2013-00144713-CU-UD

Matthew Mezzetta vs. Repuestos Mundiales, Inc.

Matthew Mezzetta vs. Repuestos Mundiales, Inc.

Nature of Proceeding: Hearing on Demurrer

Filed By: Hanecak, Daniel J.

Defendants Repuestos Mundiales, Inc. and Anthony McFarren’s Demurrer to the 1st
amended complaint is sustained/overruled as follows:

Plaintiff alleges that pursuant to a September 29, 2009 written lease agreement with
Specialized Parts Planet, Inc., Defendants agreed to make monthly payments in
exchange for the right to occupy the leased premises. (FAC ¶) Plaintiff alleges that in
September of 2012, Defendants failed to make the required payments, and the total
outstanding amount due under the lease agreement is $62,187.80. (FAC ¶ 13) Plaintiff
alleges that Specialized Parts Planet, Inc. transferred ownership of the property to
Plaintiff and two other persons. Plaintiff has named Darin Moore as a nominal
defendant, and alleges that J. Scott Rodgers assigned his rights to plaintiff. (FAC ¶1,4)
Plaintiff alleges causes of action for Breach of Contract, Intentional and Negligent
Misrepresentation, and Common Counts.

Defendant contends plaintiff lacks standing to bring this action. The Court previously
rejected this argument in ruling on the application for writ of attachment.
Plaintiff has alleged he is the successor in interest of the contracting party, along with
two other individuals who he has either named as a nominal defendant or alleged an
assignment of rights. Moreover, the only ground for demurrer set forth in the notice
and the demurrer itself is “failure to state a cause of action” pursuant to CCP 430.10
(e). Defendant did not demur on the ground of defect or misjoinder of parties. (See
notice of motion and Demurrer)

1st cause of action Breach of Contract and Covenant of Good Faith and Fair
Dealing: Overruled. Plaintiff has adequately alleged the terms of the contract on
which the claim is based. Defendants have provided no authority that plaintiff is
required to attach the terms of the assignment of rights from J. Scott Rodgers.

2nd cause of action Account stated/Open Book: Overruled. Plaintiff is not required
to allege the detailed entries in a book or account to allege a claim for common counts.

3rd cause of action Intentional Misrepresentation and 4th cause of action
Negligent Misrepresentation: Sustained with leave to amend for failure to state facts
sufficient to constitute a cause of action. Fraud and negligent misrepresentation must
be pleaded with more particularity. The elements of a claim for fraud are (I)
misrepresentation of a material fact; (2) knowledge of falsity or lack of a reasonable
ground for belief in the truth of the representation; (3) intent to induce reliance; (4)
actual and justifiable reliance by the plaintiff; and (5) resulting damage. (Orient Handel
v. United States Fid. & Guar. Co. (1987) 192 Cal.App.3d 684, 693.) It is hornbook law
that fraud-based claims are subject to a stricter pleading standard then that governing
most California causes of action. To advance a cognizable fraud claim, “every element
of the cause of action . . . must be alleged in full, factually and specifically, and the
policy of liberal construction of pleading will not usually be invoked to sustain a fraud
claim deficient in any material respect.” ( Wilhelm v. Pray, Price,Williams & Russell
(1986) 186 Cal.App.3d 1324, 1331.) The heightened particularity requirement
necessitates pleading facts that “show how, when, where, to whom, and by what
means the representations were tendered.” (Lazar v. Superior Court (1996) 12 Cal.4th

631, 645.) When fraud is alleged against a corporate defendant, the plaintiff must
specifically allege the names of the persons who allegedly made the representation,
their authority to speak, to whom they spoke, what they said or wrote, and when it was
said or written. ( Tarmann v. State Farm Mutual Auto Ins. Co. (1991) 2 Cal.App.4th
153, 157.)

Plaintiff may file and serve a 2nd amended complaint on or before May 2, 2014.
Response to be filed and served within 15 days of service of the second amended
complaint, 20 days if served by mail.

The minute order is effective immediately. No formal order pursuant to CRC Rule
3.1312 or further notice is required.