Judge: Teresa A. Beaudet, Case: 23STCV16284, Date: 2023-11-15 Tentative Ruling
Case Number: 23STCV16284 Hearing Date: March 8, 2024 Dept: 50
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LAWRENCE VALLELY, et al. Plaintiffs, vs. EQUITY RESIDENTIAL
MANAGEMENT, LLC, et al. Defendants. |
Case No.: |
23STCV16284 |
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Hearing Date: |
March 8, 2024 |
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Hearing
Time: 2:00 p.m. [TENTATIVE]
ORDER RE: DEFENDANT
TRANSUNION RENTAL SCREENING SOLUTIONS, INC.’S DEMURRER TO THE SECOND CAUSE OF
ACTION IN PLAINTIFFS’ FIRST AMENDED COMPLAINT; DEFENDANT EQUITY
RESIDENTIAL MANAGEMENT, L.L.C.’S: DEMURRER TO PLAINTIFFS’ FIRST AMENDED
COMPLAINT; DEFENDANT EQUITY
RESIDENTIAL MANAGEMENT, L.L.C.’S MOTION TO STRIKE PORTIONS OF PLAINTIFFS’
FIRST AMENDED COMPLAINT |
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Background
Plaintiffs Lawrence
Vallely, Therese Vallely, Mary Bestwick, Nilan Gunewardena, Jessica Millan, Lubna Ibrahim, Taurell Lebeau,
Julian Payton, David Ross, Hothyfa James Museitif, Giancarlo Samson, Curtis Saulnier, Suraj Sundar,
Michael Capovilla, Lucia Senzatimore, Dustin Clark, Natalia Nowicka, Michael Samu, and Majan
Zaldana filed this action on July 12, 2023 against Defendant Equity Residential
Management, LLC (“Equity”). The original Complaint alleged causes of action for
(1) violations of the Investigative Consumer Reporting Agencies Act
(“ICRAA”), (2) invasion of privacy, and (3) declaratory relief.
On July 20, 2023, Plaintiffs filed an amendment to the Complaint
naming Transunion Rental
Screening Solutions, Inc.
(“TURSS”) in place of Doe 1.
TURSS demurred to each
of the causes of action of the Complaint and moved to strike portions of the
Complaint. On October 9, 2023, the Court issued an order sustaining
TURSS’s demurrer to the second cause of action of the Complaint, with leave to
amend. The Court overruled TURSS’s demurrer to the first and third causes of
action of the Complaint. (See October 9, 2023 Minute Order, p. 9.) The Court
granted TURSS’s motion to strike as to paragraph 61 of the Complaint, with
leave to amend. (Ibid.) TURSS’s motion to strike was otherwise denied. (Ibid.)
On October 26, 2023, Lawrence
Vallely, Therese Vallely, Mary Bestwick, Nilan Gunewardena, Jessica Millan, Lubna Ibrahim, Taurell Lebeau,
Julian Payton, David Ross, Hothyfa James Museitif, Giancarlo Samson, Curtis Saulnier, Suraj Sundar,
Michael Capovilla, Lucia Senzatimore, Dustin Clark, Natalia Nowicka, Michael Samu, and Majan
Zaldana filed the operative First Amended Complaint (“FAC”), alleging
causes of action for (1) violations
of the ICRAA, (2) invasion of privacy, and (3) declaratory relief.
On January 8, 2024, plaintiffs filed a request for dismissal of Mary
Bestwick, Lubna Ibrahim, Natalia Nowicka, Julian Payton, David Ross, Curtis
Saulnier, Suraj Sundar, and Lawrence Vallely. Dismissal was entered on January
12, 2024. In addition, on February 16, 2024, plaintiffs filed a request for
dismissal of Dustin Clark, Hothyfa James Museitif, and Therese Vallely. Dismissal
was entered on February 16, 2024.
TURSS now demurs to the
second cause of action of the FAC. The remaining plaintiffs Nilan
Gunewardena, Jessica Millan, Taurell Lebeau, Giancarlo Samson, Michael
Capovilla, Lucia Senzatimore, Michael Samu, and Majan Zaldana (collectively,
“Plaintiffs”) oppose.
In addition, Equity now
demurs to the second and third causes of action of the FAC and moves to strike
portions of the FAC. Plaintiffs oppose both.[1]
Request for Judicial Notice
The
Court grants Plaintiffs’ request for judicial notice in support of Plaintiff’s
opposition to TURSS’s demurrer, only as to the fact of the filing of the
complaints attached as Exhibits 1 and 2 to the request. The Court notes that “[i]t is well settled that a court cannot
take judicial notice of the truth of matters stated in pleadings or affidavits
in the court file of another case, although it can be noticed that the
documents exist.
Judicial notice can be taken only of the contents of orders, findings of fact,
conclusions of law, and judgments.” (Bennett v. Regents of
University of California (2005) 133 Cal.App.4th 347, 358, fn. 7
[emphasis in original].)
Allegations of the FAC
In the FAC, Plaintiffs allege that “[i]n the past two years, and
within the applicable statute of limitations, Plaintiffs applied for housing at
Jia Apartments, Pegasus Apartments, Park West Apartments, Academy Village
Apartments, Versailles Apartments, Mariposa at Playa Del Rey Apartments, Kelvin
Court Apartments, Market Street Village Apartments and City Pointe Apartments.
Plaintiffs completed a mandatory multi-page ‘Application,’ which included a
release of information permitting the Defendants to get private and personal
information from third parties about the Plaintiffs.” (FAC, ¶ 32.)
“Equity Residential then requested and obtained investigative consumer
reports from TransUnion Rental Screening about the Plaintiffs, which were
furnished during the processing of the Plaintiffs’ applications for an
apartment home at Jia Apartments, Pegasus Apartments, Park West Apartments,
Academy Village Apartments, Versailles Apartments, Mariposa at Playa Del Rey
Apartments, Kelvin Court Apartments, Market Street Village Apartments and City
Pointe Apartments.” (FAC, ¶ 33.) Plaintiffs allege that “Equity Residential
failed to comply with the mandatory requirements, disclosures and
authorizations required under the ICRAA,” and that “TransUnion Rental Screening
furnished reports in violation of ICRAA.” (FAC, ¶ 33.)
Plaintiffs further allege that “Equity Residential concealed from
Plaintiffs the nature and type of the investigative consumer reports they would
procure about the Plaintiffs, the date the reports would be procured, the
entity or entities which would provide the reports (including from
TransUnion
Rental Screening), and Plaintiffs’ rights regarding investigative consumer
reports.” (FAC, ¶ 41.)
TURSS’S Demurrer
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.) For the purpose of testing the
sufficiency of the cause of action, the demurrer admits the truth of all material facts properly pleaded. ((Aubry v. Tri-City Hospital Dist. (1992) 2 Cal.4th 962, 966-967.) A demurrer “does not admit contentions, deductions or conclusions
of fact or law.” ((Daar v. Yellow Cab Co. (1967) 67 Cal.2d 695, 713.)
B. Second Cause of
Action – Invasion of Privacy
In
the second cause of action for invasion of privacy, Plaintiffs allege that “[t]he
conduct of Defendants in requesting, preparing, furnishing, and receiving
reports on Plaintiffs’ character, general reputation, personal characteristics,
or mode of living, in contrivance of the protections enshrined in the ICRAA,
constituted a serious invasion of Plaintiffs’ privacy.” (FAC, ¶ 79.) Plaintiffs
allege that “[b]y acting and failing to act as herein alleged, the Defendants
have violated the ICRAA and invaded the Plaintiffs’ rights of privacy by
obtaining investigative consumer reports about the Plaintiffs without complying
with mandatory requirements under the ICAA for getting investigative reports
about the Plaintiffs.” (FAC, ¶ 81.)
“The elements of a cause of action for violation
of the California Constitution’s guaranteed right to privacy are (1) a legally
protected privacy interest; (2) a reasonable expectation of privacy in the
circumstances; and (3) conduct by defendant constituting a serious invasion of
privacy.” (Folgelstrom v. Lamps Plus, Inc. (2011) 195 Cal.App.4th 986, 990, citing
Hill v. National Collegiate Athletic Assn. (1994) 7 Cal.4th 1, 39-40
[internal quotations omitted].)
TURSS
asserts that “Plaintiffs’ factual allegations do not adequately
establish the existence of a reasonable expectation of privacy, and Plaintiffs
could not have reasonably possessed such an expectation.” (Demurrer at p. 3:15-16.) TURSS notes that the FAC
alleges that “Plaintiffs completed the required ‘Application’
that included a consent to release of information and submitted it to Equity
Residential.” (FAC, ¶ 36.) As noted by TURSS, the FAC further alleges that “Plaintiffs are informed and believe that
in rental housing applications, criminal background and previous eviction
backgrounds checks are normally done by requesting and obtaining investigative
consumer reports conveying information regarding the applicant’s character,
general reputation, personal characteristics, and mode of living.” (FAC, ¶ 35.)
TURSS asserts that “[a]fter acknowledging that such investigations are
commonplace under these exact circumstances, and also consenting to the release
of information, Plaintiffs cannot then allege that they had a reasonable
expectation of privacy or that their privacy was invaded when the information
was revealed to Equity.” (Demurrer at pp. 3:28-4:3.)
In the opposition, Plaintiffs assert that “TransUnion diverts the
Court’s attention towards common law standards for invasion of privacy, while
ignoring the fact that in certain circumstances, statutes may form the basis
for recognizing a plaintiff’s reasonable expectation of privacy, such as the
ICRAA…” (Opp’n at p 4:1-4.) Plaintiffs
cite to Civil Code section 1786.52, which provides, inter alia, that “[n]othing in this chapter
shall in any way affect the right of any consumer to maintain an action against
an investigative consumer reporting agency, a user of an investigative consumer
report, or an informant for invasion of privacy or defamation.” But as discussed in the Court’s October 9, 2023
Minute Order on TURSS’s
demurrer to the original Complaint, this
statute does not demonstrate that the above-referenced elements of a cause of
action for violation of the right to privacy do not apply. Civil Code
section 1786.52 simply
states that a consumer may “maintain an action against an investigative
consumer reporting agency, a user of an investigative consumer report, or an
informant for invasion of privacy or defamation.”
Plaintiffs
further ague that “Plaintiffs have a reasonable expectation of privacy
in the reports about them and a reasonable expectation that such reports will
not be obtained without complying with the ICRAA.” (Opp’n at p. 4:12-14.) But
Plaintiffs do not address TURSS’s
point that Plaintiffs allege in the FAC that “Plaintiffs completed the
required ‘Application’ that included a consent to release of information and
submitted it to Equity Residential.” (FAC, ¶ 36.)
Plaintiffs also do not appear to address their allegation that “Plaintiffs
are informed and believe that in rental housing applications, criminal
background and previous eviction backgrounds checks are normally done by
requesting and obtaining investigative consumer reports conveying information
regarding the applicant’s character, general reputation, personal
characteristics, and mode of living.” (FAC, ¶ 35.) The
Court agrees with TURSS
that in light of these allegations, Plaintiffs do not allege “a reasonable expectation of privacy…” ((Sheehan v. San
Francisco 49ers, Ltd. (2009) 45
Cal.4th 992, 1000.) In Sheehan v. San
Francisco 49ers, Ltd., supra,
45 Cal.4th at page 1000, cited by TURSS, the California Supreme Court noted that “in order to establish a reasonable expectation of privacy,
the plaintiff must have conducted himself or herself in a manner consistent
with an actual expectation of privacy, i.e., he or she must not have manifested
by his or her conduct a voluntary consent to the invasive actions of
defendant. If voluntary consent is
present, a defendant’s conduct will rarely be deemed highly offensive to a
reasonable person so as to justify tort liability.” (Internal quotations
omitted.)
Based on
the foregoing, the Court sustains TURSS’s
demurrer to the second cause of action, without leave to amend. As set forth
above, the Court sustained TURSS’s demurrer to the cause of action for invasion
of privacy in the original Complaint. In addition, Plaintiff has not
proffered any
basis for any amendment to cure the foregoing deficiencies. ¿
Equity’s Demurrer
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, supra,
39 Cal.3d at p. 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., supra, 53 Cal.4th at p. 872.) For the purpose of testing the
sufficiency of the cause of action, the demurrer admits the truth of all material facts properly pleaded. (Aubry
v. Tri-City Hospital Dist., supra, 2 Cal.4th at pp. 966-967.) A demurrer “does not admit contentions, deductions or conclusions
of fact or law.” (Daar v. Yellow Cab Co., supra, 67 Cal.2d at p. 713.)
B. Second Cause of
Action – Invasion of Privacy
As set forth above, “[t]he elements of a cause of action for violation of
the California Constitution’s guaranteed right to privacy are (1) a legally
protected privacy interest; (2) a reasonable expectation of privacy in the
circumstances; and (3) conduct by defendant constituting a serious invasion of
privacy.” (Folgelstrom v. Lamps Plus, Inc., supra, 195 Cal.App.4th at p. 990, citing Hill v.
National Collegiate Athletic Assn. (1994) 7 Cal.4th 1, 39-40 [internal
quotations omitted].)
In the demurrer, Equity
asserts that the second cause of action fails because Plaintiffs “admit
they consented to the release of their information and, therefore, cannot
allege they had a reasonable expectation of privacy that Equity invaded.”
(Demurrer at p. 3:3-5.) Equity notes that the FAC alleges that “Plaintiffs
completed a mandatory multi-page ‘Application,’ which included a release of
information permitting the Defendants to get private and personal information
from third parties about the Plaintiffs.” (FAC, ¶ 32.) As noted by Equity, the
FAC
further
alleges that “Plaintiffs are
informed and believe that in rental housing applications, criminal background
and previous eviction backgrounds checks are normally done by requesting and
obtaining investigative consumer reports conveying information regarding the
applicant’s character, general reputation, personal characteristics, and mode
of living.” (FAC, ¶ 35.) Equity asserts that “[a]fter acknowledging that such
investigations are commonplace under these exact circumstances, and also
consenting to the release of information, Plaintiffs cannot then allege that
they had a reasonable expectation of privacy or that their privacy was invaded
when the information was revealed to Equity.” (Demurrer at pp. 3:27-4:2.)
In the opposition, Plaintiffs assert
that they have sufficiently alleged that they had reasonable expectations of
privacy under the circumstances. Plaintiffs point to their allegations that “Plaintiffs
had a reasonable expectation that Equity Residential would not solicit or
receive information concerning their character, general reputation, personal
characteristics, or mode of living, unless Equity Residential complied with all
governing laws,” and that “Plaintiffs had a reasonable expectation that they
would be protected by the laws governing dissemination of information of a private
nature concerning their character, general reputation, personal
characteristics, or mode of living.” (FAC, ¶¶ 76, 78.) Plaintiffs also point to
the allegation that “Defendants kept Plaintiffs’ private information private
from Plaintiffs, violating the ICRAA and Plaintiffs’ reasonable expectations.”
(FAC, ¶ 82.)
Plaintiffs also contend, without
citing to supporting legal authority, that “Equity argues that Plaintiffs gave
voluntary consent…The voluntariness of consent is dubious when the party of
authority within a power dynamic (i.e. landlord) extracts that consent from the
other party (i.e. tenant) under the guise that everything is on the level –
though it is not.” (Opp’n at p. 5:14-18.) The Court notes that it is unclear
what Plaintiffs mean by “on the level.” (Opp’n at p. 5:18.) Moreover,
Plaintiffs do not point to any allegations in the FAC stating that they did not
voluntarily consent to a release of their information.
As discussed, Plaintiffs allege that “Plaintiffs completed a mandatory
multi-page “Application,” which included a release of information permitting
the Defendants to get private and personal information from third parties about
the Plaintiffs.” (FAC, ¶ 32.) In addition, as set forth above, Plaintiffs
allege that they “completed the required ‘Application’ that included a consent
to release of information and submitted it to Equity Residential.” (FAC, ¶ 36.)
Plaintiffs also allege that “Plaintiffs are informed and believe that in rental
housing applications, criminal background and previous eviction backgrounds
checks are normally done by requesting and obtaining investigative consumer
reports conveying information regarding the applicant’s character, general
reputation, personal characteristics, and mode of living.” (FAC, ¶ 35.)
The Court agrees with Equity that in light of these
allegations, Plaintiffs do not allege “a
reasonable expectation of privacy…” (Sheehan v.
San Francisco 49ers, Ltd., supra, 45 Cal.4th at p. 1000.)
As discussed above, in Sheehan v. San Francisco
49ers, Ltd., supra, 45
Cal.4th at page 1000, also cited by Equity, the California Supreme Court noted that “in order to establish a reasonable expectation of privacy,
the plaintiff must have conducted himself or herself in a manner consistent
with an actual expectation of privacy, i.e., he or she must not have manifested
by his or her conduct a voluntary consent to the invasive actions of
defendant. If voluntary consent is
present, a defendant’s conduct will rarely be deemed highly offensive to a
reasonable person so as to justify tort liability.” (Internal quotations
omitted.)
Based on
the foregoing, the Court sustains Equity’s
demurrer to the second cause of action, without leave to amend. As noted by
Equity, “[d]espite another…opportunity at pleading claims for invasion
of privacy…Plaintiffs fail to allege…facts to support their claims for invasion
of privacy…” (Reply at pp. 4:28-5:2.) As discussed, Equity argues in the
instant demurrer that “Plaintiffs’ invasion of privacy claim fails because
Plaintiffs do not allege that they had a reasonable expectation of privacy…”
(Demurrer at p. 2:12-13.) The issue of Plaintiffs’ alleged reasonable
expectation of privacy was also addressed in the Court’s October 9, 2023 minute
order on TURSS’s demurrer to the original Complaint. (See October 9,
2023 Minute Order.) In addition, in their opposition to Equity’s demurrer, Plaintiffs have not proffered any
basis for any amendment to cure the deficiencies in their second cause of
action.
C. Third Cause of
Action – Declaratory Relief
Equity asserts that the third cause of action for declaratory relief
fails because Plaintiffs have not alleged any actual, present controversy. “A complaint for declaratory relief must
demonstrate: (1) a proper subject of declaratory relief, and (2) an actual
controversy involving justiciable questions relating to the rights or
obligations of a party.” ((Brownfield v. Daniel Freeman
Marina Hospital (1989)
208 Cal.App.3d 405, 410.) “The ‘actual controversy’ requirement concerns the existence
of present controversy relating to
the legal rights and duties of the respective parties pursuant to contract (Code of Civil Procedure section 1060), statute or
order…Where the allegations of the complaint reveal the controversy to be
conjectural, anticipated to occur in the future, or an attempt to obtain an
advisory opinion from the court, the fundamental basis of declaratory relief is
lacking.” (Ibid. [emphasis omitted].)
Equity notes that in the third
cause of action for declaratory relief, Plaintiffs allege, inter alia,
that “Defendants demands [sic] all leases must be renewed or re-certified, and
because the same forms are always used, which authorizes the Defendants to
obtain investigative consumer reports about the Plaintiffs, a judicial
determination is necessary to prevent the Defendants’ continued violations of
the ICRAA.” (FAC, ¶ 84.) Equity asserts that although Plaintiffs allege that
“all leases must be renewed or re-certified,” (FAC, ¶ 84), Plaintiffs do not
allege that they became tenants or have current leases with Equity. As noted by
Equity, Plaintiffs allege that they were “prospective” tenants. (See
FAC, ¶¶ 6-24.) Plaintiffs do not appear to respond to this point in the
opposition.
Equity also argues that “Plaintiffs further reveal their contrived
controversy to be fictional and only hypothetically anticipated to occur in the
future, by explaining that their basis for seeking declaratory relief is to
‘stop further violations of the ICRAA so that these wrongful acts will never
occur again as to the apartment complex.’” (Demurrer at p. 5:20-24, citing FAC,
¶ 85.) However, Plaintiffs also allege in paragraph 85
of the FAC that “[a] dispute and actual controversy have also arisen as to
how to correct and mitigate the damages to Plaintiffs and other similar persons
from Defendants’ illegal actions in violation of the ICRAA statutes…” (FAC, ¶
85.) In addition, Plaintiffs allege that “[a]n actual controversy has arisen
and now exists between Plaintiffs and the Defendants regarding the legality and
effect of the Defendants’ Application, which Plaintiffs contend violates the
ICRAA.” (FAC, ¶ 84.) Equity does not appear to address these allegations in its
demurrer. The
Court notes that “a demurrer
cannot rightfully be sustained to part of a cause of action or to a particular
type of damage or remedy.” ((Kong v. City of
Hawaiian Gardens Redevelopment Agency (2002) 108 Cal.App.4th 1028, 1047); (see also PH II, Inc. v. Superior Court (1995) 33 Cal.App.4th 1680,
1682 [“A demurrer does not lie to a portion of a cause of action.”].)
Based on the foregoing, the Court overrules Equity’s demurrer to the
third cause of
action.
Equity’s
Motion to Strike
A court may strike any “irrelevant,
false, or improper matter inserted in any pleading” or any part of
a pleading “not drawn or filed in conformity with the laws of this state, a
court rule, or an order of the court.” ((Code Civ.
Proc., § 436.) “The grounds for a motion to strike shall appear on the face
of the challenged pleading or from any matter of which the court is required to
take judicial notice.” ((Id., § 437.)
In the motion to strike, Equity first asserts that “[p]aragraphs 5,
49, and 73 of the Complaint and Paragraphs 8 through 10 of the Prayer for
Relief in Plaintiffs’ FAC seek a declaratory judgment, and permanent injunctive
and declaratory relief. Plaintiffs’ only basis for seeking such relief is found
in their Third Cause of Action for declaratory relief. As further explained in
Equity’s Demurrer to the FAC, Plaintiffs failed to state a claim for
declaratory relief because they have not alleged any actual, present
controversy…Therefore, Paragraphs 5, 49, and 73 of the
FAC and Paragraphs 8 through 10 of the Prayer for Relief must be stricken
as irrelevant…” (Mot. at p. 2:5-12.) As set forth above, the Court overrules
Equity’s demurrer to the third cause of action for declaratory relief. Thus,
the Court denies Equity’s motion to strike paragraphs 8, 9, and 10 of the Prayer
for Relief of the FAC. The Court also denies Equity’s motion to strike
Plaintiffs’ request for declaratory relief in paragraphs 5, 49, and 73 of the FAC.[2]
Equity also moves to strike paragraphs 5, 49, and 73 of the FAC and paragraph 4 of the Prayer for Relief
on the grounds that Plaintiffs’ request for punitive damages is improper.
Equity cites to Turman v.
Turning Point of Central California, Inc. (2010) 191 Cal.App.4th 53, 63, where the Court of Appeal noted that
“[i]n order to state a prima facie claim for punitive damages, a complaint must
set forth the elements as stated in the general punitive damage statute, Civil Code section 3294…These statutory elements include allegations that the defendant has
been guilty of oppression, fraud or malice.” In addition, “Civil Code section 3294,
subdivision (b) imposes additional
requirements on plaintiffs attempting to hold an ‘employer’ liable for punitive
damages ‘based upon acts of an employee.’ The employer must have ‘had advance
knowledge of the unfitness of the employee and employed him or her with a conscious
disregard of the rights or safety of others or authorized or ratified the
wrongful conduct for which the damages are awarded or [been] personally guilty
of oppression, fraud, or malice.’ Subdivision (b) also states that, ‘[w]ith
respect to a corporate employer,’ the offending conduct ‘must be on the part of
an officer, director, or managing agent of the corporation.’” ((College Hospital
Inc. v. Superior Court (1994) 8
Cal.4th 704, 721 [internal citation omitted].)
Equity asserts that “Plaintiffs do not allege that Equity acted with
oppression, fraud, or malice and do not allege that any offending conduct was
carried out by or authorized by Equity’s senior management…” (Mot. at p.
3:21-23.)
In the opposition, Plaintiffs
assert that the ICRAA contains its own standard pertaining to punitive damages,
citing to Civil Code section 1786.50,
subdivision (b), which
provides that “[i]f the court determines that
the violation was grossly negligent or willful, the court may, in addition,
assess, and the consumer may recover, punitive damages.” Plaintiffs
assert that they have “alleged facts that support a finding that
defendants have acted with lack of care with respect to obligations under the
ICRAA, sufficient to constitute gross negligence.” (Opp’n at p. 4:13-15.) Plaintiffs
also assert that willful conduct
is alleged. Plaintiffs cite to paragraph 52 of
the FAC, which alleges as follows:
“Defendants’
conduct and violations of the ICRAA was and is willful and grossly negligent.
Defendants acted in deliberate or reckless disregard of their obligations and
the rights of the Plaintiffs. Defendants willful conduct is reflected by, among
other things, the following facts: (a) Defendants are large corporations with
access to legal advice and have retained counsel who has advised the Defendants
that they must comply with California Civil Code sections 1786 to 1786.60; (b)
Equity Residential required a purported authorization to perform credit and
background checks in the process of screening Plaintiffs for Jia Apartments,
Pegasus Apartments, Park West Apartments, Academy Village Apartments,
Versailles Apartments, Mariposa at Playa Del Rey Apartments, Kelvin Court
Apartments, Market Street Village Apartments and City Pointe Apartments which,
although defective, evidences Defendants’ awareness of and willful failure to
follow the governing laws concerning such authorizations; (c) The plain
language of the statute unambiguously indicates that inclusion of a box to
check to request copies of reports is required, and that the disclosure form
must contain the name, address, and phone number of the investigative consumer
reporting agency conducting the investigation; and (d) TransUnion Rental
Screening assembled and furnished reports without complying with the ICRAA.” (FAC,
¶ 52.)
In the reply, Equity
does not appear to cite any legal authority demonstrating that Civil Code section 1786.50, subdivision
(b) is not the
appropriate standard here. Equity
asserts, however, that “[t]he Court should strike Plaintiffs’ request
for punitive damages because the Complaint fails to sufficiently allege willful
or grossly negligent conduct on the part of Equity.” (Reply at p. 2:23-25.) However,
as set forth above, Plaintiffs allege that “Defendants willful conduct is
reflected by, among other things, the following facts: (a) Defendants are large
corporations with access to legal advice and have retained counsel who has
advised the Defendants that they must comply with California
Civil Code sections 1786 to 1786.60[3];
(b) Equity Residential required a purported authorization to perform credit and
background checks in the process of screening Plaintiffs for Jia Apartments,
Pegasus Apartments, Park West Apartments, Academy Village Apartments,
Versailles Apartments, Mariposa at Playa Del Rey Apartments, Kelvin Court
Apartments, Market Street Village Apartments and City Pointe Apartments which,
although defective, evidences Defendants’ awareness of and willful failure to
follow the governing laws concerning such authorizations.” (FAC, ¶ 52.) The
Court finds that Plaintiffs’ allegations are sufficient.
Based on the foregoing, the Court denies Equity’s motion to strike
paragraphs 5, 49, and 73 of the FAC and paragraph 4
of the Prayer for Relief.
Conclusion
For the foregoing reasons, the Court sustains TURSS’s demurrer to the second cause of
action of the FAC, without leave to amend.
In addition, based on the foregoing, the Court sustains Equity’s demurrer
to the second cause of action of the FAC, without leave to amend. The Court
overrules Equity’s demurrer to the third cause of action of the FAC. The Court
denies Equity’s motion to strike.
The Court orders TURSS and Equity to
file and serve their answers to the FAC within 10 days of the date of this Order.¿
Plaintiffs are ordered to give notice
of this Order.¿
DATED:
Hon. Teresa A.
Beaudet
Judge, Los
Angeles Superior Court
[1]The Court notes
that Plaintiffs also filed an “Opposition to Defendant Transunion Rental
Screening Solutions, Inc.’s Motion to Strike Plaintiffs’ Complaint.” However,
it does not appear that TURSS filed any motion to strike as to the FAC.
Thus, it appears this opposition may have been filed by Plaintiffs inadvertently.
[2]The Court notes
that Equity moves, inter alia, for “an order striking Paragraphs 5, 49,
and 73,” (Notice of Mot at p. 2:5-6) but such paragraphs do not solely seek
declaratory relief. As noted by Plaintiffs, “[a]
notice of motion to strike a portion of a pleading must quote in full the
portions sought to be stricken except where the motion is to strike an entire
paragraph, cause of action, count, or defense...” (Cal. Rules of
Court, rule 3.1322, subd. (a).)
[3]In the first cause
of action for violations of the ICRAA, Plaintiffs allege, inter alia,
that Equity failed to comply with Civil Code section
1786.16. (FAC, ¶¶ 58-60, 62-63.)