This case was last updated from Los Angeles County Superior Courts on 06/03/2023 at 10:19:40 (UTC).

MAUREEN MARTINEZ VS FARMERS GROUP, INC., ET AL.

Case Summary

On 04/19/2022 MAUREEN MARTINEZ filed a Labor - Wrongful Termination lawsuit against FARMERS GROUP, INC ,. This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. The Judges overseeing this case are ARMEN TAMZARIAN and DOUGLAS W. STERN. The case status is Pending - Other Pending.
Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    *******3106

  • Filing Date:

    04/19/2022

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Labor - Wrongful Termination

  • County, State:

    Los Angeles, California

Judge Details

Presiding Judges

ARMEN TAMZARIAN

DOUGLAS W. STERN

 

Party Details

Plaintiff

MARTINEZ MAUREEN

Defendants

FARMERS GROUP INC.

FARMERS INSURANCE EXCHANGE

FARMERS NEW WORLD LIFE INSURANCE COMPANY

FIRE INSURANCE EXCHANGE

MID-CENTURY INSURANCE COMPANY

SHARP JEFF

TRUCK INSURANCE EXCHANGE

Interested Party

ANFANGER NANCY

Attorney/Law Firm Details

Plaintiff Attorney

GALLAGHER MARYANN PATRICIA

Defendant Attorneys

HOLMES JOSEPH R.

NAM CANDICE SOYEON

Interested Party Attorney

ANFANGER NANCY B

 

Court Documents

Declaration - DECLARATION OF JOSEPH R. HOLMES PURSUANT TO CCP 430.41 AND 435.5 IN SUPPORT OF AUTOMATIC EXTENSION TO FILE RESPONSIVE PLEADING TO THIRD AMENDED COMPLAINT

5/25/2023: Declaration - DECLARATION OF JOSEPH R. HOLMES PURSUANT TO CCP 430.41 AND 435.5 IN SUPPORT OF AUTOMATIC EXTENSION TO FILE RESPONSIVE PLEADING TO THIRD AMENDED COMPLAINT

Answer

5/24/2023: Answer

Minute Order - MINUTE ORDER (INFORMAL DISCOVERY CONFERENCE (IDC))

4/26/2023: Minute Order - MINUTE ORDER (INFORMAL DISCOVERY CONFERENCE (IDC))

Summons - SUMMONS ON THIRD AMENDED COMPLAINT

4/26/2023: Summons - SUMMONS ON THIRD AMENDED COMPLAINT

Informal Discovery Conference

4/25/2023: Informal Discovery Conference

Amended Complaint - AMENDED COMPLAINT (3RD)

4/25/2023: Amended Complaint - AMENDED COMPLAINT (3RD)

Order Appointing Court Approved Reporter as Official Reporter Pro Tempore

4/21/2023: Order Appointing Court Approved Reporter as Official Reporter Pro Tempore

Minute Order - MINUTE ORDER (HEARING ON EX PARTE APPLICATION BY PLAINTIFF TO COMPEL DEPOSI...)

4/21/2023: Minute Order - MINUTE ORDER (HEARING ON EX PARTE APPLICATION BY PLAINTIFF TO COMPEL DEPOSI...)

Declaration - DECLARATION OF JOSEPH R. HOLMES IN SUPPORT OF DEFENDANT FARMERS GROUP, INC.S OPPOSITION TO PLAINTIFFS EX PARTE APPLICATION TO COMPEL DEPOSITIONS AND DOCUMENT PRODUCTION AT DEPOSITIONS OR

4/20/2023: Declaration - DECLARATION OF JOSEPH R. HOLMES IN SUPPORT OF DEFENDANT FARMERS GROUP, INC.S OPPOSITION TO PLAINTIFFS EX PARTE APPLICATION TO COMPEL DEPOSITIONS AND DOCUMENT PRODUCTION AT DEPOSITIONS OR

Opposition - OPPOSITION TO PLAINTIFF'S EX PARTE APPLICATION

4/20/2023: Opposition - OPPOSITION TO PLAINTIFF'S EX PARTE APPLICATION

Notice - NOTICE OF CONTINUED EX PARTE

4/13/2023: Notice - NOTICE OF CONTINUED EX PARTE

Ex Parte Application - EX PARTE APPLICATION - PLAINTIFF MAUREEN MARTINEZ'S NOTICE OF EXPARTE APPLICATION AND EX PARTE APPLICATION TO COMPEL DEPOSITION AND DOCUMENT PRODUCTION AT DEPOSISTIONS OR TO EXT

4/12/2023: Ex Parte Application - EX PARTE APPLICATION - PLAINTIFF MAUREEN MARTINEZ'S NOTICE OF EXPARTE APPLICATION AND EX PARTE APPLICATION TO COMPEL DEPOSITION AND DOCUMENT PRODUCTION AT DEPOSISTIONS OR TO EXT

Minute Order - MINUTE ORDER (HEARING ON DEMURRER - WITH MOTION TO STRIKE (CCP 430.10))

3/20/2023: Minute Order - MINUTE ORDER (HEARING ON DEMURRER - WITH MOTION TO STRIKE (CCP 430.10))

Notice - NOTICE OF RULING ON DEFENDANT JEFF SHARPS DEMURRER TO THE SECOND AMENDED COMPLAINT, MOTION TO STRIKE PORTIONS OF THE SECOND AMENDED COMPLAINT, AND NOTICE OF CONTINUED CASE MANAGEMENT CONFEREN

3/20/2023: Notice - NOTICE OF RULING ON DEFENDANT JEFF SHARPS DEMURRER TO THE SECOND AMENDED COMPLAINT, MOTION TO STRIKE PORTIONS OF THE SECOND AMENDED COMPLAINT, AND NOTICE OF CONTINUED CASE MANAGEMENT CONFEREN

Reply - REPLY IN SUPPORT OF DEFENDANT JEFF SHARP'S MOTION TO STRIKE PORTIONS OF SECOND AMENDED COMPLAINT

3/13/2023: Reply - REPLY IN SUPPORT OF DEFENDANT JEFF SHARP'S MOTION TO STRIKE PORTIONS OF SECOND AMENDED COMPLAINT

Reply - REPLY IN SUPPORT OF DEFENDANT JEFF SHARP'S DEMURRER TO THE SECOND AMENDED COMPLAINT

3/13/2023: Reply - REPLY IN SUPPORT OF DEFENDANT JEFF SHARP'S DEMURRER TO THE SECOND AMENDED COMPLAINT

Opposition - OPPOSITION TO DEFENDANT JEFF SHARPS MOTION TO STRIKE PORTIONS OF PLAINTIFFS SECOND AMENDED COMPLAINT

3/7/2023: Opposition - OPPOSITION TO DEFENDANT JEFF SHARPS MOTION TO STRIKE PORTIONS OF PLAINTIFFS SECOND AMENDED COMPLAINT

Opposition - OPPOSITION TO DEFENDANT JEFF SHARPS DEMURRER TO SECOND AMENDED COMPLAINT

3/7/2023: Opposition - OPPOSITION TO DEFENDANT JEFF SHARPS DEMURRER TO SECOND AMENDED COMPLAINT

87 More Documents Available

 

Docket Entries

  • 06/20/2023
  • Hearing06/20/2023 at 09:00 AM in Department 52 at 111 North Hill Street, Los Angeles, CA 90012; Case Management Conference

    [+] Read More [-] Read Less
  • 05/25/2023
  • DocketDeclaration of Joseph R. Holmes Pursuant to CCP 430.41 and 435.5 in Support of Automatic Extension to File Responsive Pleading to Third Amended Complaint; Filed by: FARMERS GROUP, INC. (Defendant); FARMERS INSURANCE EXCHANGE (Defendant); FIRE INSURANCE EXCHANGE (Defendant); TRUCK INSURANCE EXCHANGE (Defendant); MID-CENTURY INSURANCE COMPANY (Defendant); FARMERS NEW WORLD LIFE INSURANCE COMPANY (Defendant)

    [+] Read More [-] Read Less
  • 05/24/2023
  • DocketAnswer; Filed by: Jeff Sharp (Defendant)

    [+] Read More [-] Read Less
  • 05/18/2023
  • DocketPursuant to the request of moving party, Hearing on Motion to Compel (Deposition of Person Most Qualified Re Various Programs) scheduled for 06/12/2023 at 09:00 AM in Stanley Mosk Courthouse at Department 52 Not Held - Rescheduled by Party was rescheduled to 07/27/2023 09:00 AM

    [+] Read More [-] Read Less
  • 05/12/2023
  • DocketPursuant to the request of moving party, Hearing on Motion to Compel Deposition of PMQ re Farmers University and employment status and who took plaintiffs clients after termination scheduled for 06/06/2023 at 09:00 AM in Stanley Mosk Courthouse at Department 52 Not Held - Rescheduled by Party was rescheduled to 07/10/2023 09:00 AM

    [+] Read More [-] Read Less
  • 04/27/2023
  • DocketPursuant to the request of moving party, Hearing on Motion to Compel Deposition of Person Most Qualified Re Various Programs scheduled for 05/18/2023 at 09:00 AM in Stanley Mosk Courthouse at Department 52 Not Held - Taken Off Calendar by Party on 04/27/2023

    [+] Read More [-] Read Less
  • 04/26/2023
  • DocketSummons on Third Amended Complaint; Issued and Filed by: Maureen Martinez (Plaintiff); As to: FARMERS GROUP, INC. (Defendant); FARMERS INSURANCE EXCHANGE (Defendant); FIRE INSURANCE EXCHANGE (Defendant) et al.

    [+] Read More [-] Read Less
  • 04/26/2023
  • DocketMinute Order (Informal Discovery Conference (IDC))

    [+] Read More [-] Read Less
  • 04/26/2023
  • DocketInformal Discovery Conference (IDC) scheduled for 04/26/2023 at 10:30 AM in Stanley Mosk Courthouse at Department 52 updated: Result Date to 04/26/2023; Result Type to Held

    [+] Read More [-] Read Less
  • 04/25/2023
  • DocketAmended Complaint (3rd); Filed by: Maureen Martinez (Plaintiff); As to: FARMERS GROUP, INC. (Defendant)

    [+] Read More [-] Read Less
122 More Docket Entries
  • 04/26/2022
  • DocketNotice of Case Management Conference; Filed by: Clerk

    [+] Read More [-] Read Less
  • 04/20/2022
  • DocketCase assigned to Hon. Armen Tamzarian in Department 52 Stanley Mosk Courthouse

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketComplaint; Filed by: Maureen Martinez (Plaintiff); As to: FARMERS GROUP, INC. (Defendant); FARMERS INSURANCE EXCHANGE (Defendant); FIRE INSURANCE EXCHANGE (Defendant) et al.

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketCivil Case Cover Sheet; Filed by: Maureen Martinez (Plaintiff); As to: FARMERS GROUP, INC. (Defendant); FARMERS INSURANCE EXCHANGE (Defendant); FIRE INSURANCE EXCHANGE (Defendant) et al.

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketCivil Case Cover Sheet; Filed by: Maureen Martinez (Plaintiff); As to: FARMERS GROUP, INC. (Defendant); FARMERS INSURANCE EXCHANGE (Defendant); FIRE INSURANCE EXCHANGE (Defendant) et al.

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketSummons on Complaint; Issued and Filed by: Maureen Martinez (Plaintiff); As to: FARMERS GROUP, INC. (Defendant); FARMERS INSURANCE EXCHANGE (Defendant); FIRE INSURANCE EXCHANGE (Defendant) et al.

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketAlternate Dispute Resolution Packet; Filed by: Clerk

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketFirst Amended General Order re: Mandatory Electronic Filing; Filed by: Clerk

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketVoluntary Efficient Litigation Stipulation Packet; Filed by: Clerk

    [+] Read More [-] Read Less
  • 04/19/2022
  • DocketNotice of Case Assignment - Unlimited Civil Case; Filed by: Clerk

    [+] Read More [-] Read Less

Tentative Rulings

Case Number: *******3106 Hearing Date: March 20, 2023 Dept: 52

Defendant Jeff Sharp’s Demurrer and Motion to Strike Portions of Second Amended Complaint

Demurrer

Defendant Jeff Sharp demurs to the seventh cause of action alleged in plaintiff Maureen Martinez’s second amended complaint. Plaintiff labels this cause of action “gender discrimination and age discrimination in violation of Civil Code, 51 et seq.”

Defendant demurred on the grounds that the second amended complaint does not state a cause of action under the Unruh Civil Rights Act, Civil Code section 51. The court sustained the entity defendants’ demurrer without leave to amend on that basis.

Plaintiff’s opposition does not argue the second amended complaint states sufficient facts for a cause of action under the Unruh Civil Rights Act. Instead, she argues she can amend her complaint to state sufficient facts for a cause of action under Civil Code section 51.9, which is not part of the Unruh Civil Rights Act. (Brown v. Smith (1997) 55 Cal.App.4th 767, 774–775; see Stamps v. Superior Court (2006) 136 Cal.App.4th 1441, 1450 [“ ‘By its own terms, the Unruh Civil Rights Act comprises only section 51.’ ”].) Civil Code section 51.9 prohibits “sexual advances, solicitations, sexual requests, demands for sexual compliance by the plaintiff, orother verbal, visual, or physical conduct of a sexual nature or of a hostile nature based on gender, that were unwelcome and pervasive or severe” (subd. (a)(2)) in “a business, service, or professional relationship” between the parties (subd. (a)(1)).

After a successful demurrer, where “there is a reasonable possibility that the defects can be cured by amendment, leave to amend must be granted.” (Stevens v. Superior Court (1999) 75 Cal.App.4th 594, 601.) The plaintiff bears the burden of “demonstrat[ing] how the complaint can be amended.” (Smith v. State Farm Mutual Automobile Ins. Co. (2001) 93 Cal.App.4th 700, 711.)

In her opposition, plaintiff proposes amendments that may suffice to state a cause of action under Civil Code section 51.9 against defendant Jeff Sharp. The court finds that plaintiff has shown a reasonable possibility of amending the seventh cause of action to cure its defects.

Motion to Strike

Defendant Jeff Sharp moves to strike three portions of the second amended complaint regarding punitive damages. Courts may strike allegations related to punitive damages where the facts alleged “do not rise to the level of malice, oppression or fraud necessary” to recover punitive damages under Civil Code section 3294. (Turman v. Turning Point of Central California, Inc. (2010) 191 Cal.App.4th 53, 64.) Conclusory allegations are not enough. (Smith v. Superior Court (1992) 10 Cal.App.4th 1033, 1042.) The complaint must make “factual assertions supporting a conclusion [defendants] acted with oppression, fraud or malice.” (Ibid.)

Plaintiff’s second amended complaint does not allege sufficient facts to recover punitive damages from defendant Jeff Sharp. The second amended complaint makes few specific allegations about Jeff Sharp as opposed to the other defendants. Many of the relevant allegations are about his wife’s conduct, not his. The second amended complaint alleges Sharp required plaintiff and her staff to attend meetings where Sharp’s wife promoted pornography. (SAC, 48-53.) Sharp’s wife would tell others about her pornographic content and the “sexual acts that she participates in.” ( 49.) Plaintiff further alleges “Katie Sharp would come by the office unannounced and sit in the producer’s offices and tell them about her sex life.” ( 51.) “Jeff and Katie Sharp would tell plaintiff that it was mandatory that her staff attend the meetings, even though they felt harassed because Katie Sharp was selling her porn site during the office meetings.” ( 53.) Plaintiff also alleges that in June 2019, Sharp gave “plaintiff a letter threatening termination because her husband had a ‘financial interest’ in an independent agency.” ( 60.)

This alleged conduct by Sharp and his wife may have been inappropriate, unwelcome, and unprofessional, but it is not despicable. The second amended complaint’s allegations do not rise to the level of malice, oppression, or fraud necessary for punitive damages.

Disposition

Defendant Jeff Sharp’s demurrer to plaintiff’s seventh cause of action is sustained with leave to amend.

Defendant Jeff Sharp’s motion to strike portions of the second amended complaint is granted with leave to amend. The court hereby strikes paragraphs 356, 357, and 464 of the second amended complaint as against defendant Jeff Sharp only.

Plaintiff shall file the third amended complaint no later than April 25, 2023.



Case Number: *******3106 Hearing Date: February 24, 2023 Dept: 52

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company’s Demurrer and Motion to Strike Portions of Second Amended Complaint

Demurrer

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company demur to the sixth and seventh causes of action alleged in plaintiff Maureen Martinez’s second amended complaint.

6th Cause of Action: Fraud and Misrepresentation

Plaintiff does not allege sufficient facts for fraud. Intentional misrepresentation requires: “(a) misrepresentation; (b) defendant’s knowledge of the statement’s falsity; (c) intent to defraud (i.e., to induce action in reliance on the misrepresentation); (d) justifiable reliance; and (e) resulting damage.” (Hunter v. Up-Right, Inc. (1993) 6 Cal.4th 1174, 1184.)

Fraud must be pleaded specifically. (Lazar v. Superior Court (1996) 12 Cal.4th 631, 645.) “ ‘This particularity requirement necessitates pleading facts which show how, when, where, to whom, and by what means the representations were tendered.’ ” (Ibid.) “A plaintiff’s burden in asserting a fraud claim against a corporate employer is even greater. In such a case, the plaintiff 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.’ ” (Ibid.)

The gravamen of this cause of action is that Farmers allegedly told plaintiff she would have her own business selling insurance, but instead “tightly controlled” her agency and her work in many ways. (SAC, 32-36, 42.) Plaintiff alleges, “Farmers defendants … promis[ed] her and others that they were building their own ‘agency’ with their ‘own clients’ and that plaintiff had the discretion to do sell the agency if she decided to and reap the profits of her lifelong commitment at the time she needed it most, when she was older.” ( 302.) Plaintiff alleges that promise was false because Farmers “would block any attempt for plaintiff to sell” her business and “instead put plaintiff on a Performance Plan” as a pretext to terminate her. (Ibid.) She further alleges the Farmers defendants falsely told her agents like her “were ‘agent owners’ building their own business,” when in fact Farmers intended ultimately to “terminate her and take away all of her clients and business.” ( 297.) Farmers ultimately “terminated plaintiff, took all of her customers, her office and prevented her from continuing to provide insurance to any customers.” ( 78.)

Plaintiff does not specifically allege the details of these misrepresentations as required. She does not allege how, when, where, or by what means the “Farmers defendants” made these promises or representations. She does not allege the names of any individual people who made these representations or their authority to speak on behalf of the six entity defendants. To the contrary, she alleges, “The specific times, dates and names of the people that made those fraudulent statements and misrepresentations is unknown to plaintiff at this time, and uniquely within FARMERS DEFENDANTS’ knowledge custody and control.” (SAC, 303.)

Plaintiff cannot rely on the rule that “the requirement of specificity is relaxed when the allegations indicate that ‘the defendant must necessarily possess full information concerning the facts of the controversy.’ ” (Tarmann v. State Farm Mut. Auto. Ins. Co. (1991) 2 Cal.App.4th 153, 158.) Plaintiff does not allege facts showing that defendants necessarily possess the full information. She alleges the misrepresentations were made to her, so there is no basis to conclude these details “lie more in the knowledge of the opposite party.” (Committee on Children's Television, Inc. v. General Foods Corp. (1983) 35 Cal.3d 197, 217.)

Plaintiff also seeks to rely on the rule that less specificity is required for fraud by concealment. The specificity requirement does not fully apply to concealment claims because it is difficult to show “how” and “by what means” something did not happen. (Alfaro v. Community Housing Improvement System & Planning Assn., Inc. (2009) 171 Cal.App.4th 1356, 1384.)

Plaintiff’s allegations of concealment, however, are tied to the allegations of affirmative misrepresentations. The second amended complaint alleges defendants “are liable for fraudulent concealment since they made representations to plaintiff and others about the ownership of their clients and business … . When they made these representations to plaintiff they did not disclose facts which made their statements misleading, such as FARMERS DEFENDANTS intended to maintain absolute control of plaintiff’s clients, the means and manner that she conducted her work, without telling her that she was entitled to benefits and protections of an employee, instead telling her she was an ‘Agent owner’ and concealed the facts that FARMERS DEFENDANTS had no intention of allowing plaintiff to own any of her business and when she tried to sell it.” (SAC, 302.) The material facts defendants allegedly concealed were, in substance, that their affirmative representations were false. Such “concealment” is merely the other side of the same coin. Without the alleged affirmative misrepresentations, there would be no fraudulent concealment. Plaintiff therefore must meet the heightened standard of specificity for pleading affirmative misrepresentation.

7th Cause of Action: Gender and Age Discrimination (Civ. Code 51 et seq.)

Plaintiff does not allege sufficient facts for this cause of action. Civil Code section 51, the Unruh Civil Rights Act, prohibits “business establishments that provide a service to their clients … from discriminating in the provision of that service.” (Alch v. Superior Court (2004) 122 Cal.App.4th 339, 391.) The statute does not apply to claims “involving an employer-employee or equivalent relationship between a plaintiff and defendant.” (Id. at p. 394.) It does not prohibit “discriminations other than those made by a ‘business establishment’ in the course of furnishing goods, services or facilities to its clients, patrons or customers.” (Alcorn v. Anbro Engineering, Inc. (1970) 2 Cal.3d 493, 500.)

Plaintiff does not allege defendants discriminated against her as a client, patron, or customer when providing their services. This case arises from the relationship between plaintiff as either an employee or independent contractor working as an insurance agent affiliated with the Farmers entities. (SAC, 32-37, 39-43.) “Plaintiff dedicated nearly 16 years of her life working for” the entities ( 30) “selling [Farmers insurance] policies” ( 43). In this cause of action, plaintiff alleges defendants discriminated “against [their] agents, including plaintiff, by favoring younger employees” and “male employees” and included “a pattern and practice of discriminating against older employees” and “against female employees.” (SAC, 348-349.)

Plaintiff further alleges these “entities are reciprocal insurers or mutual companies whose principal businesses are related to the offer or sale of insurance products and the provision of services to [Farmers] policyholders throughout the United States.” (SAC, 19.) Whether or not the parties had an employment relationship, plaintiff and the Farmers defendants were both on the business side of the business/client relationship. They collaborated in this business to provide a service (insurance coverage) to the public. The insured—not agents like plaintiff—were the clients, patrons, or customers.

Plaintiff’s reliance on Payne v. Anaheim Memorial Medical Center, Inc. (2005) 130 Cal.App.4th 729 (Payne) is misplaced. There, the court held a physician could bring an Unruh Civil Rights Act claim against a hospital. The court reasoned, "Payne does not work for the hospital, and has no obligation to treat his patients there as opposed to any other hospital. Anaheim Memorial does not compensate Payne for his medical services, nor does it exercise any direct control over the manner in which he practices. Instead, the hospital merely provides a facility which a qualified physician may access in connection with providing medical care to his patients.” (Id. at p. 748.)

Here, plaintiff alleges the opposite: that defendants “tightly controlled” her “working relationship with” them. (SAC, 32.) She alleges they “dictated the hours when Plaintiff could work, when she could take vacation, where her office could be located, and in what region she could work,” they “had the authority to hire, transfer and fire Plaintiff,” and they “ required plaintiff to work exclusively for them and controlled the means and manner that she conducted her work.” (Ibid.) Plaintiff further alleges, “She was paid regularly by EMPLOYER DEFENDANTS, and they controlled the terms of her compensation. Plaintiff was required to meet performance expectations and if she did not EMPLOYER DEFENDANTS told her she would be terminated. EMPLOYER DEFENDANTS controlled the way in which the work was to be performed, the look of the office, the materials to be used in the office to perform the work and hours of the staff including plaintiff in the office.” (SAC, 32.)

Rather than Payne, this case is analogous to Johnson v. Riverside Healthcare System, LP (9th Cir. 2008) 534 F.3d 1116, which held a doctor could not bring an Unruh Civil Rights Act claim against a hospital. The Ninth Circuit noted the plaintiff’s “relationship with [the hospital] was materially indistinguishable from that of an employee” and distinguished Payne “because the hospital in that case neither compensated the plaintiff nor controlled the manner of his practice to the degree [the hospital] does here.” (Id. at p. 1126.)

Leave to Amend

After a successful demurrer, where “there is a reasonable possibility that the defects can be cured by amendment, leave to amend must be granted.” (Stevens v. Superior Court (1999) 75 Cal.App.4th 594, 601.) The plaintiff bears the burden of “demonstrat[ing] how the complaint can be amended.” (Smith v. State Farm Mutual Automobile Ins. Co. (2001) 93 Cal.App.4th 700, 711.) “Leave to amend should be denied where the facts are not in dispute and the nature of the claim is clear, but no liability exists under substantive law.” (Lawrence v. Bank of America (1985) 163 Cal.App.3d 431, 436.)

Plaintiff shows a possibility of curing the defect in her sixth cause of action for fraud. In her opposition, she argues she is seeking to depose defendants’ person(s) most qualified on various topics. (Opp., pp. 6-10.) Plaintiff’s efforts could result in discovering the specific information necessary to meet the heightened standard of pleading fraud. Because this discovery may take some time, the court will grant plaintiff extra time to amend her complaint.

Plaintiff, however, shows no reasonable possibility of curing the defect in the seventh cause of action. The facts are not in dispute and the nature of the claim is clear. As a matter of substantive law, the Farmers defendants cannot be liable to plaintiff under the Unruh Civil Rights Act.

Disposition

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company’s demurrer to plaintiff Maureen Martinez’s sixth cause of action is sustained with 60 days’ leave to amend Defendants’ demurrer to plaintiff’s seventh cause of action is sustained without leave to amend.

Motion to Strike

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company move to strike 11 portions of the second amended complaint regarding punitive damages.

Courts may strike allegations related to punitive damages where the facts alleged “do not rise to the level of malice, oppression or fraud necessary” to recover punitive damages under Civil Code section 3294. (Turman v. Turning Point of Central California, Inc. (2010) 191 Cal.App.4th 53, 64.) Merely stating a cause of action for discrimination or sexual harassment does not suffice to recover punitive damages. (Id. at pp. 63-64.) Conclusory allegations are not enough. (Smith v. Superior Court (1992) 10 Cal.App.4th 1033, 1042.) The complaint must make “factual assertions supporting a conclusion [defendants] acted with oppression, fraud or malice.” (Ibid.) “[W]illfully and consciously retaliat[ing] against” employees for exercising their rights can constitute malicious or oppressive conduct sufficient for punitive damages. (Colucci v. T-Mobile USA, Inc. (2020) 48 Cal.App.5th 442, 455.)

Plaintiff’s second amended complaint alleges sufficient facts for punitive damages. Plaintiff alleges she complained to Farmers about sexual harassment, discrimination, and retaliation. (SAC, 122-123, 127, 134.) She also complained to the Department of Insurance about the harassment and discrimination and about business practices that deceived or harmed customers. ( 124, 128). Plaintiff further alleges that, because of her complaints, Farmers retaliated against her including by “tak[ing] away her clients and giv[ing] them to other agents” ( 130) and “creat[ing] false reasons to terminate her” ( 132). Plaintiff alleges Farmers “intentionally made false accusations about plaintiff’s performance and used them as a pretextual basis to terminate her.” (SAC, 81.) These factual allegations could properly be characterized as malicious conduct intended to injure plaintiff or despicable conduct carried on with a willful and conscious disregard for her rights.

Disposition

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company’s motion to strike is denied.



Case Number: *******3106 Hearing Date: November 17, 2022 Dept: 52

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company’s Demurrer to First Amended Complaint

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company demur to the sixth, seventh, and 11th causes of action alleged in plaintiff Maureen Martinez’s first amended complaint.

6th Cause of Action: Fraud and Misrepresentation

Plaintiff does not allege sufficient facts for fraud. Intentional misrepresentation requires: “(a) misrepresentation; (b) defendant’s knowledge of the statement’s falsity; (c) intent to defraud (i.e., to induce action in reliance on the misrepresentation); (d) justifiable reliance; and (e) resulting damage.” (Hunter v. Up-Right, Inc. (1993) 6 Cal.4th 1174, 1184.)

Fraud must be pleaded specifically. (Lazar v. Superior Court (1996) 12 Cal.4th 631, 645.) “ ‘This particularity requirement necessitates pleading facts which show how, when, where, to whom, and by what means the representations were tendered.’ ” (Ibid.) “A plaintiff’s burden in asserting a fraud claim against a corporate employer is even greater. In such a case, the plaintiff 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.’ ” (Ibid.)

The gravamen of this cause of action is that Farmers allegedly told plaintiff she would have her own business selling insurance, but instead “tightly controlled” her agency and her work in many ways. (FAC, 32-36, 42.) Plaintiff alleges, “Farmers defendants … promis[ed] her and others that they were building their own ‘agency’ with their ‘own clients’ and that plaintiff had the discretion to do sell the agency if she decided to and reap the profits of her lifelong commitment at the time she needed it most, when she was older.” ( 297.) Plaintiff alleges that promise was false because Farmers “would block any attempt for plaintiff to sell” her business and “instead put plaintiff on a Performance Plan” as a pretext to terminate her. (Ibid.) Farmers ultimately “terminated plaintiff, took all of her customers, her office and prevented her from continuing to provide insurance to any customers.” ( 78.)

Plaintiff does not specifically allege the details of these misrepresentations as required. She does not allege how, when, where, or by what means the “Farmers defendants” made these promises or representations. She does not allege the names of any individual people who made these representations or their authority to speak on behalf of the six entity defendants. She only refers to those making the false representations as “Farmers” (FAC, 75), “Defendants” ( 78), “Employer defendants” ( 79-81) and “Farmers defendants” ( 297).

Plaintiff cites two cases in support of her fraud cause of action. Neither case applies. First, in Wilhelm v. Pray, Price, Williams & Russell (1986) 186 Cal.App.3d 1324, the court held “the complaint fails to plead with specificity a factual basis for how [defendant] ‘knew’ the representations” were false (id. at p. 1331) and that the “allegations, as a matter of law, preclude a showing of ‘actual’ or ‘justifiable’ reliance” (id. at pp. 1331-1332). The court did not address the plaintiff’s burden to specifically allege the details of how, when, where, and by whom the representations were made. Second, Lacher v. Superior Court (1991) 230 Cal.App.3d 1038 does not apply because it did not address the heightened specificity required to allege fraud.

Plaintiff also relies on the rule that “the requirement of specificity is relaxed when the allegations indicate that ‘the defendant must necessarily possess full information concerning the facts of the controversy.’ ” (Tarmann v. State Farm Mut. Auto. Ins. Co. (1991) 2 Cal.App.4th 153, 158.) Plaintiff does not allege facts showing that defendants necessarily possess the full information. She alleges the promises were made to her, so there is no basis to conclude these details “lie more in the knowledge of the opposite party.” (Committee on Children's Television, Inc. v. General Foods Corp. (1983) 35 Cal.3d 197, 217.)

7th Cause of Action: Gender and Age Discrimination (Civ. Code 51 et seq.)

Plaintiff fails to allege sufficient facts for this cause of action. Civil Code section 51, the Unruh Civil Rights Act, prohibits “business establishments that provide a service to their clients … from discriminating in the provision of that service.” (Alch v. Superior Court (2004) 122 Cal.App.4th 339, 391.) The statute does not apply to claims “involving an employer-employee or equivalent relationship between a plaintiff and defendant.” (Id. at p. 394.) It does not prohibit “discriminations other than those made by a ‘business establishment’ in the course of furnishing goods, services or facilities to its clients, patrons or customers.” (Alcorn v. Anbro Engineering, Inc. (1970) 2 Cal.3d 493, 500.)

Plaintiff does not allege defendants discriminated against her as a client, patron, or customer when providing their services. This case arises from the relationship between plaintiff as either an employee or independent contractor working as an insurance agent affiliated with the Farmers entities. (FAC, 32-37, 39-43.) “Plaintiff dedicated nearly 16 years of her life working for” the entities ( 30) “selling [Farmers insurance] policies” ( 43). Plaintiff was not Farmers’ client.

In her opposition, plaintiff argues the first amended complaint alleges sufficient facts to state a cause of action for violating Civil Code sections 51.7 and 52.1. Section 51.7, the Ralph Civil Rights Act, prohibits “any violence, or intimidation by threat of violence, committed against” people because of their protected status. (Civ. Code, 51.7(b)(1).) Section 52.1, the Tom Bane Civil Rights Act, applies to a defendant who “interferes by threat, intimidation, or coercion, or attempts to interfere by threat, intimidation, or coercion, with the exercise or enjoyment by any individual” of various rights. (Civ. Code, 52.1(b).)

Plaintiff does not allege sufficient facts to constitute a violation of either statute. She alleges defendants discriminated against her “by favoring younger employees and taking away plaintiff’s clients and giving them to younger employees, and by giving leads to younger employees” and that they “had a pattern and practice of discriminating against older employees, taking away their clients, depriving them of new business, and” manufacturing a pretextual reason to “terminate[] plaintiff.” (FAC, 196.) These acts constitute discrimination in the terms of her employment or, in the alternative, the terms of her relationship with defendants as their independent contractor. Plaintiff alleges no violence, intimidation, coercion, or threats.

11th Cause of Action: Failure to Provide Accurate Paystubs

In plaintiff’s opposition, she stated she would voluntarily dismiss this cause of action. Plaintiff has not filed a request for dismissal.

Disposition

Defendants Farmers Group, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company’s demurrer to plaintiff Maureen Martinez’s sixth, seventh, and 11th causes of action is sustained with 20 days’ leave to amend.

Defendant Jeff Sharp’s Demurrer and Motion to Strike Portions of First Amended Complaint

Defendant Sharp’s Demurrer to First Amended Complaint

Defendant Jeff Sharp demurs to the seventh through 11th causes of action alleged in plaintiff Maureen Martinez’s first amended complaint.

7th Cause of Action: Gender and Age Discrimination (Civ. Code 51 et seq.)

Plaintiff fails to allege sufficient facts for this cause of action. Civil Code section 51, the Unruh Civil Rights Act, prohibits “business establishments that provide a service to their clients … from discriminating in the provision of that service.” (Alch v. Superior Court (2004) 122 Cal.App.4th 339, 391.) The statute does not apply to claims “involving an employer-employee or equivalent relationship between a plaintiff and defendant.” (Id. at p. 394.) It does not prohibit “discriminations other than those made by a ‘business establishment’ in the course of furnishing goods, services or facilities to its clients, patrons or customers.” (Alcorn v. Anbro Engineering, Inc. (1970) 2 Cal.3d 493, 500.)

Plaintiff does not allege Sharp discriminated against her as a client, patron, or customer when providing their services. This case arises from the relationship between plaintiff as either an employee or independent contractor working as an insurance agent affiliated with the Farmers entities. (FAC, 32-37, 39-43.) Sharp became the “district manager” for the Farmers entities in 2018. ( 48.) Plaintiff does not allege she was Sharp’s client, patron, or customer.

In her opposition, plaintiff cites Civil Code section 51.7. Section 51.7, the Ralph Civil Rights Act, prohibits “any violence, or intimidation by threat of violence, committed against” people because of their protected status. (Civ. Code, 51.7(b)(1).) Plaintiff does not allege sufficient facts to constitute a violation of that statute. She alleges Sharp required plaintiff and her staff to attend meetings where Sharp’s wife promoted pornography. (FAC, 48-53.) Plaintiff also alleges Sharp’s wife “would come by the office unannounced and sit in the producer’s offices and tell [plaintiff’s staff] about her sex life.” ( 51.) Plaintiff does not allege any violence or intimidation by threat of violence.

8th-11th Causes of Action: Labor Code Violations

In plaintiff’s opposition, she stated she would voluntarily dismiss these causes of action as against defendant Jeff Sharp. Plaintiff has not filed a request for dismissal.

Disposition

Defendant Jeff Sharp’s demurrer to plaintiff Maureen Martinez’s seventh through 11th causes of action is sustained with 20 days’ leave to amend.

Defendant Sharp’s Motion to Strike Portions of First Amended Complaint

Defendant Jeff Sharp moves to strike paragraphs 204, 205, and 351 of the first amended complaint. These allegations concern punitive damages. Courts may strike a “demand for judgment requesting relief not supported by the allegations of the complaint.” (Code Civ. Proc., 431.10, subd. (b)(3).) Courts may strike allegations related to punitive damages where the facts alleged “do not rise to the level of malice, oppression or fraud necessary” to recover punitive damages under Civil Code section 3294. (Turman v. Turning Point of Central California, Inc. (2010) 191 Cal.App.4th 53, 64.) Merely stating a cause of action for discrimination or sexual harassment does not suffice to recover punitive damages. (Id. at pp. 63-64.)

Plaintiff fails to allege facts constituting malice, oppression, or fraud by Sharp. The first amended complaint alleges Sharp required plaintiff and her staff to attend meetings where Sharp’s wife promoted pornography. (FAC, 48-53.) Plaintiff also alleges Sharp’s wife “would come by the office unannounced and sit in the producer’s offices and tell [plaintiff’s staff] about her sex life.” ( 51.) The first amended complaint thus primarily alleges conduct by Sharp’s wife—not him. The alleged conduct by Sharp and his wife may have been inappropriate, unwelcome, and unprofessional, but it does not rise to the level of malice, oppression, or fraud necessary for punitive damages.

Disposition

Defendant Jeff Sharp’s motion to strike is granted with 20 days’ leave to amend.

The court hereby strikes the following portions of plaintiff Maureen Martinez’s first amended complaint: paragraph 204 at page 62, line 19 to page 63, line 3; paragraph 205 at page 63, lines 4 to 11; and paragraph 351 at page 71, line 28.