Judge: Lee W. Tsao, Case: 22NWCV00413, Date: 2023-03-09 Tentative Ruling

Case Number: 22NWCV00413    Hearing Date: March 9, 2023    Dept: C

SANDOVAL v. SANDOVAL

CASE NO.:  22HWCV00413

HEARING:  03/09/23

 

#10

TENTATIVE ORDER

 

Plaintiff/Cross-Defendant MARIA SANDOVAL’s demurrer to Defendant/Cross-Complainant GLORIA SANDOVAL’s Cross-Complaint is OVERRULED in part and SUSTAINED with 30 days leave to amend in part.

 

Moving Party to give notice.

 

This action for quiet title was filed by Plaintiff/Cross-Defendant Maria Sandoval (“Cross-Defendant”) on May 26, 2022. On September 9, 2022, Defendant/Cross-Complainant Gloria Sandoval (“Cross-Complainant”) filed the subject Cross-Complaint (“XC”)

 

“Cross-Complainant is the daughter-in-law of Cross-Defendant. Cross-Complainant was married to Cross-Defendant’s son, Everardo Sandoval (“Decedent”), and remained married to him until his unfortunate passing on January 30, 2022.  (XC ¶4.)  As Cross-Defendant and her late husband had previously gifted real properties to each of their children upon their marriages, she wished to provide the same gift to Decedent and Cross-Complainant.” (XC ¶9.)  Cross-Complainant and Decedent were married on September 1, 2012.  “[O]n September 12, 2012, Cross-Defendant caused to be recorded… a Grant Deed, whereby Cross-Defendant … granted to Decedent and Cross-Complainant sole ownership of the Property.” (XC ¶9.) “Cross-Complainant… alleges, that during the time period in which the Property has been owned by Decedent and Cross-Complainant, including through the present date, Cross-Defendant has not issued payment for any expenses incurred by the Property. Decedent and Cross-Complainant, and Cross-Complainant alone following the death of Decedent, have issued all payments for liabilities incurred by the Property without contribution from Cross-Defendants.” (XC ¶21.)

 

The XC asserts the following causes of action: (1) Quiet Title; (2) Declaratory Relief; (3) Unjust Enrichment; (4) Fraud; (5) Promissory Estoppel; and (6) Accounting.

 

Although not specifically stated in the Notice of Demurrer, Cross-Defendant seemingly generally demurs to each cause of action. (See CCP §430.60.)

 

Statute of Limitations

If it is shown that an action would otherwise be time-barred, a plaintiff wishing to avoid the statute of limitations bar may rely on the delayed discovery rule. Such a plaintiff bears the burden of proving its application. (Investors Equity Life Holding Co. v. Schmidt (2011) 195 Cal.App.4th 1519, 1533.) “In order to rely on the discovery rule for delayed accrual of a cause of action, a plaintiff whose complaint shows on its face that his claim would be barred without the benefit of the discovery rule must specifically plead facts to show (1) the time and manner of discovery and (2) the inability to have made earlier discovery despite a reasonable diligence.” (Fox Ethicon Endo-Surgery, Inc. (2005) 35 Cal.4th 797, 808.) In assessing the sufficiency of the allegations of delayed discovery, the court places the burden on the plaintiff to “ ‘show diligence; ‘conclusory allegations will not withstand demurrer.’” (Id.)

 

The face of the XC do not establish that Cross-Complainant’s claims are necessarily barred by any statute of limitations. A determination of such would require factual determinations inappropriately decided at the demurrer stage.

 

First and Second Causes of Action – Quiet Title and Declaratory Relief

The elements of an action to quiet tile are: (1) “the plaintiff is the owner and in possession of the land”; and (2) “the defendant claims an interest therein adverse to [the plaintiff].” (South Shore Land Co. v. Petersen (1964) 226 Cal.App.2d 725, 740-741.)

 

There are two essential elements for declaratory relief: “(1) a proper subject of declaratory relief, and (2) an actual controversy involving justiciable questions relating to [plaintiff’s] rights or obligations.” (Brownfield v. Daniel Freeman Marina Hospital (1989) 208 Cal.App.3d 405, 410.) “Declaratory relief operates prospectively only, rather than to redress past wrongs.” (Gafcon, Inc. v. Ponsor & Associates (2002) 98 Cal.App.4th 1388, 1404.) The “actual controversy” requirement concerns the existence of present controversy relating to the rights and legal duties of the respective parties pursuant to contract, statute or order.” (see CCP §1060; see also Maguire v. Hibernia S. & L. Soc. (1944) 23 Cal.2d 719, 728.)

 

Cross-Defendant does not argue that these claims are specifically demurrable. Rather, Cross-Defendant argues that “[b]oth of these causes of action seemed to be derivative of [other] causes of action…. Thus the Court should consider demurring these causes of action as well.” (Dem. 6:4-7.)

 

Cross-Complainant has sufficiently alleged each element of these causes of action. The demurrer to the first and second causes of action is OVERRULED.

 

Third Cause of Action – Unjust Enrichment

Under the law of restitution, an individual may be required to make restitution if he is unjustly enriched at the expense of another.  A person is enriched if he receives a benefit at another's expense.  (Ghirardo v. Antonioli (1996) 14 Cal.4th 39, 51.)

There is a split of authority across the appellate courts regarding whether unjust enrichment is a cause of action or a principle of law.  Jogani v. Superior Court (2008) 165 Cal.App.4th 901, 911 and Melchior v. New Line Prods., Inc. (2003) 106 Cal.App.4th 779, 794 hold that unjust enrichment is a principle underlying various doctrines and remedies, including quasi-contract.  On the other hand, Hirsch v. Bank of America (2003) 107 Cal.App.4th 708, First Nationwide Savings v. Perry (1992) 11 Cal.App.4th 1657, and Lectrodryer v. Seoul Bank (2000) 77 Cal.App.4th 723 view it as a separate cause of action.

 

Regardless of whether unjust enrichment is a cause of action or not, Plaintiff may still allege it as a theory supporting the remedy of rescission.  A complaint may state multiple legal theories upon which recovery might be predicated for one claim for relief.  (Newhall Land & Farming Co. v. Superior Court (1993) 19 Cal. App. 4th 334, 351.) 

 

Here, Cross-Complainant alleges that Cross-Defendant would be liable for restitution to Cross-Complainant if Cross-Defendant prevails in the suit: “In the event that Cross-Complainant is not determined to be the legal owner of the Property, Cross-Defendants will be unjustly enriched in the amounts that they have acquired through fraudulent means.”  (XC ¶31.)  This argument is speculative because, at this moment, Cross-Complainant retains ownership and possession of the subject property.  The demurrer to the third cause of action is SUSTAINED with 30 days leave to amend.

 

Fourth Cause of Action – Fraud

The elements of a fraudulent misrepresentation cause of action are: (a) misrepresentation (false representation, concealment, or nondisclosure); (b) knowledge of falsity (or “scienter”); (c) intent to defraud, i.e., to induce reliance; (d) justifiable reliance; and (e) resulting damage.” (Engalia v. Permanente Medical Group, Inc. (1997) 15 Cal.4th 951, 974.)

 

The demurrer to the fourth cause of action is SUSTAINED with 30 days leave to amend. As pled, Cross-Complainant does not allege the requisite element of damages.

 

Fifth Cause of Action – Promissory Estoppel

The elements of promissory estoppel are: (1) a promise clear and unambiguous in its terms; (2) reliance by the party to whom the promise is made; (3) the reliance must be both reasonable and foreseeable; and (4) the party asserting estoppel must be injured by his reliance. (Granadino v. Wells Fargo Bank, N.A. (2015) 236 Cal.App.4th 411, 416; see also Smith v. City & County of San Francisco (1990) 225 Cal.App.3d 38, 48 [to allege promissory estoppel, pleadings must allege facts demonstrating such reliance on promises, beyond just conclusory allegations of reasonable reliance upon promises]; Aceves v. U.S. Bank, N.A. (2011) 192 Cal.App.4th 218, 226 [agreement to work on a mortgage reinstatement and loan modification was a “clear and unambiguous promise” and, in reliance, plaintiff relinquished a legal right to stay foreclosure by filing bankruptcy].) 

 

The demurrer to the fifth cause of action is SUSTAINED with 30 days leave to amend. Damages as presently alleged are speculative.

 

Sixth Cause of Action - Accounting

Accounting is an independent cause of action in equity. (Teselle v. McLoughlin (2009) 173 Cal.App.4th 156, 180.) A cause of action seeking an accounting may be maintained when (1) a relationship exists between a plaintiff and defendant that requires an accounting, and (2) some balance is due to the plaintiff that can only be ascertained by an accounting. (Id. at 179.)

The demurrer to the sixth cause of action is SUSTAINED with 30 days leave to amend. Cross-Complainant has not adequately alleged facts to show the existence of a fiduciary or confidential relationship between her and Cross-Defendant, or that the balance allegedly due to Cross-Complainant is indeterminable without an accounting.

The Motion to Strike is rendered MOOT by the Court’s ruling on the Demurrer above.