SOCAL LIEN SOLUTIONS LLC VS HJ 1131 LLC;, ET AL.

Tentative Rulings

Case Number: 19STLC07984    Hearing Date: January 13, 2020    Dept: 94

TENTATIVE RULING:

Defendant HJ 1131 LLC’s Demurrer to the Complaint is OVERRULED. Defendant HJ 1131 LLC TO FILE AND SERVE ITS ANSWER WITHIN 20 DAYS’ NOTICE OF THIS ORDER.

ANALYSIS:

On August 29, 2019, Plaintiff SoCal Lien Solutions, LLC (“Plaintiff”) filed the instant action for breach of contract, foreclosure of mechanic’s lien and recovery on license bond against Defendants HJ 1131 LLC, West Hills Development, Inc., and Suretec Indemnity Company. On November 19, 2019, Defendant HJ 1131 LLC filed the instant Demurrer to the Complaint. To date, no opposition has been filed. On December 9, 2019, Plaintiff dismissed the second cause of action for foreclosure of mechanic’s lien. Plaintiff filed an opposition to the Demurrer on December 30, 2019, and Defendant filed its reply on January 2, 2020.

Discussion

The Court finds that the Demurrer is accompanied by a meet and confer declaration as required by Code of Civil Procedure section 430.41. (Demurrer, Chou Decl., ¶¶3-4 and Exh. A.) In demurring to the Complaint, Defendant contends that the first cause of action for breach of contract fails to allege facts to support a cause of action and it cannot be ascertained whether the contract is written, oral or implied. (Citing Code Civ. Proc., § 430.10, subds. (e) and (g).)

Plaintiff must plead the contract, plaintiff’s performance or excuse for non-performance, defendant’s breach, and damage to plaintiff therefrom. (Acoustics, Inc. v. Trepte Constr. Co. (1971) 14 Cal.App.3d 887, 913.) Although a written contract is usually pleaded by alleging its making and attaching a copy which is incorporated by reference, a written contract can also be pleaded by alleging the making and the substance of the relevant terms. (Construction Protective Services, Inc. v. TIG Specialty Ins. Co. (2002) 29 Cal.4th 189, 198-199; Perry v. Robertson (1988) 201 Cal.App.3d 333, 341.)

The Complaint is brought by Plaintiff as the assignee of Precision Finish (“Precision”), a duly licensed contractor. (Compl., ¶¶1, 7.) Plaintiff alleges that Defendants contracted with Precision to provide certain improvements to the real property located at 1131 N. Monterey Street, Alhambra, California (“the subject property”). (Id. at ¶¶2, 8.) Following Precision’s substantial completion of the work, there remains $10,740.00 due and owing on the contract. (Id. at ¶9.) The Complaint alleges that the parties’ contract is partially written and partially oral. (Id. at ¶12.)

Plaintiff attaches copies of two invoices sent to “West Hills Development, Ross Gorgone” to the Complaint for the total amount of $10,740.00. (Id. at Exh. B.) In its demurrer, HJ 1131 LLC argues that because it is not named on the invoices, the Complaint fails to allege its liability on the contract. HJ 1131 LLC mischaracterizes the nature of the exhibits attached as the contracts themselves. (Demurrer, p. 4:26.) The exhibits, however, do not purport to be the parties’ agreement and the Complaint expressly alleges that the exhibits are merely invoices. (Compl., ¶9.) The invoices, therefore, do not contradict Plaintiff’s allegation that Precision entered into an agreement with HJ 1131 LLC for work on the subject property. Nor do the invoices demonstrate that there is only a written agreement. Rather, the invoices reflect the partially written and partially oral agreement. Finally, the Court finds that the terms of the agreement are adequately alleged. The legal effect of the contract is alleged to be straightforward: Precision agreed to perform work on the subject property in exchange for payment by Defendants. This is sufficient to withstand demurrer.

Defendant HJ 1131 LLC’s Demurrer to the Complaint is OVERRULED. Defendant HJ 1131 LLC TO FILE AND SERVE ITS ANSWER WITHIN 20 DAYS’ NOTICE OF THIS ORDER.

Plaintiff to give notice.