Judge: Virginia Keeny, Case: 22STCV27644, Date: 2023-03-23 Tentative Ruling



Case Number: 22STCV27644    Hearing Date: March 23, 2023    Dept: W

LESLEY-ANN BRUAL FERNANDEZ v. SHERMAN OAKS INTEGRATED MEDICAL GROUP, INC., et al.

 

Defendant SHERMAN OAKS INTEGRATED MEDICAL GROUP, INC. dba HEALTH ATLAST SHERMAN OAKS’ demurrer with motion to strike the first amended complaint

 

Date of Hearing:        March 23, 2023                                 Trial Date:       None set.

Department:              W                                                        Case No.:        22STCV27644

 

Moving Party:            Defendant Sherman Oaks Integrated Medical Group Inc. dba Health Atlast Sherman Oaks

Responding Party:     Plaintiff Lesley-Ann Brual Fernandez

Meet and Confer:      Yes. (Steinberg Decl. ¶3.)

 

BACKGROUND

 

On August 28, 2022, Plaintiff Lesley-Ann Brual Fernandez filed a Complaint against Defendants Sherman Oaks Integrated Medical Group Inc. dba Health Atlast Sherman Oaks, Health Atlast LLC, and Enoc Otero. On November 15, 2022, Plaintiff filed her First Amended Complaint against Defendants, asserting causes of action for (1) Sexual Battery; (2) Sexual Assault; (3) Intentional Infliction of Emotional Distress; (4) Violation of Civil Code §51.9; (5) Violation of Civil Code §52.4; (6) Negligence; (7) Negligent Hiring; (8) Negligent Failure to Warn, Train, or Educate; (9) Negligent Infliction of Emotional Distress; and (10) Constructive Fraud.

 

Plaintiff was a regular patient of Sherman Oaks Integrated Medical Group Inc. dba Health Atlast Sherman Oaks (“Sherman Oaks Integrated”) since 2018. Plaintiff regularly sought medical care from Sherman Oaks Integrated in order to receive treatment for severe lumbar spine pain with sciatica associated with multiple lumbar spine disc protrusions. Plaintiff alleges on September 26, 2020, Plaintiff arrived at the Sherman Oaks Integrated for a massage therapy appointment with Defendant Otero, an employee of Sherman Oaks Integrated. Plaintiff further alleges halfway through the massage, Defendant Otero sexually assaulted, battered, and harassed Plaintiff. Plaintiff reported the incident to another Sherman Oaks Integrated, Dr. Bryce Matthews.

 

[Tentative] Ruling

 

Defendant Sherman Oaks Integrated Medical Group Inc. dba Health Atlast Sherman Oaks’s Demurrer is OVERRULED; Defendant Sherman Oaks Integrated Medical Group Inc. dba Health Atlast Sherman Oaks’ Motion to Strike is GRANTED WITH LEAVE TO AMEND.

 

DISCUSSION

 

Defendant Sherman Oaks Integrated Medical Group Inc. dba Health Atlast Sherman Oaks demur to the First Amended Complaint on the grounds the first, second, third, fourth, and tenth causes of action do not state facts sufficient to constitute a cause of action as against Defendant Sherman Oaks Integrated.

 

Respondent Superior

 

Defendant first Sherman Oaks Integrated first demurs to the complaint on the grounds sexual misconduct is not conduct that arises out of the scope of an employee’s employment.

 

“[A]n employer is vicariously liable for the torts of its employees committed within the scope of the employment.” (Lisa M. v. Henry Mayo Newhall Memorial Hospital (1995) 12 Cal.4th 291, 296.) “[A]n employee’s willful, malicious and even criminal torts may fall within the scope of his or her employment for purposes of respondeat superior, even though the employer has not authorized the employee to commit crimes or intentional torts.” (Id. at 297.) “[T]he employer will not be held liable for an assault or other intentional tort that did not have a causal nexus to the employee’s work.”  (Id. at 297.)  “[T]hat a job involves physical contact is, by itself, an insufficient basis on which to impose vicarious liability for sexual assault.”  (Id. at 302.) Sexual misconduct usually falls outside the course and scope of employment and should not be imputed to the employer. (Juarez v. Boy Scouts of America, Inc. (2000) 81 Cal.App.4th 377, 394.) 

 

Plaintiff alleges halfway through the massage Defendant Otero sexually assaulted, battered and harassed Plaintiff. (FAC ¶21.) Plaintiff attempted to move away from Defendant Otero and warned him to stop. (FAC ¶22.) After Defendant Otero continued to touch and rub Plaintiff, Plaintiff immediately ended the massage therapy session and exited the treatment room. (FAC ¶23.) Plaintiff then reported the incident to Dr. Matthews, an employee and Chiropractic Treating Director of Defendant Sherman Oaks Integrated. (FAC ¶23.) Upon receiving Plaintiff’s report that Defendant Otero had sexually assaulted her during the massage therapy session, Dr. Matthews questioned the veracity of Plaintiff’s report and affirmatively represented to Plaintiff that Defendant Otero had no prior complaints of sexual misconduct against him. (FAC ¶24.) Later that same day, Plaintiff filed a sexual crime report against Defendant Otero. (FAC ¶25.) During the course of the LAPD’s criminal investigation of Defendant Otero, Dr. Matthews reported to LAPD that he was, in fact, aware of at least one prior complaint of sexual misconduct and inappropriate touching committed by Defendant Otero. (FAC ¶26.)

 

Defendant argues like Lisa M. (cited above), no sufficient factual allegations support that Defendant Otero’s actions were generated by an outgrowth of workplace responsibilities, conditions, or events. The court agrees.

 

The court finds the Lisa M. case instructive.  Lisa M. involved an ultrasound technician who inappropriately fondled and touched a pregnant patient during her ultrasound examination. (Lisa M. v. Henry Mayo Newhall Memorial Hospital (1995) 12 Cal.4th 291.) The Lisa M. court held that defendant hospital was not vicariously liable for the sexual assault of the patient. (Id. at 305.)  The Lisa M. court held that “[t]he technician’s decision to engage in conscious exploitation of the patient did not arise out of the performance of the examination, although the circumstances of the examination made it possible.” (Id. at 301.)  Further, the Lisa M. court states that “’i]f . . . the assault was not motivated or triggered off by anything in the employment activity but was the result of only propinquity and lust, there should be no liability.” (Id.)

 

Even though Defendant Otero’s job involved intimate physical contact, Plaintiff has not alleged the motivating emotions were fairly attributed to work-related events or conditions. (Lisa M., supra, 12 Cal.4th at p. 301.) A recent case, Samantha B. v. Aurora Vista Del Mar, LLC (2022) 77 Cal.App.5th 85, highlights this importance. In Samantha B., former patients at an acute psychiatric hospital suffered sexual abuse by a hospital employee. The court found the hospital and management company were vicariously liable on the grounds the mental health workers were personally involved with patients over an extended period of time including helping patients with daily living activities. (Samantha B. v. Aurora Vista Del Mar, LLC (2022) 77 Cal.App.5th 85, 108.) Moreover, the patients were vulnerable as many suffered from impaired judgment or other cognitive impairments. (Ibid.) Samantha B. went on to distinguish itself from Lisa M. on the grounds the interactions in Lisa M. were brief and the employee’s duties were technical. As with Lisa M., the interactions between Plaintiff and Defendant Otero were brief and technical.

 

Ratification

 

Defendant further argues Plaintiff does not sufficiently allege facts demonstrating that Defendant Sherman Oaks Integrated approved through words or conduct any alleged misconduct by Defendant Otero.

 

An employer may be held liable for an employee’s act when the employer subsequently ratifies that employee’s act.  (Ventura v. AMB Industries Inc. (2012) 212 Cal.App.4th 258, 272.)  “[R]atification is generally applied where an employer fails to investigate or respond to charges that an employee committed an intentional tort, such as an assault or battery.”  (Id.)  “[For] adoption and ratification there must be some relation, actual or assumed, of principal and agent.”  (Watkins v. Clemmer (1933) 129 Cal.App. 567, 572.)  “A principal cannot ratify the act of the alleged agent, unless the agent purported to act on behalf of the principal.”  (Emery v. Visa Internat. Service Ass’n (2002) 95 Cal.App.4th 952, 961, emphasis added.)   

 

Defendant argues Plaintiff does not sufficiently allege facts demonstrating that Defendant Sherman Oaks Integrated approved through words or conduct any alleged misconduct by Defendant Otero. Further, Plaintiff has not pled sufficient facts that Defendant Otero’s alleged intentional sexual misconduct was generated by an outgrowth of workplace responsibilities so that Defendant Otero purported to act on behalf of Defendant Sherman Oaks Integrated.

 

The court disagrees with Defendant. Taking Plaintiff’s allegations as true, Defendant Sherman Oaks Integrated ratified Defendant Otero’s by knowing of his prior complaint of sexual misconduct and inappropriate touching but not undertaking any investigation or discharging Otero. Moreover, Defendant Sherman Oaks Integrated allowed Otero to be alone with clients.

 

Accordingly, the court OVERRULES the demurrer on this basis.  

 

Third Cause of Action

 

Defendant demurs to the third cause of action on the grounds Plaintiff has not pled with sufficient particularity that Defendant Sherman Oaks Integrated committed conduct so outrageous to exceed all bounds of that usually tolerated in a civilized society.

 

The elements for a cause of action for intentional infliction of emotional distress are (1) extreme and outrageous conduct by the defendant with the intention of causing, or reckless disregard of the probability of causing, emotional distress; (2) the plaintiff’s suffering severe or extreme emotional distress; and (3) an actual and proximate causal link between the tortious conduct and the emotional distress.  (Hughes v. Pair (2009) 46 Cal.4th 1035, 1050.)  

 

The third cause of action alleges a reasonable person would not expect or tolerate that Defendant Sherman Oaks Integrated – with actual knowledge of, and opportunity to learn of, Defendant Otero’s dangerous propensity to commit sexual misconduct against patients, and callous indifference thereto – would permit Defendant Otero to continue providing massage therapy to vulnerable patients as an employee and agent of Sherman Oaks Integrated. (FAC ¶56.) The court finds these allegations are alleged with great specificity the acts which he or she believes are so extreme as to exceed all bounds of that usually tolerated in a civilized community. (See Vasquez v. Franklin Management Real Estate Fund, Inc. (2013) 222 Cal.App.4th 819, 832.) Specifically, Plaintiff alleges Defendant Sherman Oaks Integrated’s knowledge of Otero’s prior sexual assault and continuing employment of Otero was so extreme to exceed all bounds of that usually tolerated in a civilized society.

 

Accordingly, Defendant’s demurrer is OVERRULED.

 

Fourth Cause of Action

 

Defendant Sherman Oaks Integrated demurs to the fourth cause of action on the grounds Plaintiff has failed to plead facts sufficient to constitute a cause of action for violation Civil Code §51.9.

 

Civil Code section 51.9 provides that “[a] person is liable in a cause of action for sexual harassment under this section when the plaintiff proves all of the following elements: (1) [t]here is a business, service, or professional relationship between the plaintiff and the defendant” and that there is an inability for the plaintiff to easily terminate the relationship. (Civil Code §51.9(a).)

 

Defendant Sherman Oaks Integrated argues Plaintiff does not allege facts with sufficient particularity as to a business relationship between Plaintiff and Defendant Sherman Oaks Integrated. Further, no facts are alleged that any relationship with the Defendant was not easily terminable. The court disagrees.

 

Plaintiff has alleged sufficient facts to support an inference that a business relationship existed between her and Defendant. Plaintiff alleges she first became a patient of Defendant around 2018 and regularly sought medical care from Defendant in order to receive treatment for severe lumbar spine pain with sciatica associated with multiple lumbar spine disc protrusions. (FAC ¶16.) Such a relationship may exist between a patient and doctor. Moreover, Plaintiff is no longer required to prove there is an inability by the plaintiff to easily terminate the relationship.

 

Accordingly, Defendant’s demurrer to the fourth cause of action is OVERRULED.

 

Tenth Cause of Action

 

Defendant demurs to the tenth cause of action on the grounds Plaintiff has failed to plead facts sufficient to constitute a cause of action for constructive fraud.

 

“Constructive fraud is a unique species of fraud applicable only to a fiduciary or confidential relationship.” (Assilzadeh v. California Federal Bank (2000) 82 Cal.App.4th 399, 415.) Constructive fraud “comprises any act, omission or concealment involving a breach of legal or equitable duty, trust or confidence which results in damage to another even though the conduct is not otherwise fraudulent.” (Id.) “Constructive fraud ‘arises on a breach of duty by one in a confidential or fiduciary relationship to another which induces justifiable reliance by the latter to his prejudice.’” (Tyler v. Children’s Home Society (1994) 29 Cal.App.4th 511, 548 (quoting Odorizzi v. Bloomfield School Dist. (1966) 246 Cal.App.2d 123, 129) (emphasis in original).) “Actual reliance and causation of injury must be shown.” (Id.)  

 

Defendant argues Plaintiff does not allege facts with sufficient particularity as to a fiduciary or confidential relationship between Plaintiff and Defendant Sherman Oaks Integrated that created a duty to Plaintiff, Defendant Sherman Oaks Integrated took active steps to conceal matters from Plaintiff so that Plaintiff would rely on Defendant’s actions and be injured become injured as a result, or that an advantage was gained to Defendant Sherman Oaks Integrated by misleading her.

 

The court disagrees. The relationship alleged is sufficient to show a fiduciary relationship between Plaintiff and Defendant. As noted above, Plaintiff has alleged a fiduciary physician-patient relationship with Plaintiff. Plaintiff also alleges she relied on Defendant’s concealment of Otero’s prior sexual misconduct.

 

Accordingly, Defendant’s demurrer to the tenth cause of action is OVERRULED.

 

Motion to Strike

 

Defendant moves to strike Plaintiff’s allegations and prayer for punitive damages, attorney fees, and statutory damages.

 

Punitive Damages

 

Defendant moves to strike Plaintiff’s claims and prayer for punitive damages on the grounds Plaintiff does not sufficiently allege Defendant is vicariously liable for actions of its employee. Defendant also moves to strike the claims and prayer for punitive damages on the grounds Plaintiff fails to plead facts to show that Defendant acted with malice, oppression, or fraud.

 

California Civil Code section 3294 authorizes the recovery of punitive damages in non-contract cases where “the defendant has been guilty of oppression, fraud, or malice ....” (Civ. Code § 3294(a).) “’Malice’ means conduct which is intended by the defendant to cause injury to the plaintiff or despicable conduct which is carried on by the defendant with a willful and conscious disregard of the rights or safety of others.” (Id., § 3294(c)(1).) “‘Oppression’ means despicable conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person’s rights.” (Id., § 3294(c)(2).) A plaintiff must establish the defendant was aware of the probable dangerous consequences of his conduct and that he willfully and deliberately failed to avoid those consequences to support an award of punitive damages based on conscious disregard of the safety of others. (Penner v. Falk (1984) 153 Cal.App.3d 858, 867.) Punitive damages thus require more than the mere commission of a tort. (See Taylor v. Superior Court (1979) 24 Cal.3d 890, 894-95.) Specific facts must be pleaded in support of punitive damages. (See Hillard v. A.H. Robins Co. (1983) 148 Cal.App.3d 374, 391-92.)  

 

As noted above, the court finds Plaintiff has sufficiently alleged vicarious liability. Moreover, Plaintiff has sufficiently alleged Defendant acted with a willful and conscious disregard of the rights or safety of others when Defendant Matthews had advance knowledge that Otero was unsafe and unfit to serve as a massage therapist but continued to employ Otero.  

 

Attorney Fees

 

Defendant moves to strike Plaintiff’s request for attorney fees on the grounds Section 1021.5 is entirely inapplicable here as this action does not seek the enforcement of an important right affecting the public interest or the conveyance of a significant benefit upon the general public or a large class of persons.

 

Section 1021.5 provides the court with discretion to award attorneys’ fees to a successful party in an action which has resulted in the enforcement of an important right affecting the public interest if a significant benefit has been conferred on the general public or a large class of persons, the necessity and financial burden of private enforcement makes the award appropriate, and such fees should not be paid out of the recovery in the interest of justice. (See CCP §1021.5.) 

 

As an award of attorneys’ fees pursuant to Code of Civil Procedure section 1021.5 is discretionary and depends on a weighing of factors, it cannot be determined that Plaintiff is not entitled to section 1021.5 attorneys’ fees at this stage. Plaintiff has alleged an attempt to confer a significant benefit on the general public or a large class of persons by identifying an alleged sexual abuser as well as those who fail to properly report sexual abusers.  

 

The court denies Defendant’s motion to strike on this basis.

 

Statutory Damages

 

Defendants move to strike Plaintiff’s prayer for statutory damages on the grounds the body of the FAC itself does not cite to specific authority supporting an award of such damages.

 

Plaintiff does not address this argument in their opposition. Accordingly, Defendant’s motion to strike is GRANTED.  The court will determine at the hearing whether plaintiff is requesting leave to amend.