Judge: Lee W. Tsao, Case: 22NWCV01100, Date: 2023-11-08 Tentative Ruling

Case Number: 22NWCV01100    Hearing Date: November 8, 2023    Dept: C

Alarid v. General Motors

CASE NO.:  22NWCV01100

HEARING 11/8/23 @ 10:30 AM

#8

 

Defendant’s Demurrer is OVERRULED and its Motion to Strike is DENIED.

Moving Party to give NOTICE.

 

Defendant General Motors, LLC (Defendant) demurs to the First Amended Complaint’s (FAC) Fifth Cause of Action for Fraud and moves to strike the FAC’s claim for punitive damages.

Background

Plaintiffs Yvonne Marie Alarid and Jennifer Alarid allege Defendant violated the Song-Beverly Act and fraudulently induced Plaintiffs into purchasing a 2018 Chevrolet Cruze manufactured by Defendant. They allege that Defendant knew about a cooling system defect in 2010 and knew that the cooling system installed in Plaintiffs’ vehicle had that defect, which caused coolant to leak.

Legal Standard

The party against whom a complaint has been filed may object to the pleading, by demurrer, on several grounds, including the ground that the pleading does not state facts sufficient to constitute a cause of action. (CCP § 430.10(e).) A party may demur to an entire complaint, or to any causes of action stated therein. (CCP § 430.50(a).)

Motions to strike are used to reach defects or objections to pleadings which are not challengeable by demurrer (i.e., words, phrases, prayer for damages, etc.). (CCP §§ 435, 436 & 437.) A motion to strike lies only where the pleading has irrelevant, false or improper matter, or has not been drawn or filed in conformity with laws. (C.C.P. § 436.) The grounds for moving to strike must appear on the face of the pleading or by way of judicial notice. (C.C.P. § 437.)

Discussion

Defendant demurs to the FAC’s Fifth Cause of Action for Fraudulent Inducement – Concealment on the grounds that it is barred by the statute of limitations and fails to state a claim. Defendant also moves to strike Plaintiffs’ claim for punitive damages.

Defendant argues that the Fraud cause of action is barred by the statute of limitations because Plaintiff cannot invoke tolling for delayed discovery. However, on Demurrer, the Court must accept each allegation within the complaint as true. No matter how unlikely or improbable, the complainant’s allegations must be accepted as true for the purpose of ruling on the demurrer. (Del E. Webb Corp. v. Structural Materials Co. (1981) 123 Cal.App.3d 593, 604.) Thus, at this stage of the proceedings, the court accepts as true Plaintiffs’ allegations that they did not discover Defendant’s alleged fraudulent concealment of latent defects “until shortly before the filing of the complaint ….” (FAC ¶ 46.) Plaintiffs’ Fraud cause of action is not barred by the statute of limitations because they have adequately pled that it was tolled.

Defendant also argues that the Fraud cause of action fails to state a claim because it was not pled with particularity. However, the FAC details allegations that Defendant knew of the defect since 2010, that the defect is unreasonably dangerous to consumers, Defendant published technical service bulletins regarding the defects in the cooling system, and Defendant knew the cooling system in Plaintiffs’ vehicle was defective. (FAC ¶¶ 23-38.) Thus, the FAC contains adequate allegations to support a cause of action for fraud at this stage. Therefore, Defendant’s Demurrer to the Fraud cause of action is overruled on both grounds.

Finally, Defendant argues that Plaintiffs’ claim for punitive damages should be struck from the FAC because there are no supporting allegations of fraud. However, this Court finds that Plaintiffs properly alleged a fraud cause of action. Thus, Defendant’s Motion to Strike Punitive Damages is denied.

 

Accordingly, Defendant’s Demurrer is OVERRULED and its Motion to Strike is DENIED.