Judge: Michael T. Smyth, Case: 37-2022-00038637-CU-BC-CTL, Date: 2024-05-17 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

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HALL OF JUSTICE

TENTATIVE RULINGS - May 16, 2024

05/17/2024  09:00:00 AM  C-67 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Michael T. Smyth

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Civil - Unlimited  Breach of Contract/Warranty Demurrer / Motion to Strike 37-2022-00038637-CU-BC-CTL PEAK DIAGNOSTIC VS PEAK DIAGNOSTIC SERVICES LLC [IMAGED] CAUSAL DOCUMENT/DATE FILED:

Cross-Defendant Michael Wang's Demurrer is OVERRULED as to Cross-Complainant Peak Diagnostic Services, LLC's ('Peak Services') seventh and eighth causes of action and SUSTAINED without leave to amend as to the third cause of action. The motion to strike is DENIED.

The court overrules Dr. Wang's demurrer and denies the motion to strike as to the seventh and eighth causes of action and allegations related to the non-compete and non-solicitation provisions for the same reasons it overruled Peak Medical's demurrer. The March 25, 2024 ruling on that demurrer is incorporated by reference. (See ROA 137.) However, as with that order, the court's ruling is without prejudice to Dr. Wang raising these arguments again, to the degree reasonable, at a later stage in the proceedings.

The demurrer is sustained without leave to amend as to the third cause of action for an implied breach of the implied covenant of good faith and fair dealing. The allegations in the third cause of action 'do not go beyond the statement of a mere contract breach and, relying on the same alleged acts, simply seek the same damages or other relief already claimed in a companion contract cause of action, they may be disregarded as superfluous as no additional claim is actually stated.' (Careau v. Security Pacific Business Credit, Inc. (1990) 222 Cal.App.3d 1371, 1395.) '[T]he remedy for breach of an employment agreement, including the covenant of good faith and fair dealing implied by law therein, in solely contractual.' (Guz v. Mechtel Nat. Inc. (2000) 24 Cal.4th 317, 377.) Here, the allegations only allege contractual violations. Even if Peak Services styles those allegations as being based on his obligations as an 'agent and key managerial employee,' those obligations are based on contract. The demurrer is sustained as to this cause of action.

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