MARANTZ BROS. v. TASTE OF NATURE

Case Number: SC120973    Hearing Date: July 28, 2014    Dept: P

TENTATIVE RULING – DEPT. P

JULY 28, 2014 CALENDAR No: 2

SC120973 — MARANTZ BROS. v. TASTE OF NATURE., et al.

DEFENDANT’S MOTION TO RECLASSIFY

Plaintiff claims that Defendant breached two agreements to purchase 680,000 pounds of granulated sugar from Plaintiff. Plaintiff sued for the entire unpaid amount of the agreements, $115,500.00. Defendant moves for an order reclassifying this action to a limited jurisdiction court. The Court will grant the motion.

The pertinent test is “whether ‘lack of jurisdiction is clear’… ‘[or] virtually unattainable.'” Walker v. Superior Court (1991) 53 Cal.3d 257, 269. In other words, the Court “must reasonably determine that the verdict will ‘necessarily’ fall short of the $25,001 required for an unlimited civil case.” Stern v. Superior Court (2003) 105 Cal.App.4th 223, 233. “This standard involves an evaluation of the amount fairly in controversy, not an adjudication of the merits of the claim….” Ytuarte v. Superior Court(2005) 129 Cal.App.4th 266, 277 (emphasis added).

“‘The [trial] court may believe it highly unlikely that plaintiff will recover the amount demanded, but this is not enough to defeat jurisdiction, unless it appears to a legal certainty that plaintiff cannot recover the amount [of the] demand [ ].'” Walker at 270. However, the burden is on Plaintiff to establish that the action properly belongs in an unlimited jurisdiction court. Ytuarte, supra, 129 Cal.App.4th at 279.

The Court concludes that Plaintiff has failed to present evidence sufficient “to demonstrate a possibility the damages will exceed $25,000.” Ytuarte at 279 (emphasis in original). The total amount of Plaintiff’s expectation damages (viz., lost profit) is, by its own admission, $6,500.00. That is the applicable measure of damages here. See, 4 Witkin, Summary 10th (2005) Sales, § 191, citing, inter alia, Irving Tier Co. v. Griffin(1966) 244 Cal.App.2d 852, 867, 871 (where seller of equipment who was a middleman who had bought goods from manufacturer and had resold them for a profit based on the difference between its purchase price and its selling price, loss of anticipated profits was the proper measure of damages for seller when the buyer repudiated contract to purchase goods).

In its opposition brief, Plaintiff asserts that Irving Tier, supra, is distinguishable because here, the breach caused Plaintiff not just to lose its anticipated profits but to also face “additional liability to Western Sugar in an amount in excess of $30,000.” Opp. at 4:17-19. Plaintiff has presented no evidence in support of that contention. (Mandatory CCP Section 473 relief is not available for any error that plaintiff might allege here. See e.g., Garcia v. Hejmadi (1997) 58 Cal.App.4th 674, 681-82 (no relief for failing to adequately oppose summary judgment motion; “professional mistakes” do not fall under the discretionary or mandatory provisions of CCP 473(b)).)

Plaintiff’s attempt to insert privileged settlement communications into the determination of this motion (Opp., 5:10-16) is improper.

Motion to reclassify is granted. Motions to compel depositions set for hearing today are taken off-calendar.

The Court notes that no transfer fees are required when a general jurisdiction action is reclassified as a limited civil case.

Such actions are now heard in the Chatsworth Courthouse. Counsel will receive notice by mail from the court with their next appearance date there.

PLAINTIFF’S MOTIONS TO COMPEL DEPOSITIONS

Off-calendar as stated above.

NOTICE

Defendant shall give notice of today’s rulings and timely file proof of service thereof.

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