Judge: Lee W. Tsao, Case: 22NWCV00838, Date: 2024-09-03 Tentative Ruling



Case Number: 22NWCV00838    Hearing Date: September 3, 2024    Dept: C

Hugo Aleman Gonzalez, et al. vs American Honda Motor Co., Inc.

Case No.: 22NWCV00838

Hearing Date: September 3, 2024 @ 10:30 a.m.

 

#4

Tentative Ruling

Defendant American Honda Motor Co., Inc.’s Motion for Summary Adjudication of the Third Cause of Action Fraudulent Inducement—Concealment is CONTINUED to February 25, 2025 at 9:30 a.m. in Dept. SE-C. 

Plaintiffs to give notice.

 

Background

The operative First Amended Complaint (“FAC”) filed on December 22, 2022 alleges that Plaintiffs Hugo Aleman Gonzalez and Diana Aleman (“Plaintiffs”) purchased a new 2022 Honda Civic, VIN: 2HGFE1F94NH311281 (“the Subject Vehicle”) from Norm Reeves Honda Superstore in Cerritos, California. (FAC, ¶8.) Norm Reeves Honda Superstore is an authorized AMERICAN HONDA dealership. (Id., ¶9.) AMERICAN HONDA’s authorized dealerships are its agents for purposes of selling AMERICAN HONDA vehicles to consumers. (Id., ¶10.) AMERICAN HONDA backed the Subject Vehicle with an express warranty. (Id., ¶11.) AMERICAN HONDA manufactured and/or distributed vehicles throughout the United States, including the Subject Vehicle, equipped with defective computerized driver-assistance safety systems called “Honda Sensing”. (Id., ¶14.) The FAC alleges the following causes of action: 1) Violation of Song-Beverly Act – Breach of Express Warranty, 2) Violation of Song-Beverly Act – Breach of Implied Warranty, and 3) Fraudulent Inducement – Concealment. 

On January 22, 2024, Defendant American Honda Motor Co., Inc. (“AHM”) filed the instant motion for summary adjudication of the Third Cause of Action for Fraudulent Inducement – Concealment.  In that regard, the FAC alleges that AMERICAN HONDA and its agents intentionally concealed and failed to disclose facts relating to the Honda Sensing Defect. (Id., ¶119.) AMERICAN HONDA intended to deceive Plaintiff(s) by concealing the known issues with the Honda Sensing Defect, in an effort to sell affected vehicles at maximum price. (Id., ¶123.) AMERICAN HONDA fraudulently induced Plaintiff(s) to purchase the Subject Vehicle they would not have purchased but for AMERICAN HONDA’s concealment of the Honda Sensing Defect. (Id., ¶124.)

AHM moves for summary adjudication on the following grounds: 1) the Third Cause of Action is preempted by federal law, 2) Plaintiffs cannot prove that AHM owed them a duty of disclosure because there was no direct transaction between the parties in which information could be disclosed, 3) Plaintiffs cannot prove that AHM concealed a material fact, 4) Plaintiffs cannot prove fraud damages as they lack evidence to establish the difference in the market value of the Subject Vehicle and the value of the vehicle they received, and 5) Plaintiffs’ Third Cause of Action fails under the economic loss doctrine.

On February 1, 2024, AHM moved to continue the May 14, 2024 trial date because the earliest date available to have its motion for summary adjudication heard was May 1, 2024, which was less than 30 days before the trial date. (CCP §437c, subd. (a)(3).) Trial was continued to July 17, 2024. (2/1/24 Minute Order.)

On April 17, 2024, the Court approved a stipulation to continue the trial and motion for summary adjudication on the grounds that AHM’s PMQ was not available until July 26, 2024. (4/17/24 Stipulation.) Trial was continued to October 17, 2024, and the Motion for Summary Adjudication was continued to September 3, 2024. (Ibid.)

Discussion

Timeliness

Code of Civil Procedure section 437c, subdivision (h) allows a request for a continuance to be made through affidavits accompanying the opposition itself, or “by ex parte motion at any time on or before the date the opposition response to the motion is due.”

The hearing is set for September 3, 2024, therefore, opposition was due on August 20, 2024. (See CCP § 437c(b)(2).) An affidavit requesting a continuance was submitted on August 20, 2024.

Accordingly, the affidavit in opposition was timely filed.

Request to Continue to the Motion for Summary Adjudication

A declaration in support of a request for continuance under Code of Civil Procedure section 437c, subdivision (h), must show: (1) the facts to be obtained through additional discovery are essential to opposing the motion; (2) there is reason to believe such facts may exist; and (3) the reasons additional time is needed to obtain these facts. (Cooksey v. Alexakis (2004) 123 Cal.App.4th 246, 254; Combs v. Skyriver Communications Inc. (2008) 159 Cal.App.4th 1242, 1270.)

On August 20, 2024, in opposition to AHM’s Motion for Summary Adjudication, Plaintiffs filed an affidavit by Timothy Lupinek, counsel for Plaintiffs. Lupinek states that AHM’s PMQ, Jennifer Pacheco, was deposed on July 16, 2024, but she was not designated to provide testimony to matter numbers 1-26 in Plaintiffs’ Notice of Deposition. (Lupinek Decl., ¶5, Ex. A.) These matters include when “Defendant was put on notice of the defective nature of the Collision Mitigation Braking System equipped in the Subject Vehicle and similar Collision Mitigation Braking Systems in other vehicles, Defendant’s reports regarding motor vehicle accidents caused by defective Collision Mitigation Braking System, which are the same kind as the transmission equipped in the Subject Vehicle, and Defendant’s disclosures, if any, to any consumers, including Plaintiffs, that the Collision Mitigation Braking System was defective …” (Id., ¶10.) Lupinek asserts these matters are essential to obtain testimony for Plaintiffs to oppose Defendant’s motion for summary adjudication.” (Ibid.)

AHM argues that even if Plaintiffs obtain a further deposition of AHM’s PMQ, Plaintiffs will lack admissible evidence to successfully oppose the motion for summary adjudication.  In the Court’s view, this remains to be seen.  The Court determines that Plaintiffs have adequately shown that facts essential to justify opposition may exist but cannot, for the reasons stated, be presented at this time.  The Court notes that trial was continued the first time to permit AHM’s motion to be heard more than 30 days before trial.  Trial was continued the second time to accommodate the schedule of AHM’s PMQ.  AHM does not argue it will be prejudiced by further delay. 

Accordingly, Defendant American Honda Motor Co., Inc.’s Motion for Summary Adjudication of the Third Cause of Action Fraudulent Inducement—Concealment is CONTINUED to February 25, 2025 at 9:30 a.m. in Dept. SE-C.  Opposition and Reply briefs to be filed in compliance with the new hearing date.