Judge: Timothy Patrick Dillon, Case: 22STCV22256, Date: 2022-09-15 Tentative Ruling

Case Number: 22STCV22256    Hearing Date: September 15, 2022    Dept: 73

ADONIS OCAMPO v FORD MOTOR COMPANY, ET AL. 

 

Counsel for Plaintiff/opposing party:  Neal F. Morrow III and Michael J. Avila (MFS Legal Inc.)

Counsel for Defendant/moving party:  Judd A. Gilefsky and Carshena P. Culmer (Lewis Brisbois Bisgaard & Smith LLP)

 

Demurrer to Complaint (filed 08/12/2022)

 

TENTATIVE RULING

 

Ford Motor Company’s demurrer to the fifth cause of action raised in Complaint is SUSTAINED without leave to amend on the ground that Plaintiff lacks standing.

 

Discussion

 

A.      Plaintiff’s Pleadings/Allegations

 

In the complaint, Plaintiff Adonis Ocampo (“Plaintiff”) allege the following causes of action against Defendants Ford Motor Company (“Ford”) and Star Ford Lincoln (“SFL”) (collectively, “Defendants”) :  

 

C/A 1: Violation of the Song-Beverly Consumer Warranty Act – Breach of Express Warranties

C/A 2: Breach of Implied Warranty in Violation of the Song-Beverly Consumer Warranty Act

C/A 3: Breach of Express Warranty in Violation of the Commercial Code

C/A 4: Violation of the Federal Magnuson-Moss Warranty Act

C/A 5: Violation of Business and Professions Code § 17200

 

Plaintiff alleges that he purchased a 2017 Ford Escape on January 16, 2020, but it possessed or developed defects and nonconformities to its warranties.

 

B.      Ford’s Demurrer

 

On August 12, 2022, Ford filed a demurrer to the Complaint on the following grounds:

·         The fifth cause of action raised in the complaint is subject to demurrer because Plaintiff lacks standing; and

·         The fifth cause of action fails to allege any unlawful, unfair or fraudulent business practices committed by Ford.

On September 2, 2022, Plaintiff filed an opposition, arguing that the fifth cause of action has been sufficiently pleaded.   

On September 8, 2022, Ford filed its reply reasserting that the fifth cause of action is subject to demurrer.

ANALYSIS

 

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 contest--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 pleadings alone and not the evidence or other extrinsic matters. (SKF Farms v. Superior Court (1984) 153 Cal. App. 3d 902, 905.)  Therefore, it lies only where the defects appear on the face of the pleading or are judicially noticed.  (Cal. Civ. Proc. Code §§ 430.30, 430.70.)  The only issue a demurrer is concerned with is whether the complaint, as it stands, states a cause of action.  (Hahn 147 Cal.App.4th at 747.)

 

B.                  Meet and Confer

 

Upon review of the declaration submitted along with the instant demurrer, the Court finds that the parties were failed to meet and confer pursuant to Code of Civil Procedure § 430.41. (Culmer Decl.  ¶ 2, Exh. A.) The declaration mere states that correspondence was emailed to Plaintiff’s counsel on August 5, 2022 and a response was requested. While Plaintiff’s counsel failed to respond, Code of Civil Procedure § 430.41 clearly requires that the meet and confer to be completed in person or over the phone. Nonetheless, the Court will proceed to address the merits of the demurrer despite this deficiency. (Code Civ. Proc. §§ 430.41(a)(4).) The Court cautions the parties that a code-compliant meet and confer effort is required for each demurrer and motion to strike on subsequent pleadings.

 

C.                  Fifth Cause of Action: Unfair Business Practices – Lack of Standing

 

Ford demurs to the fifth cause of action for unfair business practices on the ground that Plaintiff lacks standing.

 

Pursuant to Business & Professions Code §§ 17200 et seq, persons are prohibited from engaging in unfair, unlawful, deceptive, misleading, and fraudulent acts. “Any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction.” (Bus. & Prof. Code § 17203.) “Any person may pursue representative claims or relief on behalf of others only if the claimant meets the standing requirements of Section 17204 and complies with Section 382 of the Code of Civil Procedure.” (Id.) Any person “who has suffered injury in fact and has lost money or property as a result of such unfair competition” may prosecute an action under the UCL. (Bus. & Prof. Code § 17204.) “The 2004 amendment essentially stripped private plaintiffs of the power to maintain such a suit unless they could assert an entitlement to restitutionary relief in their own right. A private plaintiff unable to state a factual basis for personally recovering such relief can no longer maintain an action under the UCL.” (Silvaco Data Systems v. Intel Corp. (2010) 184 Cal.App.4th 210, 245.)

 

“A plaintiff alleging unfair business practices under these statutes must state with reasonable particularity the facts supporting the statutory elements of the violation.” (Khoury v. Maly’s of California, Inc. (1993) 14 Cal.App.4th 612, 619.) "Although section 17200 contains sweeping language as to what is considered a business practice, standing to sue under the statute, as defined by Business and Professions Code section 17204, is confined ` ‘to any `person who has suffered injury in fact and has lost money or property' as a result of unfair competition. [Citations.]’” (Bower v. AT&T Mobility, LLC (2011) 196 Cal.App.4th 1545, 1553-1554 at 1554 [quoting Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310, 320–321].)

 

“[S]tatutory causes of action must be pleaded with particularity.” (Covenant Care, Inc., supra, 32 Cal.4th at 790.)

 

Here, Ford argues that the Complaint fails to allege any conduct by Ford that could be construed as an unlawful, unfair or fraudulent business practice. (Demurrer at pg. 6.) Moreover importantly, Ford argues that Plaintiff lacks standing because the allegations fail to show that Plaintiff was economically harmed by any alleged conduct by Ford. (Id.) It is noted that Plaintiff’s opposition fails to address this argument entirely.

 

Upon review of the Complaint, the Court finds that it neither alleges that Plaintiff suffered an injury-in-fact nor that he sustained economic damages due to any conduct by Ford. (See Kwikset Corp., supra, 51 Cal.4th 310, 322.) Because Plaintiff fails to address this argument, Plaintiff has not met his burden in showing how the Complaint can be amended so as to cure this defect. (See Association of Community Organizations for Reform Now v. Department of Industrial Relations (1995) 41 Cal.App.4th 298, 302.)

 A demurrer may be sustained without leave to amend when there is no reasonable possibility that the defect can be cured by amendment. (Blank v. Kirwan (1985) 39 Cal.3d 311, 318.)

 

Accordingly, the court sustains Defendants’ demurrer to the fifth cause of action without leave to amend. In the interest of judicial economy, the Court declines to the address Ford’s argument that the fifth cause of action is uncertain and insufficiently pleaded.