Gerash v. Verizon Onlin CA2/8

CourtCalifornia Court of Appeal
DecidedMay 16, 2013
DocketB239823
StatusUnpublished

This text of Gerash v. Verizon Onlin CA2/8 (Gerash v. Verizon Onlin CA2/8) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerash v. Verizon Onlin CA2/8, (Cal. Ct. App. 2013).

Opinion

Filed 5/16/13 Gerash v. Verizon Onlin CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

GERALD A. GERASH, B239823

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC459508) v.

VERIZON ONLINE LLC et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court for the County of Los Angeles. David L. Minning, Judge. Affirmed as modified.

Johnson & Johnson, Douglas L. Johnson and Nicholas A. Kurtz for Plaintiff and Appellant.

Munger, Tolles & Olson, Henry Weissmann, James C. Rutten and Aaron G. Liederman for Defendants and Respondents. . ____________________________________ SUMMARY Civil Code section 1722 (hereafter section 1722) is a peculiar and obscure statute that applies only to utilities, cable television companies and retailers. Enacted in 1989, before widespread consumer use of the Internet, the part of the statute on which plaintiff relies requires utilities to inform their subscribers of their right to service connection or repair within an agreed upon four-hour period, and allows an action in small claims court, for actual damages not exceeding $600 if the service or repair is not begun within the agreed period. (The damages limit was $500 until a 2002 amendment raising it to $600.) Plaintiff Gerald A. Gerash brought a class action lawsuit in superior court against Verizon Online LLC and Verizon California, Inc., alleging violation of section 1722 (and, based on the same conduct, causes of action for negligence and for violation of the unfair competition law (UCL) and Consumer Legal Remedies Act (CLRA)). We hold plaintiff’s exclusive remedy under section 1722 lies in small claims court and therefore affirm the trial court’s judgment of dismissal sustaining the defendants’ demurrer on that ground. The trial court erred, however, in taking judicial notice of documents offered by defendants to establish that Verizon Online is an internet service provider and not a utility subject to section 1722. We also reject defendants’ contention that plaintiff alleged no conduct by Verizon California, which is conceded to be a utility. The complaint alleged both defendants contracted with plaintiff to “upgrade his DSL (internet) speed and change his phone service.” We need not decide whether Verizon California infringed plaintiff’s section 1722 rights, as we accept as true all material facts alleged in the complaint on an appeal from the sustaining of a demurrer. We conclude the trial court properly dismissed all of plaintiff’s other causes of action. Accordingly, we affirm the judgment of dismissal, but order the judgment modified to the extent it purports to preclude plaintiff from filing a cause of action against Verizon Online in small claims court for violation of section 1722.

2 FACTS Plaintiff’s complaint refers to the two defendant companies collectively as “Verizon.” He alleges he has been a “Verizon DSL and Verizon Wireless customer for many years.” He entered a one-year contract with Verizon on February 28, 2011, “to upgrade his DSL (internet) speed and change his phone service.” This contract is not in the record. Verizon told him the change in DSL service would occur after a Verizon technician provided in-home service, to occur in about four days. Without notice, his internet connection was disconnected an hour later. He called Verizon on March 2 to ask what happened and was told the new DSL speed would be installed the next day, during a 10-hour window of time. Verizon changed the March 3 date to March 4, and on March 4 told plaintiff “that a technician would need to come to [his] home.” A technician was scheduled to come on March 5, but on that date plaintiff received a recorded telephone message telling him a technician would come on March 6, between 8:00 a.m. and 8:00 p.m. Verizon continued to postpone and reschedule appointments, and plaintiff repeatedly had to wait at home for technicians who did not arrive. On March 9, nine days after Verizon disconnected his service, a Verizon technician came to plaintiff’s home and “performed the necessary adjustments to reconnect his internet access, and install his new DSL speed and phone service.” During those nine days, plaintiff went to restaurants and coffee houses and had to pay them to access their internet service. Plaintiff sued, alleging the facts just described and including class action allegations. He also alleged that “Verizon’s recording to its customers tells them to wait in their homes for 12 hours for service calls.” Defendants “have kept numerous customers waiting in their homes for Defendants [sic] services in excess of four hours” and “have failed to inform their customers of their right to have services performed within four[]hours.” Plaintiff alleged causes of action for violation of section 1722, unfair business practices under the UCL (Bus. & Prof. Code, § 17200 et seq.), violation of the CLRA (Civ. Code, § 1750 et seq.), and negligence.

3 Defendants demurred to the first amended complaint. Defendants argued that (1) all causes of action against Verizon Online should be dismissed because, “as a matter of judicially noticeable fact,” Verizon Online provides internet services, not public utility services, and is therefore not a “utility” subject to section 1722; and (2) although Verizon California “actually is a public utility,” plaintiff “[did] not allege any facts indicating that this local telephone company violated the statute.” Defendants relied on the Public Utility Code’s definition of “public utility,” which includes telephone corporations but not internet service providers,1 and sought judicial notice of several exhibits purporting to show that the California Public Utilities Commission (CPUC) regulates telephone utilities, that Verizon Online is not on the CPUC’s website list of telephone utilities it regulates, and that Verizon Online’s terms of service state that it does not offer telephone services. The trial court took judicial notice of the documents just described, and sustained the demurrer without leave to amend. The court’s written order entering final judgment for defendants specified that the demurrer to plaintiff’s section 1722 claim was sustained without leave to amend on the ground that an action in small claims court is the exclusive remedy and, with respect to Verizon Online, on the ground that it was not a utility subject to section 1722. The judgment of dismissal further states that plaintiff “remains free to file this cause of action against Verizon California in small claims court if he so chooses.” The court also found plaintiff’s other claims were not actionable. This appeal followed. DISCUSSION A demurrer tests the legal sufficiency of the complaint. We review the complaint de novo to determine whether it alleges facts sufficient to state a cause of action. For

1 The Public Utility Code states: “‘Public utility’ includes every common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, and heat corporation, where the service is performed for, or the commodity is delivered to, the public or any portion thereof.” (Pub. Util. Code, § 216, subd. (a).)

4 purposes of review, we accept as true all material facts alleged in the complaint, but not contentions, deductions or conclusions of fact or law. We also consider matters that may be judicially noticed. (Blank v.

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Gerash v. Verizon Onlin CA2/8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerash-v-verizon-onlin-ca28-calctapp-2013.