Justia Civil Procedure Opinion Summaries

Fitness International, LLC was operating an indoor gym and fitness center when it entered into an amended lease with KB Salt Lake III, LLC, that required Fitness International to renovate the premises. However, the COVID-19 pandemic prompted government orders that closed indoor gyms but allowed commercial construction to continue. Fitness International nevertheless stopped construction at the Chatsworth site, remained in possession of the premises, and stopped paying rent. KB Salt Lake filed an unlawful detainer action, and the trial court granted KB Salt Lake’s motion for summary judgment. Fitness International appealed.   The Second Appellate District affirmed the trial court’s judgment. The court explained that Fitness International argued that the lease is a “monthly installment contract” and that each month it could not operate the premises as a fitness facility, frustrated the purpose of the contract. The court wrote that neither the pandemic nor the COVID-19 closure orders, however, prevented Fitness International from reopening the gym. Thus, even if California law recognized temporary frustration of purpose, and even if the lease was an “installment contract,” Fitness International still had to make rent payments under the lease. Moreover, the court explained that Fitness International argues the purpose of section 1511 “is to excuse performance under circumstances like these,” but Fitness International cites no authority describing the purpose of section 1511, nor does Fitness International explain how the trial court’s ruling was contrary to any such purpose. View "Fitness International v. KB Salt Lake III" on Justia Law

EpicentRx, Inc. and several of its officers, employees, and affiliates (collectively, the defendants) challenged a trial court order denying their motion to dismiss plaintiff-shareholder EpiRx, L.P.’s (EpiRx) lawsuit on forum non conveniens grounds. The defendants sought dismissal of the case based on mandatory forum selection clauses in EpicentRx’s certificate of incorporation and bylaws, which designated the Delaware Court of Chancery as the exclusive forum to resolve shareholder disputes like the present case. The trial court declined to enforce the forum selection clauses after finding that litigants did not have a right to a civil jury trial in the Delaware Court of Chancery and, therefore, enforcement of the clauses would deprive EpiRx of its inviolate right to a jury trial in violation of California public policy. The California Court of Appeal agreed with the trial court that enforcement of the forum selection clauses in EpicentRx’s corporate documents would operate as an implied waiver of EpiRx’s right to a jury trial, thus the Court concluded the trial court properly declined to enforce the forum selection clauses at issue, and denied the defendants’ request for writ relief. View "EpicentRx, Inc. v. Super. Ct." on Justia Law

Decedent was hit by a pickup truck in a crosswalk at a major intersection. After the accident, the decedent, who was on a 15-minute work break, walked back to the Whole Foods Market (the store) where he worked. There, store employees gave him an ice pack, a form to fill out relating to his injury, and a ride home. He died several hours later. The decedent is survived by his wife and three children (Plaintiffs), who filed this wrongful death action against several parties, including Mrs. Gooch’s Natural Food Markets, Inc. (Mrs. Gooch’s), the parent company of the store and the decedent’s employer. Mrs. Gooch’s demurred to the operative first amended complaint because an administrative law judge and the Workers’ Compensation Appeals Board had found the decedent’s injury and death to be employment-related and, therefore within the scope of workers’ compensation. The trial court sustained the demurrer.   The Second Appellate District affirmed. Plaintiffs first argued that Mrs. Gooch’s, through its employees, acted in a dual capacity following the accident. The court explained that Plaintiffs cite no case holding that a negligent undertaking theory is viable in the circumstances of the case. Plaintiffs also argued that the fraudulent concealment exception to the exclusive remedy rule applies. The court explained that the complaint does not allege that the decedent was unaware of his injury. Moreover, according to the operative complaint, Mrs. Gooch’s was unaware of the decedent’s injury until he advised his supervisors that he had been in an accident. View "Jimenez v. Mrs. Gooch's Natural Food Markets, Inc." on Justia Law

Plaintiff Davis Boat Manufacturing-Nordic, Inc. (Davis Boat), which prevailed in a breach-of-contract action against Defendant applied for an order to sell Defendant’s home. The Stanislaus County Superior Court denied the application on the basis of Code of Civil Procedure section 699.730, a recently added statute that prohibits the forced sale of a judgment debtor’s principal place of residence to satisfy a “consumer debt” except under certain circumstances.   The Fifth Appellate affirmed. The court rejected Davis Boat’s assertions on appeal and held that the definition of “consumer debt” in section 669.730 is not latently ambiguous, and that section 669.730 neither violates the contract nor the equal protection clauses of the federal and state Constitutions. The court explained that section 699.730, subdivision (a) defines “consumer debt” as “debt incurred by an individual primarily for personal, family, or household purposes.” Thus, a debt incurred for business or commercial reasons would not be a debt incurred for “personal, family, or household purposes.” The court wrote that notwithstanding the plain meaning of the statute, Davis Boat suggests “consumer debt” is latently ambiguous. The court reasoned that it does not believe that the purpose of Assembly Bill No. 2463 is frustrated simply because the language approved by the Legislature means debt incurred by an individual primarily for personal, family, or household purposes.” Moreover, the court wrote that it cannot deem a statutory exemption that allows financial institutions to force the sale of a judgment debtor’s principal place of residence to satisfy a high-priced debt “so devoid of even minimal rationality that it is unconstitutional as a matter of equal protection. View "Davis Boat Manufacturing-Nordic, Inc. v. Smith" on Justia Law

Plaintiff sued defendants Jeff Jenkins, Jeff Jenkins Productions, LLC, and Bongo, LLC, for breach of contract and eight other causes of action. Plaintiff’s complaint alleged she conceived the idea for and worked to develop and coproduce a popular television program that came to be known as Bling Empire on Netflix. In the spring of 2018, Plaintiff presented the idea for the program to Defendant Jenkins during a series of discussions, and she gave Jenkins written development material concerning the program. Plaintiff alleged causes of action for breach of the implied covenant of good faith and fair dealing, intentional and negligent misrepresentation, fraudulent inducement, and other claims. Defendants responded with an anti-SLAPP motion.   The Second Appellate District affirmed the trial court’s order denying Defendants’ anti-SLAPP motion to strike Plaintiff’s complaint. The court concluded that adhering to the two-part test announced in FilmOn.com Inc. v. DoubleVerify Inc. (2019) 7 Cal.5th 133 (FilmOn), that while the creation of a television show is an exercise of constitutionally protected expression, in this case, there is no “functional relationship” between the activity challenged in the complaint and the issue of public interest, as required by FilmOn.  Further, the court wrote that the conduct challenged, while it “implicates” a public issue, does not “contribute to public discussion of that issue” Consequently, Defendants’ activity excluding Plaintiff and failing to compensate her was not undertaken “in furtherance of free speech ‘in connection with’ an issue of public interest.” View "Li v. Jenkins" on Justia Law

Plaintiffs Dominick Martin and Rusty Rendon filed suit under the Unruh Civil Rights Act for disability discrimination, contending that one of Thi E-Commerce’s Web sites discriminated against the blind by being incompatible with screen reading software. Plaintiffs contended the court erred by concluding that a Web site was not a place of public accommodation under the Americans with Disabilities Act (incorporated into the Unruh Act). Although this was an issue that has split the federal courts (and California Courts of Appeal), the appellate court here concluded the ADA unambiguously applied only to physical places. Moreover, even if the Court found ambiguity and decided the issue on the basis of legislative history and public policy, it would still conclude that the ADA did not apply to Web sites. Plaintiffs alternatively contended they stated a cause of action against Thi E-Commerce on a theory of intentional discrimination. To this, the Court of Appeal concluded the allegations of the complaint did not state a claim under that theory either and affirmed the judgment. View "Martin v. THI E-Commerce, LLC" on Justia Law

When Frank died, Leslie, his daughter, was appointed as executor and personal representative of the estate, Independent Administration of Estates Act (Prob. Code, 10400). In his will, Frank confirmed his surviving spouse’s (Caroline’s) interest in their community and quasi-community property, and bequeathed all of his separate property, plus his one-half interest in their community and quasi-community property, to his three children, explicitly disinheriting Caroline, who is not their mother. Leslie, on behalf of Frank’s estate, filed in propria persona in the probate action a complaint for partition by sale of real property, claiming that Caroline improperly withdrew proceeds from a reverse mortgage and other allegedly fraudulent conduct. Caroline argued Leslie, as the personal representative of Frank’s estate, could not appear in propria persona in that representative capacity.The probate court granted the motions to strike with leave to amend to give Leslie the opportunity to retain counsel. The court determined that Leslie’s complaint “primarily consists of civil claims typically raised in a civil action. [Leslie], a non-attorney, cannot properly prosecute those claims in propria persona in any venue.” The court of appeal affirmed. Leslie’s complaint is a claim against third parties for the benefit of the estate’s beneficiaries, such that it could not be prosecuted by Leslie in propria persona; her conduct in filing briefs and other pleadings as representative of the estate constituted the unlicensed practice of law. View "Estate of Sanchez" on Justia Law

Doe sued her former employer Na Hoku,and former manager Montoya, asserting multiple claims arising from Montoya’s alleged sexual harassment and assault of Doe. The defendants successfully compelled the case to arbitration. September 1, 2022 was the “due date” for the defendants to pay certain arbitration fees and costs to the arbitrator. Under Code of Civil Procedure section 1281.98(a)(1), these fees and costs had to be “paid within 30 days after the due date” (October 3) to avoid breaching the arbitration agreement. The arbitrator received the payment on October 5, because the defendants mailed a check on Friday, September 30 although payment could be submitted by credit card, electronic check, or wire transfer.Doe moved to vacate the order compelling arbitration. The trial court denied the motion. The court of appeal granted Doe’s mandamus petition, strictly enforcing the section 1281.98(a)(1) 30-day grace period. The court declined to “find that the proverbial check in the mail constitutes payment.“ The defendants’ payment, received more than 30 days after the due date established by the arbitrator, was untimely. View "Doe v. Superior Court of the City and County of San Francisco" on Justia Law

Plaintiff fell while stepping from a dock to a boat. He sued his employer—a yacht club in Long Beach—under federal admiralty law. The trial court sustained the club’s final demurrer to the second amended complaint. The court ruled there was no admiralty jurisdiction.   The Second Appellate District affirmed the court’s ruling without deciding about admiralty jurisdiction. The court explained that Congress in 1984 specified employees covered by state workers’ compensation law working at a “club” are covered by state workers’ compensation law and not federal law if they are eligible for state workers’ compensation. The court wrote that Plaintiff concedes the yacht club is a “club.” Federal law thus makes California state workers’ compensation law paramount, which means Plaintiff’s exclusive remedy is workers’ compensation. The court wrote that a core part of the state workers’ compensation bargain is that injured workers get speedy and predictable relief irrespective of fault. In return, workers are barred from suing their employers in tort. Thus, the trial court correctly dismissed Plaintiff’s tort suit against his employer. View "Ranger v. Alamitos Bay Yacht Club" on Justia Law

Airbnb, Inc. and Airbnb Payments, Inc. (collectively Airbnb) is an online marketplace that connects owners of short-term rentals (STRs) with renters seeking accommodations for 30 days or less. Among Airbnb’s many rental listings are properties within California’s coastal zone. The Coastal Protection Alliance (CPA) brought an action against Airbnb for violations of the Coastal Act, alleging that STRs in the coastal zone are “developments” that require a coastal development permit (CDP) and that Airbnb was directly and vicariously liable for allowing STR owners to list and rent unpermitted STRs on its website. CPA appealed from a judgment following an order granting Airbnb’s demurrer without leave to amend.   The Second Appellate District affirmed, holding that t STRs are not per se developments under the Coastal Act. The court explained that a development does not occur merely because a residence is used as an STR. Whether using a residence as an STR is a “change in the density or intensity of the use of land,” and thus, a development under the Coastal Act depends on the permissible scope of the residence’s existing use. Here, CPA’s sweeping interpretation of development to include every STR would circumvent the specifically tailored zoning ordinances in the LCPs throughout the coastal zone. Interpreting the Coastal Act in this way is neither reasonable nor consistent with the Act’s acknowledged reliance on “local government and local land use planning procedures and enforcement” in carrying out the Act’s goals. View "Coastal Protection Alliance v. Airbnb" on Justia Law