Judge: Richard L. Fruin, Case: 23STCV00260, Date: 2025-04-11 Tentative Ruling
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Case Number: 23STCV00260 Hearing Date: April 11, 2025 Dept: 15
# 17 TENTATIVE
RULING 1:30 p.m., Friday,
April 11, 2025
J. GUADALUPE REYES-CUEVAS, et al. v. ALPHA TILE &
STONE, INC., et al. [23STCV00260]
MOTION FOR SUMMARY JUDGMENT,
OR ALTERNATIVELY, SUMMARY ADJUDICATION OF DEFENDANT RIO STONES, INC.
TIMELINE: Silicosis
action
2001 to Mid-2021:
Plaintiff J. Guadalupe Reyes-Cuevas (“Plaintiff”) works as a fabricator of
stone countertops at various locations.[1] During
his work, Plaintiff is exposed to respirable crystalline silica (“RCS”) dust from
various artificial and natural stone products, which are manufactured and/or
distributed by the various Defendants. (FAC, ¶¶ 62-64.)
Circa 2013 or
2014: Plaintiff and nonparty Gerardo Reyes form Reycost Granite, a stone
fabricating business.[2]
Mid-2021 to
Present: Plaintiff continues to work in the stone industry but no longer works
in fabrication. (Ibid.)
January 2022:
Plaintiff is formally diagnosed with silicosis. (FAC, ¶ 67.)
1/5/2023:
Plaintiff and his wife, Blanca Estela Acosta-Martinez (collectively,
“Plaintiffs”) file the Complaint. The operative First Amended Complaint (“FAC”),
filed 3/20/2023, alleges causes of action for:
1. Negligence
2. Strict
Liability – Warning Defect
3. Strict
Liability – Design Defect
4. Fraudulent
Concealment
5. Breach of
Implied Warranties
6. Loss of
Consortium
12/19/2024: Defendant
Rio Stones, Inc. (“Rio Stones”) files this Motion, followed by Plaintiff’s
Opposition (3/28/2025) and Rio Stones’ Reply (4/4/2025).
TENTATIVE RULING: MOTION
FOR SUMMARY JUDGMENT/ADJUDICATION OF DEFENDANT RIO STONES, INC. is GRANTED in
part and DENIED in part.
I. MOTION FOR
SUMMARY JUDGMENT
A. Plaintiff’s
Exposure to Rio Stone’s Product (Causation) — DENIED
Rio Stones moves for summary judgment of the entire FAC on
the grounds that Plaintiff cannot establish causation. Causation is a necessary
element of both negligence and strict products liability claims. (Setliff v.
E. I. Du Pont de Nemours & Co. (1995) 32 Cal.App.4th 1525, 1534.) “If
there has been no exposure, there is no causation.” (McGonnell v. Kaiser
Gypsum Co., Inc. (2002) 98 Cal.App.4th 1098, 1103.) The mere fact that a
hazardous product was potentially present at a plaintiff’s work site is
insufficient to create a triable issue of fact as to causation. (Hunter v.
Pacific Mechanical Corp. (1995) 37 Cal.App.4th 1282, 1289, disapproved
of by Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826.)
Here, it is undisputed that Rio Stones is a seller of
natural and artificial stone products and began doing business in 2005. (Duarte
Decl., ¶¶ 3-5.) Thus, the issue before the Court is whether Plaintiff was exposed
to stone products that were supplied by Rio Stones. In support of its Motion, Rio
Stones argues that Plaintiff lacks evidence that he encountered any stone
products for which Rio Stones was responsible. (Mot., at 1.) Rio Stones submits
the declarations of Rio Stones’ Vice President, Diogo Duarte, and Rio Stones’
attorney, Vanessa Natividad. Natividad declares that although Plaintiff
produced over 400 pages of documents in response to Rio Stones’ discovery
requests, none of the documents reflected any purchases or deliveries were
made by Rio Stones to Plaintiff or his worksites, or that Plaintiff used
products supplied by Rio Stones. (Natividad Decl., ¶ 3.) Rather, Plaintiffs only
provided two photographs of sample displays of Rio Stones’ products, which were
purportedly taken at Reycost Granite and Sofia Marble. (Id., Exh. G
[Plaintiff’s Depo. Vol. 5], p. 495:16-20.) However, Rio Stones argues
Plaintiffs cannot establish a connection between these sample displays and any
actual sales to Plaintiff or use of Rio Stones’ products by Plaintiff. Even further,
Duarte declares that despite a diligent search of Rio Stones’ sales records, Rio
Stones found no records of any sales to Plaintiff, his worksites, or the
sole contractor who Plaintiff could remember by name who supposedly purchased
Rio Stones’ products for Plaintiff’s use. (Duarte Decl., ¶ 9.)
Despite this lack of documentation, Rio Stones
also submits the deposition transcript of Plaintiff, which raises competing
inferences as to Plaintiff’s exposure to Rio Stones’ products. For example, given
that Plaintiff admitted that contractors were the ones who purchased the stone
slabs he worked with, Rio Stones’ lack of sales records to Plaintiff and his
employers do not necessarily negate a finding that Plaintiff worked with Rio
Stones’ products. (Natividad Decl., Exh. G, p. 541:16-549:4, Exh. K
[Plaintiff’s Depo. Vol. 9], p. 1001:4-8.) Although Plaintiff could only identify
one specific contractor by name, Plaintiff’s inability to recall such
information goes to reliability and credibility of the witness testimony, which
need not be evaluated by the Court at summary judgment. (Id., Exh. K, p.
997:19-998:12.) Even further, although Rio Stones frames Plaintiff’s testimony
as an admission that he has no documentary evidence from Rio Stones,
Plaintiff’s testimony that he received receipts from Rio Stones’ employees does
suggest that Plaintiff was involved in picking up products from Rio Stones. (Id.,
Exh. K, p. 993:25-994:7.) Likewise, although Plaintiff’s interactions with Rio
Stones’ employees were limited to discussing product samples, pricing, and
catalogues, and confirming material orders, this testimony still supports an
inference that Plaintiff obtained products from Rio Stones, even if he did not
purchase those products himself. (Id., Exh. F [Plaintiff’s Depo. Vol. 4],
p. 445:23-446:4, Exh. L [Plaintiff’s Depo. Vol. 11], p. 1248:7-11.) Plaintiff
also testified that he saw stickers on the stone slabs he received from Rio
Stones. (Id., Exh. L, p. 1248:7-11.) Taken together, the testimony suggesting
that Plaintiff obtained stone products from Rio Stones reasonably contributes
to an inference that he also worked with those products.
Most importantly, Plaintiff expressly stated under oath
that he did, in fact, fabricate Rio Stones’ stone slabs at multiple points in
his career. Plaintiff testified that he fabricated one to five natural stone slabs
from Rio Stones per month between 2010 and 2013 while working at JO Marble. (Id.,
Exh. D [Plaintiff’s Depo. Vol. 2], p. 155:9-12, 188:17-15; Exh. K, p.
992:7-19.) Plaintiff also testified that he picked up and fabricated five to
ten stone slabs from Rio Stones’ brand per month between 2014 and 2021 while
working at Reycost Granite. (Id., Exh. E [Plaintiff’s Depo. Vol. 3], p.
306:5-20.) Finally, to the extent that Rio Stones repeatedly attempts to
undermine the general reliability and credibility of Plaintiff’s testimony,
such issues are not appropriate to resolve at the summary judgment stage. “The
trial court may not weigh the evidence in the manner of a factfinder to
determine whose version is more likely true. [Citation.] Nor may the trial
court grant summary judgment based on the court's evaluation of credibility.
[Citation.]” (Binder v. Aetna Life Ins. Co. (1999) 75 Cal.App.4th 832,
840.) Accordingly, the Court finds Rio Stones’ own evidence precludes a prima
facie showing that no triable disputes of material facts exist as to the issue
of causation. Therefore, Rio Stones fail to overcome its moving burden with
respect to the issue of Plaintiff’s exposure to Rio Stones’ products.
B. Sophisticated
User Defense — DENIED
Rio Stones fail to overcome their burden of establishing
their sophisticated user defense. [3]
“California's sophisticated user defense applies to both strict liability and
negligent failure to warn claims.” (Webb v. Special Electric Co., Inc.
(2016) 63 Cal.4th 167, 182.) “The sophisticated user defense does not
require a user's actual awareness of potential hazards. Rather, a product
manufacturer or supplier is not liable for failing to warn a sophisticated user
if the user knew or should have known of the product's risk in light of his
training or skill.” (Ibid.) “The focus of the defense ... is whether the
danger in question was so generally known within the trade or profession that a
manufacturer should not have been expected to provide a warning specific to the
group to which plaintiff belonged.” (Ibid., quoting Johnson v.
American Standard, Inc. (2008) 43 Cal.4th 56, 72-74.) To
establish this defense, a defendant “must demonstrate that sophisticated users
of the product know what the risks are, including the degree of danger involved
(i.e., the severity of the potential injury), and how to use the product to
reduce or avoid the risks, to the extent that information is known to the
manufacturer.” (Buckner v. Milwaukee Electric Tool Corp. (2013) 222
Cal.App.4th 522, 536.)
Here, Rio Stones argues, assuming Plaintiff can establish
causation, that Plaintiff and his employers were “sophisticated users” of Rio
Stones’ products. The crux of Rio Stones’ argument is that Plaintiff should
have known the hazards of fabricating stone countertop products given his extensive
experience as a fabricator. (Mot., at 10.) It is undisputed that Plaintiff has
a 20-year work history in the stone fabrication industry as an employee,
supervisor, and business owner. (Natividad Decl., Exh. C [Plaintiff’s Depo.
Vol. 1], p. 57:6-20.) Plaintiff stated under oath that he was taught how to cut
and polish stones and operating fabricating machinery, and he was responsible
for cutting and grinding countertop designs. (Id., Exh. C, p. 60:10-15,
61:1-2, 62:5-19, 63:10-17, 80:7-23.) Plaintiff admitted his work generated
significant amounts of airborne which adhered to his skin, eyes, and face, especially
from artificial stone. (Id., Exh. C, p. 64:7-21, 81:2-5; Exh. D, p.
149:11-25.) Plaintiff also testified that he used masks, goggles, earplugs,
boots, and aprons while cutting with water, and back braces and vacuums while
cutting dry stone to minimize dust. (Id., Exh. C, p. 80:7-23.) Plaintiff’s
employers provided him with 3M paper masks and later rubber masks with dual
filters for the dust. (Id., Exh. G, p. 513:23-514:7-18, 576:5-10.)
Plaintiff also gave his own workers masks to avoid the dust. (Id., Exh. I
[Plaintiff’s Depo. Vol. 7], p. 688:21-689:4.) Further, Plaintiff testified that
he understood that the masks he was provided with were intended to protect
against the dust he encountered. (Id., Exh. C, p. 80:24-81:1, 85:12-17;
Exh. D, p. 149:6-10, 150:1-19.) Finally, it is undisputed that Plaintiff saw
stickers on the stone slabs he fabricated, but failed to take steps to
understand the stickers’ contents. For example, he never sought assistance from
co-workers to translate or explain the English-language stickers and admitted
he paid no attention to the warnings prior to his silicosis diagnosis. (Id.,
Exh. J [Plaintiff’s Depo. Vol. 8], p. 820:4-16; Exh. G, p. 517:23-518:15,
527:16-528:4, 551:12-14.) Based on the above testimony, Rio Stones argues that
it can reasonably be inferred that Plaintiff: (1) had an awareness of the
materials and tools used in the fabrication trade and (2) should have known of
the occupational hazards of dust exposure. The Court disagrees.
At most, the above testimony demonstrates that Plaintiff
worked as a stone fabricator, was aware that his work produced significant
dust, wore protective materials to avoid the dust, and failed to take
additional steps to read warning labels on the stone products. By itself, these
facts do not support an inference that Plaintiff “should have known” of the unique
health and safety hazards associated with the dust. For example, Plaintiff
would have had reason to avoid extensive dust in his face even if he was
unaware of the dust’s toxicity. Furthermore, even if Plaintiff had received
training on how to fabricate stone products, such evidence does not
demonstrate that Plaintiff either had or should have had specialized training
or knowledge with respect to the health and safety hazards of the RCS
released with the dust or how to protect himself from such hazards. Critically,
Rio Stones submits no evidence demonstrating that Plaintiff knew of the
specific health hazards affiliated with the dust, or that he could have become
fully informed of such hazards by reading the Rio Stones’ warning stickers. Moreover,
Rio Stones submits no evidence indicating whether the safety hazards of RCS
dust were generally known within the fabrication profession. (Webb,
supra, 63 Cal.4th at 182.) Likewise, Rio Stones submits no evidence that
either Plaintiff, his employers, or fabricators in general knew the degree
of danger involved in the products or how to effectively mitigate
those risks. (Buckner, supra, 222 Cal.App.4th at 536-537.) Such evidence
is necessary to establish the sophisticated user defense. Accordingly, the
Court finds Rio Stones has not submitted sufficient evidence to overcome its
moving burden with respect to this affirmative defense.
C. 2nd
Cause of Action: Failure to Warn — GRANTED
Assuming arguendo that Plaintiff did use Rio Stones’
products, Rio Stones argues that Plaintiffs’ failure to warn claim must fail
because Plaintiff made no effort to read or rely on any warnings associated
with Rio Stones’ products. “To be liable in California, even under a strict
liability theory, the plaintiff must prove that the defendant's failure to warn
was a substantial factor in causing his or her injury.” (Huitt v. Southern
California Gas Co. (2010) 188 Cal.App.4th 1586, 1604, citing CACI No.
1205.) “The natural corollary to this requirement is that a defendant is not
liable to a plaintiff if the injury would have occurred even if the defendant
had issued adequate warnings. [Citation.]” (Ibid.) There can be no
proximate cause where the allegedly inadequate warnings promulgated by a
defendant about a product were neither read nor relied upon. (Conte v.
Wyeth, Inc. (2008) 168 Cal.App.4th 89, 112.)
Here, Rio Stones submits Plaintiff’s deposition
transcript, in which Plaintiff admits to having seen warning stickers on Rio
Stones’ Copa Quartz stone slabs. (Natividad Decl., Exh. L, p. 1248:7-11.) As
discussed above, it is undisputed that Plaintiff never sought assistance to
understand any warning labels on the stone products, such as asking a co-worker
to read, translate, or explain the stickers’ contents. (Id., Exh. J, p.
820:4-16; Exh. G, p. 517:23-518:15, 527:16-528:4, 551:12-14.) Plaintiff also
admitted that he only began paying attention to the warning labels after
his silicosis diagnosis. (Ibid.) This affirmative evidence demonstrates
that Plaintiff had access to the warning information provided along with Rio
Stones’ products, but that he failed to make efforts to read or understand
them. Accordingly, the evidence is sufficient to support a reasonable inference
that Plaintiff did not rely on Rio Stones’ warning materials. Thus, the Court
finds Rio Stones has overcome its moving burden with respect to Plaintiffs’
failure to warn claim.
In their Opposition, Plaintiffs fail to include an
argument section addressing this issue. Plaintiffs briefly address the failure
to warn claim in their Introduction section, arguing that Rio Stones fails to
establish what type of information was on the stone product’s stickers and
whether they served as an adequate warning to Plaintiff. As stated above,
however, it is immaterial whether Rio Stones’ warning labels were adequate if
Plaintiff made no attempt to read or rely on them. (Conte, supra, 168
Cal.App.4th at 112.) In other words, even if such warnings were inadequate,
Plaintiff cannot establish that those inadequate warning labels proximately
caused his injuries because he never even attempted to consider them. Plaintiffs
submit no additional evidence disputing this admission. Accordingly, Plaintiffs
fail to raise a triable issue as to their failure to warn claim against Rio
Stones. Therefore, Summary Adjudication of Plaintiff’s 2nd cause of
action as to Rio Stones is GRANTED.
D. 4th
Cause of Action: Fraudulent Concealment — GRANTED
Plaintiffs cannot establish their fraudulent concealment
claim as a matter of law.[4] ¿Rio Stones
argues Plaintiffs cannot establish the first and second elements of this claim
with respect to Rio Stones. The Court focuses its analysis on the “duty to disclose” element. The California Supreme Court “has described
the necessary relationship giving rise to a duty to disclose as a ‘transaction’
between the plaintiff and defendant.” (BiglerEngler¿v.¿Breg, Inc.¿(2017) 7
Cal.App.5th 276, 311.) “Such a transaction must necessarily arise from direct
dealings between the plaintiff and the defendant; it cannot arise between the
defendant and the public at large.” (Id., at 312.) “In transactions which do
not involve fiduciary or confidential relations, a cause of action for
non-disclosure of material facts may arise in at least three instances: (1) the
defendant makes representations but does not disclose facts which materially
qualify the facts disclosed, or which render his disclosure likely to mislead;
(2)¿the
facts are known or accessible only to defendant, and defendant knows they are
not known to or reasonably discoverable by the plaintiff; (3) the defendant
actively conceals discovery from the plaintiff.” (Id., at 311, citation
omitted.) While it is true that the “duty to warn” in products liability
actions “applies to all entities in a product's chain of distribution,” (Webb
v. Special Electric Co., Inc. (2016) 63 Cal.4th 167, 181), the Bigler-Engler
Court expressly rejected the contention that the broader “duty to warn” in strict
products liability action is the applicable standard for imposing a duty to
disclose in fraud actions. The Court of Appeal explained:
Bigler-Engler argues that this duty [to warn] applies
here as well and the violation of that duty gives rise to a cause of action for
fraud under a theory of concealment. The authorities Bigler-Engler cites,
however, involve strict products liability, not fraud. Bigler-Engler has not
provided any reason to apply this duty to the fraud cause of action here, and
we are aware of none. Products liability law involves a set of circumstances,
elements, and doctrines that are independent from, and not directly applicable
to, fraud. The duties underlying each cannot simply be applied to the other.
(Cf. Conte v. Wyeth, Inc. (2008) 168 Cal.App.4th 89, 108, 85 Cal.Rptr.3d
299 [“[W]e do not agree that a suit based on a theory of negligent or
intentional misrepresentation is governed by rules developed under the distinct
doctrine of strict products liability law.”].)
(Bigler-Engler, supra, 7 Cal.App.5th at 312.)
Here, as discussed above, Plaintiff admitted that contractors
were the ones who purchased stone products from Rio Stones and supplied those
products to Plaintiffs’ worksites. (Natividad Decl., Exh. G, p. 541:16-549:4;
Exh. K, p. 1001:4-8.) This suggests that Plaintiff, Reycost Granite, and his other
employers did not purchase stone products directly from Rio Stones, but instead
received the products from third party contractors. The non-existence of a
buyer-seller relationship between Plaintiff and Rio Stones is further confirmed
by the declaration of Rio Stones’ Vice President, who declares that Rio Stones found
no records of any sales to Plaintiff or Plaintiff’s employers. (Duarte
Decl., ¶ 9.) Further, it is undisputed that Plaintiff failed to produce any
documents evidencing purchases or deliveries from Rio Stones directly to
Plaintiff, Reycost Granite, or his other employers. (Natividad Decl., ¶ 3.) At
most, Plaintiff’s deposition transcript suggests that Plaintiff picked up
products from Rio Stones. (Id., Exh. K, p. 993:25-994:7.) To the limited
extent that Plaintiff interacted with Rio Stones’ employees, such interactions
were confined to discussing product samples, pricing, catalogues, and
confirming orders, but Plaintiff did not identify any specific sales, inquiries
regarding warnings, hazards, or safety measures, or other substantive
communications. (Id., Exh. F, p. 445:23-446:4; Exh. L, p. 1248:7-11.)
Taken together, this affirmative evidence supports a reasonable inference that
Plaintiff, Reycost Granite, and his other employers never directly engaged in
any “transactional relationship” with Rio Stones. Thus, Rio Stones has overcome
its burden with respect to the duty to disclose.
In their Opposition,
Plaintiffs rely on Jones v. ConocoPhillips Co. (2011) 198 Cal.App.4th
1187 and LiMandri v. Judkins (1997) 52 Cal.App.4th 326 to argue that a
duty to disclose may exist even without a fiduciary relationship. Indeed,
“[a]lthough, typically, a duty to disclose arises when a defendant owes a
fiduciary duty to a plaintiff [Citation], a duty to disclose may also arise
when a defendant possesses or exerts control over material facts not readily
available to the plaintiff.” (Jones, supra, 198 Cal.App.4th at 1199.)
However, “[w]here material facts are known to one party and not to the other,
failure to disclose them is not actionable fraud unless there is some
relationship between the parties which gives rise to a duty to disclose
such known facts.” (LiMandri, supra, 52 Cal.App.4th at 337, citing
BAJI No. 12.36 (8th ed.1994), emphasis added.) “[S]uch a relationship can only
come into being as a result of some sort of transaction between the
parties.” (Id., at 337.) For example, “a duty to disclose may arise from
the relationship between seller and buyer, employer and prospective employee,
doctor and patient, or parties entering into any kind of contractual agreement.
[Citation.] All of these relationships are created by transactions between
parties from which a duty to disclose facts material to the transaction arises
under certain circumstances.” (Ibid., emphasis added.) In other
words, while Plaintiffs are correct that a duty to disclose may exist absent a fiduciary
relationship, this rule does not dispose of the requirement for a transactional
relationship between the parties.
To address this element,
Plaintiffs argue that a “transactional relationship” may exist between a worker
who uses a hazardous product at his worksite and the manufacturer or
distributor from whom his hirer purchased that product. (Opp., at p. 16.)
However, Plaintiffs submit no evidence to raise a dispute as to whether he, his
employers, or his business (Reycost Granite) ever purchased products from Rio
Stones. In fact, Plaintiff does not dispute that he admitted that Rio Stones’ products
were purchased by contractors. Plaintiffs also fail to submit any legal
authority supporting a conclusion that working with products obtained through
transactions between Rio Stones and third parties is enough to impose a duty to
disclose for purposes of a fraud action. While
Plaintiff’s Opposition primarily attempts to raise evidence of Rio Stones’ role
in concealing facts, a transactional relationship is also necessary to support Plaintiffs’
fraudulent concealment claim. (BiglerEngler, supra, 7 Cal.App.5th at
311.) Accordingly, as Plaintiffs fail to establish the duty to disclose
element, Plaintiffs cannot establish their fraudulent concealment claim with
respect to Rio Stones as a matter of law. Therefore, Summary Adjudication of Plaintiff’s 4th cause of
action as to Rio Stones is GRANTED.
E. Punitive
Damages — GRANTED
Plaintiffs’ request for punitive damages from Rio Stones
fails as a matter of law. The punitive damage statute requires proof of malice,
fraud, or oppression among corporate leaders (i.e. the “officer[s],
director[s], or managing agent[s]”). (Cruz v. HomeBase (2000) 83 Cal.
App. 4th 160, 167, citing Cal. Civ. Code, § 3294(b).) In other words, corporate
defendants may be liable for punitive damages “only if the knowledge,
authorization, ratification or act was on the part of an officer, director or
managing agent of the corporation.” (Cal. Civ. Code § 3294(b).) “Under the
[punitive damages] statute, ‘malice does not require actual intent to harm.
Conscious disregard for the safety of another may be sufficient where the
defendant is aware of the probable dangerous consequences of his or her conduct
and he or she willfully fails to avoid such consequences. Malice may be proved
either expressly through direct evidence or by implication through indirect
evidence from which the jury draws inferences.’” (Pfeifer v. John Crane,
Inc. (2013) 220 Cal.App.4th 1270, 1299, internal citations omitted.)
Here, Rio Stones argues Plaintiffs cannot establish
either: (1) that Rio Stones was aware of the hazards of the products it
supplied or (2) that Rio Stones’ corporate leaders acted with the requisite
malice, oppression, or fraud to support a claim for punitive damages. With
respect to the first argument, Rio Stones’ Vice President declares that Rio
Stones does not design, manufacture, fabricate, or install stone countertops,
but simply stocks and sells products made by third-party manufacturers. (Duarte
Decl., ¶¶ 3-4.) As a supplier, Rio Stones argues it should have been able to
rely on product warning information from the manufacturer. Rio Stones contends that
Plaintiffs have not submitted evidence that Rio Stones ever received manufacturers’
warnings related to the hazards of silica-containing products. (Mot., at 14.)
However, Rio Stones contradicts its own argument by admitting that Plaintiff
saw warning stickers affixed to what Plaintiff believed were Rio Stones’
products. (Natividad Decl., Exh. L, p. 1248:7-11.) Rio Stones states in its
Reply that it “did not alter, remove, or suppress any labels or hazard
information,” received from the manufacturers, suggesting that if Plaintiff saw
warning stickers on Rio Stones’ products, those stickers were provided to
Rio Stones by the manufacturers. (Rep., at 8.) Even so, as neither party
has submitted evidence indicating what the stone products warning
stickers said, the Court cannot determine whether such stickers were sufficient
to give Rio Stones actual notice of the products’ hazards. Moreover, Rio Stones
also argues that the only documents produced by Plaintiffs with respect to Rio
Stones’ potential knowledge of its products hazards were studies linking RCS
exposure to silicosis. (Mot., at 14.) However, Rio Stones argues that Plaintiffs
lack evidence demonstrating that such studies were actually known to Rio
Stones or its corporate leaders.
With respect to the second argument, Rio Stones argues that
Plaintiffs fail to identify who concealed material information from
Plaintiff and what information was known to those individuals, or any of
Rio Stones’ corporate leaders who acted with fraud, malice, or oppression. Rio
Stones submits an excerpt of Plaintiff’s deposition transcript, in which
Plaintiff stated that he spoke to an individual at Rio Stones but admitted that
he could not recall his name. (Natividad Decl., ¶ 14, Exh. K, p. 993:12-25.) Further,
although Plaintiff was asked about the representatives or employees of Rio
Stones who purportedly lied to Plaintiff, Plaintiff did not identify any such
individuals by name, position, or description. (Id., Exh. K, p. 995:24-996:23.)
In the Court’s view, Rio Stones has sufficiently identified how Plaintiffs’
discovery responses and document production was insufficient to demonstrate Rio
Stones’ actual knowledge of its product’s hazards, while also presenting
affirmative evidence reflecting that Plaintiff cannot identify any corporate
leaders who knowingly participated in the concealment of such hazards. Accordingly,
the Court finds Rio Stones has overcome its moving burden with respect to
punitive damages.
In support of their Opposition, Plaintiffs submit the
deposition transcript of Rio Stones’ Person Most Knowledgeable, Diogo Duarte,
who affirmed that “Rio Stones is aware that exposure to [RCS] causes
lung diseases, including silicosis.” (Barrow Decl., Exh. 1 [Duarte Depo.], p.
91:21-24.) However, even if Rio Stones’ currently knows such
information, Plaintiff improperly extends this testimony to suggest that Rio
Stones previously knew such information at the time Plaintiff was
exposed to Rio Stones’ products. Duarte neither admits that Rio Stones knew of
this information at the time of Plaintiff’s injuries nor identifies when Rio
Stones learned such information. Additionally, while Duarte admits that Rio
Stones knew their stone products would be fabricated and currently
knows that fabrication generates RCS, neither of these facts are sufficient
to impute knowledge of the specific hazards of its products at the time of Plaintiff’s
exposure. (Id., p. 70:17-71:5, 94:1-17.) Even further, Plaintiff still
fails to identify any specific corporate leaders who were supposedly aware
of their products’ hazards, or who acted with malice, fraud, or oppression. As
Plaintiffs have not set forth evidence to establish the “awareness” aspect of
conscious disregard among Rio Stones’ corporate leaders, Plaintiffs cannot
establish they are entitled to punitive damages. Therefore, Summary
Adjudication of Plaintiff’s punitive damages claim as to Rio Stones is GRANTED.
II. EVIDENTIARY
OBJECTIONS
Rio Stones objects to the Deposition of Diogo Duarte
(Nos. 1-15) submitted in support of Plaintiffs’ Opposition to the Motion of Rio
Stones. The following objections are SUSTAINED: 5, 11, 13, 14 and 15 (relevance),
and 12 (subsequent remedial measures). The following objections are OVERRULED:
1, 2, 3, 4, 6, 7, 8, 9, and 10.
Defendant Rio Stones, Inc. to serve notice of
ruling. This tentative ruling (“TR”)
shall be the order of the Court unless changed at the hearing and shall by this
reference be incorporated into the Minute Order. TR emailed to counsel for the
moving parties on 4/11/25 at 11:45 a.m.
[1]
It
is undisputed that Plaintiff was employed at Sofia Marble and
Granite (from 2001-2004), Malibu Granite (from 2004-2010), JO
Marble & Granite (from 2010-2013), and Reycost Granite (2014-2021).
[2]
Natividad
Decl., ¶¶ 7, 9, 12-13; Exh. D, p. 212:9-214:23; Exh. F, p. 437:5-8; Exh. I, p.
676:2-14; Exh. J, p. 881:21-882:8.
[3]
Rio
Stones’ Answer only asserts the sophisticated user defense, which
applies to end users. (Natividad Decl., Exh. M [Rio Stones’ Answer], p.
7:22-25.) To the extent that Rio Stones conflates this defense with the
sophisticated intermediary defense, which applies to purchasers,
the Court disregards such arguments and legal authority.
[4]
“[T]he
elements of an action for fraud and deceit based on concealment are: (1) the
defendant must have concealed or suppressed a material fact, (2) the defendant
must have been under a duty to disclose the fact to the plaintiff, (3) the
defendant must have intentionally concealed or suppressed the fact with the
intent to defraud the plaintiff, (4) the plaintiff must have been unaware of
the fact and would not have acted as he did if he had known of the concealed or
suppressed fact, and (5) as a result of the concealment or suppression of the
fact, the plaintiff must have sustained damage.” (Blickman¿Turkus, LP v.
MF Downtown Sunnyvale, LLC¿(2008) 162 Cal.App.4th 858, 868, internal citation
omitted.)