McGill v. FPI Management CA6

CourtCalifornia Court of Appeal
DecidedMay 18, 2023
DocketH049199
StatusUnpublished

This text of McGill v. FPI Management CA6 (McGill v. FPI Management CA6) 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
McGill v. FPI Management CA6, (Cal. Ct. App. 2023).

Opinion

Filed 5/18/23 McGill v. FPI Management CA6 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SIXTH APPELLATE DISTRICT

LOWRI MCGILL, H049199 (Santa Clara County Plaintiff and Appellant, Super. Ct. No. 18CV338709)

v.

FPI MANAGEMENT, INC.,

Defendant and Respondent.

Appellant Lowri McGill filed a class action complaint for declaratory and injunctive relief against, among others, respondent FPI Management, Inc. (FPI). In her complaint, McGill alleged that certain provisions of the residential lease agreement she signed are illegal. FPI, who signed the lease agreement as the property owner’s agent, successfully demurred to McGill’s complaint on the ground that it was not a proper party to the action. On appeal, McGill argues the trial court erred in sustaining the demurrer as FPI does owe a duty of care to her and other residential tenants and the trial court should have, at a minimum, given her leave to amend her complaint. We disagree and will affirm the judgment.1

1 After briefing was complete, McGill requested that we take judicial notice of our July 26, 2022 order denying FPI’s motion to strike her opening brief and appendix. By separate order dated December 8, 2022, we deferred ruling on this request for consideration with the merits of the appeal. Because the July 26, 2022 order is already part of the record on appeal in this case, judicial notice of it is unnecessary. The request for judicial notice is denied. I. FACTUAL AND PROCEDURAL BACKGROUND A. The complaint On August 14, 2017, McGill signed a residential lease agreement (lease) for an apartment located in Lompoc, California. FPI signed the lease “on behalf of, and as designated agent for” the owner, Woodstone by Vintage, L.P. (Woodstone).2 The lease states that it is an agreement “made and entered into as of August 14, 2017 by and between the [Owner] . . . and the . . . [Residents].” McGill alleged that certain provisions in the lease appeared to be illegal under Civil Code section 1953, including paragraph 5, entitled “Late Payments and Fees.” Paragraph 5 of the lease, which was attached as an exhibit to the complaint, reads in pertinent part: “Owner and Residents agree that it is and will be impracticable and extremely difficult to fix the actual damages suffered by Owner in the event Residents make a late payment of rent, or when Residents make a payment that is subsequently dishonored by the bank, and that the below charges represent a reasonable approximation of the damages Owner is likely to suffer from a late or dishonored payment. . . . [¶] . . . If Owner has not received the full rent payment within 2 day(s) after it is due to be received under this Agreement, Residents shall pay a sum of $50.00, as a liquidated damage.” McGill did not allege, however, that she was ever assessed or paid a late fee under the lease. McGill alleged that FPI and the other defendants (1) were “managing and otherwise creating and enforcing leases,” (2) were advised by McGill of conditions in the unit above hers and “asked to be relieved of the lease and to be paid for relocation to a

McGill’s complaint alleges the owners of the apartment complex are “Vintage 2

Housing” and “Kennedy Wilson,” and names both as defendants, but the lease agreement states that the owner of the complex is “Woodstone by Vintage, L.P.” Facts set forth in exhibits attached to a complaint are given precedence to contrary or inconsistent allegations in the complaint itself. (Hill v. Roll Internat. Corp. (2011) 195 Cal.App.4th 1295, 1300.)

2 different complex,” and (3) “may be us[ing] uniform[]” lease terms which “may be illegal or ambiguous.” McGill listed a single cause of action for “declaratory judgment and injunctive relief,” pursuant to Code of Civil Procedure section 1060.3 In that cause of action, McGill alleged that “some or all of [the provisions of the lease identified in the complaint] are illegal . . . ,” that “various provisions are ambiguous and are therefore either unenforceable [or must otherwise be interpreted by the Court],” and that “[p]laintiff and the class seek declaratory judgment determining the terms [sic] legality or ambiguity or the court’s interpretation and injunctive relief [sic] . . . .” B. Procedural background FPI’s demurrer argued that the complaint failed to state a cause of action against it because: (1) it is not a party to the lease, (2) the complaint was premature given there was no present controversy between the parties, and (3) the identified lease provisions do not violate Civil Code section 1953. The trial court sustained FPI’s demurrer, without leave to amend, finding that because FPI was not a party to the lease, the complaint failed to demonstrate an actual controversy between McGill and FPI and thus did not state facts sufficient to constitute a cause of action against FPI. After FPI obtained a judgment of dismissal, McGill timely appealed. II. DISCUSSION A. Applicable legal standards including standard of review Our standard of review is well established. “In reviewing a ruling sustaining a demurrer without leave to amend, we assume the truth of the properly pleaded factual allegations and the matters properly subject to judicial notice.” (Committee for Sound Water & Land Development v. City of Seaside (2022) 79 Cal.App.5th 389, 393-394

3 Unspecified statutory references are to the Code of Civil Procedure.

3 (Committee for Sound Water).) “Further, we give the complaint a reasonable interpretation, reading it as a whole and its parts in their context. [Citation.] When a demurrer is sustained, we determine whether the complaint states facts sufficient to constitute a cause of action. [Citation.] And when it is sustained without leave to amend, we decide whether there is a reasonable possibility that the defect can be cured by amendment: if it can be, the trial court has abused its discretion and we reverse; if not, there has been no abuse of discretion and we affirm. [Citations.] The burden of proving such reasonable possibility is squarely on the plaintiff.” (Blank v. Kirwan (1985) 39 Cal.3d 311, 318 (Blank).) B. The trial court did not err in sustaining FPI’s demurrer to the complaint We first examine whether the trial court erred in sustaining FPI’s demurrer to McGill’s complaint. Based on the allegations set forth in the pleading, we find no such error since McGill failed to set forth facts sufficient to state a cause of action for declaratory relief against FPI. “[S]ection 1060 authorizes actions for declaratory relief under a ‘written instrument’ or ‘contract.’ Declaratory relief generally operates prospectively to declare future rights, rather than to redress past wrongs. [Citations.] It serves to set controversies at rest before they lead to repudiation of obligations, invasion of rights or commission of wrongs. In short, the remedy is to be used in the interests of preventive justice, to declare rights rather than execute them.” (Jolley v. Chase Home Finance, LLC (2013) 213 Cal.App.4th 872, 909.) “ ‘To qualify for declaratory relief, [a party] would have to demonstrate [that] its action presented two essential elements: “(1) a proper subject of declaratory relief, and (2) an actual controversy involving justiciable questions relating to [the party’s] rights or obligations.” ’ ” (Ibid.) “It is elementary that questions relating to the formation of a contract, its validity, its construction and effect, excuses for nonperformance, and termination are proper subjects for declaratory relief.” (Fowler v. Ross (1983) 142 Cal.App.3d 472, 478.)

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McGill v. FPI Management CA6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgill-v-fpi-management-ca6-calctapp-2023.