Judge: Michael E. Whitaker, Case: 23SMCV03707, Date: 2025-03-13 Tentative Ruling
Case Number: 23SMCV03707 Hearing Date: March 13, 2025 Dept: 207
TENTATIVE
RULING
|
DEPARTMENT |
207 |
|
HEARING DATE |
March
13, 2025 |
|
CASE NUMBER |
23SMCV03707 |
|
MOTION |
Motion
for Summary Judgment/Summary Adjudication |
|
Defendants Gold’s Gym California, LLC; RSG
Group USA, Inc.; and Jeff Suender |
|
|
OPPOSING PARTY |
Plaintiff
Joseph Robert Giannini |
MOVING PAPERS:
REPLY PAPERS:
BACKGROUND
This case arises over a dispute concerning an increase in membership
fees Plaintiff Joseph Robert Giannini (“Plaintiff”) was charged to access the
Gold’s Gym in Venice, California.
The operative Second Amended Complaint alleges three causes of action
against Defendants Golds Gym California, LLC (“Gold’s”); RSG Group USA, Inc.
(“RSG”); and Jeff Suender (“Suender”) (together, “Defendants”) for (1) breach
of Business & Professions Code section 17200; (2) breach of the Unruh Act;
and (3) breach of Corporate Code section 1507.
Defendants now move for summary judgment, or in the alternative
summary adjudication, as to the following issues:
Issue
No. One – Plaintiff’s First Cause of Action for Breach of Business &
Professions Code Section 17200 against all Defendants fails as a matter of law
as the undisputed material facts establish that Plaintiff was not subjected to
unfair competition.
Issue
No. Two – Plaintiff’s Second Cause of Action for Beach of the Unruh Act, Civil
Code Section 51 et al. against all Defendants fails as a matter of law as the
undisputed material facts establish that Plaintiff was not subjected to
discrimination.
Issue
No. Three– Plaintiff’s Third Cause of Action for Beach of Corporations Code
Section 1507 against all Defendants fails as a matter of law as the undisputed
material facts establish that Plaintiff did not rely upon any alleged
fraudulent documents.
Issue
No. Four – Plaintiff’s Third Cause of Action for Beach of Corporations Code
Section 1507 against Defendant RSG GROUP USA, INC. and fails as a matter of law
as a claim for breach of Corporations Code Section 1507 cannot be stated
against a corporation.
Issue
No. Five – Plaintiff’s Third Cause of Action for Beach of Corporations Code
Section 1507 against Defendant GOLD’S GYM CALIFORNIA, LLC fails as a matter of
law as a claim for breach of Corporations Code Section 1507 cannot be stated
against a limited liability company.
On February 2, 2025, Plaintiff filed a “Notice Plaintiff Is Dismissing
His Claim Under Corp. Code Under § 1507,” apparently abandoning the third cause
of action. Otherwise, Plaintiff opposes
the motion and Defendants reply.
EVIDENTIARY OBJECTIONS
The
Court rules as follows with respect to Defendants’ objections to the Declaration
of Chris McConnell:
1. Sustained
2. Sustained
3. Sustained
4. Sustained
5. Sustained
6. Sustained
The Court rules as follows with respect to Defendants’ objections to
the Declaration of Joseph Robert Giannini:
1.
Sustained
2.
Sustained
3.
Sustained
4.
Sustained
5.
Sustained
6.
Sustained
7.
Sustained
8.
Sustained
9.
Sustained
10. Sustained
11. Sustained
12. Sustained
13. Sustained
14. Sustained
15. Sustained
16. Sustained
17. Sustained
18. Sustained
19. Sustained
20. Sustained
21. Sustained
22. Sustained
23. Sustained
24. Sustained
25. Sustained
26. Sustained
27. Sustained
28. Sustained
29. Sustained
30. Overruled
31. Sustained
32. Sustained
33. Sustained
34. Sustained
35. Sustained
36. Sustained
37. Sustained
38. Sustained
39. Sustained
40. [no
objection submitted]
41. Sustained
42. Sustained
43. Sustained
44. Sustained
45. Sustained
46. Sustained
47. Overruled
48. Sustained
49. Sustained
50. Sustained
51. Sustained
52. Sustained
53. Sustained
54. Sustained
55. Sustained
56. Sustained
57. Overruled
58. Overruled
59. Overruled
60. Overruled
61. Overruled
62. Overruled
63. Overruled
64. Sustained
65. Sustained
66. Sustained
67. Sustained
68. Sustained
69. Sustained
70. Sustained
71. Sustained
72. Overruled
73. Sustained
74. Sustained
75. Sustained
76. Sustained
77. Sustained
78. Sustained
79. Sustained
LEGAL STANDARDS – MOTION FOR SUMMARY
JUDGMENT/ADJUDICATION
“[T]he party moving for
summary judgment bears the burden of persuasion that there is no triable issue
of material fact and that he is entitled to judgment as a matter of law[.]
There is a triable issue of material fact if, and only if, the evidence would
allow a reasonable trier of fact to find the underlying fact in favor of the
party opposing the motion in accordance with the applicable standard of proof.”
¿(Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826, 850
(hereafter Aguilar).) ¿“[T]he party moving for summary judgment bears an
initial burden of production to make a prima facie showing of the nonexistence
of any triable issue of material fact; if he carries his burden of production,
he causes a shift, and the opposing party is then subjected to a burden of
production of his own to make a prima facie showing of the existence of a
triable issue of material fact.” ¿(Ibid.; Smith v. Wells Fargo Bank,
N.A. (2005) 135 Cal.App.4th 1463, 1474 [summary judgment standards held by Aguilar
apply to summary adjudication motions].)
Further, “the trial court
may not weigh the evidence in the manner of a factfinder to determine whose
version is more likely true. Nor may the
trial court grant summary judgment based on the court's evaluation of credibility.” (Aguilar, supra, 25 Cal.4th. at p. 840
[cleaned up]; see also Weiss v. People ex rel. Department of Transportation
(2020) 9 Cal.5th 840, 864 [“Courts deciding motions for summary judgment or
summary adjudication may not weigh the evidence but must instead view it in the
light most favorable to the opposing party and draw all reasonable inferences
in favor of that party”].)
A party may move for
summary adjudication as to one or more causes of action, affirmative defenses,
claims for damages, or issues of duty if that party contends that there is no
merit to the cause of action, defense, or claim for damages, or if the party
contends that there is no duty owed. (See Code Civ. Proc., § 437c, subd. (f)(1).) “A motion for summary adjudication shall be
granted only if it completely disposes of a cause of action, an affirmative
defense, a claim for damages, or an issue of duty.” (Ibid.) A cause of action has no merit if: (1) one or
more elements of the cause of action cannot be separately established, even if
that element is separately pleaded, or (2) a defendant establishes an
affirmative defense to that cause of action.
(See Code Civ. Proc., §
437c, subd. (n); Union Bank v. Superior
Court (1995) 31 Cal.App.4th 573, 583.)
Once the defendant has shown that a cause of action has no merit, the
burden shifts to the plaintiff to show that a triable issue of material fact
exists as to that cause of action. (See Code Civ. Proc., § 437c, subd. (o)(2); Union Bank v. Superior Court, supra, 31 Cal.App.4th at p.
583.) Additionally, in line with Aguilar,
“[o]n a motion for summary adjudication, the trial court has no discretion to
exercise. If a triable issue of material fact exists as to the challenged
causes of action, the motion must be denied. If there is no triable issue of
fact, the motion must be granted.” (Fisherman's Wharf Bay Cruise Corp.
v. Superior Court (2003) 114 Cal.App.4th 309, 320.)
DISCUSSION
1. Issue 2: Second Cause of Action – Breach of
Unruh Civil Rights Act
In order to prevail on a cause
of action for discrimination under the Unruh Civil Rights Act, a plaintiff must
prove (1) defendant denied, aided or incited a denial of, discriminated, or
made a distinction that denied full and equal accommodations, advantages,
facilities, privileges, and/or services to plaintiff; (2) a substantial
motivating reason for defendant’s conduct was plaintiff’s sex, race, color,
religion, ancestry, national origin, medical condition, genetic information,
marital status, sexual orientation, citizenship, primary language, and/or
immigration status or defendant’s perception thereof; (3) that plaintiff was
harmed; and (4) that defendant’s conduct was a substantial factor in causing
plaintiff’s harm. (See CACI No. 3060.)
Defendants contend Plaintiff
cannot prove Defendants violated the Unruh Act because their decision to stop
participating in the Silver & Fit program was made for legitimate
non-discriminatory business reasons.
a. Defendants’ Evidence
In support, Defendants have
provided the following evidence:
·
In 1997,
Plaintiff entered into a written agreement that provided him with a lifetime
membership to use the Venice Gold’s Gym at a fixed rate of $29 per month. (UMF
¶ 5.)
·
Effective
November 1, 2015, Plaintiff obtained a Medicare supplement health insurance
plan through Blue Shield, that made Plaintiff eligible to participate in a
program called “Silver Sneakers” administered through Tivity Health, Inc., which
is a health and fitness program for adults over 65. (UMF ¶¶ 6-9.)
·
Plaintiff
authorized Venice Gold’s Gym to receive payment for his gym membership through
the Silver Sneakers program. (UMF ¶ 10.)
·
Around
2016, Plaintiff stopped paying for his gym membership and Tivity started paying
for the gym membership through the Silver Sneakers program. (UMF ¶ 11.)
·
Beginning
January 2023, Plaintiff no longer had the Blue Shield Medicare supplement
health insurance plan, and obtained a Medicare supplement health insurance plan
through Kaiser. (UMF ¶¶ 12-13.)
·
Kaiser
does not offer the Silver Sneakers program; instead it offers a similar program
called “Silver & Fit” through a company called American Specialty Health
Fitness, Inc. (UMF ¶¶ 14-17.)
·
American
Specialty also offers a companion program called “Active & Fit” which is a
health and fitness program available to people over the age of 13. (UMF ¶ 18.)
·
In
January 2023, Plaintiff notified Defendant Suender, the General Manager of
Venice Gold’s Gym that Plaintiff had switched from the Blue Shield Medicare
Supplement plan to a Kaiser Medicare Supplement plan. (UMF ¶ 19.)
·
The
Venice Gold’s Gym had stopped participating in the Silver & Fit program
effective October 1, 2021, because it was losing revenue from participating in
the Active & Fit program, and its understanding was it could not
participate in the Siler & Fit program without also participating in the
Active & Fit program. (UMF ¶¶ 21-24.)
·
As such,
Defendants’ decision to stop participating in Silver & Fit was based on its
decision to stop participating in Active & Fit, not based on any
individual’s age, veteran status, or disability. (UMF ¶¶ 25-26.)
·
the
Venice Gold’s Gym location informed Plaintiff he could either go to another gym
location that accepted his Silver & Fit plan, or he could apply for a new
membership at the Venice Gold’s Gym location by paying the regular monthly
membership dues. (UMF ¶ 27.)
·
Defendant
Suender did not reinstate Plaintiff’s membership at the previous rate of $29
per month because he believed that in connection with Plaintiff’s enrollment in
the Silver Sneakers program, Plaintiff had voluntarily cancelled his prior
lifetime membership agreement. (UMF ¶¶ 28-29.)
·
senior
citizens can be members of the Venice Gold’s Gym by either paying the regular
monthly gym membership rate or having their dues paid through the Silver
Sneakers program. (UMF ¶ 38.)
·
Defendants
do not own or exercise control over any other Gold’s Gym location other than
the Venice location. (UMF ¶¶ 1-4.)
·
Each
franchisee owner of the other locations decides whether or not they will
participate in the Silver & Fit program.
(Alfonso Decl. ¶¶ 4-5.)
Thus, Defendants have met
their prima facie initial burdens of persuasion and production of evidence that
they did not discriminate against Plaintiff because (1) their decision to not
honor Plaintiff’s prior $29 monthly rate was based on an understanding that
Plaintiff had voluntarily cancelled that agreement in 2016 by authorizing Tivity
to pay for his gym membership through the Silver Sneakers program; (2) their decision
to stop participating in the Silver & Fit program in 2021was based on a
business decision unrelated to its customers’ age, veteran status, or
disability; and (3) Defendants did not deny Plaintiff access to the Venice
Gold’s Gym, instead they offered Plaintiff the choice to either enroll in some
other Gym they do not own or operate that accepts his Silver & Fit program or
apply for a new membership at Venice Gold’s Gym and pay the standard monthly
membership fee.
b. Plaintiff’s Evidence
In
opposition, Plaintiff presents the following evidence:
· “Plaintiff orally authorized defendants to
bill his insurance carrier $29 per month in December 2016.” (Giannini Decl. ¶ 16.)
· Giannini Decl. ¶ 21:
Plaintiff disputes undisputed fact 29. Same answer. What Mr. Suender believed
in regard to the log transaction is his opinion. Plaintiff disputes Mr.
Suender’s belief. Plaintiff believes Mr. Suender is biased and his beliefs are
self-serving conclusions and not subject to summary adjudication. Plaintiff’s
asserts the “account record” [Ex. p. 14] Suender describes as true and correct
contains mammoth mistakes, including:
(i) plaintiff’s gym membership number varies between the alleged account
records and the alleged July 13, 2015 documents;
(ii) In April 2015, the account record claims plaintiff submitted a
cancellation form. Defendants have admitted they do not have a copy of this
form;
(iii) Om [sic] July 13, 2105 [sic] the account record does not state plaintiff
signed a contract;
(iii) [sic] On July 21, 2015, the account record states plaintiff did not have
a Silver Sneakers number or insurance. Thus, the alleged July 13, 2015 contract
that plaintiff allegedly signed that says plaintiff is a woman, born
11/11/1911, and has no next of kins was rejected by plaintiff’s insurance
carrier on July 21, 2015. It never went into effect because of mistakes. There
was no meeting of the minds There is no offer and acceptance, no consent, no
consideration, and no reliance. See Civil Code § 1580 “Consent is not mutual,
unless the parties all agree upon the same thing in the same sense.” The
contract is void ab initio. It is crystal clear it is void because the Tivity
Records prove plaintiff’s gym membership visits did not start until December 3,
2016. See Civil Code § 1587. “A proposal is revoked by any of the following:
(c) By the failure of the acceptor to fulfill a condition precedent to
acceptance.” See Tivity records of plaintiff’s visits beginning December 3,
2016.
(iv) On May 10, 2017, the account record states “Member no longer qualifies for
LockedFor-Life (Dues Rate Lock, signed new GG contract. In discovery,
defendants have admitted plaintiff never signed a new GG contract on May 10,
2017 or any other date. The account record Suender alleges under oath is true
and correct per se proves the July 13, 2015 is, was, and always has been null
and void.
(v) The second July 13, 2015 document fares no better. [Ex. 4-9] It is
unsigned. It is unenforceable and void according to its terms because it is not
signed; it is backdated from December 5, 2017 to July 13, 2015 and the
contracting party is Gold’s Gym California LLC, when that entity was not formed
until July 2020; the document further mistakenly claims plaintiff (although now
a male) was born 11/11/1911 (making him 114 years old); his email is
joe@aol.com (making him the only Joe in America); his person to be notified in
case of emergency is “KNOWONE” (sic) (when plaintiff’s son became a member on
June 17, 2017 and Jeff Suender orchestrated Alex’s membership). See also attached
exhibit Alex Giannini gym membership. This unsigned document that Suender
created and backdated as a pretext to cancel plaintiff’s lifetime membership
also does not show the name of the Gold’s Gym employee who created it. Suender
testified this document was in his possession. Suender admits he has been the
Venice gym general manager since 2016.
· Approximately 475 members who were relying on
the Active & Fit or Silver & Fit programs to pay their membership dues,
approximately 30-50 of whom were relying on Silver & Fit to pay their
membership dues, were not informed of the cancellation beforehand; and were
told when they showed up that if they wanted to re-apply their annual
membership fees would be $800. (Exhibit
K – Jeff Suender Deposition testimony.)
Plaintiff has not met his
burden of production to create any triable issues of material fact that there
was discriminatory intent or a discriminatory impact of Defendants’ decision to
cancel their participation in the Active & Fit and Silver & Fit
programs in October 2021 or their policy and practice of offering members of
those cancelled programs the option to reapply for membership at the current
membership rate on the basis of age, veteran status, or disability.
Instead, Plaintiff challenges whether
he actually cancelled his prior membership agreement by orally
authorizing Defendants to bill his insurance the $29 fee or by subsequently
signing a new contract. Plaintiff also
challenges, through his declaration, regarding UMF No. 29, as being irrelevant
on the grounds that Mr. Suender’s belief that Plaintiff cancelled his
prior membership agreement has no bearing on whether Plaintiff actually
cancelled his prior membership agreement, and that the signed agreement
Defendants proffer has several indicia of unreliability.
But the central issues to
Plaintiff’s Unruh Civil Rights Act claim are not whether Plaintiff actually
cancelled his prior membership agreement orally or in writing, but whether
Defendants had discriminatory intent and/or whether their contract cancellations
had a discriminatory impact. In this
regard, Defendants have proffered evidence that (1) there was no discriminatory
intent or impact because of the 475 members were affected by Defendants’
decision to cancel participation in the Active & Fit and Silver & Fit
programs, only 30-50 were senior citizens; (2) Defendants treated Plaintiff the
same as all the other customers who were surprised by Defendants’ decision to
no longer participate in the Silver & Fit or Active & Fit programs; and
(3) Defendants had no discriminatory intent behind discontinuing their
participation in the Silver & Fit and Active & Fit programs or
cancelling Plaintiff’s prior membership agreement when he either in writing or orally
instructed them to start billing his insurance plan for his membership at
Gold’s Gym.
Defendants also withdrew from
the Active & Fit and Silver & Fit programs before Plaintiff
switched health insurance plans (from Blue Shield to Kaiser) which resulted in
a change to what fitness program he was qualified to participate in from the
Silver Sneakers to the Silver & Fit.
In other words, Defendants had no role in Plaintiff switching health
insurance plans and ultimately his eligibility in the plans’ respective fitness
programs.
In sum, Plaintiff does not
advance sufficient, competent evidence that raises a triable issue of material
fact regarding any discriminatory intent or impact on the part of Defendants.
Further, Plaintiff’s
Declaration also indicates, “The RSG PMK deposition was set for two months
ago. The deposition date and other
concessions are being negotiate. [sic]”
(Giannini Decl. ¶ 30.) And the
“Standard of Review” section of Plaintiff’s opposition brief vaguely indicates,
“The moving party must set forth all material evidence on point, not just the
evidence favorable to it. A moving part omitting deposition answers that raise
triable issues of fact might be treated as an attempt to mislead the court as
to the state of the discovery record.” (Opposition [“Opp.”] at p. 2:11-15
[citing Rio Linda Unified School Dist. v. Sup. Ct. (Diaz) (1997) 52
Cal.App.4th 732, 740.])
But in order for the Court to
grant additional discovery under Code of Civil Procedure section 437c, it must
appear from the affidavits submitted “that facts essential to justify
opposition may exist but cannot, for reasons stated, be presented[.]” (Code Civ. Proc., § 437c, subd. (h).) Here, Plaintiff has not made a clear request
or any such showing that additional discovery cure the issues raised to
withstand summary adjudication of the claim.
Therefore, because Plaintiff
challenges only the underlying validity of the cancelation, which is not an
element of his Unruh Civil Rights Act claim, and does not present evidence
demonstrating Defendants’ discriminatory intent or a discriminatory impact of
the cancellations, or any showing that additional discovery could save
Plaintiff’s claim, Plaintiff has not met his burden of production to create any
triable issues of material fact. [1]
As such, summary adjudication
is appropriate as to Issue 2.
2. Issue 3: Breach of Corporations Code
section 1507
Because it is not entirely
clear, based on Plaintiff’s filings, whether the third cause of action has yet
been properly dismissed, in an abundance of caution, the Court analyzes Defendants’
motion with respect to the third cause of action.
Corporations
Code section 1507 provides:
Any
officers, directors, employees or agents of a corporation who do any of the
following are liable jointly and severally for all the damages resulting
therefrom to the corporation or any person injured thereby who relied thereon
or to both:
(a) Make,
issue, deliver or publish any prospectus, report, circular, certificate,
financial statement, balance sheet, public notice or document respecting the
corporation or its shares, assets, liabilities, capital, dividends, business,
earnings or accounts which is false in any material respect, knowing it to be
false, or participate in the making, issuance, delivery or publication thereof
with knowledge that the same is false in a material respect.
(b) Make
or cause to be made in the books, minutes, records or accounts of a corporation
any entry which is false in any material particular knowing such entry is
false.
(c) Remove,
erase, alter or cancel any entry in any books or records of the corporation,
with intent to deceive.
Plaintiff
contends Defendant Suender injured Plaintiff by providing “forged, fake, and
false corporate documents” including: (1) a fake unsigned contract dated July
13, 2015 and December 5, 2017; (2) a corporate account record that falsely
states Plaintiff signed a new GC contract in May 2017; (3) Suender’s
declaration indicating Gold’s Gym began billing Plaintiff’s Silver Sneakers
program in 2015, when it began billing Silver Sneakers on December 3, 2016 and
misstating who his employer is. (Second
Amended Complaint ¶ 73.)[2]
Defendant
argues it did not have the requisite intent to deceive and that Plaintiff did
not rely upon the allegedly fake documents to his detriment.
a. Defendants’ Evidence
In
support, Defendant has produced the following evidence:
·
In early
2023, Plaintiff requested that Mr. Suender provide him with a copy of the
Agreement by which Plaintiff’s membership dues were paid through the Silver
Sneakers program. (UMF ¶ 30.)
·
In
response, Mr. Suender obtained from the Venice Gold’s Gym’s computer system an
unsigned document that Mr. Suender believed at the time to be the document
Plaintiff requested. (UMF ¶ 31.)
·
Mr.
Suender sent this unsigned document to Plaintiff by email on March 7,
2023. (UMF ¶ 32.)
·
Plaintiff
did not rely on this unsigned document for any purpose other than to file this
lawsuit. (UMF ¶ 33.)
·
After
sending the unsigned document Plaintiff, Mr. Suender obtained from the Customer
Care Department a document titled “Gold’s Gym Membership Agreement” dated July
13, 2015, that Mr. Suender believed was the contract signed by Plaintiff. (UMF
¶ 34.)
·
Mr.
Suender sent Plaintiff the document titled “Gold’s Gym Membership Agreement”
dated July 13, 2015. (UMF ¶ 35.)
·
Plaintiff
did not rely on the document titled “Gold’s Gym Membership Agreement” dated
July 13, 2015 for any purpose other than to file this lawsuit. (UMF ¶ 36.)
·
Mr.
Suender did not knowingly create any false document with the intent to deceive
the Plaintiff. (UMF ¶ 37.)
·
Neither
Gold’s Gym California, LLC nor RSG Group USA Inc. have had their qualification
to do intrastate business in California forfeited. (UMF ¶ 39.)
Thus, Defendants have met
their initial prima facie burdens of persuasion and production of evidence that
Defendants did not send Plaintiff the allegedly fake documents with the intent
to deceive Plaintiff, nor did Plaintiff rely on the documents to his detriment.
a. Plaintiff’s Evidence
As discussed above, Plaintiff
has filed a Notice indicating an intent to dismiss the third cause of action,
and Plaintiff’s opposition does not directly address Defendant’s motion for
summary adjudication of the third cause of action.
Moreover, for the same reasons
discussed above in connection with Plaintiff’s Unruh Civil Rights Act cause of
action, Plaintiff has only provided evidence that the underlying documents may
have been altered, not that Defendants had a subjective knowledge of their
falsity or intent to disseminate false documents. Nor has Plaintiff proffered any evidence
demonstrating that he relied on the purportedly altered document to his
detriment.
As such, Plaintiff has not met
his burden of production to create any triable issues of material fact that
Suender had the requisite knowledge that the documents he produced were false
or that Plaintiff relied on those documents to his detriment.
Therefore, to the extent Plaintiff has not
yet dismissed the third cause of action, summary adjudication is appropriate as
to Issue 3.[3]
3. Issue 1: First Cause of Action – Breach of
Business & Professions Code, § 17200
Business and Professions Code section 17200, known as the Unfair
Competition Law, or “UCL,” bars unfair competition, defined as “any unlawful,
unfair or fraudulent business act or practice and unfair, deceptive, untrue or
misleading advertising and any act prohibited by Chapter 1 (commencing with
Section 17500) of Part 3 of Division 7 of the Business and Professions
Code. “An ‘unlawful’ business practice
or act within the meaning of the UCL is an act or practice, committed pursuant
to business activity, that is at the same time forbidden by law.” (Bernardo v. Planned Parenthood Federation
of Am. (2004) 115 Cal.App.4th 322, 351.)
“By proscribing ‘any unlawful’ business practice, section 17200 borrows
violations of other laws and treats them as unlawful practices that the unfair
competition law makes independently actionable.” (Cel-Tech Communications, Inc. v. Los
Angeles Cellular Telephone Co. (1999) 20 Cal.4th 163, 180.) Moreover, “a practice may be deemed unfair
even if not specifically proscribed by some other law.” (Ibid.)
In order to have standing to
bring a UCL claim, a plaintiff must “(1) establish a loss or deprivation of
money or property sufficient to qualify as injury in fact, i.e., economic
injury, and (2) show that that economic injury was the result of, i.e., caused
by, the unfair business practice or false advertising that is the gravamen of
the claim.” (Kwikset Corp. v.
Superior Court (2011) 51 Cal.4th 310, 322.)
Defendants argue that because
summary adjudication is warranted as to the second and third causes of action,
Plaintiff has not established any predicate unlawful, unfair, or fraudulent
business practices upon which to base a UCL violation. The Court agrees. As such, summary adjudication is similarly
warranted as to Issue 1.
CONCLUSION AND ORDER
The Court finds no triable issues of material fact that Defendants did
not act with discriminatory intent or impact in ending their participation in
the Silver & Fit program in October 2021 or in requiring Plaintiff and
other members to apply for a new membership and pay a higher membership rate to
continue working out at the gym. As
such, summary adjudication is appropriate as to Issue 2.
The Court also finds no triable issue of material fact that Defendants
did not have the requisite knowledge of the falsity of the documents they
produced to Plaintiff and Plaintiff did not rely on those documents to his
detriment. As such, summary adjudication
is appropriate as to Issue 3.
The Court further finds no triable issue of material fact, that having
found summary adjudication appropriate as to Issues 2 and 3, Plaintiff cannot
prove any predicate unfair, unlawful, or fraudulent conduct to support his
first cause of action for violations of the Unfair Competition Law. As such, summary adjudication is appropriate
as to Issue 1.
Finding summary adjudication appropriate as to all three causes of
action alleged in the operative Complaint, the Court grants summary judgment.
Further, Defendants shall lodge a proposed Order and Judgment in
conformance with the Court’s ruling on or before March 27, 2025. Defendants
shall also provide notice of the Court’s ruling and file the notice with proof
of service forthwith.
DATED: March 13, 2025 ___________________________
Michael
E. Whitaker
Judge
of the Superior Court
[1] Prior
versions of the Complaint alleged an additional cause of action for “Bad Faith
Denial of the Existence of a Contract.”
(See Complaint; First Amended Complaint.) Moreover, the version of the second amended
complaint Plaintiff improperly filed on January 16, 2024 without a stipulation
or leave of court (see Code Civ. Proc., § 472, subd. (a)) alleged additional causes
of action for (1) breach of contractual covenant of good faith and fair
dealing; (2) bad faith denial of insurance contract benefits; (3) declaratory
relief; and (4) breach of Civil Code section 3345, but the Court struck that
version of the complaint as being improperly filed. (See Minute Order, Apr. 17, 2024.) But the current, operative version of the
Second Amended Complaint alleges only three causes of action for (1) breach of
Unruh Civil Rights Act; (2) breach of the Unfair Competition Law; and (3)
breach of Corporations Code section 1507.
(See JKC3H8 v. Colton (2013) 221 Cal.App.4th 468, 477 [“[A]n
amendatory pleading supersedes the original one, which ceases to perform any
function as a pleading.”]) The underlying
validity of the cancellation is not an element of any of these three causes of
action.
[2] “The pleadings play a key role in a summary judgment
motion. The function of the pleadings in
a motion for summary judgment is to delimit the scope of the issues and to
frame the outer measure of materiality in a summary judgment proceeding. As our Supreme Court has explained it: The materiality of a disputed fact is
measured by the pleadings, which set the boundaries of the issues to be
resolved at summary judgment.
Accordingly, the burden of a defendant moving for summary judgment only
requires that he or she negate plaintiff's theories of liability as alleged in
the complaint; that is, a moving party need not refute liability on some
theoretical possibility not included in the pleadings.” (Hutton v. Fidelity National Title Co.
(2013) 213 Cal.App.4th 486, 493 [cleaned up]; see also Laabs v. City of
Victorville (2008) 163 Cal.App.4th 1242, 1258 [“The complaint limits the
issues to be addressed at the motion for summary judgment. The rationale is
clear: It is the allegations in the complaint to which the summary judgment
motion must respond”].)
[3] Because the Court grants summary adjudication as to
Issue 3, it does not analyze Issues 4 or 5.