Judge: Matthew C. Braner, Case: 37-2023-00041997-CU-BT-CTL, Date: 2024-05-24 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

DEPT.:

EVENT DATE:

EVENT TIME:

HALL OF JUSTICE

TENTATIVE RULINGS - April 25, 2024

04/26/2024  09:00:00 AM  C-60 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Matthew C. Braner

CASE NO.:

CASE CATEGORY:

EVENT TYPE:

CASE TITLE: CASE TYPE:

Civil - Unlimited  Business Tort Demurrer / Motion to Strike 37-2023-00041997-CU-BT-CTL DMCG INC VS SYNERGY BAIL SERVICES INC [IMAGED] CAUSAL DOCUMENT/DATE FILED:

Defendants Synergy Bail Services, Inc., Alejandro Estrella, Arthur Navarro; Jorge Estrella, Enrique Garcia, Andres Valenzuela, Maria Estrella, Sahara Lopez, and Ivan Navarro's demurrer to the first amended complaint is SUSTAINED in part, and OVERRULED in part.

A demurrer shall be sustained if the complaint 'does not state facts sufficient to constitute a cause of action.' (Code Civ. Proc., § 430.10(e).) To test the sufficiency of a cause of action, the court treats as true 'all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law.' (Centinela Freeman Emergency Medical Associates v. Health Net of California, Inc. (2016) 1 Cal.5th 994, 1010.) The court may also consider matters that have been judicially noticed. (Id.) The court shall give the complaint a 'reasonable interpretation, reading it as a whole and its parts in their context.' (Blank v. Kirwan (1985) 39 Cal.3d 311, 318.) Defendants demur to the fourth and fifth causes of action for intentional and negligent interference with prospective economic advantage, respectively, and to the tenth and eleventh causes of action for unfair competition and violation of RICO, respectively.

As to the fourth and fifth causes of action, Plaintiff has failed to allege facts to establish the alleged interference was independently wrongful; alleging it is 'violates basic rules of common honesty and accepted business ethics' is not sufficient. (FAC, ¶ 39.) Although Plaintiff contends its other causes of action, including for trade libel and fraud, are independently wrongful, Plaintiff has not sufficiently alleged the conduct grounding those claims is the same conduct that interfered with the economic relationship between it and its customers.

Accordingly, the demurrer is sustained as to the fourth and fifth causes of action, with leave to amend.

As to the tenth cause of action, Plaintiff has failed to allege an unlawful, unfair, or fraudulent business practice. The court disagrees. The FAC is hardly a model of a pleading that states the facts constituting the claims 'in ordinary and concise language.' (Code Civ. Proc., § 425.10, subd. (a)(1).) Nonetheless, the tenth cause of action incorporated all prior allegations (FAC, ¶ 68), and in paragraph 38 (under the fourth cause of action), Plaintiff alleges Defendants diverted leads away from Plaintiff by using a scheme 'designed to, and did, deceive, defraud and confuse consumers and the general public who sought the services of Plaintiff but were unknowingly diverted by the illicit activity of Defendants to use the bail bond services of Defendant Synergy Bail Services instead.' In other words, Plaintiff alleges Defendants misled Plaintiff's customers into believing they were dealing with Plaintiff, when in fact they were dealing with a competitor, thereby resulting in loss of that customer's business to Plaintiff.

Calendar No.: Event ID:  TENTATIVE RULINGS

3106908  23 CASE NUMBER: CASE TITLE:  DMCG INC VS SYNERGY BAIL SERVICES INC [IMAGED]  37-2023-00041997-CU-BT-CTL Accordingly, the demurrer is overruled as to the tenth cause of action.

Finally, as to the eleventh cause of action under RICO, Plaintiff has failed to allege sufficient facts to support the elements of racketeering activity and an effect on interstate commerce. (Eclectic Properties, LLC v. Marcus & Millichap Co. (9th Cir. 2014) 751 F.3d 990, 997 [the elements of a claim under RICO are: 1) participation in conduct that affects interstate commerce; 2) through a pattern of racketeering activity or collection of unlawful debt; and 3) that is the proximate cause of harm to the victim].) Plaintiff at best states the elements for the claim and in conclusory fashion alleges the elements have been satisfied. Plaintiff also fails to allege facts that establish the predicate wire or mail fraud acts, and fails to allege facts that establish the nexus between those acts and interstate commerce. As currently pled, the claim cannot survive demurrer.

Accordingly, the demurrer is sustained as to the eleventh cause of action, with leave to amend.

Plaintiff has 30 days from entry of this order to file and serve a second amended complaint.

The minute order is the order of the court.

Calendar No.: Event ID:  TENTATIVE RULINGS

3106908  23