Cullis v. Tesla, Inc.

CourtDistrict Court, E.D. California
DecidedOctober 25, 2024
Docket2:23-cv-00798
StatusUnknown

This text of Cullis v. Tesla, Inc. (Cullis v. Tesla, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cullis v. Tesla, Inc., (E.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 JOSEPH CULLIS, No. 2:23-cv-00798-DAD-DMC 12 Plaintiff, 13 v. ORDER GRANTING DEFENDANTS’ MOTION FOR JUDGMENT ON THE 14 TESLA INC., et al., PLEADINGS AND DISMISSING PLAINTIFF’S COMPLAINT WITH LEAVE 15 Defendants. TO AMEND 16 (Doc. No. 13)

17 18 This matter is before the court on the motion for judgment on the pleadings filed by 19 defendants Tesla Inc. and Tesla Motors, Inc. (“Tesla”) on March 25, 2024. (Doc. No. 13.) On 20 June 12, 2024, the pending motion was taken under submission on the papers pursuant to Local 21 Rule 230(g). (Doc. No. 24.) For the reasons explained below, the court will grant defendants’ 22 motion for judgment on the pleadings. 23 BACKGROUND 24 On March 24, 2023, plaintiff Joseph Cullis filed his complaint in the Shasta County 25 Superior Court initiating this false advertising action against defendants. (Doc. No. 1-2 at 6.) In 26 his complaint, plaintiff alleges the following. 27 Plaintiff Cullis is an individual residing at Shasta Lake, California. (Id. at ¶ 9.) In March 28 2021, plaintiff purchased a 2021 Tesla Model 3 (the “Subject Vehicle”) from defendants’ website 1 and took delivery of the Subject Vehicle from defendants’ factory in Fremont, California. (Id.) 2 Plaintiff was told by one of defendants’ employees when he picked-up the vehicle that the Tesla 3 Service Center in Chico, California was the closest Tesla facility to his residence despite being 80 4 miles away. (Id. at ¶ 25.) On November 9, 2022, the Subject Vehicle was damaged in an 5 accident. (Id. at ¶ 25.) Plaintiff had the Subject Vehicle repaired at Courtesy Automotive 6 Collision Center, the closest third-party repair shop authorized to work on Tesla vehicles, which 7 was 70 miles away from his residence. (Id. at ¶ 26.) Courtesy Automotive requested the 8 necessary parts to repair the Subject Vehicle in or around mid-November, but it took until the first 9 week of January 2023 for defendants to send the parts. (Id.) 10 Defendants advertise to the general public in California and in the United States. (Id. at 11 ¶ 28.) In their representations to the public, defendants recommend that repairs for Tesla vehicles 12 should be done through Tesla Service Centers or Tesla-authorized repair facilities. (Id. at ¶ 23.) 13 However, as defendants’ business grew from 2021 to 2022, the number of Tesla service locations 14 grew at a slower rate. (Id. at ¶ 24.) This has led to some Tesla customers being far away from 15 their nearest Tesla Service Center or facing delays in receiving replacement parts. (Id. at ¶ 27.) 16 On April 28, 2023, defendants removed this action from the Shasta County Superior Court 17 to this federal court. (Doc. No. 1.) In his complaint, plaintiff asserts the following four claims 18 against both defendants: (1) failure to disclose and dissemination of untrue and misleading 19 advertising in violation of California’s False Advertising Law (“FAL”), California Business and 20 Professions Code §§ 17500, et seq.; (2) unfair business practices in violation of California’s 21 Unfair Competition Law (“UCL”), California Business and Professions Code §§ 17200, et seq.; 22 (3) unlawful business practices in violation of the UCL; and (4) failure to maintain reasonably 23 close repair facilities and commence repairs within a reasonable time in violation of the Song- 24 Beverly Consumer Warranty Act (“Song-Beverly”), California Civil Code §§ 17500, et seq. 25 (Doc. No. 1-2 at 13–18.) 26 On March 25, 2024, defendants filed the pending motion for judgment on the pleadings. 27 (Doc. No. 13.) On April 24, 2024, plaintiff filed his opposition to the pending motion (Doc. 28 No. 18), and on May 15, 2024, defendants filed their reply thereto (Doc. No. 22). 1 LEGAL STANDARD 2 A. Rule 12(c) — Judgment on the Pleadings 3 Federal Rule of Civil Procedure 12(c) provides that: “After the pleadings are closed—but 4 early enough not to delay trial—a party may move for judgment on the pleadings.” 5 A motion for judgment on the pleadings “challenges the legal sufficiency of the opposing 6 party’s pleadings[.]” Morgan v. Cnty. of Yolo, 436 F. Supp. 2d 1152, 1154–55 (E.D. Cal. 2006), 7 aff’d, 277 F. App’x 734 (9th Cir. 2008). In reviewing a motion brought under Rule 12(c), the 8 court “must accept all factual allegations in the complaint as true and construe them in the light 9 most favorable to the nonmoving party.” Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009). 10 The same legal standard applicable to a Rule 12(b)(6) motion applies to a motion brought 11 under Rule 12(c). See Dworkin v. Hustler Mag., Inc., 867 F.2d 1188, 1192 (9th Cir. 1989). 12 Accordingly, “judgment on the pleadings is properly granted when, taking all the allegations in 13 the non-moving party’s pleadings as true, the moving party is entitled to judgment as a matter of 14 law.” Marshall Naify Revocable Tr. v. United States, 672 F.3d 620, 623 (9th Cir. 2012) (quoting 15 Fajardo v. Cnty. of Los Angeles, 179 F.3d 698, 699 (9th Cir. 1999)); see also Fleming, 581 F.3d 16 at 925 (“judgment on the pleadings is properly granted when there is no issue of material fact in 17 dispute, and the moving party is entitled to judgment as a matter of law”). In considering a 18 motion for judgment on the pleadings, the allegations of the complaint must be accepted as true, 19 while any allegations made by the moving party that contradict the allegations of the complaint 20 are assumed to be false. See MacDonald v. Grace Church Seattle, 457 F.3d 1079, 1081 (9th Cir. 21 2006). The facts are viewed in the light most favorable to the non-moving party and all 22 reasonable inferences are drawn in favor of that party. See Living Designs, Inc. v. E.I. DuPont de 23 Nemours & Co., 431 F.3d 353, 360 (9th Cir. 2005). 24 B. Rule 9(b) — Heightened Pleading Standards 25 “When an entire complaint, or an entire claim within a complaint, is grounded in fraud 26 and its allegations fail to satisfy the heightened pleading requirements of Rule 9(b), a district 27 court may dismiss the complaint or claim.” Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1107 28 (9th Cir. 2003). Under Rule 9(b), the “circumstances constituting the alleged fraud [must] be 1 specific enough to give defendants notice of its particular misconduct . . . so they can defend 2 against the charge and not just deny that they have done anything wrong.” Kearns v. Ford Motor 3 Co., 567 F.3d 1120, 1124 (9th Cir. 2009) (internal quotation marks omitted) (quoting Bly-Magee 4 v. California, 236 F.3d 1014, 1019 (9th Cir. 2001)). To satisfy the particularity standard of 5 Rule 9(b), “a pleading must identify the who, what, when, where, and how of the misconduct 6 charged, as well as what is false or misleading about the purportedly fraudulent statement, and 7 why it is false.” Moore v. Mars Petcare US, Inc., 966 F.3d 1007, 1019 (9th Cir. 2020) 8 (quotations omitted) (quoting Davidson v. Kimberley-Clark Corp., 889 F.3d 956, 964 (9th Cir. 9 2018)). However, “[m]alice, intent, knowledge and other conditions of a person’s mind may be 10 alleged generally.” Irving Firemen’s Relief & Ret.

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