Judge: Kenneth J. Medel, Case: 37-2021-00053083-CU-BC-CTL, Date: 2024-03-29 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

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HALL OF JUSTICE

TENTATIVE RULINGS - March 28, 2024

03/29/2024  09:30:00 AM  C-66 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Kenneth J Medel

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Civil - Unlimited  Breach of Contract/Warranty Motion Hearing (Civil) 37-2021-00053083-CU-BC-CTL JRWCM LLC VS PACIFIC REAL ESTATE PARTNERSHIP [IMAGED] CAUSAL DOCUMENT/DATE FILED: Motion for Judgment on the Pleadings, 03/04/2024

Defendants' Motion for Judgment on the Pleadings is DENIED. On or about July 20, 2023, Defendants filed a motion for summary judgment / adjudication. In ruling on that motion, the Court stated that Plaintiffs' first (involuntary dissolution), second (breach of contract), third (breach of fiduciary duty), fourth (common count – goods and services), fifth (common count – open book accounting), sixth (accounting), and seventh (unjust enrichment) causes of action 'are all based on Plaintiffs' claim that JRWCM has an equity / ownership interest in PREP.' Ultimately, the Court granted Defendants' motion for summary adjudication as to Plaintiffs' first, second, third, sixth, and seventh causes of action finding 'there is no evidence to support Plaintiffs' claims that there was ever an agreement to provide JRWCM equity in PREP.' However, the Court denied the motion as to the two remaining common count claims (COAs 4 & 5).

Defendants now move for judgment on the pleadings as to the two remaining common count claims.

Defendants contend that a common count claim cannot survive on its own as it is not a cause of action, and thus, Plaintiffs' common count claims fail as a matter of law.

The only essential allegations of a common count are '(1) the statement of indebtedness in a certain sum, (2) the consideration, i.e., goods sold, work done, etc., and (3) nonpayment.' ' (Farmers Ins.

Exchange v. Zerin (1997) 53 Cal.App.4th 445, 460 [61 Cal.Rptr.2d 707], internal citations omitted.) Common count claims, also known as claims for quantum meruit is based on ''well-established principle that 'the law implies a promise to pay for services performed under circumstances disclosing that they were not gratuitously rendered.' [Citation.] To recover in quantum meruit, a party need not prove the existence of a contract [citations], but it must show the circumstances were such that 'the services were rendered under some understanding or expectation of both parties that compensation therefor was to be made.' ' [Citation.]' ...' 'The measure of recovery in quantum meruit is the reasonable value of the services rendered provided they were of direct benefit to the defendant.' [Citations.]' In other words, quantum meruit is equitable payment for services already rendered.' (E. J. Franks Construction, Inc. v. Sahota (2014) 226 Cal.App.4th 1123, 1127-1128 [172 Cal.Rptr.3d 778], original italics, internal citations omitted.) The summary adjudication order dismissed the equity claims. However, this would not necessarily affect the common count claims based upon allegations of services rendered and not paid for. As indicated in the ruling on the motion, 'Plaintiffs claim they provided approximately 9,677.33 of hours of services to Defendants that were unpaid and not part of the Outstanding Balance that was eventually settled. [AMF 70] Plaintiffs regularly sent an excel spreadsheet that not only reflected the number of unbilled hours but the hourly rates and the sum that is due on those hours. [AMF 24] Jones-Church acknowledged in her deposition that in addition to receiving an invoice that was part of the Outstanding Balance, she regularly received the excel spread sheets that reflected the additional hours Plaintiffs provided to Defendants, reviewed those excel sheets, never disputed the amounts that were in the excel sheets, and has no Calendar No.: Event ID:  TENTATIVE RULINGS

3102797  43 CASE NUMBER: CASE TITLE:  JRWCM LLC VS PACIFIC REAL ESTATE PARTNERSHIP [IMAGED]  37-2021-00053083-CU-BC-CTL reason to believe they are inaccurate. [AMF 25]. Jones-Church acknowledges that Plaintiffs would eventually get paid for those hours. [AMF 62]' Calendar No.: Event ID:  TENTATIVE RULINGS

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