Judge: Shirley K. Watkins, Case: 20STCV02701, Date: 2022-09-20 Tentative Ruling

If ALL parties submit on the tentative, then no appearance is necessary unless some other matter (i.e., Case Management Conference) is on calendar. It is not necessary to call the court to request oral argument. Oral argument is permitted on all tentative rulings.

Case Number: 20STCV02701    Hearing Date: September 20, 2022    Dept: T

            [TENTATIVE] ORDER:  Defendant Farmers Group, Inc.’s Motion to Bifurcate is DENIED.

Introduction

Defendant Farmers Group, Inc. (FGI) moves to bifurcate trial, specifically the issue of alter ego liability.

            Discussion 

            FGI argues that bifurcating the issue of alter ego will be convenient, avoid prejudice and be expedient and save on judicial economy and that alter ego being an equitable issue requires it to be tried first to the Court.  However, alter ego is not the only basis of liability alleged against FGI.  Despite FGI’s contention otherwise, Plaintiff Arif Harsolia (Plaintiff) alleges direct liability against FGI because FGI is alleged to be Plaintiff’s employer.  (Compl. pars. 1, 9, 22-40.)  FGI’s assertion that bifurcation will promote judicial economy is based upon a presumption that FGI is a separate entity.  Even if FGI is found to be a separate entity, resolution of the alter ego issue will not release FGI from the case due to the allegations of direct liability.

            Alter ego liability actions are equitable in nature.  (Dow Jones Co., Inc. v Avenel (1984) 151 Cal.App.3d 144, 147-8.)  Trial courts are encouraged to apply this “equity first” rule because it promotes judicial economy by potentially obviating the need for a jury trial. (Darbun Enterprises, Inc. v. San Fernando Community Hospital (2015) 239 Cal.App.4th 399, 401.) However, as stated above, trying the alter ego claim first will not promote judicial economy.  A finding that FGI is not the alter ego of the Signatory Defendants will not obviate the need for a jury trial since there claims of direct liability levied against FGI. 

            The motion to bifurcate is DENIED. 

            IT IS SO ORDERED, CLERK TO GIVE NOTICE.

September 1, 2022