Gregory v. Albertson's, Inc.

104 Cal. App. 4th 845, 128 Cal. Rptr. 2d 389, 2002 Daily Journal DAR 14393, 2002 Cal. Daily Op. Serv. 12287, 2002 Cal. App. LEXIS 5211
California Court of Appeal·Decided December 20, 2002·No. Nos. A097031, A097620·Published·Cited by 1 cases

Opinion

Opinion

SWAGER, J.

Margaret Rose Gregory appeals an order and a judgment on the pleadings dismissing her first amended complaint against Albertson’s Inc., and Ires (California), Inc. (hereafter Albertson’s and Ires), to enjoin an unfair business practice. We affirm.

Factual Background

Appellant filed her first amended complaint after the trial court sustained a demurrer filed by Albertson’s to the original complaint. As amended, the complaint alleges appellant is “an individual citizen and resident of the city of Alameda, County of Alameda, State of California.” Ires is the owner of the Bridgeside Shopping Center in Alameda, California. In 1972, Ires leased to Albertson’s predecessor “the larger one of the two major anchor stores” in the shopping center, which was “specially fitted for the sale of grocery and sundry items by a larger retailer of such items.” Albertson’s now holds the leasehold interest under a lease that “currently runs through the year 2042, including extension options.”

In February 1997, Albertson’s opened a large retail facility at Fruitvale Station Shopping Center in Oakland. The first amended complaint alleges that Albertson’s “determined” that this facility “should service an area [849] including the same area formerly serviced by [its store] at Bridgeside Shopping Center” and therefore “determined to indefinitely ‘warehouse,’ i.e., hold but make no beneficial use of, the leasehold space it formerly used for its facility at the Bridgeside Shopping Center in Alameda, in order to continue to hold the legal right of possession for such leasehold for the purpose of preventing any competitor from using such space to compete in the retail sale of groceries.” Ires has permitted Albertson’s to pursue this business strategy of maintaining the leasehold premises “in a permanent state of closure and darkness, vacant and empty, devoid of commercial activity, usefulness, use or purpose, and decaying, deteriorated and blighted, which condition has existed . . . from February, 1997 . . . [and] threatens to continue unchanged for over 40 years into the future.”

The first amended complaint alleges that “[t]he maintenance of said leasehold in a permanent state of closure” is an unfair business practice by which Albertson’s and Ires “thwart any effort by competitors . . . [of Albertson’s] to make any beneficial use of the leasehold premises.” The withdrawal of “the largest anchor building in a multiple user small commercial center serving a small community” creates “commercial and residential deterioration and blight, eliminating the economic viability of most of the shopping center space for most users, depressing land values in the vicinity, creating an attractive nuisance, creating visual and unaesthetic decay, reducing and eliminating consumer shopping choices, depriving the local municipality of sales tax revenues, strangling other small retail businesses in the same shopping center and unfairly restraining market competitors and economic competition based on price, service and quality.”

Appellant seeks an injunction restraining Albertson’s and Ires “from continuing to withhold the said leasehold space from normal and beneficial economic activity . . . and enjoining and directing defendants . . . actively to market such leasehold for assignment or subletting to business competitors or others, without regard for market competition to defendants Albert-son’s Inc.”

Albertson’s filed a demurrer to the first amended complaint on the ground that it failed to allege facts sufficient to state a cause of action xmder the unfair competition law. The trial court sustained the demurrer by an order filed September 7, 2001, and entered an order dismissing the first amended complaint against Albertson’s on November 6, 2001. Ires subsequently filed a motion for judgment on the pleadings that was granted by an order filed December 17, 2001, and a judgment was entered in its favor on January 2, 2002. Appellant filed timely notices of appeal from the order entered November 6, 2001, and the judgment entered January 2, 2002.

[850] Discussion

A. Standard of Review

“On appeal from a judgment dismissing an action after sustaining a demurrer without leave to amend, the standard of review is well settled. The reviewing court gives the complaint a reasonable interpretation, and treats the demurrer as admitting all material facts properly pleaded. [Citations.] The court does not, however, assume the truth of contentions, deductions or conclusions of law. [Citation.] The judgment must be affirmed ‘if any one of the several grounds of demurrer is well taken. [Citations.]’ [Citation.] However, it is error for a trial court to sustain a demurrer when the plaintiff has stated a cause of action under any possible legal theory. [Citation.] And it is an abuse of discretion to sustain a demurrer without leave to amend if the plaintiff shows there is a reasonable possibility any defect identified by the defendant can be cured by amendment.” (Aubry v. Tri-City Hospital Dist. (1992) 2 Cal.4th 962, 966-967 [9 Cal.Rptr.2d 92, 831 P.2d 317]; Palm Springs Tennis Club v. Rangel (1999) 73 Cal.App.4th 1, 4-5 [86 Cal.Rptr.2d 73].) The same principles apply to an appeal from a judgment on the pleadings. (Buck v. Standard Oil Co. (1958) 157 Cal.App.2d 230, 235 [321 P.2d 67].)

B. Unfair Competition Law

The unfair competition law (Bus. & Prof. Code, § 17200 et seq.) was “one of the so-called Tittle FTC Acts’ of the 1930’s, enacted by many states in the wake of amendments to the Federal Trade Commission Act enlarging the commission’s regulatory jurisdiction to include unfair business practices that harmed, not merely the interests of business competitors, but of the general public as well.” (Rubin v. Green (1993) 4 Cal.4th 1187, 1200 [17 Cal.Rptr.2d 828, 847 P.2d 1044]; Bank of the West v. Superior Court (1992) 2 Cal.4th 1254, 1263-1264 [10 Cal.Rptr.2d 538, 833 P.2d 545].) The definition of unfair competition in section 17200 “demonstrates a clear design to protect consumers as well as competitors by its final clause, permitting inter alia, any member of the public to sue on his own behalf or on behalf of the public generally.” (Barquis v. Merchants Collection Assn. (1972) 7 Cal.3d 94, 110 [101 Cal.Rptr. 745, 496 P.2d 817].)

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Gregory v. Albertson's, Inc., 104 Cal. App. 4th 845, 128 Cal. Rptr. 2d 389, 2002 Daily Journal DAR 14393, 2002 Cal. Daily Op. Serv. 12287, 2002 Cal. App. LEXIS 5211 (Cal. Ct. App. 2002).

104 Cal. App. 4th 845 (Gregory v. Albertson's, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gregory v. Albertson's, Inc.
128 Cal. Rptr. 2d 389 (California Court of Appeal, 2002)