Judge: Ronald F. Frank, Case: 21TRCV00617, Date: 2023-02-10 Tentative Ruling
Case Number: 21TRCV00617 Hearing Date: February 10, 2023 Dept: 8
Tentative Ruling¿
¿¿
HEARING DATE: February 10, 2023¿¿
¿¿
CASE NUMBER: 22TRCV00617
¿¿
CASE NAME: DTI Services,
Inc. V. Shinichi Kakefu, et al .¿¿¿
¿¿
MOVING PARTY: Cross-Defendant/Plaintiff, DTI Services, Inc.,
Cross-Defendant, Eita Asama
¿¿
RESPONDING PARTY: Cross-Complainant, Shinichi Kakefu
¿¿
TRIAL DATE: November
13, 2023
¿¿
MOTION:¿ (1) Demurrer¿to First Amended
Cross-Complaint
(2) Motion to Strike
¿
Tentative Rulings: (1) Cross-Defendant’s Demurrer is
sustained as to the trade libel cause of action under the one-year statute of
limitations, the Court will entertain oral argument as to the new “restitution”
allegation in the 17200 cause of action, but is otherwise overruled
(2) Defendant’s Motion to Strike is denied, subject to argument over the restitution issue
¿¿
¿
I. BACKGROUND¿¿
This is the second demurrer to Mr.
Kakefu’s pleading of ¿a Cross-Complaint in this complex commercial litigation
case arising from the on-line pornography industry, the first having been sustained
with leave to amend the first and fourth causes of action. The Court overruled the statute of limitations
arguments asserted by the original demurrer and identified the vagueness and
remedy shortcomings as to the defamation and B&P Code §17200 causes of
action. The promptly amended pleading
adds new allegations including a trade libel claim instead of a defamation claim,
deleted a problematic allegation as to the 17200 cause of action, and uses the word
“restitution” but it is not clear to the Court that the 17200 claim is not
still seeking monetary damages rather than true restitution. For the reasons discussed below, the motion
to strike is denied, Demurrer to the First Amended Cross-Complaint is sustained
as to the first cause of action for trade libel and the Court needs further argument
on the restitution allegation, but the demurrer is otherwise overruled. If Kakefu believes he can further amend to address
the statute of limitations as to the first cause of action, the Court will
grant leave to amend.
¿
A. Factual¿¿
¿
On
August 16, 2021, Plaintiff DTI Services, Inc. filed a Complaint for: (1) Fraud;
(2) Theft by False Pretenses; (3) Unlawful Business Practices; and (4)
Commercial Bribery against Shinichi Kakefu and DOES 1 through 10. On January
14, 2022, Shinichi Kakefu filed a cross-complaint against DTI Services, Inc.
and Eita Asama. After his original Cross Complaint was the subject of a
demurrer, on November 20, 2022,
Cross-complainant Kakefu filed a first amended cross-complaint (“FACC”) alleging causes of action for (1) Trade
Libel; (2) Intentional Interference with Prospective Economic Advantage; (3)
Intentional Interference with Contract; and (4) Violation of Business and
Professions Code § 17200, et seq. The
original Cross-Complaint’s first cause of action had been for defamation, which
has been deleted in the FACC and replaced by a trade libel cause of action
instead.
Kakefu’s
FACC alleges that Kakefu was a DTI employee from 2002 to May 2019. (FACC, at ¶
15.) Kakefu claims that after his employment was terminated, DTI and Mr. Asama
“interfered in Mr. Kakefu’s legitimate business operations by disparaging and
spreading false information about him and his businesses, contacting his
clients and affiliates in an attempt to get them to work directly with DTI, and
otherwise harming his legitimate business interests.” (FACC, at ¶ 21.) Kakefu
further alleges that Mr. Asama accused Kakefu of “improper, immoral, and/or
illegal conduct” (id.), which the FACC adds more specific allegations that
Kakefu “illegally siphoned money paid by DTI” and “embezzling money from DTI” (id.
¶¶ 22, 24.)
Plaintiff/Cross-Defendants
now demur to the FACC, as they did to the original Cross-Complaint.
B. Procedural¿¿
¿
On December 30, 2022, Plaintiff/Cross-Defendants
filed its demurrer and motion to strike. On January 30, 2023, Cross-Complainant
filed an opposition to the demurrer and motion to strike. On February 6, 2023, Plaintiff/Cross-Defendants
filed its reply briefs.
¿
¿II. MOVING PARTY’S GROUNDS
¿
Plaintiffs/Cross-Defendants
demurs to the First, Second, Third, and Fourth Causes of Action because they
assert they are all barred by the applicable statute of limitations, and all
fail to state facts sufficient to constitute a cause of action. The Court
previously overruled the statute of limitations ground raised in the original demurrer.
Plaintiffs/Cross-Defendants also filed
a Motion to Strike portions of the FACC that it claims occurred beyond the
applicable statute of limitations, a prayer about DTI’s business which are
irrelevant to any claim, and other specifically identified allegations.
¿III. REQUEST FOR JUDICIAL
NOTICE
Plaintiffs/Cross-Defendants have
requested that this Court take judicial notice of:
1. Shinichi Kakefu's Cross-Complaint
filed on January 14, 2022, a true and correct copy of which is attached hereto
as Exhibit 1.
2. This Court's Tentative Ruling on
Plaintiff and Cross-Defendant DTI Services, Inc. and Cross-Defendant Eita
Asama's Demurrer to the Cross-Complaint, dated November 10, 2022, a true and
correct copy of which is attached hereto as Exhibit 2.
Pursuant
to Plaintiffs/Cross-Defendants request, this Court grants their request and
takes judicial notice of the above.
IV. ANALYSIS¿
¿
A. Legal Standard
¿
A demurrer can be used only to challenge defects that
appear on the face of the pleading under attack or from matters outside the
pleading that are judicially noticeable. (Blank v. Kirwan (1985) 39
Cal.3d 311, 318.) “To survive a demurrer, the complaint need only allege facts
sufficient to state a cause of action; each evidentiary fact that might
eventually form part of the plaintiff’s proof need not be alleged.” (C.A. v.
William S. Hart Union High School Dist. (2012) 53 Cal.4th 861, 872.) Motions
to strike can be used to excise allegations that are not drawn in conformity
with law, or are irrelevant, false or improper.
(Code of Civil Procedure § 431.10(b), 436.) The
Court will not re-state the familiar and more detailed legal standards that it
outlined in the tentative ruling as to the original demurrer.
¿
B. Discussion
Trade
Libel
Cross-Defendant alleges that the FACC
shows on its face that the first, second, and third causes of action are barred
by the applicable statute of limitations. “ ‘A demurrer based on a statute of
limitations will not lie where the action may be, but is not necessarily,
barred. [Citation.] In order for the bar of the statute of limitations to be
raised by demurrer, the defect must clearly and affirmatively appear on the
face of the complaint; it is not enough that the complaint shows the action may
be barred.’ [Citation.]” (Guardian North Bay, Inc. v. Superior Court
(2001) 94 Cal.App.4th 963, 971-72.) (Emphasis added.)
The Cross-Complaint’s first cause of
action is for Trade Libel. “A cause of action for trade libel includes the
following elements: (1) the defendant published a statement that tended to
disparage the plaintiff's product or property; (2) the statement was probably
false; (3) the defendant either knew the statement was false or acted with
reckless disregard for its falsity; and (4) the statement caused actual
pecuniary damage.” (ZF Micro Solutions, Inc. v. TAT Capital Partners,
Ltd. (2022) 82 Cal.App.5th 992, 1002, fn. 5.)
Here, the Cross-Complaint alleges
that Cross-Defendants have harmed Mr.
Kakefu and his businesses by contacting his clients and affiliates, including
but not limited to Serimu Corporation, Smart Ltd., Masahiro Takeuchi, and Moana
Petipas, to disparage and accuse Mr. Kakefu of improper, immoral, and/or
illegal conduct, stating that he had embezzled money from DTI, could be subject
to criminal prosecution, was untrustworthy, and attempting to get those
business contracts to work directly with DTI rather than with Mr. Kakefu. (FACC,
¶ 29.) The FACC further alleges that Mr. Kakefu is informed and believes that
DTI, its agent Mr. Asama, and others, have made and continue to make such
statements to persons other than Mr. Kakefu, and that these persons reasonably
understood those statements were about Mr. Kakefu and reasonably understood
them to mean that Mr. Kakefu had committed a crime or some other immoral or
unethical misdeed. (FACC, ¶ 30.) Additionally, Cross-Complainant contends these
statements are false and that Cross-Defendants knew they were false, or had
serious doubts about the truth of the above-described statements when they were
made. (FACC, ¶¶ 31, 32.) Lastly, the FACC alleges that Cross-Complainant was
harmed by the false statements.
Plaintiff/Cross-Defendants assert
that the FACC does not state facts that concern Cross-Complainant’s business,
but instead involve Cross-Complainant himself. As such,
Plaintiff/Cross-Defendants assert that since these allegations are about Mr.
Kakefu personally – and not about the “good he sells or the character of his
business” – the one-year statute of limitations period applies. Additionally,
Plaintiff/Cross-Defendants assert that Cross-Complainant claims that Serimu
Corporation ceased doing business with Mr. Kakefu on October 1, 2019. (FACC, ¶
25.) The FACC also alleges that Mr.
Kakefu was terminated in May 2019 (¶ 15), but that he continued to “act as an
intermediary for DTI by hosting, purchasing, or otherwise coordinating advertising
for DTI in exchange for commissions.”
(Id. ¶ 20.) . However, Plaintiff/Cross-Complainant note
that the Cross-Complaint was filed on January 14, 2022 – more than two years
after both the September 25, 2019 communications and the October 1, 2019 date
Serimu Corporation ceased doing business with Mr. Kakefu. (FACC, at ¶¶ 22, 25;
see RJN, no. 1.)
Interference with Prospective
Economic Advantage
The elements of a claim for
intentional interference with prospective economic advantage include “(1) an
economic relationship between the plaintiff and some third party, with the
probability of future economic benefit to the plaintiff; (2) the defendant’s
knowledge of the relationship; (3) intentional or negligent acts on the part of
the defendant designed to disrupt the relationship; (4) actual disruption of
the relationship; and (5) economic harm to the plaintiff proximately caused by
the acts of the defendant.” (Crown Imports, LLC v. Superior Court (2014)
223 Cal.App.4th 1395, 1404, citations, brackets, and quotation marks omitted.)
Further, “the alleged interference must have been wrongful by some measure
beyond the fact of the interference itself. For an act to be sufficiently
independently wrongful, it must be unlawful, that is, it is proscribed by some
constitutional, statutory, regulatory, common law, or other determinable legal
standard.” (Ibid., citation, ellipsis, and quotation marks omitted.) The
statute of limitations for intentional interference with prospective economic
advantage is two years. (Cal. Civ. Proc. Code, § 339, subd. (1).)
Here, the FACC alleges that DTI
intentionally interfered with an economic relationship between Mr. Kakefu and multiple
third parties that Mr. Kakefu was working with, including Serimu Corporation,
Smart Ltd., Masahiro Takeuchi, and Moana Petipas, that presented the
probability of future economic benefit to Mr. Kakefu. (FACC, ¶ 38.)
Additionally Cross-Complainant alleges these third parties were in an economic
relationship that probably would have resulted in an economic benefit to Mr.
Kakefu, and that DTI knew of the relationship between Mr. Kakefu and these
third parties. (FACC, ¶¶ 39, 40.) The FACC contends that Despite this
knowledge, Mr. Asama and others at DTI contacted the third parties on behalf of
themselves and DTI to disparage and spread misinformation about Mr. Kakefu and
his businesses, accusing him of embezzlement and attempting to convince these
third parties to stop working with Mr. Kakefu and/or deal directly with DTI
instead of working with Mr. Kakefu. (FACC, ¶ 41.) Cross-Complainant alleges
that Plaintiff/Cross-Defendants intended to disrupt the relationship. (FACC, ¶ 42.)
Cross-Complainant further alleges the relationship was disrupted, and that he
faced economic harm because of this disruption. (FACC, ¶¶ 43, 44.)
In Plaintiff/Cross-Defendants’
demurrer, they concede that the statute of limitations for intentional
interference with prospective economic advantage and interference with contact
is 2 years. (Code Civ. Proc., §339, subd. (1).) But the demurrer asserts that the
Interference with Prospective Economic Advantage and Interference with Contract
causes of action are time-barred because the only alleged statements to third
parties occurred on September 25, 2019. (FACC, ¶¶ 22, 25.) The demurrer notes
that Kakefu admits that Serimu Corporation ceased doing business with him on
October 1, 2019. (FACC, ¶ 25.) Plaintiff/Cross-Defendants argue that both of
these specific dates took place more than two years before Kakefu filed his original
Cross-Complaint on January 14, 2022, and thus, each claim is time-barred.
However,
in opposition, Cross-Complainant correctly points out that because the
cross-complaint relates back to the filing of the original complaint, any
conduct alleged between August 16, 2021 (the date Cross-Defendants filed their
Complaint) and August 16, 2019 (two years preceding the filing of the
Complaint) is timely for statute of limitations purposes. Because the dates
giving rise to Mr. Kakefu’s claims fall within this window, they are timely
with respect to causes of action bearing a two-year statute of limitations.
“As a general rule, the filing of a complaint tolls the
statute of limitations applicable to a cross-complaint so long
as the cross-complaint is related to the original complaint and
its causes of action were not barred when the original complaint was filed. (Trindade
v. Superior Court (1973) 29 Cal.App.3d 857, 860.) ‘Such
a cross-complaint need only be subject-matter related to the
plaintiff's complaint—i.e., arise out of the same occurrence ...—to relate back to
the date of filing the complaint for statute of limitations purposes.” (Sidney
v. Superior Court (1988) 198 Cal.App.3d 710, 714.)’”
(California-American Water Co. v.
Marina Coast Water Dist. (2016)
2 Cal.App.5th 748, 763.) Here, the
original Complaint was filed on August 16, 2021, less than two years after the Fall
of 2019 events alleged in the FACC.
However, with respect to the newly
added trade libel cause of action, the FACC appears to run afoul of the statute
of limitations. With respect to the
choice between the one-year period of section 340, subdivision (3), and the
two-year period of section 339, subdivision (1), “[t]he principle of selection
which has emerged is that the one-year period applies to all alleged
infringements of personal rights, whereas the two-year period applies
only to alleged infringements of property rights.” (Richardson
v. Allstate Ins. Co. (1981) 117 Cal.App.3d 8, 12 (emphases added).) This distinction and selection of the
application period of limitations has arisen in several appellate decisions,
including Guess, Inc. v. Superior Court (1986) 176 Cal.App.3d 473,
479. It that Second District case, the
court discussed the Prosser and Keaton hornbook in addressing which limitations
period applied: “[t]rade libel and product disparagement are injurious
falsehoods that interfere with business. Unlike classic defamation, they are
not directed at the plaintiff's personal reputation, but rather at the goods a
plaintiff sells or the character of his other business, as such. See Prosser at
[p. 964].” (quoting Idaho Norland Corp. v. Caelter Industries, Inc. (D.
Colo. 1981) 509 F.Supp. 1070, 1071.) The Guess court then stated
that the distinction recognized by Prosser is consistent with how California
courts have traditionally determined which period of section 339, subdivision
(1), applies in a given case. In Guess,
it was the two-year statute, but here the first cause of action appears to the Court
to allege harm and damage to Kakefu personally rather than to the goods he
sells or to his company or business. Thus,
a one-year limitations period applies to the trade libel cause of action as it
is alleged in the FACC. The Demurrer on statute
of limitations grounds to that cause of action is thus sustained
Intentional Interference with
Contract
The
elements of a cause of action for intentional interference with contractual
relations are “(1) a valid contract between plaintiff and a third party; (2)
defendant’s knowledge of this contract; (3) defendant's intentional acts designed
to induce a breach or disruption of the contractual relationship; (4) actual
breach or disruption of the contractual relationship; and (5) resulting
damage.” (I-CA Enterprises, Inc. v.
Palram Americas, Inc. (2015) 235 Cal.App.4th 257, 289.)
The
FACC alleges that Cross-Defendants’ intentionally interfered with the
respective contracts between Mr. Kakefu, on the one hand, and Serimu
Corporation, Smart Ltd., Masahiro Takeuchi, and Moana Petipas, on the other. (FACC, ¶ 48.) Cross-Complainant alleges
that Mr. Kakefu and Serimu Corporation, Smart Ltd., Masahiro Takeuchi, and
Moana Petipas had contracts related to the hosting and/or placement of
advertisements in exchange for payments. (FACC, ¶ 49.) Further, the FACC
contends that Cross-Defendants were aware of these contracts but nonetheless,
intended to disrupt the performance of these contract or knew that disruption
of performance was certain or substantially certain to occur as a result of
their conduct. (FACC, ¶¶ 50, 52.)
Lastly, Cross-Complainant notes that he was harmed as a result of
Cross-Defendants’ behavior and conduct because the above-referenced parties,
and likely others, ceased dealing with Mr. Kakefu as a result. (FACC, ¶ 53.)
Similar to the above cause of action, Plaintiff/Cross-Defendants’
demurrer alleges that the statute of limitations for intentional interference
with prospective economic advantage and interference with contact is 2 years.
(Code Civ. Proc., §339, subd. (1).) But the Demurrer misapprehends the relation-back
doctrine and mistakenly measures the relevant time period from the filing of
the original Cross-Complaint, not the Complaint. According, as discussed above, the conduct alleged between August 16, 2021
(the date Cross-Defendants filed their Complaint) and August 16, 2019 (two
years preceding the filing of the Complaint) is timely for statute of
limitations purposes. Because the dates giving rise to Mr. Kakefu’s claims fall
within this window, they are timely.
Violation of Business and
Professions Code section 17200
Cross-Defendants also
allege that the claim of violation of Business and Professions Code section
17200 is vague and uncertain. To set forth a claim for a violation of Business
and Professions Code section 17200 (“UCL”), Plaintiff must establish Defendant
was engaged in an “unlawful, unfair or fraudulent business act or practice and
unfair, deceptive, untrue or misleading advertising” and certain specific acts.
(Bus. & Prof. Code, § 17200.) A cause of action for unfair competition “is
not an all-purpose substitute for a tort or contract action.” (Cortez v.
Purolator Air Filtration Products Co. (2000) 23 Cal.4th 163, 173.)
Here, the FACC alleges
that Cross-Defendants have committed unlawful business practices by, among
other things, libeling and disparaging Mr. Kakefu and his businesses and
interfering with his prospective economic relations and with contractual
relations, as described herein. (FACC,
¶ 57.) The FACC further alleges that Cross-Defendants have employed and
continue to disseminate false and disparaging information about Mr. Kakefu and
his businesses. They have done so and continue to do so verbally, through
email, as well as possibly through other channels. (FACC, ¶ 58.) Cross-Complainant
alleges that he is informed and believes that Cross-Defendants’ motive in
spreading the resulting misinformation is wrongful and malicious and includes
the intent to deceive these affiliates and customers by shifting attention from
their own suspect business dealings onto Mr. Kakefu and the intent to enable
Cross-Defendants to wrongfully obtain access to and dominion over affiliate
accounts belonging to Mr. Kakefu. (FACC, ¶ 59.) Cross-Complainant alleges that
he was substantially injured and seeks “restitution.” (FACC, ¶¶ 60, 62.)
Cross-Defendants’ demurrer notes
that originally, this Court sustained demurrer when Cross-Complainant was
seeking disgorgement. However, Cross-Defendants argue that in an effort to
overcome this pleading flaw, Cross-Complainant now alleges something entirely
different: that Cross-Defendants acted with “the intent to enable
Cross-Defendants to wrongfully obtain access to and dominion over affiliate
accounts belonging to Mr. Kakefu.” (FACC, ¶ 59). And, that Cross-Defendants
“have obtained affiliate accounts to which Mr. Kakefu has an ownership or
vested interest in and Mr. Kakefu seeks restitution of this amount.” (FACC, ¶
62.) However, Cross-Defendants argue that these new allegations both contradict
the substance of Kakefu’s other allegations and fail to solve the fatal
pleading issue with this cause of action. On the one hand, Kakefu alleges that
he was instructed by DTI to set up “intermediate companies” to “circumvent the
problem” of “Japanese financial institutions [hesitancy] to transfer funds
directly to or from DTI.” (FACC, ¶¶ 16-17.) Thus, Cross-Defendants argue that Kakefu is alleging – and by so alleging admits
– that he set up “intermediate companies” to move DTI’s money – not his. He
cannot therefore seek restitution of money to which he is not an owner.
However, Cross-Defendants contend
that on the other hand, and in direct contradiction to his first claim - Kakefu
alleges that Cross-Defendants “have obtained affiliate accounts to which Mr.
Kakefu has an ownership or vested interest in”, and he seeks restitution “of
this amount.” (FACC, ¶ 62.) Cross-Defendants assert that what Kakefu describes
is not “restitution.” The Court will
entertain oral argument as to whether this is merely the same old “disgorgement”
wine being poured into a new glass, or whether this thinly alleged restitution
assertion satisfies the 17200 pleading requirements.
¿
B. Motion to Strike
The court may,
upon a motion, or at any time in its discretion, and upon terms it deems
proper, strike any irrelevant, false, or improper matter inserted in any
pleading.¿ (Code Civ. Proc., § 436(a).)¿ The court may also strike all or any
part of any pleading not drawn or filed in conformity with the laws of this
state, a court rule, or an order of the court.¿ (Id., § 436(b).)¿ The
grounds for a motion to strike are that the pleading has irrelevant, false
improper matter, or has not been drawn or filed in conformity with laws.¿ (Id.,
§ 436.)¿ The grounds for moving to strike must appear on the face of the
pleading or by way of judicial notice.¿ (Id., § 437.)¿ “When the defect
which justifies striking a complaint is capable of cure, the court should allow
leave to amend.”¿ (Vaccaro v. Kaiman (1998) 63 Cal.App.4th 761, 768.)¿
Here, Defendant
moves to strike the following in Plaintiff’s complaint:
1.
Paragraph 6, in its entirety. “DTI publishes and operates multiple popular,
uncensored Japanese pornography websites, including www.carribeancom.com. To
avoid and circumvent Japanese pornography laws while still catering to
primarily Japanese customers, DTI maintains a physical presence in the United
States.”
2.
Paragraph 10, in its entirety. “Both DTI’s involvement with pornography and Mr.
Takahashi’s involvement with DTI are well publicized. See, e.g., Brad Stone,
Former Employee Says Teen Chat Site Is Owned by Online Pornographer, N.Y. Times
(July 11, 2007),
https://www.nytimes.com/2007/07/11/business/worldbusiness/11iht-porn.1.6609506.html;
Brad Stone, An E-Commerce Empire, From Porn to Puppies, N.Y. Times (May 18,
2008), https://www.nytimes.com/2008/05/18/technology/18gordo.html.”
3.
Paragraph 21, at line 20-21. Any reference to “Serimu Corporation.”
4.
Paragraph 25, at line 8-10. “Indeed, on or about October 1, 2019, Serimu
Corporation informed Mr. Kakefu that it would cease doing business with Mr.
Kakefu because of DTI’s conduct.
5.
Paragraph 29, at line 21: Any reference to “Serimu Corporation.”
6.
Paragraph 38, at line 25: Any reference to “Serimu Corporation.”
7.
Paragraph 43, at line 11: Any reference to “Serimu Corporation.”
8.
Paragraph 48, at line 6: Any reference to “Serimu Corporation.”
9.
Paragraph 49, at line 8: Any reference to “Serimu Corporation.”
10.
Prayer for Relief, number 4: “For restitution for property wrongfully obtained
by DTI as a consequence of DTI’s conduct.”
Irrelevant
Allegations
Here, Plaintiff asserts two
different allegation are irrelevant to any claim in the FAC. First,
Cross-Complainant’s allegation that “DTI publishes and operates multiple
popular, uncensored Japanese pornography websites, including
www.carribeancom.com. To avoid and circumvent Japanese pornography laws while
still catering to primarily Japanese customers, DTI maintains a physical
presence in the United States.” (FACC, at ¶ 6.) Second, Cross-Complainant
alleges, “Both DTI’s involvement with pornography and Mr. Takahashi’s
involvement with DTI are well publicized. See, e.g., Brad Stone, Former
Employee Says Teen Chat Site Is Owned by Online Pornographer, N.Y. Times
(July 11, 2007),
https://www.nytimes.com/2007/07/11/business/worldbusiness/11iht-porn.1.6609506.html;
Brad Stone, An E-Commerce Empire, From Porn to Puppies, N.Y. Times (May 18,
2008), https://www.nytimes.com/2008/05/18/technology/18gordo.html.” (FACC, at ¶
10.)
Plaintiff suggests that neither of
these paragraphs are relevant to, or aids in any way to Cross-Complainant’s
causes of action. The Court disagrees because they may or may not be relevant depending
on how discovery and investigation of this matter proceeds. As such, the Court
DENIES Cross-Defendants’ Motion to Strike as to this issue.
Allegations
Regarding Serimu Corporation
Here, Cross-Defendants request that
this Court strike any reference to Serimu Corporation. Cross-Defendants note
that Kakafu alleges that Serimu Corporation ceased doing business with him on
October 1, 2019 as a result of DTI’s conduct. (FACC, ¶ 25.) Kakefu filed his
Cross-Complaint on January 14, 2022 – more than 2 years after the October 1,
2019 date. As such, DTI asserts that any damages Kakefu may seek related to
Serimu Corp. are time-barred. This issue
is controlled by the relation-back analysis outlined above. Accordingly, the motion to strike is denied and
is addressed as to the first causes of action by the Court’s sustaining of the Demurrer
to the trade libel claim.
Prayer for
Restitution
Cross-Defendants
ask this Court to strike Cross-Complainant’s request for Restitution. Kakefu’s
Prayer for Relief, number 4, is for “restitution for property wrongfully
obtained by DTI as a consequence of DTI’s conduct.” This prayer is directly
tied to Kakefu’s fourth cause of action for a violation of Business and
Professions Code section 17200. While Cross-Defendants concede that restitution
is the proper form of recovery for a UCL claim, Cross-Defendants assert that
Kakefu’s allegations are for money damages – not restitution. As such,
Cross-Defendants argue that the prayer should be stricken from the FACC. The Court will hear oral argument bearing on the
restitution allegation as noted above.