Judge Mark C. Kim, Case 22LBCV00555 2023-05-25 Tentative Ruling

Judge: Mark C. Kim, Case: 22LBCV00555, Date: 2023-05-25 Tentative Ruling

Case Number: 22LBCV00555 Hearing Date: May 25, 2023 Dept: S27

Plaintiff, Anicia Clay filed this action against Defendants, Glenn E. Thomas Company and FCA US, LLC for Violation of the Song-Beverly Act, breach of warranty of merchantability, and negligent repair.

Defendants, Glenn E. Thomas Company and FCA US, LLC move to compel Plaintiff to arbitrate her dispute with it. Subsequent to the filing of the motions, Plaintiff dismissed Glenn E. Thomas Company. Its motion is therefore moot.

FCA concedes it does not have an arbitration agreement with Plaintiff, but seeks to compel arbitration under Plaintiff’s sales agreement with the dealership (Glenn E. Thomas) from whom Plaintiff purchased the subject automobile. Defendant seeks to compel arbitration under a third party beneficiary theory and also under an estoppel theory.

FCA filed this motion on 2/07/23. On 4/04/23, the Court of Appeals decided Ochoa v. Ford Motor Company (2023) 89 Cal.App.5^th 1324. In Ochoa, the Court of Appeals expressly considered whether a manufacturer of an automobile can enforce a dealership’s arbitration agreement under a third party beneficiary and/or estoppel theory. The Court of Appeals held that it cannot. Plaintiff opposes the motion, contending that, pursuant to Ochoa, FCA is not entitled to the relief it seeks.

Defendant, in reply, argues that Plaintiff relies heavily on Ochoa, but Ochoa is distinguishable. The Court finds Ochoa is not distinguishable. It considered the exact issues presented here, and found that the manufacturer cannot enforce the seller’s arbitration agreement under an equitable estoppel and/or third party beneficiary theory. In light of Ochoa, the motion to compel arbitration is denied.

The Court is aware that, as Defendant points out in reply, Ochoa has been appealed to the Supreme Court and is therefore now persuasive and not binding. The Court, however, finds the analysis of Ochoa compelling and will follow Ochoa pending any contrary ruling from the California Supreme Court.

3. Case Management Conference

The parties are reminded that there is a CMC on calendar concurrently with the hearing on the motion to compel arbitration. The Court asks the parties to make arrangements to appear remotely at the CMC and hearing on the motion.