Judge: Peter A. Hernandez, Case: 19PSCV00687, Date: 2022-08-10 Tentative Ruling

Case Number: 19PSCV00687    Hearing Date: August 10, 2022    Dept: O

Plaintiff Meritage Homes of California, Inc.’s unopposed Motion for Leave to File First Amended Complaint is GRANTED. The proposed FAC is deemed filed and served as of the hearing date.

Background   

Case No. 18PSCV00026

Plaintiff Meritage Homes of California, Inc. (“Meritage”) alleges as follows: Michael Barker International Inc. fka RBF Consulting (“MBI”) failed to properly perform engineering services in connection with the development of the Creekside residential subdivision in La Verne, California (“Creekside”).

On October 12, 2018, Plaintiff filed a First Amended Complaint, asserting causes of action against MBI and Does 1-200 for:

1.                  Breach of Contract

2.                  Breach of Implied Covenant of Good Faith and Fair Dealing

3.                  Gross Negligence

On November 13, 2018, MBI filed a cross-complaint, asserting causes of action against Roes 1-100 for:

1.                  Equitable Indemnity

2.                  Comparative Apportionment of Fault

3.                  Declaratory Relief

On April 25, 2022, the court related this instant case to Case No. 19PSCV00687; this instant case was deemed to be the lead case.

A Trial Setting Conference is set for February 7, 2023.

Case No. 19PSCV00687

Meritage alleges as follows: Boudreau Pipeline Corporation (“Boudreau”) constructed and installed a sewer lift station and associated improvements (“the System”) in connection with and to service Creekside. The System’s pumps were manufactured with undersized impeller blades, which caused issues with the flow and pressure. Boudreau failed to promptly remedy the operational and performance issues with the System, which resulted in the City of La Verne (“City”) imposing a sales and building moratorium and ultimately resulted in the City’s revocation of permits.

On July 30, 2019, Meritage filed a complaint, asserting causes of action against Boudreau and Does 1-300 for:

1.                  Breach of Contract

2.                  Express Indemnity

3.                  Negligence

4.                  Declaratory Relief Re: Duty to Indemnify

5.                  Declaratory Relief Re: Duty to Defend

6.                  Declaratory Relief Re: Duty to Defend

7.                  Breach of Contract—Third Party Beneficiary

8.                  Strict Products Liability

9.                  Negligence

10.              Breach of Contract

11.              Breach of Implied Covenants of Good Faith and Fair Dealing

12.              Express Indemnity

13.              Declaratory Relief Re: Duty to Indemnify

14.              Declaratory Relief Re: Duty to Defend

15.              Declaratory Relief Re: Duty to Defend

On October 22, 2019, Boudreau filed a cross-complaint, asserting causes of action against John Lisee Pumps (“JLP”), Meritage and Roes 1-125 for:

1.                  Express Contractual Indemnity

2.                  Implied Indemnity

3.                  Total Equitable Indemnity

4.                  Contribution

5.                  Declaratory Relief: Duty to Indemnify

6.                  Declaratory Relief: Duty to Defend

7.                  Breach of Contract

8.                  Breach of Express Warranties

9.                  Breach of Implied Warranties

10.              Negligence

11.              Quantum Meruit

On December 9, 2019, Boudreau dismissed its 1st-10th causes of action against Meritage, with prejudice.

On December 10, 2019, JLP filed a cross-complaint, asserting causes of action against Moes 1-20 for:

1.                  Indemnity

2.                  Contribution

3.                  Apportionment

4.                  Declaratory Relief

On February 24, 2020, Boudreau filed an “Amendment to [Cross-]Complaint,” wherein Pentair was substituted in lieu of Roe 101. On April 27, 2020, Meritage filed an “Amendment to Complaint,” wherein MBI was named in lieu of Doe 1.

On June 23, 2020, MBI filed a cross-complaint, asserting causes of action against Roes 1-100 for:

1.                  Equitable Indemnity

2.                  Comparative Apportionment of Fault

3.                  Declaratory Relief

On February 17, 2021, MBI filed an “Amendment to [Cross-]Complaint,” wherein Boudreau was named in lieu of Roe 1, JLP was named in lieu of Roe 2 and Pentair Flow Technologies, LLC was named in lieu of Roe 3.

On October 22, 2021, Meritage filed an “Amendment to Complaint,” wherein JLP was named in lieu of Doe 151.

On February 10, 2021, Boudreau filed an “Amendment to [Cross-]Complaint,” wherein MBI was named in lieu of Roe 76.

On April 25, 2022, the court related this instant case to Case No. 18PSCV00026; Case No. 18PSCV00026 was deemed to be the lead case.

The Final Status Conference is set for February 7, 2023. Trial is set for February 21, 2023.

Legal Standard

“The court may, in furtherance of justice, and on any terms as may be proper, allow a party to amend any pleading…” (Code Civ. Proc., § 473, subd. (a)(1); and see § 576 [“Any judge, at any time before or after commencement of trial, in the furtherance of justice, and upon such terms as may be proper, may allow the amendment of any pleading or pretrial conference order”].)

“[T]he trial court has wide discretion in allowing the amendment of any pleading.” (Bedolla v. Logan & Frazer (1975) 52 Cal.App.3d 118, 135.) “[I]t is irrelevant that new legal theories are introduced as long as the proposed amendments relate to the same general set of facts.” (Kittredge Sports Co. v. Superior Court (1989) 213 Cal.App.3d 1045, 1048 [quotation marks and citation omitted].) “[E]ven if the proposed legal theory is a novel one, the preferable practice would be to permit the amendment and allow the parties to test its legal sufficiency by demurrer, motion for judgment on the pleadings or other appropriate proceedings.” (Id. [quotation marks and citation omitted].) With that said, “the failure of a proposed amendment to state facts sufficient to constitute a cause of action or defense may support an order denying a motion to amend.” (California Casualty Gen. Ins. Co. v. Superior Court (1985) 173 Cal.App.3d 274, 280, disapproved of on other grounds in Kransco v. American Empire Surplus Lines Ins. Co. (2000) 23 Cal.4th 390)

Courts must apply a policy of great liberality in permitting amendments to the complaint at any stage of the proceedings, up to and including trial, when no prejudice is shown to the adverse party. (Atkinson v. Elk Corp. (2003) 109 Cal.App.4th 739, 761.) However, “even if a good amendment is proposed in proper form, unwarranted delay in presenting it may—of itself—be a valid reason for denial    . . . denial may rest upon the element of lack of diligence in offering the amendment after knowledge of the facts, or the effect of the delay on the adverse party.” (Roemer v. Retail Credit Co. (1975) 44 Cal.App.3d 926, 940.)

Also, “[a] motion to amend a pleading before trial must: (1) Include a copy of the proposed amendment or amended pleading, which must be serially numbered to differentiate it from previous pleadings or amendments; (2) State what allegations in the previous pleading are proposed to be deleted, if any, and where, by page, paragraph, and line number, the deleted allegations are located; and (3) State what allegations are proposed to be added to the previous pleading, if any, and where, by page, paragraph, and line number, the additional allegations are located.” (California Rules of Court (“CRC”) Rule 3.1324(a).) Additionally, “[a] separate declaration must accompany the motion and must specify: (1) The effect of the amendment; (2) Why the amendment is necessary and proper; (3) When the facts giving rise to the amended allegations were discovered; and (4) The reasons why the request for amendment was not made earlier.” (CRC Rule 3.1324, subd. (b).)

Discussion

Plaintiff moves the court for leave permitting Plaintiff to file a First Amended Complaint (“FAC”).

Plaintiff seeks to add claims for fraud and negligent misrepresentation against Boudreau and JLP. The motion reflects adequate compliance with CRC Rule 3.1324, subsection (a). The declaration of Plaintiff’s counsel Drew C. Wagner-Weir (“Wagner-Weir”) reflects technical non-compliance with subsection (b); however, the court determines that this information is sufficiently set forth in the memorandum of points and authorities and excerpts from Douglas

Martin’s December 7, 2021 deposition attached as Exhibit B to Wagner-Weir’s declaration. The court further notes that the motion is unopposed.

The motion is granted. The proposed FAC is deemed filed and served as of the hearing date.