Judge: Timothy Patrick Dillon, Case: 20STCV16342, Date: 2023-09-26 Tentative Ruling
02/28/2023
Dept. 73
Judge Dillon
Steven Liu,
individually and derivatively, v. Saratoga Maintenance Corp., et al. (21STCV34342)
Counsel for Defendants/moving party:
Timothy R. Windham, Helen H. Lee (Lewis Brisbois Bisgaard & Smith)
Counsel for Plaintiff/opposing party:
Steven W. Kerekes (Law Offices of Steven Kerekes)
DEMURRER WITH MOTION TO STRIKE
(filed 11/30/2022)
TENTATIVE
RULING
The Demurrer is SUSTAINED as to the
third cause of action with leave to amend.
The Demurrer is SUSTAINED as to the
fourth cause of action without leave to amend.
The motion to strike is MOOT in part
and GRANTED with leave to amend in part.
Discussion
This is a derivative action filed by
Plaintiff Steven Liu on behalf of Defendant Saratoga Maintenance Corporation (“Saratoga”).
Plaintiff originally pursued this action in his individual capacity, (see Case
No. 19STCV25459), and alleged seven causes of action against Saratoga,
Defendant John Leon, Defendant Frank Macciola, and Defendant Jerry Schmidt
(collectively “Defendants”).
The seven causes of action included: (1) breach of fiduciary duty – failure to
use reasonable care; (2) breach of fiduciary duty – duty of loyalty; (3)
fraudulent concealment (4) violation of civil § 5235, to enforce member’s right
to production and inspection of HOA records; (5) violation of the Covenants,
Conditions and Restrictions (CC&R), Article VII, Section V; (6) violation
of Civil Code § 5515, and (7) violation of Corp. Code § 5145.
On the eve of trial, pursuant to an
oral request made by Plaintiff, the court dismissed the entire action without
prejudice. (09/09/21 Order – Dismissal, Case No. 19STCV25459.) On September 16,
2021, Plaintiff refiled the instant action reasserting all seven causes of
action. With the exception of the fourth cause of action, all previous causes
of action were realleged derivatively.
Additionally, Plaintiff included two new claims: (1) Derivative Action
for Declaratory Relief, and (2) Declaratory Relief.
The operative First Amended Complaint
(“FAC”) asserts the same nine causes of
action.
A summary of the underlying events
according to Plaintiff is as follows. Saratoga is a homeowners’ association and
Defendants Leon, Macciola, and Schmidt served as its Board of Directors. (FAC,
¶ 1.) On or around August 19, 2015, Defendants terminated a contract with a
licensed landscaping company and hired Alberto Marquez (“Marquez”), an employee of the landscaping
company, to perform landscaping work at higher cost and with fewer services
provided. (FAC, ¶ 19.) As a result, annual landscaping costs for Saratoga
members increased from $30,251 to $35,065. (FAC, ¶ 21.) After Marquez completed
one year of work, Defendants, without discussion or approval from homeowners,
increased Marquez’s monthly fee by 20%. (FAC, ¶ 23.) Leading up to and
throughout this period, Leon made unauthorized and undocumented payments to
Marquez on behalf of Saratoga for landscaping services rendered and then sought
reimbursement. (FAC, ¶ 18-19, 25.) Consequently, Plaintiff, other homeowners,
and Saratoga have been financially harmed. (FAC, ¶ 32.)
On November 30, 2023, Defendants filed
the instant Demurrer and Motion to Strike the FAC arguing that the third,
fourth, and eighth causes of action (1) fail to state sufficient facts to
constitute a cause of action and (2) are uncertain, ambiguous, and
unintelligible. Defendants also argue that the FAC fails to plead facts
necessary to support punitive damages. Plaintiff filed opposition on February
14, 2023, and Defendants replied on February 21, 2023.
Meet and
Confer
Code of Civil Procedure §§ 430.4 (a),
and 435.5 (a), require meeting and conferring “in person or by telephone” at
least five days before filing a demurrer or motion to strike. Defendants’ counsel
declares that she had a telephone discussion with Plaintiff’s counsel on
November 23, 2022 and they could not resolve the dispute. (Lee Decl., ¶2.)
Accordingly, the Court finds that Defendants’ meet-and-confer efforts were
sufficient.
Request for Judicial Notice
Courts may take judicial notice of
regulations and legislative enactments issued by any public entity in the
United States or of records of any court of this state. Cal. Evid. Code §§
452(d)(1) and 452(e)(1). When the ground of demurrer is based on a matter of
which the court may take judicial notice pursuant to Section 452 or 453 of the
Evidence Code, such matter shall be specified in the demurrer, or in the
supporting points and authorities for the purpose of invoking such notice. CCP
§ 430.70.
Defendants request judicial notice of the
following public records:
1.
Exhibit A: Complaint filed in Superior Court of Los
Angeles as Case Number: 19STCV25459.
2.
Exhibit B: Complaint filed in Superior Court of Los
Angeles as Case Number 17AHSC05898.
Exhibits A and B are court records. Thus,
judicial notice of these records is appropriate. Defendants’ request for
judicial notice is GRANTED.
Plaintiff requests judicial notice of the
following:
1. Exhibit
A: Certificate of Compliance with ADR filed in the original case on 10/11/2019
in Liu v. Saratoga Maintenance Corp., et al., Case No. 19STCV25459.
2. Exhibit
B: Joint Report to Court Regarding Status of Mediation, filed in the original
case on 1/30/2020 in Liu v. Saratoga Maintenance Corp., et al., Case
No.19STCV25459.
3. Exhibit
C: Court’s Tentative Ruling on Demurrer filed in original case on 6/23/2020,
Liu v. Saratoga Maintenance Corp., et al., Case No. 19STCV25459.
4. Exhibit
D: Defendants’ Motion for an Order Requiring the Posting of a Bond fled in the
Instant Action on or about October 21, 2021.
5. Exhibit
E: The Court’s Minute Order Denying Motion for Bond in the instant case dated
March 23, 2022.
6. Exhibit
F: Demurer to original Complaint by defendants fled in the instant case on
9/6/2022.
7. Exhibit
G: Court’s Ruling on Demurrer by defendants to original Complaint filed in the
instant case dated 10/13/2022.
Judicial notice as to Plaintiff’s
requested records is also appropriate.
Exhibits A-G are court records. Accordingly, Plaintiff’s request for
judicial notice is GRANTED.
ANALYSIS
Defendants demur to the third, fourth, and eighth causes of
action in the FAC because they (1) fail to state sufficient facts to constitute
a cause of action, and (2) are uncertain, ambiguous, and unintelligible.
A.
Legal
Standard for Demurrer
A
demurrer tests the sufficiency of whether the complaint states a cause of
action. (Hahn v. Mirda¿(2007) 147 Cal.App.4th 740, 747.)¿When
considering demurrers, courts read the allegations liberally and in context—any
defects must be apparent on the face of the pleading or via proper judicial
notice.¿(Donabedian v. Mercury Ins. Co.¿(2004) 116 Cal.App.4th 968,
994.) “A demurrer tests the pleading alone, and not the evidence or facts
alleged.” (E-Fab, Inc. v. Accountants, Inc. Servs. (2007) 153
Cal.App.4th 1308, 1315.) As such, the court assumes the truth of the complaint’s
properly pleaded or implied factual allegations. (Id.) The only issue a
demurrer is concerned with is whether the complaint, as it stands, states a cause
of action. (Hahn,
supra, 147 Cal.App.4th at p. 747.)
I.
Fraudulent
Concealment
The
elements of a cause of action for fraudulent concealment are: (1) concealment
of a material fact; (2) by a defendant with a duty to disclose; (3) the
defendant intended to defraud by failing to disclose; (4) plaintiff was unaware
of the fact and would not have acted as it did had it known the fact;
and (5) damages. (Hambrick v. Healthcare Partners Medical Group, Inc. (2015)
238 Cal.App.4th 124, 162.)
Defendants
argue that the cause of action is barred by the statute of limitations.
However, the Court has already found that the equitable tolling doctrine
applies in this case and overruled the previous demurrer on this ground.
Defendants do not reassert this argument in reply.
Defendants
also argue that this cause of action being pled as a derivative action does not
make sense, because there are no allegations that anything was concealed from
the Association. Further, Plaintiff requested documents for himself under Civil
Code Section 5205 (See Paragraph 64 of the FAC) as a member of the Association,
not on behalf of the Association. The documents that were requested are the
Association’s documents, so it is unclear how the Association is concealing
documents from itself.
As
the Court previously stated in its prior ruling on demurrer, Plaintiff brings
this claim derivatively, in addition to his individual capacity, the real
plaintiff is Saratoga. Thus, on its face, a derivative fraudulent concealment
claim fails because Plaintiff cannot allege facts to show that that Saratoga
did not know of the concealed facts or that Saratoga would have behaved
differently if the concealed information had been disclosed. Plaintiff has not
amended the Complaint to remedy this.
As
to the direct claim, Plaintiff still fails to show how he would have behaved
differently. Plaintiff has added allegations that he “would have petitioned and
voted to require that proper and normal procedures be instituted and utilized
before the defendants [could] authorize[d] payments from HOA funds, including
receipt of proper invoicing, and verification of the work or materials
invoiced. They would have also disallowed the improper payments and
disbursements alleged above and disallowed the transfer of funds from the
reserve account to the general operating account.” However, these allegations
do not show how this would have prevented the resulting damage. Without further
specificity, the damages appear to already have been sustained.
Accordingly,
the Court SUSTAINS the Demurrer as to the third cause of action in its
entirety.
II.
Violation
of Right to Production and Inspection
Plaintiff
brings the fourth cause of action as an individual. Civil Code § 5235 states in
relevant part
(a)
A
member may bring an action to enforce that member’s right to inspect and copy
the association records. If a court finds that the association unreasonably
withheld access to the association records, the court shall award the member
reasonable costs and expenses, including reasonable attorney’s fees, and may
assess a civil penalty of up to five hundred dollars ($500) for the denial of
each separate written request.
(b)
(b)
A cause of action under this section may be brought in small claims court if
the amount of the demand does not exceed the jurisdiction of that court. (Civ.
Code § 5235 (b).)
Defendant
argues that this claim is barred by the doctrine of res judicata because
Plaintiff pursued this claim in small claims court. (See Defendants’ Request
for Judicial Notice, Exh. B.) In
opposition, Plaintiffs argue that the Court only sustained the previous
demurrer based on this argument because Plaintiffs did not allege that the
small claims court did not rule on the merits. However, in the Court’s ruling
on this cause of action, it noted that the original Complaint alleged that the
small claims court did not rule on the merits.
(See Plaintiffs’ Request for Judicial Notice, Exh. G, Complaint ¶ 115.)
Accordingly, the Court did consider this.
Accordingly,
the Court agrees with Defendants as it did in its prior order. Res judicata
precludes parties or their privies from relitigating a cause of action that has
been finally determined by a court of competent jurisdiction. (Rice v. Crow (2007)
Cal.App.4th 725, 734.) The small claims court issued a judgment stating that “Defendants
Johnny Leon; Saratoga do not owe the plaintiff Steven Liu any money on
plaintiffs claim.” Therefore, the Court finds that Plaintiff’s fourth cause of
action is precluded from relitigation.
Accordingly,
the Court SUSTAINS the Demurrer as to the fourth cause of action.
III.
Derivative
Action for Declaratory Relief
As
Plaintiff points out, Defendants make the same arguments they made on the
previous demurrer, which the Court rejected. As the Court has previously
stated, while no controversy may presently exist between Marquez and Saratoga,
a controversy does exist derivatively between Plaintiff and Saratoga about
Marquez. As such, the Court OVERRULES the Demurrer as to the eighth cause of
action.
IV.
Entire
FAC
Defendants
assert arguments relating to a demurrer to the entire FAC in the body of the
demurrer. However, the notice does not put the entire FAC at issue and as such
the Court does not address these arguments as they are not properly before the
Court.
V.
Leave
to Amend
Leave
to amend must be allowed where there is a reasonable possibility of successful
amendment. (See Goodman v. Kennedy (1976) 18 Cal.3d 335, 349 [court
shall not “sustain a demurrer without leave to amend if there is any reasonable
possibility that the defect can be cured by amendment”]; Kong v. City of Hawaiian Gardens
Redevelopment Agency
(2002) 108 Cal.App.4th 1028, 1037 [“A demurrer should not be sustained without
leave to amend if the complaint, liberally construed, can state a cause of
action under any theory or if there is a reasonable possibility the defect can
be cured by amendment.”]; Vaccaro v. Kaiman
(1998) 63 Cal.App.4th 761, 768 [“When the defect which justifies striking a
complaint is capable of cure, the court should allow leave to amend.”].) The
burden is on the complainant to show the Court that a pleading can be amended
successfully. (Blank v. Kirwan (1985) 39 Cal.3d 311, 318.)
Because
Plaintiff has only filed one amended complaint in this action, the Court GRANTS
leave to amend as to the third cause of action. As to the fourth cause of
action, res judicata applies. Accordingly, the Court DENIES leave to amend as
to the fourth cause of action.
VI.
Motion
to Strike
A
motion to strike lies only where the pleading has irrelevant, false or improper
matter, or has not been drawn or filed in conformity with laws.¿ (Civ. Proc.
Code § 436.)¿ The grounds for moving to strike must appear on the face of the
pleading or by way of judicial notice.¿ (Id. § 437.)¿¿¿
Defendants
request the Court to strike the following portions of the FAC without leave to
amend:
·
Punitive
Damages: Paragraphs 63, 66, 71, and Prayers for Relief Nos. 4 and 6.
1.
Punitive
Damages
Defendants
move to strike Plaintiff’s prayer for punitive damages for failure to allege
facts sufficient to show malice, oppression or fraud. Plaintiff contends that
the Complaint is alleges multiple instances of malice and oppression.
Civ.
Code § 3294 (b) permits a plaintiff to recover punitive damages from an
employer who was personally guilty of oppression, fraud, or malice. “Malice” means an intent to cause injury or
despicable conduct done with a willful and conscious disregard of the rights or
safety of another. (Civ. Code § 3294
(b)(1).) “Oppression” means despicable conduct that
subjects a person to cruel and unjust hardship in conscious disregard for that
person’s rights. “‘Despicable conduct’ is conduct that is so vile, base or contemptible that it
would be looked down on and despised by ordinary decent people.” (Scott v. Phoenix
Schools, Inc. (2009)
175 Cal.App.4th 702, 715.) A
motion to strike punitive damages is properly granted where a plaintiff does
not state a prima facie claim for punitive damages, including allegations that
defendant is guilty of oppression, fraud or malice.¿ (Turman¿v. Turning
Point of Cent. California, Inc.¿(2010) 191 Cal.App.4th 53, 63; Cal. Civ.
Code § 3294(a).)
The
Court finds that there are insufficient allegations of malice and oppression,
and further in light of the ruling on demurrer there are insufficient fraud
allegations. There are no specific facts showing undue hardship or despicable
behavior.
Based
on the foregoing, the motion to strike as to Paragraphs 66, 63, and 71 are MOOT
in light of the ruling on demurrer, and GRANTED as to the prayer for punitive
damages with leave to amend.
VII.
Conclusion
The
Demurrer is SUSTAINED as to the third cause of action with leave to amend.
The
Demurrer is SUSTAINED as to the fourth cause of action without leave to amend.
The
motion to strike is MOOT in part and GRANTED with leave to amend in part.
Plaintiff
is granted ten (10) days leave to amend.
Plaintiff to give notice.
Case Number: 20STCV16342 Hearing Date: September 26, 2023 Dept: 73
EDOUNI v. SANITATION DISTRICTS OF LOS
ANGELES COUNTY (20STCV16342)
Counsel for Plaintiff/opposing
party: Gregory Wayne Smith (Law Offices
of Gregory W. Smith LLP)
Counsel for Defendant/moving
party: Adam Johnson (Musick, Peeler
& Garrett)
MOTION FOR SUMMARY JUDGMENT (filed 11/22/2022)
TENTATIVE
RULING
DENY
Discussion
On April 29,
2020, Plaintiff Abdulrazzaq Edouni (“Plaintiff”) filed this employment
action against Defendant Sanitation Districts of Los Angeles (“Defendant”). On April 30, 2023, Plaintiff filed
the operative First Amended Complaint (“FAC”) alleging the following causes of
action: (1) retaliation – Government Code § 12940(h); (2) retaliation – Labor
Code section 1102.5; (3) employment discrimination on the basis of race and
creed – Government Code § 12940(a); (4) work environment harassment on the
basis of race and creed – Government Code § 12940(j); (5) failure to prevent
harassment, discrimination, and retaliation – Government Code § 12940(k).
On November 8, 2021, Plaintiff filed a
complaint against Defendant in case number 21STCV41184 (“Related
Complaint”), alleging (1) discrimination in violation of FEHA; (2) harassment
in violation of FEHA; and (3) retaliation in violation of FEHA. On December 16,
2021, the Court related the two cases.
On September 7, 2023, Plaintiff
dismissed the second cause of action in the FAC for violation of Labor Code § 1102.5.
On
11/22/2022, Defendant filed a motion for summary judgment, arguing that it was
entitled to summary judgment on each cause of action in the FAC and the Related
Complaint, or argues for summary adjudication on the following issues:
·
The first and second causes of action
in the FAC and the third cause of action in the Related Complaint for
retaliation are barred by the statute of limitations.
·
The second cause of action in the FAC
for retaliation under Labor Code is
barred for failure to comply with the Government Claims Act.
·
The first and second causes of action
in the FAC and the third cause of action in the Related Complaint for
retaliation are without merit because there was no “adverse employment action.
·
The first and second causes of action
in the FAC and the third cause of action in the Related Complaint for
retaliation are without merit because there is no “causal link” between the
protected activity and any adverse employment action.
·
The first and second causes of action
in the FAC and the third cause of action in the Related Complaint for
retaliation are without merit because Defendant had legitimate, non-retaliatory
reasons for its employment actions, and there is no substantial evidence of
retaliatory pretext or intentional retaliation.
·
The third cause of action in the FAC
and the first cause of action in the Related Complaint for discrimination are
barred by the statute of limitations.
·
The third cause of action in the FAC
and the first cause of action in the Related Complaint for discrimination are
without merit because Plaintiff cannot show that (a) he was competently
performing the essential functions of the job or was qualified for the position
sought, (b) that Defendant subjected Plaintiff to an adverse employment action,
and (c) there existed circumstances suggesting a discriminatory motive.
·
The third cause of action in the FAC
and the first cause of action in the Related Complaint for discrimination are
without merit because Defendant had legitimate, non-retaliatory reasons for its
employment actions, and there is no substantial evidence of retaliatory pretext
or intentional retaliation.
·
The fourth cause of action in the FAC
and the second cause of action in the related complaint for harassment are
barred by the statute of limitations.
·
The fourth cause of action in the FAC
and the second cause of action in the related complaint for harassment because
Plaintiff cannot show he was subjected to harassing conduct “because of” a
protected characteristic.
·
The fourth cause of action in the FAC
and the second cause of action in the related complaint for harassment because
Plaintiff cannot show the allegedly harassing conduct was “severe or pervasive.”
·
The fifth cause of action in the FAC
for failure to prevent harassment, discrimination, and retaliation is without
merit because Plaintiff’s other claims are without merit.
In
opposition, Plaintiff argues that:
·
There is evidence that Plaintiff was
performing competently during the entire relevant time period.
·
There is evidence of discriminatory
and retaliatory intent for the late 2017-2018 filling of five Section Head
Positions over Plaintiff, and there are triable issues of fact as to whether
these adverse actions were discriminatory or retaliatory.
·
There is evidence of discriminatory
and retaliatory intent for the 2019 actions taken when Plaintiff returned to
work.
·
Defendant has not met its burden of
showing legitimate, non-discriminatory, and non-retaliatory reasons for the
challenged adverse actions.
On 9/21/23, Defendant filed a reply.
ANALYSIS
A. Legal
Standard for Motion for Summary Judgment
A party may move for summary judgment “if
it is contended that the action has no merit or that there is no defense to the
action or proceeding.” (Cal. Civ. Proc. Code § 437c(a).) “Summary
judgment shall be granted if all the papers submitted show that there is no
triable issue as to any material fact and that the moving party is entitled to
a judgment as a matter of law. In determining if the papers show that
there is no triable issue as to any material fact, the court shall consider all
of the evidence set forth in the papers, except the evidence to which
objections have been made and sustained by the court, and all inferences
reasonably deducible from the evidence, except summary judgment shall not be
granted by the court based on inferences reasonably deducible from the evidence
if contradicted by other inferences or evidence that raise a triable issue as
to any material fact.” (Id., § 437c, subd. (c).)
A defendant moving for summary
judgment must show “that one or more elements of the cause
of action . . . cannot be established, or that there is a complete defense to
the cause of action.” (Code Civ. Proc., § 437c, subd. (p)(2); see also,
Code Civ. Proc., § 437c, subd. (o).)
“The defendant may, but need not,
present evidence that conclusively negates an element of the plaintiff's cause
of action. The defendant may also present evidence that the plaintiff
does not possess, and cannot reasonably obtain, needed evidence—as through
admissions by the plaintiff following extensive discovery to the effect that he
has discovered nothing. But… the defendant must indeed present
evidence." (Aguilar v. Atlantic Richfield Co. (2001) 25
Cal.4th 826, 855 [italics in original].) “In other words, all that
the defendant need do is to show that the plaintiff cannot establish at least
one element of the cause of action--for example, that the plaintiff cannot
prove element¿X.” (Id., at 853.) The court in Aguilar distilled summary judgment to “a single proposition: If a party
moving for summary judgment in any action . . . would prevail at trial without
submission of any issue of material fact to a trier of fact for determination,
then he should prevail on summary judgment. In such a case . . . the ‘court
should grant’ the
motion ‘and
“avoid a . . . trial’ rendered
‘useless’ by
nonsuit or directed verdict or similar device. (Id. at 855.)
As noted in Aguilar, “the
party moving for summary judgment bears an initial burden of production to make
a prima facie showing of the nonexistence of any triable issue of material
fact; if he carries his burden of production, he causes a shift, and the
opposing party is then subjected to a burden of production of his own to make a
prima facie showing of the existence of a triable issue of material fact.”
(Aguilar, supra, 25 Cal.4th at 850.) Thus, courts usually follow a
three-step analysis: “First, we identify the issues framed
by the pleadings . . . . [¶] Secondly, we determine whether the moving party’s
showing has established facts which negate the opponent’s claim and justify a judgment in
movant’s favor. . . . [¶] When a . . . motion prima facie
justifies a judgment, the third and final step is to determine whether the
opposition demonstrates the existence of a triable, material factual issue.”
(Ojavan Investors, Inc. v. Cal. Coastal Comm. (1997) 54 Cal.App.4th 373,
385 [citation and footnote omitted].)
Opposing parties must present
substantial evidence in order to avoid summary judgment. (Sangster v. Paetkau (1998) 68
Cal.App.4th 151, 163.) “In some instances…, ‘evidence
may be so lacking in probative value that it fails to raise any triable issue.’”
(Whitmire v. Ingersoll-Rand Co.
(2010) 184 Cal.App.4th 1078, 1083-1084.) “A
complete failure of proof concerning an essential element of the nonmoving
party's case necessarily renders all other facts immaterial.” (Hunter
v. Pacific Mechanical Corp (1995) 37 Cal.App.4th 1282, 1286, disapproved on
other grounds by Aguilar, supra, at 865; accord Saelzler v. Advanced Group 400
(2001) 25 Cal.4th 763, 780 [“‘If
the plaintiff is unable to meet her burden of proof regarding an essential
element of her case, all other facts are rendered immaterial.’”].)
Courts “construe
the moving party's affidavits strictly, construe the opponent's affidavits
liberally, and resolve doubts about the¿propriety¿of granting the motion in favor of the party opposing it.’”
(Unilab Corp.v. Angeles-IPA (2016) 244 Cal.App.4th 622, 636;
internal citation omitted.) “The court focuses on issue finding; it
does not resolve issues of fact. The court seeks to find contradictions in the
evidence, or inferences reasonably deducible from the evidence, which raise a
triable issue of material fact.” (Johnson v. United Cerebral Palsy,
etc. (2009) 173 Cal.App.4th 740, 754; internal citation
omitted.) "[S]ummary judgment cannot be granted when the
facts are susceptible [of] more than one reasonable inference...” (Rosas v. BASF Corp.¿(2015) 236
Cal.App.4th 1378, 1392.)
B.
Request for Judicial Notice
Defendant requests that the Court take
judicial notice of the following: (1) Plaintiff’s Charge of Discrimination, EEOC
Charge No. 480-2016-01200 dated 5/22/16, and Right-to-Sue Letter dated
11/20/17; (2) Plaintiff’s
Charge of Discrimination, EEOC Charge No. 480-2017-02233 filed 7/31/17, and
Right-to-Sue Letter dated 11/13/17; (3) Plaintiff’s Complaint of Employment
Discrimination dated 8/7/17 re DFEH No. 886489-295653, related documents dated
1/24/18, 2/2/18, and a Right-to-Sue Letter dated 2/6/18; (4) Plaintiff’s
Amended Complaint of Discrimination dated 5/22/18 re DFEH No. 201804-01963719,
related Citizen’s
Complaint, and Right-toSue Letter dated 4/30/19; (5) Plaintiff’s
Complaint of Discrimination dated 1/16/20 re DFEH No. 201909-07444004, and
Right-to-Sue Letter dated 11/24/20; (6) Plaintiff’s Complaint of Employment
Discrimination dated 11/5/21 re DFEH No. 202110-15244629, and Right-to-Sue
Letter dated 11/5/21; and (7) Documents from Plaintiff’s CalPERS file.
The Court GRANTS the request for
judicial notice Nos. 1-6 pursuant to Evidence Code § 452(c) and (h) as to the
date of the filings of Plaintiff’s
complaints with the EEOC and DFEH and to the dates of the right-to-sue letters
issued.
The Court GRANTS the request for
judicial notice as to No. 7, the documents from Plaintiff’s CalPERS file, pursuant to Evidence
Code § 452(c).
C.
Evidentiary Objections
Plaintiff’s evidentiary objections are SUSTAINED
as to Nos. 1-6 (hearsay) and No. 7 (lacks foundation, conclusory).
D.
Statute of Limitations
Defendant argues that, to the extent
that Plaintiff’s
claims are based on adverse employment action prior to February 6, 2018 and May
22, 2017, such claims are time-barred.
A prerequisite to bringing a civil
action under FEHA is the filing of a timely administrative complaint with DFEH.
(§ 12960;¿Morgan v. Regents of University of California¿(2000) 88
Cal.App.4th 52, 63.) Before January 1, 2020, the limitations period for filing
a DFEH charge was only one year.
The limitations period begins to run
when the adverse action actually occurs. (Romano v. Rockwell International, Inc.
(1996) 14 Cal.4th 493-494.)
FEHA claims in a civil suit can only be based on specific
acts of discrimination alleged in the DFEH complaint. Claims based on other,
uncharged discriminatory acts will be barred as having failed to satisfy the
exhaustion requirement. (Okoli v. Lockheed Technical Operations (1995)
36 Cal.App.4th 1607, 1613.) However, where a plaintiff’s civil suit asserts discriminatory
acts that are “like or reasonably related to” those
in the administrative charge, they will not be barred in the lawsuit even if
not specifically referenced in the charge. (Baker v. Children’s
Hospital Medical Center (1989) 209 Cal.App.3d 1057,
1064-1065.) The test for “relatedness” is whether the DFEH
investigation into the charges alleged would have led to the discovery of and
opportunity to conciliate the uncharged misconduct. (Sandhu v. Lockheed Missiles & Space Co. (1994)
26 Cal.App.4th 846, 858-859.)
The evidence shows that Plaintiff
filed an employment discrimination complaint on August 7, 2017. (RJN, Ex. C.)
Plaintiff received a right-to-sue letter on February 6, 2018. (RJN, Ex. C.)
However, Plaintiff failed to file a civil lawsuit based on the events arising
from this DFEH complaint. As such, Plaintiff has waived any allegations arising
from this right-to-sue letter, specifically claims of retaliation for denial of
promotions on April 26, 2017.
Plaintiff then filed a complaint of
discrimination with DFEH on May 22, 2018. (RJN, Ex. D.) Plaintiff received a
right-to-sue letter on April 30, 2019. (RJN, Ex. D.) This complaint alleges
that Plaintiff was discriminated on April 16, 2018 and denied other promotions.
Plaintiff’s
FAC is based on this 2018 complaint. (FAC, Ex. 1.) As such, the applicable
period for adverse employment action is the time period from May 22, 2017 to
May 22, 2018. The FAC alleges that Plaintiff was denied seven promotions in 2017
and 2018. (FAC ¶ 14.)
Plaintiff then filed a discrimination
complaint on January 16, 2020 with DFEH. (RJN, Ex. E.) Plaintiff received a
right-to-sue letter on November 24, 2020. (RJN, Ex. E.) This complaint alleges
conduct that occurred in 2019, including transferring of Plaintiff to a new
office, assignment to a smaller office, deactivation of Plaintiff’s
badge and cell phone, mistreatment, stripping of Plaintiff’s assignments and staff, and denial of
promotions. (RJN, Ex. E.) The Related Complaint is based on this right to sue
letter. (Related Complaint, Ex. 1.) As such, the applicable period for the
Related Complaint is between January 16, 2019 to January 16, 2020. The Related
Complaint contains allegations of adverse employment action in this time
period. (Related Complaint, ¶¶ 54-73.)
In opposition, Plaintiff submits
evidence throughout his employment from 2011 to 2020. Although this evidence
may be relevant to show evidence of a discriminatory motive, evidence of
adverse employment actions taken in these time periods is not actionable
pursuant to the statute of limitations.
With the applicable time periods in
mind, the Court proceeds to address the evidence on the merits.
E.
Discrimination Claims
Defendant argues that the third cause of action in the FAC
and the first cause of action in the Related Complaint for discrimination in
violation of FEHA fail because Plaintiff cannot show a prima facie case of
discrimination because he cannot show that (a) he was performing competently in
the position he held, (b) he suffered an “adverse employment action,” and (c) there
were no circumstances suggesting a discriminatory motive. Additionally, Defendant argues that it had
legitimate reasons for its employment actions.
A plaintiff alleging discrimination must allege “that
(1) he was a member of a protected class, (2) he was qualified for the position
he sought or was performing competently in the position he held, (3) he
suffered an adverse employment action, such as termination, demotion, or denial
of an available job, and (4) some other circumstance suggests discriminatory
motive.” (Guz v. Bechtel
National Inc. (2000) 24 Cal.4th 317, 355.) To
satisfy its initial summary judgment burden, moving party employer must either
undermine an element of plaintiff's prima facie case by affirmatively negating
it or showing plaintiff cannot prove it, or provide a legitimate
nondiscriminatory reason for the adverse employment action. (McGrory v.
Applied Signal Tech., Inc.¿(2013) 212 CA4th 1510, 1523.)
1.
Qualification for Position or
Competently Performing
Defendant first argues that Plaintiff cannot show that
Plaintiff was performing competently in his job. Defendant puts forward
evidence that Plaintiff was on medical leave from April 16, 2018 to April 19,
2019 because of a mental impairment and was not performing the essential
function of his job of supervising his engineers and staff. (Related Complaint ¶
51, Allen Decl. ¶
3, 6; Ex. B, D.) On May 3, 2019, Plaintiff took off work and did not return
until October 4, 2019. (Allen Decl. ¶ 9, Related Complaint ¶ 58, 63.) On June 19, 2019, Plaintiff’s doctor submitted a medical
questionnaire that stated that Plaintiff’s medical condition limited his
ability to perform essential functions of his position and was not able to work
in any capacity. (Allen Decl. ¶ 11, Ex. H.) After returning to work for part of
October 2019, Plaintiff left work on November 1, 2019 and did not return to
work again. (Allen Decl. ¶ 14.) Plaintiff’s doctor submitted another
questionnaire that stated that Plaintiff’s medical condition limited his
ability to perform essential functions of his job and was not able to work.
(Allen Decl. ¶ 21, Ex. Q.)
Although this evidence shows that Plaintiff was not
performing essential job functions from April 16, 2018 to April 19, 2019, and
from May 3, 2019 to October 4, 2019, and after November 1, 2019, Plaintiff’s
complaint states that he was denied a promotion prior to taking medical leave
in 2017 and 2018, and when he was back to work in October 2019. (FAC ¶ 14,
Related Complaint ¶¶ 68-70.) Defendant submits no evidence to show that
Plaintiff was not qualified or not performing competently at these relevant
time periods. As such, Defendant has not met its burden of showing that
Plaintiff was not qualified or competent to perform in the Division Engineer
role.
2.
Adverse Employment Action
Next, Defendant argues that Plaintiff was not subjected to
an adverse employment action because Plaintiff was not terminated, but retired.
“Adverse
employment action” must be substantial and detrimental,
and can include refusal to promote, transfer of job duties, and reducing
employee’s
authority if the terms and conditions of employment are materially affected. (Yanowitz
v. L’Oreal
USA, Inc. (2005) 36 Cal.4th 1028, 1060-1061; Horsford v. Board of
Trustees of California State University (2005) 132 Cal.App.4th 359,
374.) Additionally, “constructive
discharge” is an adverse employment action where adverse treatment
by an employer causes an employee to resign. (Brome v. California Highway
Patrol (2020) 44 Cal.App.5th 786, 801-802.)
Defendant argues that Plaintiff resigned prior to the Skelly hearing regarding the Notice of
Intent to Separate; thus, no adverse action was taken. (Allen Decl. ¶ 25, Ex.
T.) However, Defendant does not submit any evidence or argument to show that
Plaintiff’s
allegations of refusing to promote Plaintiff was not an adverse employment
action. (FAC ¶ 14, Related Complaint ¶ 54-70.) As such, Defendant has not met
its burden of showing that no adverse employment action was taken.
3.
Discriminatory Motive
Defendant argues that there are no circumstances suggesting
a discriminatory motive. Defendant puts forward the declaration of Ms. Allen,
the Human Resources Director of Defendant, stating that she did not take any
adverse employment action based on Plaintiff’s race, creed, ancestry, color, or
national origin and based on her multiple investigations, is not aware of any
evidence that any Defendant employee did so either. (Allen Decl. ¶ 26.)
However, this evidence lacks foundation and is conclusory. There is no evidence
that the ones who decided not to promote Plaintiff, reassigned his position, or
stripped him of his assignments and employees lacked discriminatory motive.
Further, although Defendant asserts that there is no
evidence of a discriminatory motive, Defendant does not put forth any factually
devoid discovery responses to show that this element of the discrimination
claim cannot be established. (See Union Bank v. Superior Court (1995) 31
Cal.App.4th 573, 590.) As such, Defendant has not met its burden of putting
forth evidence showing that Plaintiff cannot show a prima facie case of
discrimination.
4.
Legitimate, Non-Discriminatory Reasons
Finally, Defendant argues that there were legitimate,
non-discriminatory reasons for its actions. First, Defendant puts forward
evidence that vacant Division Engineer positions are usually filled by
appointment of qualified Supervising Engineers or a competitive selection
process where candidates apply and undergo an interview. (Allen Decl. ¶ 5, Ex.
C.)
Defendant puts forward evidence that in late 2017 and early
2018, approximately six management appointments of Division Engineers who were
recommended by the relevant Department Heads were made, and an existing
Division Engineer Sewer Design Section was transferred to lead the Field
Engineering Section. (Allen Decl. ¶ 5.) A competitive selection process was
then held to fill the Division Engineer position in the Sewer Design Section,
but Plaintiff did not apply. (Allen Decl. ¶ 5.)
Defendant puts forward additional evidence that, due to
Plaintiff’s
extended absence from work, the engineers and other staff whom Plaintiff had
been supervised were relocated from the San Gabriel field office to the Joint
Administration Office in Whittier and supervised by another Supervising
Engineer in Plaintiff’s absence. (Allen Decl. ¶ 8.)
Defendant puts forward evidence that in October 2019,
Plaintiff applied for a vacant Division Engineer position in Field Engineering
as part of a competitive selection process. (Allen Decl. ¶ 8.) Ms. Allen states
that the position was offered to the highest ranked candidate, who was not
Plaintiff, and that candidate accepted the position. (Allen Decl. ¶ 14.)
Defendant then puts forward evidence that, on November 26,
2019 and March 18, 2020, Plaintiff failed to meet with Defendant about
reasonable accommodations meeting and engage in the interactive process. (Allen
Decl. ¶ 15, Ex. K, N.) At this point, Defendant prepared and submitted to
CalPERS an employer-originated disability retirement application on behalf of
Plaintiff. (Allen Decl. ¶¶ 18-22, Exs. O, P, R.) After being advised that the
second disability retirement application was cancelled, Defendant prepared a
Notice of Intent to Separate pursuant to Skelly. (Allen Decl. ¶¶
23-25.) Prior to this hearing, Plaintiff resigned. (Allen Decl. ¶ 25, Ex. T.)
Although this evidence meets Defendant’s burden of showing legitimate,
nondiscriminatory reasons for reassigning Plaintiff to a new location and for
preparing and submitting the disability retirement applications, this evidence
does not show legitimate, nondiscriminatory reasons for failing to promote
Plaintiff. Ms. Allen’s
declaration is insufficient to show that there were legitimate,
nondiscriminatory reasons for failing to promote Plaintiff because there is no
showing that Ms. Allen was the one who made the decisions about whether to
promote someone to a Division Engineer. Additionally, there is no evidence that
explains why the decision to promote others over Plaintiff was a legitimate,
nondiscriminatory decision. As such, there is no legitimate reason for the
decision presented, and thus the burden does not shift to Plaintiff to show
that these reasons are pretextual. (Wills v. Superior Court (2011) 195
Cal.App.4th 143, 160.)
Further, Plaintiff submits evidence to show that any
presented reason may have been pretextual. Plaintiff presents evidence that
Plaintiff had shown his interests in the Division Engineer positions by
applying for other Division Head positions previously. (Edouni Decl. ¶¶ 35-36,
37-38.) Plaintiff additionally argues that, even though he did not apply for
the Field Engineering position, he was qualified, having worked as an engineer
for more than 24 years and as a Resident Engineer for more than 14 years. (Edouni
Decl. ¶ 108.) Plaintiff additionally submits evidence that he had expressed his
interest in the position, including sending an email to Espinoza and Assistant
Chief Robert Ferrante setting forth his qualifications and interest in the
position. (Edouni Decl. ¶ 77, 81-83, 87;
Ex. 3 [Espinoza Depo. 82:14-18]; Ex. 17; Ex. 18.)
Plaintiff also puts forth evidence that, before 2018, when
Plaintiff had grown a beard, Department Head, Sam Espinoza told him, “You
look like a terrorist,” and had told Plaintiff that he did not invite him to
his wedding because it was in a church and Plaintiff was a Muslim. (Edouni
Decl. ¶¶ 79-80.) Plaintiff puts forward evidence that Department Head Sam
Espinoza then sat on the interview panel for the November 2019 Field
Engineering Section Head selection and gave Plaintiff a failing score. (Ex. 3
[Espinoza Depo. p. 174:1-12]; Ex. 23 [Espinoza Interview rating Sheet – October
2019].)
As such, summary adjudication for the third cause of action
in the FAC and the first cause of action in the Related Complaint for
discrimination is DENIED.
F.
Retaliation Claims
Preliminarily, the Court notes that
Plaintiff has dismissed the second cause of action in the FAC for retaliation
under Labor Code 1102.5. As such, the Court does not look at Defendant’s
argument relating to this cause of action.
To show retaliation under FEHA, a
plaintiff must show the following elements: (1) plaintiff engaged in protected
activity, (2) adverse employment action, (3) retaliatory intent, and (4) a
causal link between the protected activity and the adverse employment action. (Yanowitz
v. L'Oreal USA, Inc. (2005) 36 Cal.4th 1028, 1042.)
Defendant argues that the first cause
of action in the FAC and the third cause of action in the Related Complaint for
retaliation fail because (1) Plaintiff cannot show a prima facie case of
retaliation because he cannot show an adverse employment action or a causal
link between any protected activity and any adverse employment action; and (2)
Defendant has shown a legitimate, non-retaliatory reasons for its actions.
As alleged by the FAC, and within the
appropriate statute of limitations period, Defendant alleges that he was denied
seven promotions that were given to less qualified individuals. (FAC ¶ 14.) The
FAC alleges that Plaintiff was retaliated against after submitting a complaint
to DFEH. (FAC ¶ 20.) The Related Complaint alleges that Plaintiff was
retaliated against for his filing of complaints with the EEOC and DFEH. (FAC ¶ 35,
45, 52.) After the filing of the complaint in 2018, he alleges he was
involuntarily transferred to a new office, stripped of his projects and staff,
and assigned to sit in a small, dark, noisy office. (Related Complaint, ¶ 55.)
Plaintiff alleges that he was not allowed to apply for a Division Engineer
vacancy in the Wastewater and Solid Waste Design section. (Related Complaint, ¶
59-62.) Additionally, Plaintiff alleges that he applied for a Division Engineer
position in the Field Engineering section. However, Plaintiff alleges that the
interview was a sham and, although he was the most qualified, a different
engineer was selected. (Related Complaint, ¶ 68-71.) Plaintiff alleges that, when he asked
Assistant Department Head Mike Tatalovich why he was not selected for the
position, Tatalovich told Plaintiff “Because of the way you have been
complaining about management.” (Related Complaint ¶ 71.)
Defendant submits the same evidence as the discrimination
claim to show that Plaintiff cannot show a prima facie case of retaliation. The
Court previously found that this evidence was not sufficient to show that
either no adverse employment action was taken. Additionally, Defendant offers
no additional evidence to show that there is no causal link between the filing
of the complaints with DFEH and the failure to promote Plaintiff besides Ms.
Allen’s
declaration, which the Court found to be insufficient to show that there was no
discriminatory intent.
Additionally, Defendant submits the same evidence to show
that there were legitimate, nondiscriminatory reasons for failing to promote
Plaintiff. As the Court already found this evidence was insufficient to meet
Defendant’s
burden, the Court finds that it is insufficient to meet its burden for these
causes of action.
As such, Defendant has not met its burden. Therefore, the
burden does not shift to Plaintiff to show a triable issue of material fact. As
such, summary adjudication as to the first cause of action in the FAC and the
third cause of action in the Related Complaint for retaliation is DENIED.
G. Harassment
Defendant argues that the fourth cause of action in the FAC
and the second cause of action in the Related Complaint for harassment fail
because Plaintiff cannot establish a prima facie case of harassment because he
cannot show either that (a) he was subject to harassment because of a protected
characteristic or (2) the allegedly harassing conduct was “severe
or pervasive.”
To establish a prima facie case for¿harassment,
a plaintiff must show that (1) he was a member of a protected class; (2) he was
subjected to unwelcome¿harassment; (3) the¿harassment¿was based on¿a protected
characteristic; and (4) the¿harassment¿unreasonably interfered with his work
performance by creating an intimidating, hostile, or offensive work
environment. (Thompson v. City of Monrovia¿(2010) 186 Cal.App.4th 860,
876.)¿¿“The law prohibiting harassment is
violated when the workplace is permeated with discriminatory intimidation,
ridicule and insult that is sufficiently severe or pervasive to alter the¿conditions
of the victim’s
employment and create an abusive working environment.” (Nazir v. United
Airlines, Inc.¿(2009) 178 Cal.App.4th 243, 263 [internal quotations¿and
brackets¿omitted].) This must be assessed from the perspective of a reasonable
person belonging to the racial or ethnic group of the plaintiff¿and is
ordinarily an issue of fact. (Id.¿at p. 264.)¿
A single incident of harassment may be enough to constitute
a hostile work environment if it “unreasonably interfered with the
plaintiff’s
work performance or created an intimidating, hostile, or offensive working
environment.”¿ (Gov. Code, § 12923, subd. (b).)¿ The court shall use the
totality of the circumstances to determine whether there exists a hostile work
environment.¿ (Gov. Code, § 12923, subd. (c).)¿ Where the evidence establishes
that Plaintiff did not endure conduct "so severe and pervasive as to alter
the conditions of his employment," summary judgement is appropriate. (McCoy v. Pacific Maritime Association
(2013) 216 Cal. App. 4th 283, 294.)
The FAC alleges that Defendant employees continually
blocked his opportunities to transfer or get promotions and began to exclude
him from job responsibilities and meetings based on his Middle Eastern descent
and Muslim faith. (FAC ¶ 12-14, 37.) Related Complaint alleges that Plaintiff
was subjected to harassment, including being involuntarily transferred,
assigned to sit in a small, dark, and noisy office, being told that he “looks
like a terrorist, having his badge deactivated so he was forced to enter the
building with an escort, and being forced to undergo a armed shooter training
that Plaintiff alleges was directed toward him. (Related Complaint ¶ 57-67.)
Defendant first puts forward investigations by the Human
Resources Director, Ms. Allen, that shows that Plaintiff’s claims of harassment were
investigated by Defendant and Ms. Allen was unable to identify any evidence
that any of the actions Plaintiff complained about were taken because of a
protected characteristic. This evidence is insufficient to establish that there
was no harassment because of a protected characteristic, as the evidence of the
investigations is hearsay, Ms. Allen does not testify about her personal
knowledge about any of the alleged harassing conduct, and the statement in Ms.
Allen’s
declaration is conclusory. (See Allen Decl. ¶ 26, Exs. E-G, J, L, M.)
Next, Defendant argues that the conduct alleged is not
sufficiently severe or pervasive. Defendant argues that the conduct was
occasional, isolated, sporadic, or trivial. Additionally, Defendant argues that
these were “personnel
management activities.” (Janken v. GM Hughes Electronics (1996)
46 Cal.App.4th 55, 80.) However, as alleged, these actions were continuous and
pervasive and impacted Plaintiff’s
work environment. (See Related Complaint, ¶ 72, 80.) Case law only mandates
that the harassment be “severe or pervasive.” Although these
allegations may not be “severe,” if pervasive, they can be
sufficient to “alter the conditions of the
employment. (Hughes v. Pair (2009) 46 Cal.4th 1035, 1043.) Defendant
puts forward no evidence to dispute the allegations in the Complaints. Again,
Defendant only puts forward evidence of the internal investigations, which is
hearsay.
Additionally, although “commonly
necessary personnel management actions” are not generally actionable as
harassment, (Reno v. Baird (1998) 18 Cal.4th 640, 646-47), Defendant
puts forward no evidence showing that all of these actions were “commonly
necessary personnel management actions.” Defendant puts forward evidence
explaining the relocation of engineers. (Allen Decl. ¶ 8.) However, Defendant
puts forward no evidence explaining the new office, deactivation of the badge,
or the active shooter training. As such, the Court cannot determine these were “commonly
necessary personnel management actions.”
As such, Defendant has not met its burden. Therefore, the
burden does not shift to Plaintiff to show a triable issue of material fact.
The motion for summary adjudication is denied as to the fourth cause of action
in the FAC and the second cause of action in the Related Complaint for
harassment.
H. Failure
to Prevent Harassment, Discrimination, and Retaliation
Defendant argues that the fifth cause of action in the FAC
for failure to prevent harassment, discrimination, and retaliation fails
because Plaintiff’s
FEHA claims are without merit.
However, as the Court has found that Defendant has not met
its burden of showing that any of the discrimination, retaliation, and
harassment causes of action are without merit, the Court cannot find that the
fifth cause of action is without merit.
As such, the Court denies the motion for summary
adjudication as to the fifth cause of action in the FAC.
I.
Conclusion
Summary judgment or, in the alternative, summary
adjudication is DENIED.