Judge: Linda S. Marks, Case: 2020-01148635, Date: 2022-10-03 Tentative Ruling

1. Motion to Strike Complaint filed by Carolina Brown on 5/27/22
2. Motion to Stay Proceedings filed by West Coast Orthopedic Institute Inc, Surgery Center Of Orange Inc. on 6/3/22

Motion to Strike:

Plaintiffs West Coast Orthopedic Institute Inc and Surgery Center of Orange Inc. did not file an opposition. Their failure to oppose the motion may be treated as an abandonment of any opposition to the issues raised in the moving papers. (Herzberg v. County of Plumas (2005) 133 Cal.App.4th 1, 20.)

Even so, the court finds that Plaintiffs are nonexistent corporations and suspended or nonexistent corporations are “disabled from participating in any litigation activities.” (Palm Valley Homeowners Ass’n, Inc. v. Design MTC (2000) 85 Cal.App.4th 553, 560.) Defendant Carolina Brown carried her burden to establish that Plaintiffs are nonexistent corporations.

As nonexistent corporations, Plaintiffs lack standing to participate in the litigation. “‘Standing’ derives from the principle that ‘[e]very action must be prosecuted in the name of the real party in interest.’” (City of Santa Monica v. Stewart (2005) 126 Cal.App.4th 43, 59, as modified on denial of reh’g (Feb. 28, 2005) [citing Code Civ. Proc, § 367].) Pursuant to Code of Civil Procedure section 367, “[e]very action must be prosecuted in the name of the real party in interest, except as otherwise provided by statute.” (Code Civ. Proc., § 367.)

“A party lacks standing if it does not have an actual and substantial interest in, or would not be benefited or harmed by, the ultimate outcome of an action.” (City of Santa Monica v. Stewart (2005) 126 Cal.App.4th 43, 59, as modified on denial of reh’g (Feb. 28, 2005); Blumhorst v. Jewish Family Services of Los Angeles (2005) 126 Cal.App.4th 993, 1001.)

“[C]ontentions based on a lack of standing involve jurisdictional challenges and may be raised at any time in the proceeding.” (Californians for Disability Rights v. Mervyn’s, LLC (2006) 39 Cal.4th 223, 233 [emphasis added].) Here, the court finds that Plaintiffs are not real corporations and therefore do not have a real interest in the adjudication of the complaint.

Tentative Ruling:  The Carolina Brown’s Motion to Strike is GRANTED.

Sanctions in the amount of $1,160 is GRANTED, which shall be paid by Plaintiffs to Defendant, Carolina Brown, within 20 days of the notice of ruling. (Palm Valley Homeowners Ass’n, Inc. v. Design MTC (2000) 85 Cal.App.4th 553.)

Defendant Carolina Brown to give notice.

Motion to Stay Proceedings:

Plaintiffs failed to file a proof of service with their moving papers. (Code Civ. Proc., § 1005, subd. (b).)

Moreover, given Plaintiffs’ status as nonexistent corporations, they are disabled from participating in any litigation activities and further lack standing to maintain this action (Palm Valley Homeowners Ass’n, Inc. v. Design MTC (2000) 85 Cal.App.4th 553, 560; Blumhorst v. Jewish Family Services of Los Angeles (2005) 126 Cal.App.4th 993, 1001; Code Civ. Proc., § 367.)

Tentative Ruling: Plaintiffs’ West Coast Orthopedic Institute Inc. and Surgery Center of Orange Inc., Motion to Stay Proceedings is DENIED without prejudice

Plaintiffs to give notice.