DEPARTMENT F43 LAW AND MOTION RULINGS
Case Number: 23CHUD00086 Hearing Date: March 7, 2025 Dept: F43
Dept. F43 Date: 03-07-25 Case # 23CHUD00086, Sierra Canyon
Apartments #1, LLC v. Ochoa Bernabe, et al. Trial Date: None set. MOTION TO COMPEL
RESPONSES TO FORM INTERROGATORIES MOVING PARTY: Cross-Defendant/Plaintiff
Sierra Canyon Apartments #1, LLC RESPONDING PARTY: No response has been filed. RELIEF REQUESTED Order compelling Cross-Complainant/Defendant
Emilian Perez Ochoa’s verified responses to Cross-Defendant’s first set of form
interrogatories and $2,260.00 in monetary sanctions. RULING: Motion
is granted, and $1,022.50 in monetary sanctions is awarded. SUMMARY OF ACTION On January 20, 2023,
cross-defendant/plaintiff Sierra Canyon Apartments #1, LLC (Sierra Canyon)
filed this unlawful detainer case against several defendants including Emiliano
O. Perez Ochoa (Emiliano). Defendants
and cross-complainant Emiliano responded by filing a cross-complaint against
Sierra Canyon alleging causes of action for (1) Negligence; (2) Negligent
Supervision; (3) Premises Liability; (4) Breach of the Implied Warranty of
Habitability; (5) Fraud (Intentional Misrepresentation); (6) Fraudulent
Concealment; (7) Negligent misrepresentation; (8) Breach of the Implied
Covenant of Quiet use and Enjoyment (Civil Code 1927); (9) Breach of Contract;
(10) Intentional Infliction of Emotional Distress; and (11) Breach of the
Implied Covenant of Good Faith and Fair Dealing. Sierra Canyon propounded its first set of form
interrogatories on Emiliano on August 27, 2024.
(Declaration of Shanna M. Van Wagner, Esq., ¶ 3, Exh. A, p. 9-10.) Responses were due September 30, 2024. Sierra Canyon granted two deadline extensions
(October 30 and November 29, 2024), but no responses were served. (Van Wagner Dec., ¶¶ 5-9.) On December 16, 2024, Sierra Canyon filed its
motion to compel Emiliano’s responses to its first set of form interrogatories. No opposition has been filed. MEET AND CONFER A motion to compel form interrogatory
responses must include a declaration stating facts showing a “reasonable and
good faith attempt” to resolve the issues mentioned in the motion before
filing. (Code Civ. Proc., §§ 2030.300,
subd. (b)(1), 2016.040.) On December 5,
2024, counsel sent Emiliano’s counsel a letter requesting responses by end of
day on December 9, 2024 and stating Sierra Canyon’s intent to file a motion to
compel and a request for sanctions. (Van
Wagner Dec., ¶ 8, Exh. D.) Counsel never
responded. (Van Wagner Dec., ¶ 9.) ANALYSIS A propounding party may move to compel responses to form
interrogatories where the responding party fails to provide any responses.
(Code Civ. Proc., § 2030.290, subd. (b).)
The propounding party must show the interrogatories were properly
served, that the time to respond expired, and no response has been served. (Leach
v. Superior Court (1980) 111 Cal.App.3d 902, 905-906.) Unless excused by a protective order, the
responding party must serve responses (an answer, objection, or election to
allow inspecting or copy records) within 30 days after the interrogatories are
served or according to an agreed upon deadline extension. (Code Civ. Proc., §§ 2030.210, subd. (a),
2030.270.) Failing to respond within
these time limits waives objections.
(Code Civ. Proc., § 2030.290, subd. (a).) Sierra Canyon properly served its form interrogatories on
Emiliano via e-mail on August 27, 2024. Emiliano
did not serve responses by September 30, 2024 or any of the subsequent deadline
extensions. Accordingly, the court grants Sierra Canyon’s motion and orders
Emiliano O. Perez Ochoa to serve code-compliant, objection-free responses to Sierra
Canyon’s first set of form interrogatories. Sanctions Sierra Canyon requests $2,260.00 in monetary sanctions
under sections 2023.010, 2023.030, and 2030.290(c). The court may impose sanctions against any party who
“unsuccessfully makes or opposes a motion to compel responses to
interrogatories unless, it finds that the one subject to the sanction acted
with substantial justification or that other circumstances make the imposition
of the sanction unjust.” (Code Civ.
Proc., § 2030.290, subd. (c).) Sierra Canyon’s counsel, Shanna M. Van Wagner, charges an
hourly rate of $275.00. (Van Wagner
Dec., ¶ 10.) The request includes the
following: (1) 4 hours preparing the motion—$1,100.00; (2) anticipated 2.5
hours to review an opposition and prepare a reply—$687.50; (3) anticipated 1.5
hours preparing for and attending the motion hearing—$412.50; and (4) a $60.00
filing fee. (Ibid.) The court finds the hourly rates are reasonable, but the
court will not award sanctions for reviewing and replying to an opposition
because no opposition has been filed. The
issues are not complex, and this motion is virtually identical to Sierra
Canyon’s other motions to compel discovery.
The court reduces the hours spent preparing the motion to 2 hours and
the time anticipated to review an opposition and to reply to 0 hours. Accordingly, the Court grants Defendant’s request in the
reduced amount of $1,022.50: (1) 2 hours preparing this motion; (2) 1.5 hours
preparing for and attending the motion hearing; and (3) a $60.00 filing fee. CONCLUSION Cross-Defendant/Plaintiff Sierra Canyon’s motion to
compel code-compliant, objection-free responses to its first set of form
interrogatories is granted. Cross-Complainant Emiliano O. Perez Ochoa is ordered to
serve responses within thirty days (30) of this order. Cross-Complainant Emiliano and Emiliano’s counsel of record
are ordered to pay sanctions in the amount of $1,022.50. Emiliano’s counsel is ordered to pay these
sanctions to Sierra Canyon’s counsel within twenty (20) days of this order. Sierra Canyon to give notice. |
DEPARTMENT F43 LAW AND MOTION RULINGS
Case Number: 22CHCV01034 Hearing Date: March 6, 2025 Dept: F43
Dept. F43 Date: 03-06-25 Case # 22CHCV01034, Bruch,
et al. v. Prince, et al. Trial Date: None set. MOTIONS TO COMPEL DISCOVERY
RESPONSES MOVING PARTY: Defendant Plant Works Group,
Inc. RESPONDING PARTY: No response has been filed. RELIEF REQUESTED Order: ·
Compelling plaintiff Sarah Fry Bruch’s
objection-free, verified responses to Defendant’s first set of requests for
production and awarding $860.00 in monetary sanctions.[1] ·
Compelling plaintiff Sarah Fry Bruch’s
objection-free, verified responses to Defendant’s first set of form
interrogatories and awarding $860.00 in monetary sanctions. ·
Compelling plaintiff David Jess Bruch’s
objection-free, verified responses to Defendant’s first set of requests for
production and awarding $860.00 in monetary sanctions. ·
Compelling plaintiff Gregory Bruch’s objection-free,
verified responses to Defendant’s first set of requests for production and awarding
$860.00 in monetary sanctions. RULING: Motions
are denied. SUMMARY OF ACTION Plaintiffs Sarah Fry Bruch, Gregory Bruch,
and David Jess Bruch, through his successors in interest Sarah Fry Bruch and
Gregory Bruch, filed this wrongful death action on November 1, 2022. On May 30, 2024, Plaintiff filed a First
Amended Complaint (FAC) which included several identified Doe defendants,
including defendant Plant Works Group, Inc. (Defendant). On September 9, 2024, Defendant claims it served
its first set of requests for production (RFPs) regarding all Plaintiffs and
its first set of form interrogatories regarding plaintiff Sarah Fry Bruch, on
Plaintiffs’ counsel. (Declaration of
Stephen A. Bonkowski, ¶ 2, Exh. 1.)
Responses were due October 11, 2024.
(Ibid.) Responses were
never sent. On October 16, 2024, Defendant’s counsel sent
Plaintiffs’ counsel a meet and confer letter saying objections were waived and
setting a new deadline for October 23, 2024.
(Bonkowski Dec., ¶ 3, Exh. 2.) Two
days later, Gregory’s counsel replied stating they did not have any discovery
to which defense counsel’s paralegal replied stating co-counsel had been served. (Bonkowski Dec., ¶ 4, Exhs. 3-4.) Defendant’s counsel then gave Plaintiffs a
30-day extension to provide code-compliant responses by November 19, 2024. (Bonkowski Dec., ¶ 6.) Responses were not served by this date. On November 21, 2024, Defendant’s counsel
sent a second “meet and confer” letter to Gregory’s counsel noting that Gregory
failed to produce responses. (Bonkowski
Dec., ¶ 8, Exh. 5.) Defendant provided
another extension to December 5, 2024 and stated it would file motions to
compel if Plaintiffs failed to comply with discovery obligations. (Bonkowski Dec., ¶¶ 9-10.) As of December 6, 2024, no responses were
served. On December 6, 2024, Defendant filed motions
to compel discovery responses.
Plaintiffs filed an untimely omnibus opposition on January 21, 2025,
challenging service. Defendant replied
on January 21 and 22, 2025. At the January 28 and 29, 2025 hearings, the
court ordered the parties to meet and confer, to file a joint status report by
February 20, 2025, and ordered Defendant to file a proof of service within ten
days. (Minute Order - 01/29/25, p. 4.) The record does not reflect that either party
has filed a joint status report discussing the status of the discovery issues
nor did Defendant file a proof of service confirming it properly served any of
its discovery motions. Because the court cannot confirm whether
Defendant properly served discovery requests on Plaintiffs, the court denies
Defendant’s motions to compel responses to its first set of requests for
production (plaintiffs Sarah Fry Bruch, Gregory Bruch, and David Jess Bruch)
and first set of form interrogatories (plaintiff Sarah Fry Bruch). CONCLUSION and ORDER Defendant Plant Work Group, Inc.’s motions to compel
discovery responses are denied. Defendant’s
requests for sanctions are denied. Defendant to give notice. Case Number: 23CHCV02662 Hearing Date: March 6, 2025 Dept: F43
Dept. F43 Date: 03-06-25 Case # 23CHCV02662, Golden Hammer Ops, LLC
v. JetNet, LLC, et al. Trial Date: 07-06-26
DEMURRER TO THE FIRST
AMENDED CROSS-COMPLAINT
MOVING PARTIES: Cross-Defendant/Plaintiff
Golden Hammer Ops, LLC and Cross-Defendant Gregory Rowlee RESPONDING PARTIES: Cross-Complainant/Defendants
ADSBexchange.com, LLC and Daniel Jason Streufert
RELIEF REQUESTED Order sustaining cross-defendants’ demurrer
to the entire first amended cross-complaint.
RULING: Demurrer
is sustained, with leave to amend.
SUMMARY OF ACTION On September 5, 2023, Golden Hammer Ops, LLC
(Golden Hammer) filed the complaint that began this action against
ADSBexchange.com (ADS-B), JetNet, LLC (JetNet), and Daniel J. Streufert
(Streufert). Golden Hammer alleged
causes of action for Misappropriation of Trade Secrets and Breach of Contract
against ADS-B. In response, ADS-B and
Streufert filed a cross-complaint against Golden Hammer and cross-defendant
Gregory Rowlee (Rowlee).
On January 17, 2025, ADS-B and Streufert
filed a first amended cross-complaint (FACC) against alleging causes of action
for (1) fraud and (2) negligence misrepresentation against Golden Hammer, and
(3) intentional interference with contractual relations against Golden Hammer
and Rowlee. The FACC alleges that Streufert,
ADS-B, Rowlee, and Golden Hammer executed a Services Agreement and a Hosting
Agreement on June 8, 2020. During pre-contractual
negotiations, Golden Hammer’s representative, Mr. Decker, met with Streufert
confirming the scope and requirements of Intellectual Property and
Confidentiality provisions in the agreements.
The parties agreed that the only intellectual property Golden Hammer
owned was its backend infrastructure, that this ownership did not extend to the
“open source” software required to run the ADS-B platform, and that Golden
Hammer would state in writing any material it considered its intellectual
property.
In October 2022, Rowlee discovered that
Streufert and ADS-B were considering selling certain assets. Rowlee did not approve of the sale and sent
Streufert several messages discouraging him from selling to JetNet. On January 25, 2023, JetNet publicly
announced the transaction between ADS-B and JetNet (JetNet Agreement). Per the terms of the agreement, ADS-B
assigned its role in the Hosting Agreement to JetNet. Beginning January 26, 2023, Golden Hammer and
Rowlee made public statements and engaged in conduct intended to interfere with
JetNet, ADS-B, and Streufert’s contractual relationship. As a result, ADS-B and Rowlee have suffered
damages.
Golden Hammer and Rowlee demur to the FACC
for failing to allege sufficient facts to constitute each cause of action. ADS-B and Streufert filed an opposition. Golden Hammer and Rowlee replied.
MEET AND CONFER Before filing a demurrer, the parties must
meet and confer “in person, by telephone, or by video conference.” (Code Civ. Proc., § 430.41, subd. (a).) The moving party must file and serve a meet
and confer declaration stating either: (1) the means by which the parties met
and conferred, that the parties did not reach an agreement resolving the issues
raised in the demurrer; or (2) that the party who filed the pleading subject to
the demurrer failed to respond to the meet and confer request or failed to meet
and confer in good faith. (Code Civ.
Proc., §§ 430.41, subd. (a)(3).)
It appears the parties met and conferred
before the FACC was filed but not before filing this demurrer. Regardless, the court still considers the
demurrer’s merits.
REQUEST FOR JUDICIAL NOTICE Golden Hammer and Rowless ask the court to
take judicial notice of the following:
·
ADS-B and Streufert’s original
cross-complaint, filed October 28, 2024 ·
Streufert’s answer to Golden Hammer’s
original complaint, filed November 6, 2023 ·
ADS-B’s answer to Golden Hammer’s original
complaint, filed November 6, 2023 ·
The Asset Purchase Agreement (called the
JetNet Agreement throughout this tentative)
The court takes judicial notice of the
original cross-complaint and the answers pursuant to Evidence Code section 452,
subd. (d). The court also takes judicial
notice of the JetNet Agreement pursuant Evidence Code section 452, subd. (h).
ANALYSIS As a general matter, aparty may respond to a pleading
against it by demurrer based on any single or combination of eight enumerated
grounds, includingthat“the pleading does not state facts sufficient to
constitute a cause of action” and is uncertain, meaning “ambiguous and
unintelligible.” (Code Civ. Proc., § 430.10, subds. (e) and (f)). The
grounds for demurring must be apparent from either the face of the complaint or
a matter of which the court may take judicial notice. (Code Civ. Proc., § 430.30, subd. (a); see
also Blank v. Kirwan (1985) 39 Cal.3d 311, 318.) The purpose of a demurrer is to challenge the
sufficiency of a pleading “by raising questions of law.” (Postley v. Harvey (1984) 153
Cal.App.3d 280, 286.) “In the
construction of a pleading, for the purpose of determining its effect, its
allegations must be liberally construed, with a view to substantial justice
between the parties.” (Code Civ. Proc.,
§ 452.) The court “treat[s] the demurrer
as admitting all material facts properly pleaded, but not contentions,
deductions or conclusions of fact or law[.]”
(Berkley v. Dowds (2007) 152 Cal.App.4th 518, 525.) In applying these standards, the court
liberally construes the complaint to determine whether a cause of action has
been stated. (Picton v. Anderson
Union High School Dist. (1996) 50 Cal.App.4th 726, 733.)
First
and Second Causes of Action: Fraud and Negligent Misrepresentation Golden Hammer and Rowlee demur to the first and second
causes of action for failure to plead sufficient facts to constitute fraud and
negligent misrepresentation.
A fraud cause of action requires a plaintiff to plead and
prove: “(a) [a] misrepresentation (false representation, concealment, or
nondisclosure); (b) knowledge of falsity (or “scienter”); (c) intent to
defraud, i.e., to induce reliance; (d) justifiable reliance; and (e) resulting
damage.” (Lazar v. Superior Court
(1996) 12 Cal 4th 631, 638.) Fraud
causes of action must be pled with specificity, alleging “‘how, when, where, to
whom and by what means the representations were tendered.’” (Stansfield v. Starkey (1990) 220
Cal.App.3d 59, 73 [quoting Hills Trans. Co. v. Southwest (1968) 266
Cal.App.2d 702, 707].) Fraud claims
against corporations must “allege the names of the persons who made the
allegedly fraudulent representations, their authority to speak, to whom they
spoke, what they said or wrote, and when it was said or written.” (Rattagan v. Uber Technologies, Inc. (2024)
17 Cal.5th 1, 40; Lazar v. Superior (1996) 12 Cal.4th 631, 645.)
To plead negligent misrepresentation, the complaint must
establish “(1) the misrepresentation of a past or existing material fact, (2)
without reasonable ground for believing it to be true, (3) with intent to
induce another’s reliance on the fact misrepresented, (4) justifiable reliance
on the misrepresentation, and (5) resulting damage.” (Tindell v. Murphy (2018) 22
Cal.App.5th 1239, 1252 [internal citations omitted].) Negligent misrepresentation does
not require knowledge of falsity or an intent to defraud. (Borman v. Brown (2021) 59 Cal.App.5th
1048, 1060.)
Golden Hammer and Rowlee contend that the
FACC contains no actionable misrepresentations because Mr. Decker’s alleged
representations involve alleged misstatements of law not fact. The FACC alleges that Mr. Decker “confirmed”
Streufert understanding of the “Intellectual Property” and “Confidentiality”
provisions. (FACC, ¶ 39, Exh. A.) The FACC alleges that Streufert “confirmed”
that Mr. Decker understood this language only applied to Golden Hammer’s
“backend infrastructure” and how Golden Hammer ran its servers, internal
firewall, and Storage Area Network configurations, and did not apply to the
software “required to actually run” the ADS-B platform. (FACC, ¶¶ 35-37.) The FACC alleges that Mr. Decker “confirmed”
that Streufert understood this language to require Golden Hammer to “to label
and identify in writing any information it considered to be [its] intellectual
property.” (FACC, ¶ 39.)
Streufert and ADS-B could not rely on these alleged
misrepresentations because they were misrepresentations of law expressed by a
layman rather than an affirmation of fact.
(Harazim v. Lynam (1968) 267 Cal.App.2d 127, 131; see also Haviland
v. Southern California Edison Co. (1916) 172 Cal. 601, 608 [holding that
the alleged misrepresentations regarding contractual language “were not
statements of fact, but at most misrepresentations of law”].) The FACC does not allege that Mr. Decker had
expert knowledge concerning the matter.
Additionally, the FACC does not allege that Mr. Decker is a legal expert
or has superior or special knowledge regarding the law or contract language or
the ADS-B platform. In fact, Streufert admitted
in this answer to Golden Hammer’s Complaint that he has negotiated contracts,
such as the ones at issue, in the past and that he provided detailed comments
to Mr. Decker during negotiations because he had been burned in the past. (Compl., ¶ 45.) Additionally, the FACC fails to allege that
Mr. Decker occupied a “position of confidence and trust” with ADS-B and
Streufert admitting that the June 3, 2020 meeting occurred before the parties
consummated their relationship and that Streufert was “taking a chance” on
Golden Hammer. (FACC, ¶¶ 26, 31,
32.)
ADS-B and Streufert oppose arguing that the FACC
sufficiently alleges fraud and negligent misrepresentation. Mr. Decker’s misrepresentations were not
opinions or statements of law. Mr.
Decker made statements of existing fact material to the transaction because Mr.
Decker represented to Streufert in concise terms that Golden Hammer was only
claiming intellectual property ownership of “backend infrastructure,” listing
specific components of backend structure; Golden Hammer was not claiming
intellectual property ownership of any software “required to actually run” the
ADS-B platform; and Golden Hammer was required to label and identify in writing
any material it considered to be Golden Hammer’s intellectual property. (FACC, ¶¶ 35-39, 103, 118.) The FAC does not allege that Mr. Decker
indicated these statements were merely his belief or that the statements lacked
certainty. Further, as Golden Hammer’s
COO, Mr. Decker had full authority to negotiate the terms of the agreement and
bind the company. Because Streufert
expressed concerns to Mr. Decker regarding the Confidentiality and Intellectual
Property provisions, Decker knew his representations about Golden Hammer’s intellectual
property ownership were material to the transaction and that Streufert would
not have signed the agreements otherwise.
Golden Hammer later made statements asserting its ownership of ADS-B.
Fraud must be based on affirmative statements of fact,
not misrepresentations of law or the legal opinions of laymen. (Harazim v. Lynam (1968) 267
Cal.App.2d 127, 131; Graham v. Bank of America, N.A. (2014) 226
Cal.App.4th 594, 606 [representations of opinion, involving matters of value,
are not representations of fact].)
Actionable misrepresentations must be made about past or future facts. (Graham, supra, 226 Cal.App.4th
at p. 607.)
“[M]isrepresentations of opinion are actionable when the
declarant holds himself out to be specially qualified.” (Harazim, supra, 267 Cal.App.2d
at p. 131.) However, “[if] the opinion
or legal conclusion misrepresents the facts upon which it is based or implies
the existence of facts which are nonexistent, it constitutes an actionable
misrepresentation.” (Seeger v. Odell (1941)
18 Cal.2d 409, 414.) Usually, false
representations of law are insufficient to plead fraud for rescission of
contract unless there is a relation of trust or confidence between the
parties. (Haviland v. Southern
California Edison Co. (1916) 172 Cal. 601, 608-609 [finding allegations
that plaintiff signed a release with full knowledge of its contents, accepted
and retained consideration, and that plaintiff believed non-binding statements
of defendant’s agent insufficient to constitute fraud].)
The FACC sufficiently alleges affirmative misrepresentations
of material facts because Decker confirmed facts which were material to the
transaction between the parties. During
a video conference with Streufert on June 3, 2020, Mr. Decker made three
misrepresentations on behalf of Golden Hammer: “(1) the Intellectual Property
Provision in the Services Agreement only applied to Golden Hammer’s “backend
infrastructure,” such as how Golden Hammer ran its servers, internal firewall,
and SAN configurations; (2) Golden Hammer’s intellectual property would not
extend to any software required to actually run the ADSB platform; and (3)
Golden Hammer was required to label and identify in writing any material it
considered to be Golden Hammer’s intellectual property.” (FACC, ¶¶ 34-40, 118.) ADS-B and Streufert allege that Golden Hammer
and Golden Hammer representative Mr. Decker owed ADS-B and Streufert a duty to
exercise reasonable care to avoid making misrepresentations concerning facts
basic to the Services and Hosting agreements.
(FACC, ¶ 120.)
Golden Hammer subsequently ratified these statements by
accepting the benefits of the Services and Hosting agreements, by providing
ADS-B with services under the terms of the agreement and accepting payment from
ADS-B in return for those services.
(FACC, ¶ 47.) These
representations were made with the intent to induce ADS-B and Streufert to rely
on them in execute the Services and Hosting agreements. (FACC, ¶ 119.) ADS-B and Streufert justifiably relied on the
representations because ADS-B and Streufert had no reason to believe the
representations were false nor could ADS-B and Streufert have discovered the
falsity of the representations at the time the representations were made. (FACC, ¶¶ 59-60, 123.) This is further supported by the FACC’s
allegations about Streufert clarifying the scope of the “intellectual property”
and “confidentiality” provisions. (FACC,
¶¶ 29, 35-40.)
ADS-B and Streufert alleged that they learned the
representations were false in 2023.
(FACC, ¶ 122.) On February 3,
2023, Rowlee sent Streufert an email asking if Streufert was interested in
acquiring Golden Hamer and its intellectual property. (FACC, ¶¶ 57-58.) If ADS-B and Streufert had known Golden
Hammer intended to assert ownership of the ADS-B platform without first
informing ADS-B and Streufert that it considered the platform as its
intellectual property, ADS-B and Streufert would not have entered the Services
and Hosting agreements or continued working with Golden Hammer. (FACC, ¶¶ 68-69, 122.) Golden Hammer and Rowlee have sued ADS-B and
Streufert for fraud, misappropriation of trade secrets, and reformation of
written instrument while Jetnet has sued them for indemnification. (FACC, ¶¶ 66, 72.)
As a result, ADS-B and Streufert have incurred legal
expenses in defending against these claims.
(FACC, ¶¶ 66, 70.) Additionally,
Golden Hammer’s claims of ownership over the ADS-B platform have disrupted
ADS-B’s relationship with JetNet. (FACC,
¶ 71.) Based on Golden Hammer’s claims,
JetNet has withheld escrow funds from the JetNet Agreement, which Streufert
cannot invest or earn interest on, and JetNet has asserted indemnification
claims against ADS-B and Streufert.
(FACC, ¶ 71-72.)
The FACC does not, however, sufficiently allege that Mr.
Decker, Golden Hammer, or Rowlee knew the representations were false at the
time the parties negotiated and executed the agreements. The FACC contains a conclusory allegation
that Mr. Decker, Golden Hammer, and Rowlee knew the representations were false,
but presents no facts to support this allegation, such as conduct of knowledge of
falsity from the time of the parties’ initial conversations and the execution
of the agreements on June 18, 2020. (FACC,
¶¶ 44, 105.) The FACC alleges a plethora
of conduct after June 18, 2020, but nothing before. Although knowledge of falsity is not required
for negligent misrepresentation, knowledge is required for fraud.
The first cause of action for fraud is therefore
deficient, while the second cause of action for negligent misrepresentation is
not. However, both causes of action
incorporate allegations that cross-defendants sued cross complainants,
potentially implicating the litigation privilege.
The litigation privilege applies to any communication
“(1) made in judicial or quasi-judicial proceedings; (2) by litigants or other
participants authorized by law; (3) to achieve the objects of the litigation;
and (4) that [has] some connection or logical relation to the action.” (Medallion Film LL v. LLC v. Loeb &
Loeb LLP (2024) 100 Cal.App.5th 1272, 1290; Civ. Code, § 47, subd.
(b).) The privilege also applies to
statements made during a trial or other proceedings and may also apply to
“steps taken prior thereto, or afterwards.”
(Ibid. [quoting Flickinger v. Finwall (2022) 85
Cal.App.5th 822, 840].) The privilege
does not apply to statement made as a “tactical ploy to negotiate a
bargain.” (Edwards v. Centex Real
Estate Corp. (1997) 53 Cal.App.4th 15, 36.)
To the extent the first and second causes of action can be read to allege
that lawsuits filed against cross complainants are part of those claims, then
the litigation privilege is implicated.
To the extent that those allegations are included to allege damages incurred
as a result of cross defendants’ alleged misrepresentations, however, the
privilege is not implicated. Cross
complainants must plead these claims with clarity in that regard.
Third
Cause of Action: Intentional Interference with Contractual Relations Golden Hammer and Rowlee demur to the third cause of
action for failure to plead sufficient facts to constitute a cause of action
for intentional interference with contractual relations.
To plead a cause of action for intentional interference
with contractual relations, plaintiff must establish “(1) the existence of a
valid contract between the plaintiff and a third party; (2) the defendant’s
knowledge of that contract; (3) the defendant’s intentional acts designed to
induce a breach or disruption of the contractual relationship; (4) actual
breach or disruption of the contractual relationship; and (5) resulting
damage.” (Reeves v. Hanlon (2004)
33 Cal.4th 1140, 1148; Ixchel Pharma, LLC v. Biogen, Inc. (2020) 9
Cal.5th 1130, 1141.) “[P]laintiff need
not prove that a defendant acted with the primary purpose of disrupting the contract
but must show the defendant's knowledge that the interference was certain or
substantially certain to occur as a result of his or her action.” (Reeves, supra, 33 Cal.4th at
p. 1148 [citing Quelimane Co. v. Stewart Title Guaranty Co. (1998) 19
Cal.4th 26, 56].)
Golden Hammer and Rowlee contend that a party cannot
allege intentional interference with contractual relations if the alleged act
of interference is filing a lawsuit. (Pacific
Gas & Electric Co. v. Bear Stearns & Co. (1990) 50 Cal.3d 1118,
1136-37.) Only a malicious prosecution
claim can allege filing a lawsuit as a wrongful act. The FACC fails to explain the deletion of the
original allegation that Golden Hammer’s “frivolous lawsuits” interfered with
the JetNet Agreement. (Larson v. UHS
of Rancho Springs, Inc. (2014) 230 Cal.App.4th 336, 344 [holding that
amended pleadings cannot omit harmful allegations without explanation].) ADS-B and Streufert admit they would have
suffered the same harm when Golden Hammer filed suit and prosecuted its claims
of ownership. The new random allegations
of conduct causing interference are not substantial factors in bringing harm.
ADS-B and Streufert oppose arguing that Golden Hammer and
Rowlee misrepresent the Bear Stearns case. The Stearns court found that
plaintiff’s intentional interference claim failed because plaintiff did not
allege that defendant’s conduct made plaintiff’s enjoyment of the benefits of
its contract more expensive, apart from forcing plaintiff to defend a costly
lawsuit. (Bear Sterns & Co., supra,
50 Cal.3d at p. 1137.) ADS-B and Streufert
admit that they replaced the phrase “filing the frivolous lawsuits” with
“engaging in the conduct described herein.”
The new allegations are consistent with those in the initial cross-complaint
and fix an erroneous allegation.
Additionally, the FAC sufficiently alleges that the Golden Hammer and
Rowlee’s conduct caused damages.
“Under the sham pleading doctrine,
allegations in an original pleading that rendered it vulnerable to
demurrer or other attack cannot simply be omitted without explanation.” (Hahn v. Mirda (2007) 147 Cal.App.4th
740, 751.) The purpose of the doctrine
is to prevent “abuse of process,” not to prevent honest complainants from
correcting erroneous allegations. (Ibid.)
Amendments without explanation are only
allowed if the complainant shows that the earlier pleading resulted from
mistake or inadvertence. (Dones v.
Life Insurance Co. of North America (2020) 55 Cal.App.5th 665, 688.) Additionally, if the omitted allegation is
fatal to a cause of action and the amendment does not alter the fundamental
facts upon which the claim was based, the sham pleading doctrine does not
apply. (Ibid.)
The sham pleading does not apply to the FACC. The original cross-complaint stated that
Rowlee and Golden Hammer intentionally filed “frivolous lawsuits” against ADS-B
and Streufert to disrupt their performance of the JetNet Agreement. (Compl., ¶ 77.) The FACC omitted this allegation and included
specific examples of Rowlee and Golden Hammer’s conduct including public
misrepresentations, blocking Streufert from accessing the ADS-B platform, and
making phone calls to JetNet’s COO about blocking JetNet’s access to servers
hosting ADS-B’s services. (FACC, ¶¶ 85-95.) ADS-B and Streufert claim that the new allegations
provide further details regarding what led to the interference and the “filing
frivolous lawsuits” allegation is no longer the basis of the FACC’s
claims. The court notes that the FACC
still includes factual allegations about Golden Hammer and Rowlee filing a
lawsuit and that legal expenses still make up a portion of ADS-B’s damages
The FACC sufficiently alleges the existence of a valid
contract between ADS-B and Streufert and JetNet which was executed on January
19, 2023. (FACC, ¶ 126.) Under the agreement, Strefufert and ADS-B
sold certain assets to JetNet including the assignment of the Hosting
Agreement. (FACC, ¶¶ 53-54.) ADS-B and Streufert allege that Golden Hammer
and Rowlee knew about the agreement’s existence as early as January 25, 2023. (FACC, ¶¶ 84, 127.) In October 2022, Rowlee learned that ADS-B was
considering selling certain assets.
(FACC, ¶ 76.) Rowlee opposed the
sale and sent Streufert several private messages on Discord telling Streufert
“NO SELL” and voicing his unhappiness with the potential sell. (FACC, ¶¶ 77-78.) Rowlee also voiced his concern on November
27, 2022 by telling Streufert that JetNet’s corporate partners were “evil” and during
a December 27, 2022 phone call with Streufert stating Rowlee was upset about
the potential sale and considering shutting down the ADS-B website. (FACC, ¶¶ 80-82.) JetNet publicly announced the consummation of
the JetNet Transaction on January 25, 2023. (FACC, ¶ 83.)
The FACC alleges that after the public announcement, Golden
Hammer and Rowlee engaged in conduct intended to interfere with ADS-B’s
performance under the JetNet Agreement and to quickly deflate ADS-B’s
value. On January 26, 2023, the ADS-B
website became unstable and unreachable for several hours. (FACC, ¶ 85.)
During the website outage, Rowlee made several public representations to
ADS-B’s customers that hackers caused the disruption but later told Streufert
that the outage was not caused by malicious outside attackers without publicly
informing customers of this information.
(FACC, ¶ 86.) Streufert allegedly
believed Rowlee’s representations but suspected that Rowlee intentionally
failed to correct public perception in order to sabotage the ADS-B
website. (FACC, ¶ 87.) Rowlee also failed to make this information
public in order to undermine ADS-B’s customers’ confidence in ADS-B’s data
handling and security measures, as well as to create the false public
perception that ADS-B’s customer base was enraged by the JetNet Agreement. (FACC, ¶ 88.)
Rowlee continued attempting to sabotage ADS-B by sending
public messages on the Discord service telling ADS-B’s members to shut down
their “feeders,” which supply crowdsourced data necessary for ADS-B to track
aircraft. (FACC, ¶¶ 89.) Rowlee also directed former ADS-B contractor
James Stanford to post a post a series of derogatory public comments on the
Discord service encouraging ADSB’s members to cancel their memberships, shut
down their feeders and instead supply the crowdsourced tracking data to
competing websites, and to seek retribution against ADS-B and Streufert for the
JetNet Agreement. (FACC, ¶¶ 82, 90.)
The FACC further alleges that on February 2, 2023, Rowlee
and Golden Hammer blocked Streufert’s access to the ADS-B platform by disabling
Streufert’s access and denying Streufert access to encrypted and backup
versions of the platform. (FACC, ¶¶
92-93.) Rowlee and Golden Hammer then began
claiming ownership of the ADS-B platform and insisting the platform contained
Golden Hammer’s intellectual property.
(FACC, ¶ 94.) On February 14,
2023, Rowlee directed Stanford to contact JetNet COO, Josh Baird, via telephone
to inform him that JetNet would no longer be granted access to the servers
hosting ADS-B’s services. (FACC, ¶ 95.) The FACC alleges that Rowlee and Hammer
engaged in this conduct to intentionally disrupt ADS-B’s performance under the
JetNet Agreement and knew that disrupting ADS-B’s performance of the agreement
was certain or substantially certain to occur because of the conduct. (FACC, ¶¶ 96-97.)
Golden Hammer and Rowlee’s intentional acts actually
disrupted ADS-B and Streufert’s performance under the JetNet Agreement and which
caused damages such as JetNet withholding certain escrow funds from Streufert,
JetNet bringing and indemnification claim against ADS-B and Streufert, and interference
with the JetNet-Streufert employment relationship. (FACC, ¶¶ 98, 100-101.)
However, as set forth above, the cross complaint can be
read to allege that the lawsuits filed against cross complainants were part of
the interference cause of action and, to that extent, also implicate the
litigation privilege. The demurrer to
that cause of action is sustained with leave to amend on that ground.
CONCLUSION Case Number: 23CHUD00086 Hearing Date: March 6, 2025 Dept: F43
Dept.
F43 Date:
03-06-25 Case
# 23CHUD00086, Sierra Canyon Apartments #1, LLC v. Ochoa Bernabe, et al. Trial
Date: None set. MOTION TO COMPEL RESPONSES TO REQUESTS FOR PRODUCTION MOVING
PARTY: Cross-Defendant/Plaintiff Sierra Canyon Apartments #1, LLC RESPONDING
PARTY: No response has been filed. RELIEF
REQUESTED Order
compelling Cross-Complainant/Defendant Emilian Perez Ochoa’s verified responses
to Cross-Defendant’s first set of requests for production of documents and
$2,260.00 in monetary sanctions. RULING: Motion is granted,
and $1,022.50 in monetary sanctions is awarded. SUMMARY
OF ACTION On
January 20, 2023, cross-defendant/plaintiff Sierra Canyon Apartments #1, LLC
(Sierra Canyon) filed this unlawful detainer case against several defendants
including Emiliano O. Perez Ochoa (Emiliano).
Defendants and cross-complainant Emiliano responded by filing a
cross-complaint against Sierra Canyon alleging causes of action for (1)
Negligence; (2) Negligent Supervision; (3) Premises Liability; (4) Breach of
the Implied Warranty of Habitability; (5) Fraud (Intentional
Misrepresentation); (6) Fraudulent Concealment; (7) Negligent
misrepresentation; (8) Breach of the Implied Covenant of Quiet use and
Enjoyment (Civil Code 1927); (9) Breach of Contract; (10) Intentional
Infliction of Emotional Distress; and (11) Breach of the Implied Covenant of
Good Faith and Fair Dealing. Sierra
Canyon propounded its first set of requests for production on Emiliano on August
27, 2024. (Declaration of Shanna M. Van
Wagner, Esq., ¶ 3, Exh. A, p. 13-14.) Responses
were due September 30, 2024. Sierra
Canyon granted two deadline extensions (October 30 and November 29, 2024), but
no responses were served. (Van Wagner
Dec., ¶¶ 5-9.) On
December 16, 2024, Sierra Canyon filed its motion to compel Emiliano’s
responses to its first set of requests for production. No opposition has been filed. ANALYSIS A demanding party may move to compel responses to
requests for production where the responding party fails to provide any responses. (Code Civ. Proc., §§ 2031.300, subd. (b),
2030.290, subd. (b).) The demanding
party must show the requests were properly served, that the time to respond
expired, and no response has been served.
(Sinaiko Healthcare Consulting, Inc., supra, 148
Cal.App.4th at pp. 403-404.) The
responding party must respond separately to each demand by agreeing to comply,
stating an inability to comply, or objecting to all or part of the demand. (Code Civ. Proc., § 2031.210, subd.
(a).) The responding party must serve
responses within 30 days after the requests for production are served or
according to an agreed upon deadline extension.
(Code Civ. Proc., § 2031.260, subd. (a)(1)-(3).) Failing to respond within these time limits
waives objections. (Code Civ. Proc., §
2030.290, subd. (a).) Sierra Canyon properly served its requests for
production on Emiliano via e-mail on August 27, 2024. Emiliano did not serve responses by September
30, 2024 or any of the deadline extensions. Accordingly, the court grants Sierra Canyon’s motion
and orders Emiliano O. Perez Ochoa to serve code-compliant, objection-free
responses to Sierra Canyon’s first set of requests for production. Sanctions Sierra Canyon requests $2,260.00 in monetary sanctions
under sections 2023.010, 2023.030, 2030.290(c), and 2031.300(c). The court must impose sanctions against the party or
attorney, or both, who unsuccessfully makes or opposes a motion to compel a
response to requests for production, unless the court finds that the sanctioned
party “acted with substantial justification or that other circumstances make
the imposition of the sanction unjust.”
(Code Civ. Proc., § 2031.300, subd. (c). But see Code Civ. Proc.,
2023.030, subd. (a); see also City of Los Angeles v. PricewaterhouseCoopers,
LLP (2024) 17 Cal.5th 46, 74 [holding the court may award sanctions under 2023.030
only when confronted with an “unusual form of discovery abuse” not addressed by
another provision].) Sierra Canyon requests $2,260.00 in monetary
sanctions against cross-complainant Emiliano and his counsel. Sierra Canyon’s counsel, Shanna M. Van
Wagner, charges an hourly rate of $275.00.
(Van Wagner Dec., ¶ 10.) The
request includes the following: (1) 4 hours preparing the motion—$1,100.00; (2)
anticipated 2.5 hours to review an opposition and prepare a reply—$687.50; (3)
anticipated 1.5 hours preparing for and attending the motion hearing—$412.50;
and (4) a $60.00 filing fee. (Ibid.) The court finds the hourly rates are reasonable, but
the court will not award sanctions for reviewing and replying to an opposition
because no opposition has been filed.
Additionally, the issues are not complex, and this motion is virtually
identical to Sierra Canyon’s other motions to compel discovery. The court reduces the hours spent preparing
the motion to 2 hours and the time anticipated to review an opposition and to
reply to 0 hours. Accordingly, the Court grants Defendant’s request in
the reduced amount of $1,022.50: (1) 2 hours preparing this motion; (2) 1.5
hours preparing for and attending the motion hearing; and (3) a $60.00 filing
fee. CONCLUSION Cross-Defendant/Plaintiff Sierra Canyon’s motion to
compel code-compliant, objection-free responses to its first set of requests
for production is granted. Cross-Complainant Emiliano O. Perez Ochoa is ordered
to serve responses within forty-five days (45) of this order. Cross-Complainant Emiliano and Emiliano’s counsel of
record are ordered to pay sanctions in the amount of $1,022.50. Emiliano’s counsel is ordered to pay these
sanctions to Sierra Canyon’s counsel within twenty (20) days of this order. Sierra Canyon to give notice. |
DEPARTMENT F43 LAW AND MOTION RULINGS
Case Number: 23CHUD00086 Hearing Date: March 10, 2025 Dept: F43
Dept. F43 Date: 03-10-25 Case # 23CHUD00086, Sierra Canyon
Apartments #1, LLC v. Ochoa Bernabe, et al. Trial Date: None set. MOTION TO COMPEL
RESPONSES TO REQUESTS FOR PRODUCTION MOVING PARTY: Cross-Defendant/Plaintiff
Sierra Canyon Apartments #1, LLC RESPONDING PARTY: No response has been filed. RELIEF REQUESTED Order compelling Cross-Complainant/Defendant Irma
Ochoa Bernabe’s verified responses to Cross-Defendant’s first set of requests
for production of documents and $2,260.00 in monetary sanctions. RULING: Motion
is granted, and $1,022.50 in monetary sanctions is awarded. SUMMARY OF ACTION On January 20, 2023,
cross-defendant/plaintiff Sierra Canyon Apartments #1, LLC (Sierra Canyon)
filed this unlawful detainer case against several defendants including Irma
Ochoa Bernabe (Irma). Defendants and
cross-complainant Irma responded by filing a cross-complaint against Sierra
Canyon alleging causes of action for (1) Negligence; (2) Negligent Supervision;
(3) Premises Liability; (4) Breach of the Implied Warranty of Habitability; (5)
Fraud (Intentional Misrepresentation); (6) Fraudulent Concealment; (7)
Negligent misrepresentation; (8) Breach of the Implied Covenant of Quiet use
and Enjoyment (Civil Code 1927); (9) Breach of Contract; (10) Intentional
Infliction of Emotional Distress; and (11) Breach of the Implied Covenant of
Good Faith and Fair Dealing. Sierra Canyon propounded its first set of requests
for production on Irma on August 27, 2024.
(Declaration of Shanna M. Van Wagner, Esq., ¶ 3, Exh. A, p. 13-14.) Responses were due September 30, 2024. Sierra Canyon granted two deadline extensions
(October 30 and November 29, 2024), but no responses were served. (Van Wagner Dec., ¶¶ 5-9.) On December 16, 2024, Sierra Canyon filed its
motion to compel Irma’s responses to its first set of requests for production. No opposition has been filed. ANALYSIS A demanding party may move to compel responses to
requests for production where the responding party fails to provide any responses. (Code Civ. Proc., §§ 2031.300, subd. (b),
2030.290, subd. (b).) The demanding
party must show the requests were properly served, that the time to respond
expired, and no response has been served.
(Sinaiko Healthcare Consulting, Inc., supra, 148
Cal.App.4th at pp. 403-404.) The
responding party must respond separately to each demand by agreeing to comply,
stating an inability to comply, or objecting to all or part of the demand. (Code Civ. Proc., § 2031.210, subd.
(a).) The responding party must serve
responses within 30 days after the requests for production are served or
according to an agreed upon deadline extension.
(Code Civ. Proc., § 2031.260, subd. (a)(1)-(3).) Failing to respond within these time limits
waives objections. (Code Civ. Proc., §
2030.290, subd. (a).) Sierra Canyon properly served its requests for production
on Irma via e-mail on August 27, 2024. Irma
did not serve responses by September 30, 2024 or any of the deadline extensions. Accordingly, the court grants Sierra Canyon’s motion and orders
Irma Ochoa Bernabe to serve code-compliant, objection-free responses to Sierra
Canyon’s first set of requests for production. Sanctions Sierra Canyon requests $2,260.00 in monetary sanctions
under sections 2023.010, 2023.030, 2030.290(c), and 2031.300(c). The court must impose sanctions against the party or
attorney, or both, who unsuccessfully makes or opposes a motion to compel a
response to requests for production, unless the court finds that the sanctioned
party “acted with substantial justification or that other circumstances make
the imposition of the sanction unjust.”
(Code Civ. Proc., § 2031.300, subd. (c).) Sierra Canyon’s counsel, Shanna M. Van Wagner, charges an
hourly rate of $275.00. (Van Wagner
Dec., ¶ 10.) The request includes the
following: (1) 4 hours preparing the motion—$1,100.00; (2) anticipated 2.5
hours to review an opposition and prepare a reply—$687.50; (3) anticipated 1.5
hours preparing for and attending the motion hearing—$412.50; and (4) a $60.00
filing fee. (Ibid.) The court finds the hourly rates are reasonable, but the
court will not award sanctions for reviewing and replying to an opposition
because no opposition has been filed.
Additionally, the issues are not complex, and this motion is virtually
identical to Sierra Canyon’s other motions to compel discovery. The court reduces the hours spent preparing
the motion to 2 hours and the time anticipated to review an opposition and to
reply to 0 hours. Accordingly, the Court grants Defendant’s request in the
reduced amount of $1,022.50: (1) 2 hours preparing this motion; (2) 1.5 hours
preparing for and attending the motion hearing; and (3) a $60.00 filing fee. CONCLUSION Cross-Defendant/Plaintiff Sierra Canyon’s motion to
compel code-compliant, objection-free responses to its first set of requests
for production is granted. Cross-Complainant Irma Ochoa Bernabe is ordered to serve
responses within forty-five days (45) of this order. Cross-Complainant Irma and Irma’s counsel of record are
ordered to pay sanctions in the amount of $1,022.50. Irma’s counsel is ordered to pay these
sanctions to Sierra Canyon’s counsel within twenty (20) days of this order. Sierra Canyon to give notice. |