Judge: William A. Crowfoot, Case: 23AHCV00635, Date: 2023-08-24 Tentative Ruling

Case Number: 23AHCV00635    Hearing Date: August 24, 2023    Dept: 3

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES - NORTHEAST DISTRICT

 

GILBERT DE LA CRUZ,

                   Plaintiff(s),

          vs.

 

WELLS FARGO BANK, N.A.,

 

                   Defendant(s).

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     CASE NO.:  23AHCV00635

 

[TENTATIVE] ORDER RE: DEFENDANT WELLS FARGO BANK, N.A.’S DEMURRER TO COMPLAINT

 

Dept. 3

8:30 a.m.

August 24, 2023

 

 

 

 

I.            INTRODUCTION

On March 22, 2023, plaintiff Gilbert De La Cruz (“Plaintiff”) filed this action against defendant Wells Fargo Bank, N.A. asserting a cause of action for general negligence.  Plaintiff alleges that on March 21, 2022, his insurance carrier, State Farm Mutual Automobile Insurance Company (“State Farm”) issued and overnighted a comprehensive coverage payment for $30,743.31 for the total loss of a 1996 Porsche.  Plaintiff never received the check and requested assistance from State Farm.  On August 15, 2022, Plaintiff received an email from a State Farm agent with a copy of the cashed check which showed it was made payable to non-party Alliance Electronic Recycling (“Alliance”) instead of Plaintiff. 

Defendant demurs to the sole cause of action for negligence on the grounds that it is displaced by the Commercial Code and otherwise fails to state facts sufficient to constitute a cause of action pursuant to Code of Civil Procedure section 430.10(e).

II.          LEGAL STANDARD

A demurrer tests the legal sufficiency of the pleadings and will be sustained only where the pleading is defective on its face.  (City of Atascadero v. Merrill Lynch, Pierce, Fenner & Smith, Inc. (1998) 68 Cal.App.4th 445, 459.)  Allegations are to be liberally construed.  (Code Civ. Proc., § 452.)  A demurrer may be brought if insufficient facts are stated to support the cause of action asserted.  (Code Civ. Proc., § 430.10, subd. (e).) 

III.        DISCUSSION

Plaintiff fails to state a claim against Defendant because Plaintiff fails to establish that Defendant owed him a duty of care.  To state a claim for negligence, Plaintiffs must show: (1) the existence of a duty to exercise due care; (2) breach of that duty; (3) causation; and (4) damage.  (Merrill v. Navegar, Inc. (2001) 26 Cal.4th 465, 500.) “A bank owes no duty to nondepositors to investigate or disclose suspicious activities on the part of an account holder.”  (See Kurtz-Ahlers, LLC v. Bank of America, N.A. (2020) 48 Cal.App.5th 952, 960.)  “[T]he contractual nature of the bank-depositor relationship limits a bank’s duties in regards to [customer] accounts... ‘this contractual relationship...entails no contractual obligation to persons other than the account holder.”  (Ibid.)  Accordingly, there is no duty to non-depositors to “police” account activity for fraud.  (Ibid., [citing Chazen v. Centennial Bank (1998) 61 Cal. App. 4th 532.)

Here, Plaintiff alleges that he has no existing accounts with Defendant.  Accordingly, Defendant does not owe him a duty of care. 

Plaintiff did not oppose the demurrer and show how amendment is possible.  Accordingly, Defendant’s demurrer is sustained without leave to amend.

IV.         CONCLUSION

Defendant’s unopposed demurrer is SUSTAINED without leave to amend.

Dated this 24th day of August, 2023

 

 

 

 

       William A. Crowfoot

Judge of the Superior Court

 

 

Parties who intend to submit on this tentative must send an email to the Court at ALHDEPT3@lacourt.org indicating intention to submit on the tentative as directed by the instructions provided on the court website at www.lacourt.org.  Please be advised that if you submit on the tentative and elect not to appear at the hearing, the opposing party may nevertheless appear at the hearing and argue the matter.  Unless you receive a submission from all other parties in the matter, you should assume that others might appear at the hearing to argue.  If the Court does not receive emails from the parties indicating submission on this tentative ruling and there are no appearances at the hearing, the Court may, at its discretion, adopt the tentative as the final order or place the motion off calendar.