Judge: Stephen P. Pfahler, Case: 23STCV24250, Date: 2025-03-05 Tentative Ruling
Case Number: 23STCV24250 Hearing Date: March 5, 2025 Dept: 68
Dept.
68
Date:
3-5-25
Case:
23STCV24250
Trial
Date: Not Set
DEMURRER TO THE SECOND COMPLAINT
MOVING
PARTY: Defendant, Allianz Life Insurance Company of North America
RESPONDING
PARTY: Plaintiffs, Layne Kramer, et al.
RELIEF
REQUESTED
Demurrer
to the Second Amended Complaint
·
1st
Cause of Action: Financial Elder Abuse
·
2nd
Cause of Action: Breach of Fiduciary Duty
·
3rd
Cause of Action: Professional Negligence
SUMMARY
OF ACTION
On
an unspecified date, but sometime after November 2012 and presumably before
November 2018, plaintiffs Layne Kramer, et al. invested in two annuity
contracts provided by defendant Allianz Life Insurance Company of North
America. The annuities were acquired with inheritance money following the
passing of Layne Kramer’s father. Layne sought a source of income for the care
of her elderly, ill mother. The transaction was arranged/brokered by insurance
agent defendant David Neuman.
Again,
presumably following the purchase of the annuities, Neuman was convicted on one
count of felony embezzlement, and his insurance license revoked on November 13,
2018. A new agent was assigned by Allianz to Plaintiffs’ account. Notwithstanding
the termination of any relationship between Neuman and Allianz, Neuman, as a
continuing authorized agent on the account, was subsequently able to arrange
for the disbursement of $330,000 from the annuities for personal use. Plaintiffs
allege Allianz neither informed Plaintiffs of the prior conviction and loss of
license by Neuman, nor properly inquired on the requested disbursements by
Neuman.
On
October 4, 2023, Plaintiffs filed their complaint for Financial Elder Abuse,
Breach of Fiduciary Duty, Professional Negligence, and Receipt and Possession
of Stolen Property (David Neuman only named defendant in this cause of action).
David Neuman answered on December 12, 2023.
On
March 11, 2024, the court sustained the demurrer to the second and third causes
of action for Breach of Fiduciary Duty and Negligence with leave to amend. The
court also granted the motion to strike paragraph 49 of the complaint and
denied the remainder of the motion.
On
April 10, 2024, Plaintiff filed a first amended complaint for Cal. Financial
Elder Abuse, Breach of Fiduciary Duty, Professional Negligence, and Receipt And
Possession Of Stolen Property. On April 22, 22, 204, Defendant David Neuman
answered the first amended complaint.
On
September 26, 2024, the court sustained the demurrer of Allianz Life Insurance
Company with 20 days leave to amend as to the second and third causes of action
for Breach of Fiduciary Duty and Professional Negligence. On October 16, 2024,
Plaintiff filed the second amended complaint for Financial Elder Abuse, Breach
of Fiduciary Duty, Professional Negligence, and Receipt and Possession of
Stolen Property. The court also granted the motion to strike paragraph 54 of
the first amended complaint. On November 12, 2024, Neuman answered the second
amended complaint.
RULING: Sustained with
Leave to Amend in Part/Overruled in Part.
Defendant
Allianz Life Insurance Company of North America (Allianz) brings the subject
demurer to the first, second and third causes of action in the second amended complaint
for Financial Elder Abuse, Breach of Fiduciary Duty and Professional Negligence.
Allianz submits the demurrer on grounds of uncertainty as to the elder abuse
and negligence claims; Allianz, as an insurer owed no fiduciary duty or
professional duty of care to its insureds; denial of any of an agency
relationship between the insurer and Neuman based on the role of an insurance
annuity issuer; and, the negligence cause of action is barred under the statute
of limitations. Plaintiffs, Layne Kramer, Kramer Family Irrevocable Grant Trust
by trustee Layne Kramer (Kramer) in opposition contends the operative complaint
alleges a relationship beyond a conventional insurer based on the undertaking
of additional fiduciary and professional duties in holding itself out as
financial and estate planning professionals. Plaintiffs rely on imputed
liability through the acts of its agent, Neuman, as well as a failure to
protect Plaintiffs from potential harm by Neuman following cessation of the
relationship with Allianz. Plaintiffs cite to new allegations in the operative
complaint alleging agency through representation regarding the provision of
“financial professional” services. Plaintiffs maintain a duty of care existed
based on purported “adverse party admission” regarding the responsibility to
review “suspicious” transactions as a basis of liability for all three
challenged causes of action. Allianz in reply challenges the legal standard
relied upon by Plaintiffs, reiterates the lack of any legal basis of duty, and concludes
with denial of any basis of professional negligence and the statute of
limitations bar as to any negligence claim.
A
demurrer is an objection to a pleading, the grounds for which are apparent from
either the face of the complaint or a matter of which the court may take
judicial notice. (Code Civ. Proc., § 430.30, subd. (a); see also Blank v. Kirwan (1985) 39 Cal.3d 311,
318.) The purpose of a demurrer is to challenge the sufficiency of a pleading
“by raising questions of law.” (Postley
v. Harvey (1984) 153 Cal.App.3d 280, 286.) “In the construction of a
pleading, for the purpose of determining its effect, its allegations must be
liberally construed, with a view to substantial justice between the parties.”
(Code Civ. Proc., § 452.) The court “ ‘ “treat[s] the demurrer as admitting all
material facts properly pleaded, but not contentions, deductions or conclusions
of fact or law . . . .” ’ ” (Berkley v.
Dowds (2007) 152 Cal.App.4th 518, 525.) In applying these standards, the
court liberally construes the complaint to determine whether a cause of action
has been stated. (Picton v. Anderson Union High School Dist. (1996) 50 Cal.App.4th
726, 733.)
“A demurrer for uncertainty is strictly
construed, even where a complaint is in some respects uncertain, because
ambiguities can be clarified under modern discovery procedures.” (Khoury v. Maly's of California, Inc. (1993)
14 Cal.App.4th 612, 616; Williams v.
Beechnut Nutrition Corp. (1986) 185 Cal.App.3d 135, 139 [“[U]nder our liberal pleading rules, where the
complaint contains substantive factual allegations sufficiently apprising
defendant of the issues it is being asked to meet, a demurrer for uncertainty
should be overruled or plaintiff given leave to amend.]
Allianz carefully notes that it also brings the
demurrer to the first cause of action, due to the omission of paragraph 54 in
the second amended complaint and no alleged replacement of factual allegations
supporting financial elder abuse as previously determined in the motions to
strike said paragraph in the complaint and first amended complaint. The subject
paragraph was only struck in the last two motions to strike, but a demurrer was
never brought as to elder abuse claim itself. The court accepts the new
challenge in order to address and determine whether the omission of paragraph
54 and new introductory paragraphs in fact so alter the scope of the first
cause of action, as to constitute an effectively stated new cause of action for
purposes of considering a demurrer. (Code Civ. Proc. 430.41, subd. (b).)
1st
Cause of Action, Financial Elder Abuse: Sustained with Leave to Amend.
Allianz challenges the financial abuse cause of action
following the omission of paragraph 54 from the first amended complaint, and a
represented insufficient replacement of factual allegations. Plaintiffs recite
the agent relationship and failure to protect after the cessation of the
relationship with Neuman. Allianz in reply emphasizes the voluntary designation
of Neuman as a trustee, thereby allowing Neuman to engage in transfers of
property and insulating Allianz.
Welfare and Institutions Code section 15610.30 defines
financial abuse.
(a) “Financial abuse” of an elder or dependent adult occurs
when a person or entity does any of the following: (1) Takes, secretes,
appropriates, obtains, or retains real or personal property of an elder or
dependent adult for a wrongful use or with intent to defraud, or both.
(2) Assists in taking, secreting, appropriating, obtaining,
or retaining real or personal property of an elder or dependent adult for a
wrongful use or with intent to defraud, or both.
(3) Takes, secretes, appropriates, obtains, or retains, or
assists in taking, secreting, appropriating, obtaining, or retaining, real or
personal property of an elder or dependent adult by undue influence as defined
in Section 15610.70.
(b) A person or entity shall be deemed to have taken,
secreted, appropriated, obtained, or retained property for a wrongful use if,
among other things, the person or entity takes, secretes, appropriates,
obtains, or retains the property and the person or entity knew or should have
known that this conduct is likely to be harmful to the elder or dependent
adult.
(c) For purposes of this section, a person or entity takes,
secretes, appropriates, obtains, or retains real or personal property when an
elder or dependent adult is deprived of any property right, including by means
of an agreement, donative transfer, or testamentary bequest, regardless of
whether the property is held directly or by a representative of an elder or
dependent adult.
(c) For purposes of this section, a person or entity takes,
secretes, appropriates, obtains, or retains real or personal property when an
elder or dependent adult is deprived of any property right, including by means
of an agreement, donative transfer, or testamentary bequest, regardless of
whether the property is held directly or by a representative of an elder or
dependent adult.
(d) For purposes of this section, “representative” means a
person or entity that is either of the following: (1) A conservator, trustee,
or other representative of the estate of an elder or dependent adult.
(2) An attorney-in-fact of an elder or dependent adult who
acts within the authority of the power of attorney.
Paragraph 54 of the first amended complaint stated: “Allianz
took and obtained Kramer’s funds for a wrongful use and/or was assisting Neuman
in the taking and retaining of Kramer’s personal property for a wrongful use,
when Allianz engaged in the following actions, among others: (i) approved
Neuman’s change of mailing address of Kramer’s Trust to Neuman’s own home
address without Kramer’s knowledge and/or consent, (ii) disbursed Kramer’s
funds to Neuman when it knew or should have known that Neuman was the writing
agent, had his license revoked for abusing seniors, and was a convicted felon;
and (iii) failed to follow standard KBA protocol to verify that the customer
desired the disbursement and that the customer was not the victim of fraud or
identity theft.”
The court
granted the motion to strike on ground that the subject paragraph again fell
outside the scope of recovery for financial elder abuse. The subject cause of
action in the second amended complaint now alleges a series of conclusive
citations consisting of code sections and statements of elder abuse based on
age and “financial unsophistication.” Plaintiff in opposition cites to failure
to warn sections in both the introductory paragraphs and beyond the actually
pled allegations for the subject cause of action in the later pled fiduciary
duty and negligence causes of action.
Allianz
correctly notes that all wrongful conduct occurred as a result of the
embezzlement by Neuman, and Allianz is not otherwise alleged as an active
principal. It remains unclear whether Plaintiffs somehow seek to allege an
“assist” allegation as any such potential allegation remains unarticulated.
Allianz raises this issue in the demurrer, but Plaintiff offers no apparent
response in opposition. The court finds the conclusive nature of the cause of
action renders any such potential position lacking. Elder abuse is an
intentional tort. The court otherwise declines to make any argument for
Plaintiffs regarding a potential applicable negligence standard simply based on
a failure to protect. As this is the first time Allianz elected to present a
demurrer to the subject cause of action, AND the court agreed to consider the
demurrer, the court is left with no choice but to sustain the demurrer to this
cause of action with leave to amend.
2nd
Cause of Action, Breach of Fiduciary Duty: Overruled.
To plead a cause of action for breach of fiduciary duty, a
plaintiff must allege facts showing the existence of a fiduciary duty owed to
that plaintiff, a breach of that duty and resulting damage. (Pellegrini v. Weiss (2008) 165
Cal.App.4th 515, 524.) A fiduciary duty is founded upon a special relationship
imposed by law or under circumstances in which “confidence is reposed by
persons in the integrity of others” who voluntarily accept the confidence. (Tri-Growth Centre City, Ltd. v. Silldorf,
Burdman, Duignan & Eisenberg (1989) 216 Cal.App.3d 1139, 1150; City of Hope National Medical Center v. Genentech, Inc. (2008) 43 Cal.4th 375, 386.) “A fiduciary or
confidential relationship can arise when confidence is reposed by persons in
the integrity of others, and if the latter voluntarily accepts or assumes to
accept the confidence, he or she may not act so as to take advantage of the
other's interest without that person's knowledge or consent.” (Pierce v. Lyman (1991) 1 Cal.App.4th
1093, 1101–02.)
Four factors potentially impose a
fiduciary duty: “(1) one party entrusts its affairs, interests or property to
another; (2) there is a grant of broad discretion to another, generally because
of a disparity in expertise or knowledge; (3) the two parties have an
“asymmetrical access to information,” meaning one party has little ability to
monitor the other and must rely on the truth of the other party's
representations; and (4) one party is vulnerable and dependent upon the other.”
(City of Hope National Medical Center v.
Genentech, Inc. (2008) 43 Cal.4th 375, 387–388.)
One of the four factors is not determinative of a fiduciary relationship, but
even the extince of all four factors in no way leads to a required finding of a
fiduciary relationship. (Id. at 388.) Contractual relationships are among the
situations where a Plaintiff may allege the elements, but the pre-existing
contractual relationship in no way additionally supports the existence of
fiduciary duty. (Id. at pp. 388-389.)
Additionally, in the insurance coverage context, “[a]n insurer is not a fiduciary, and owes no obligation to
consider the interests of its insured above its own.” (Morris v. Paul Revere Life Ins. Co. (2003) 109 Cal.App.4th 966, 973; Village Northridge Homeowners Assn. v. State Farm Fire &
Casualty Co. (2010) 50 Cal.4th 913, 929; Vu
v. Prudential Property & Casualty Ins. Co. (2001) 26 Cal.4th 1142,
1150–1151 [“The insurer-insured relationship, however, is not a true ‘fiduciary
relationship’ in the same sense as the relationship between trustee and
beneficiary, or attorney and client”]; Tran v. Farmers Group, Inc.
(2002) 104 Cal.App.4th 1202, 1211 [“California courts have refrained from
characterizing the insurer-insured relationship as a fiduciary one].)
“But, although an annuity contract
is not a life insurance contract it is equally clear that the sale of annuity
contracts in California is part of the business done by insurance companies. In
fact, only insurance companies may engage in the sale of annuities in this
state. As early as 1913 the attorney general of this state ruled that in order
to qualify for the purpose of selling annuities, a company had to qualify as an
insurance company. ... ‘Life insurance business, including endowments and
annuities” ... has remained in the law since 1907. ... This statutory
classification makes it clear that in this state the selling of annuities is
part of the ‘business done in this state’ by life insurance companies ... (Equitable
Life Assur. Soc. of U.S. v. Johnson (1942) 53 Cal.App.2d 49, 57.)
Consistent with the prior order, whether
an insurance policy or annuity, the court finds no basis of a fiduciary duty simply
based on the purchase of the annuity. The contractual relationship established
through the annuities insufficiently establishes such a basis. (Wolf v. Superior Court (2003)
107 Cal.App.4th 25, 30-31; Negrete v. Fidelity and Guar. Life Ins. Co.
(C.D. Cal. 2006) 444 F.Supp.2d 998, 1003 [“Ninth Circuit courts, construing California law, hold that
while the insurer-insured relationship is fiduciary in nature, it does not
provide for an independent action for common law breach of fiduciary”]; Estate of Migliaccio v. Midland Nat'l. Life Ins. Co. (C.D. Cal. 2006) 436 F.Supp.2d 1095, 1106-1108.)
The court considers the
alternative basis of imposing duty relied upon by Plaintiff through agency and
alleged representations of accepting responsibility as “professional” purveyor
of “financial and estate planning services,” and undertaking management and
control of over said annuities. [Sec. Amend. Comp., ¶¶ 2, 4, 7.] Said duties
included a duty to “enhance” or place “heightened supervision” on said account
following the disassociation of Neuman from Allianz, yet continued activity
occurring on the account. [Sec. Amend. Comp., ¶¶ 12-14, 42-48, 54-56, 72.]
The court again finds that while
an agreement for the actual provision of financial services by law imposes a
fiduciary duty, alleged assurances of quality financial management still only
amount to the purchase of two insurance company annuity products. After three
attempts, the court again finds such assurances fail to rise to the level
financial planner, thereby imposing a fiduciary duty as a matter of law. The
purchase of the annuities still constitutes a contractual purchase without any
additionally imposed duties. (Hasso v. Hapke (2014) 227 Cal.App.4th 107, 140; Wolf v. Superior Court,
supra, 107 Cal.App.4th at pp. 30-31; Michelson
v. Hamada (1994) 29 Cal.App.4th 1566, 1575-1576;
see Worldvision Enterprises, Inc.
v. American Broadcasting Companies, Inc.
(1983) 142 Cal.App.3d 589, 595.)
Plaintiff however now better
distinguishes the specific differences between the contractual based annuity
defense relied upon by Allianz, and the vicarious liability-based claim. The
court previously found the agency allegations wonting due to the lack of facts alleging
Neuman’s transfer of funds to personal accounts after disciplinary action
post-severance with the Allianz company. The temporal gap rendered the prior
complaint uncertain. Plaintiff now makes clearer the intent to allege the
imposition of a fiduciary duty against Allianz to safeguard against potential
wrongful conduct by a former agent. The duty arises from at least constructive knowledge
of criminal and administrative punitive action against said agent for
embezzlement of client funds (though it’s not clear as to whether any victims
were Allianz clients or with other insurers, brokerages, financial planners,
etc.).
Allianz lacks specific address of
this exact claim, and instead relies on a defense that the criminal conduct of
Neuman constituted action outside the scope of agency. (Peredia v. HR Mobile Services, Inc. (2018) 25 Cal.App.5th 680, 691.) Allianz position relies
on Civil Code section 2343: “One who assumes to act as an agent is responsible
to third persons as a principal for his acts in the course of his agency, in
any of the following cases, and in no others: 1. When, with his consent, credit
is given to him personally in a transaction; 2. When he enters into a written
contract in the name of his principal, without believing, in good faith, that
he has authority to do so; or, 3. When his acts are wrongful in their nature.”
(Civ. Code, § 2343.) The statute appears to apply to liability against Neuman yet
fails to illuminate the claim of agency based on the conduct of Neuman as an
agent servicing the annuity contracts issued by principal Allianz.
The court finds the position
insufficiently addresses the nature of the specific basis for vicarious
liability: the alleged lapse in safety protocols protecting clients from
potential agents engaging in criminal embezzlement upon notice of prior
unlawful actions. While the purchase of the contracts themselves remain
insulated actions, the court finds the access and ability to exercise control
over the disposition of disbursements based on information provided by
Plaintiff in engaging into some form of financial management relationship with
Allianz through its agent, Neuman, imposed a fiduciary duty of care on the
company. “[A] fiduciary duty may exist, even in the absence of a traditional
fiduciary relationship. But as the investors themselves observe ... ‘[t]he key factor in the
existence of a fiduciary relationship lies in control by a person over the
property of another.’” (Apollo Capital Fund, LLC v.
Roth Capital Partners, LLC (2007) 158 Cal.App.4th 226, 245–246.) Allianz exercised a
certain level of control over the funds. Whether Allianz simply followed
instructions as presented in the trust documents or not constitutes a position
beyond the scope of the pleadings at this stage of consideration.
For purposes of the demurrer, the
second amended complaint sufficiently articulates a basis of a fiduciary duty through
the provision of “financial services," such as the management of annuity
disbursements. The alleged breach occurred based on the failure to protect
Plaintiff from the alleged criminally rogue actions of Neuman following at a
minimum constructive notice of termination of insurance brokerage licenses,
criminal conviction, and actual cessation of the relationship with Allianz. The
court will neither parse out allegations nor make further factual
determinations as to granular differences in annuity disbursement management.
The demurrer to the subject cause of action is OVERRULED.
3rd Cause of Action, Professional Negligence:
Overruled.
Allianz challenges the subject claim on the failure
to allege a claim separate and independent from the breach of contract claim,
and limitation of claims to insurance based as to insurance companies. Plaintiff
again relies on the principal agent basis of liability for establishment of a
basis of imposed duty.
“To state a cause of action for professional
negligence, a party must show ‘(1) the duty of the professional to use such
skill, prudence and diligence as other members of the profession commonly
possess and exercise; (2) breach of that duty; (3) a causal connection between
the negligent conduct and the resulting injury; and (4) actual loss or damage
resulting from the professional negligence.’” (Giacometti v. Aulla, LLC
(2010) 187 Cal.App.4th 1133, 1137.) The operative complaint alleges the
elements of the claim. [Comp., ¶¶ 70-73.]
The court accepts the general proposition regarding
contractual and bad faith requirements against insurance companies. (New
Plumbing Contractors, Inc. v. Nationwide Mutual Ins. Co. (1992) 7
Cal.App.4th 1088, 1096). The court will not otherwise rely on or cite
unpublished authority presented. The argument regarding contractual
limitations, while legally correct, assumes an agreement for benefits under an
insurance contract. Nothing in the operative complaint alleges an agreement for
insurance, an agreement for brokerage services, or even a breach of the two
annuity agreements.
The court agrees that the allegation regarding the “sale”
of the “trust” as some form of financial product constitutes an arguably
superfluous or conflating statement. Still, the court assumes an apparent
intent that the trust was recommended as part of the financial services package
offered and provided by Neuman, and the annuities were presumably purchased for
placement into the trust. The existence of the trust with Neuman’s access
provides the means for Neuman’s wrongful course of conduct. The court therefore
finds challenge based on recovery within the contract inapposite for purposes
of ruling on the demurrer.
As
addressed in the breach of fiduciary claim, the court finds the facts
establishing the fiduciary duty undertaken duty to protect Plaintiff from
conduct of a former agent no longer associated with the insurer supports
negligence as well. The court again declines to consider any potential factual
nuances beyond the scope of the demurrer.
On the statute
of limitations, Allianz’s two paragraph argument relies on the allegations of
the underlying transaction occurring on May 21, 2020, and January 22, 2021, with
notation of the lawsuit filing date on October 4, 2023. Plaintiff maintains
Allianz insufficiently establishes any accrual date simply based on the
transaction dates. Allianz in reply contend Plaintiff has the burden to
establish a timely filed complaint.
The court
declines to substantively address the positions regarding the burden of either
the plaintiff or challenging party in demurrer to establish a timely filed
complaint. The burden falls on the challenging party.
Within
two years: 1. An action upon a contract, obligation or liability not founded
upon an instrument of writing, except as provided in Section 2725 of the
Commercial Code or subdivision 2 of Section 337 of this code; or an action
founded upon a contract, obligation or liability, evidenced by a certificate,
or abstract or guaranty of title of real property, or by a policy of title
insurance; provided, that the cause of action upon a contract, obligation or
liability evidenced by a certificate, or abstract or guaranty of title of real
property or policy of title insurance shall not be deemed to have accrued until
the discovery of the loss or damage suffered by the aggrieved party thereunder.
2. An
action against a sheriff or coroner upon a liability incurred by the doing of an act
in an official capacity and in virtue of office, or by the omission of an
official duty including the nonpayment of money collected in the enforcement of
a judgment.
3. An
action based upon the rescission of a contract not in writing. The time begins
to run from the date upon which the facts that entitle the aggrieved party to
rescind occurred. Where the ground for rescission is fraud or mistake, the time
does not begin to run until the discovery by the aggrieved party of the facts
constituting the fraud or mistake.
Code Civ.
Proc., § 339
The
demurrer and reply lack specific address of the basis for the application of
the two-year written contract statute of limitations for a professional
negligence cause of action. Again, nothing in the operative complaint appears
to raise a claim under the annuity contracts themselves. The court also
declines to find a contractual based claim of liability to fit the mold
presented by Allianz. “‘It has been well
established in this state that if the cause of action arises from a breach of a
promise set forth in the contract, the action
is ex contractu but if it arises from a breach of duty growing
out of the contract it is ex delicto. [Citations.]’” (Wentland v. Wass (2005) 126
Cal.App.4th 1484, 1495; (Erlich v.
Menezes (1999) 21 Cal.4th 543, 551 [“conduct
amounting to a breach of contract becomes tortious only when it also violates a
duty independent of the contract arising from principles of tort law”]; Stop Loss Ins. Brokers, Inc. v. Brown &
Toland Medical Group (2006) 143 Cal.App.4th 1036, 1057–1058.). The rule also finds support in the economic loss
rule. (Sheen v. Wells Fargo Bank, N.A. (2022)
12 Cal.5th 905, 922 [“the rule functions to bar
claims in negligence for pure economic losses in deference to a contract
between litigating parties].)
It
otherwise remains unclear whether Plaintiff is also perhaps seeking to
establish a delayed discovery accrual, but again, the court will not elaborate
on unmade arguments regarding potential bases of accrual or the proper statute
of limitations. The demurrer is OVERRULED as to this cause of action.
In summary, the demurrer is sustained with 10 days leave to amend
as to the elder abuse cause of action, and overruled as to the breach of
fiduciary duty and negligence causes of action. Plaintiff may not add any new
causes of action without leave of court. (Harris v. Wachovia Mortgage, FSB (2010)
185 Cal.App.4th 1018, 1023.) Material changes to the operative complaint
seeking to alter or omit the material terms or dates may also be subject to a
demurrer under the sham pleading standard. Given the case presents the first
review of the elder abuse claim, the court declines to consider Plaintiffs’
potential inability to factually present a claim without omitting or altering
certain key facts. (See Code Civ. Proc., § 430.41, subd. (e)(1); Youngman v.
Nevada Irr. Dist. (1969) 70 Cal.2d 240, 245.)
“In response to a demurrer and prior to the case being at
issue, a complaint or cross-complaint shall not be amended more than three
times, absent an offer to the trial court as to such additional facts to be
pleaded that there is a reasonable possibility the defect can be cured to state
a cause of action. The three-amendment limit shall not include an amendment
made without leave of the court pursuant to Section 472, provided the amendment
is made before a demurrer to the original complaint or cross-complaint is
filed.” (Code Civ. Proc., § 430.41, subd. (e)(1), see Code Civ. Proc., § 435.5,
subd. (e)(1).)
If Plaintiff elects to forego filing a third amended
complaint, Allianz shall answer the remaining causes of action in the operative
complaint within 10 days of the lapse of the amendment deadline. Allianz may
only bring a demurrer to the elder abuse action, if applicable.
Allianz to give notice.