Manifest Valley Wellness v. County of Los Angeles CA2/2

CourtCalifornia Court of Appeal
DecidedOctober 22, 2024
DocketB331056
StatusUnpublished

This text of Manifest Valley Wellness v. County of Los Angeles CA2/2 (Manifest Valley Wellness v. County of Los Angeles CA2/2) 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
Manifest Valley Wellness v. County of Los Angeles CA2/2, (Cal. Ct. App. 2024).

Opinion

Filed 10/22/24 Manifest Valley Wellness v. County of Los Angeles CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 TWO

MANIFEST VALLEY WELLNESS, B331056 LLC, (Los Angeles County Plaintiff and Appellant, Super. Ct. No. 22STCV11265)

v.

COUNTY OF LOS ANGELES,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County. Douglas W. Stern, Judge. Affirmed.

Frost, Christopher Frost, John D. Maatta, Nicholas Brancolini, David Tiraturyan, and Nicholas Lauber for Plaintiff and Appellant.

Collins + Collins, Michael L. Wroniak and Paul A. Breucop for Defendant and Respondent. ______________________________ Plaintiff and appellant Manifest Valley Wellness, LLC, appeals from a judgment of dismissal entered against it and in favor of defendant and respondent County of Los Angeles (the County) following the County’s successful demurrer.1 We affirm. FACTUAL2 BACKGROUND “This is an action about [the County] engaging in an intentional and wrongful course of conduct causing [plaintiff] to sustain very significant damages. [The County’s] wrongful conduct was rooted in the wrongful breach and termination of a valid contract entered into with [plaintiff] in retaliation against [plaintiff], because [plaintiff] exercised its First Amendment rights as a whistleblower.” Plaintiff “is an outpatient rehabilitation center providing mental health and drug addiction recovery services to individuals

1 Strangely, plaintiff’s opening brief asserts that the trial court committed reversible error “when it sustained the County’s demurrer to five of the six causes of action in the complaint without leave to amend.” But the brief goes on to address all six causes of action.

2 “Because this matter comes to us on demurrer, we take the facts from [plaintiff’s operative pleading], the allegations of which are deemed true for the limited purpose of determining whether [it] has stated a viable cause of action. [Citation.]” (Stevenson v. Superior Court (1997) 16 Cal.4th 880, 885.) Facts appearing in exhibits attached to the complaint are also accepted as true and given precedence over inconsistent allegations in the complaint. (Barnett v. Fireman’s Fund Ins. Co. (2001) 90 Cal.App.4th 500, 505; Holland v. Morse Diesel Internat., Inc. (2001) 86 Cal.App.4th 1443, 1447.)

2 desperately in need of treatment.” According to plaintiff, the County “approved, awarded, and entered into a Substance Abuse Prevention and Control (‘SAPC’) contract, with [plaintiff] whereunder [plaintiff] would provide services to Medi-Cal approved recipients.” In fact, various County personnel sent e- mails to plaintiff congratulating it on its SAPC contract and mentioning the onboarding process. Furthermore, in response to correspondence from plaintiff, the County sent two e-mails to plaintiff asking for proof that plaintiff had made its first $125,000 deposit. It is unclear whether plaintiff made that deposit and/or provided proof of that deposit to the County. In or around November 2021, the parties entered into a master agreement for supportive and/or housing services, which plaintiff alleges is an “interchangeable term[]” for an “SAPC contract/agreement.” The master agreement provides, in pertinent part, that “[t]he Contractor [plaintiff here] shall not be entitled to any payment by the County under this Master Agreement except pursuant to validly executed and satisfactorily performed Work Orders.” According to plaintiff, the County breached this master agreement by failing to pay plaintiff hundreds of thousands of dollars that it invested to fulfill all of the mandated requirements under the master agreement. Plaintiff also claims that it is entitled to “no less than $50,000 per year” under the terms of the master agreement. Plaintiff claims that the County disavowed the parties’ agreement because it “blew the whistle” on the County’s incompetence and dilatory actions, including the County’s “inexcusable delay . . . in administering” the contract between plaintiff and the County. Plaintiff contends that its e-mails sent to the County “were effectively the actions of [plaintiff] as a

3 contractor exercising its First Amendment rights and acting in the capacity of a whistle blower. [Plaintiff] alerted the County that for months the County had been derelict in its duties and obligations and the result of that dereliction was both financial harm to the contractor and the needless loss of life to residents in the County.” “Within only four days, [plaintiff], as a whistleblowing contractor, had been retaliated against and terminated—and the County breached its contract.” PROCEDURAL BACKGROUND Plaintiff’s government claim After the County denied plaintiff’s application for an SAPC contract, it submitted a claim for damages to the County. It summarized the alleged facts and asserted that it had valid claims for breach of contract and fraud in the inducement. Initial complaint Plaintiff filed its initial complaint on April 1, 2022, alleging six causes of action (breach of contract, breach of implied covenant of good faith and fair dealing, fraud/intentional misrepresentation, fraud/negligent misrepresentation, civil conspiracy, and promissory estoppel). Notably, plaintiff alleges that it entered into an SAPC contract in 2021 with the County, and that the County breached that contract. But, no contract was attached to the pleading. The County demurred. In response, plaintiff amended its pleading and filed a first amended complaint. First amended complaint The first amended complaint alleged the same six causes of action against the County, reiterating its allegation that it entered into an SAPC contract with the County and that the

4 County breached the SAPC contract. Again, no contract was attached to the pleading. The County demurred. The trial court sustained the demurrer with leave to amend. Second amended complaint Plaintiff filed its second amended complaint on September 19, 2022, alleging four causes of action (breach of contract, breach of implied-in-fact contract, breach of the implied covenant of good faith and fair dealing, and promissory estoppel). Again, plaintiff alleges that it entered into a valid SAPC contract with the County, which it identifies as a master agreement. According to plaintiff, the terms “SAPC contract/agreement” and “Master Agreement” are “interchangeable.” The written contract is not attached to the pleading. Again, the County demurred. On November 28, 2022, the trial court sustained the County’s demurrer with leave to amend. In so ruling, the trial court stated: “Plaintiff filed this action after [the County] did not approve its application to be a Drug Medi-Cal Contractor. [¶] The most basic challenge asserted by [the County] is that there is no allegation of the existence of a contract.” Although plaintiff responded to this argument by claiming that the pleading alleged breach of the master agreement, the trial court was not convinced: “‘Where’s Waldo?’ comes to mind. Despite a 19-page Second Amended Complaint with more pages of exhibits, the Court cannot find the contract. It is not attached. Nor can the Court find allegations of the material terms that are alleged to have been breached. ‘Where’s Waldo?’ Not in this Second Amended Complaint, apparently.” The trial court then systematically went through each cause of action alleged in the second amended complaint.

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Manifest Valley Wellness v. County of Los Angeles CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manifest-valley-wellness-v-county-of-los-angeles-ca22-calctapp-2024.