

On April 18, 2022, a default was entered against Defendants. Subsequently, Plaintiff alleges that it discovered Defendants actually owed Plaintiff in the amount of $63,099.25.

On February 22, 2023, Plaintiff filed the instant Motion to Reclassify Case as an Unlimited Jurisdiction Action (the “Motion”). As of May 9, 2023, no opposition has been filed.

II.              Legal Standard

Code of Civil Procedure section 403.040 allows a plaintiff to file a motion for reclassification of an action within the time allowed for that party to amend the initial pleading. (Code Civ. Proc., § 403.040, subd. (a).) “A party may amend its pleading once without leave of court at any time before an answer, demurrer, or motion to strike is filed, or after a demurrer or motion to strike is filed if the amended pleading is filed and served no later than the date for filing an opposition to the demurrer or motion to strike. (Code Civ. Proc., § 472, subd. (a).) If the motion is made after the time for the plaintiff to amend the pleading, the motion may only be granted if (1) the case is incorrectly classified; and (2) the plaintiff shows good cause for not seeking reclassification earlier. (Code Civ. Proc.,  § 403.040, subd. (b).)

In Walker v. Superior Court (1991) 53 Cal.3d 257, 262, the California Supreme Court held that a matter may be reclassified from unlimited to limited only if it appears to a legal certainty that the plaintiff's damages will necessarily be less than $25,000. (Walker v. Superior Court (1991) 53 Cal.3d 257.) If there is a possibility that the damages will exceed $25,000.00, the case cannot be transferred to limited. (Ibid.) This high standard is appropriate in light of “the circumscribed procedures and recovery available in the limited civil courts.” (Ytuarte v. Superior Court (2005) 129 Cal.App.4th 266, 278.)

            In Ytuarte, the Court of Appeals examined the principles it set forth in Walker and held that “the court should reject the plaintiff's effort to reclassify the action as unlimited only when the lack of jurisdiction as an “unlimited” case is certain and clear.” (Id. at 279.) (Emphasis added.)  Nevertheless, the plaintiff must present evidence to demonstrate a possibility that the damages will exceed $25,000.00 and the trial court must review the record to determine “whether a judgment in excess of $25,000.00 is obtainable.” (Id.) (Emphasis added.)

III.            Discussion

Plaintiff seeks to reclassify this action on the basis that its damages will exceed the $25,000.00 jurisdictional limit of this Court. (Mot., pp. 3-5.) Plaintiff provides a declaration by Plaintiff’s counsel where counsel advised Plaintiff that it paid additional money under the Uninsured Motorist Bodily Injury portion of the Policy and that the new amount Defendant owed Plaintiff is actually $63,099.25. (Tapper Decl. ¶ 3.) Defendants do not provide any arguments refuting this amount.

The Court finds Plaintiff has demonstrated an award of over $25,000.00 is obtainable and thus, the case is incorrectly classified as a limited jurisdiction action. Accordingly, the Motion is GRANTED.

IV.           Conclusion & Order

For the foregoing reasons, Plaintiff Interinsurance Exchange of the Automobile Club’s Motion to Reclassify is GRANTED. Plaintiff is ordered to pay the reclassification fee within ten (10) days of notice of this order.

Moving party is ordered to give notice.