Nelson v. Guardian Towing, Inc

District Court, S.D. California·Decided March 30, 2024·No. 3:22-cv-00306·Unknown

Opinion

Ethan NELSON, Case No.: 22-cv-0306-AGS-BLM

Plaintiff, ORDER GRANTING PARTIAL v. SUMMARY JUDGMENT (ECF 27) GUARDIAN TOWING, INC., et al., Defendants.

While deployed overseas with the military, plaintiff learned that—back home—his beloved pickup truck had been towed away. After the towing company later sold the truck to defray its storage costs, plaintiff sued. The defense moves for summary judgment. BACKGROUND1 Plaintiff Ethan Nelson’s “great-grandfather” bought a “1999 Toyota Tacoma” truck that has since “been in the family for as long as [Nelson] can remember.” (ECF 33-2, at 37–38, 67–68.) In 2016, the truck passed to Nelson as a high school “graduation gift.” (Id. at 37–38.) Although the vehicle is two decades old, it has “sentimental value,” as Nelson has nothing else “to really remember [his] great-grandpa by now.” (Id. at 142.) By 2021, Nelson was an active-duty U.S. Marine stationed at Marine Corps Air Station Miramar, when he “received orders to deploy to Okinawa, Japan.” (ECF 33, at 8.) Just before that deployment, he parked his truck “in the parking lot of the MCAS Miramar post exchange.” (Id. at 8–9.) Nelson “arranged for a friend to later move” his truck, but 1 Plaintiff’s “best evidence rule” objections are overruled. At “the summary judgment stage, we do not focus on the admissibility of the evidence’s form. We instead focus on the admissibility of its contents.” Sandoval v. County of San Diego, 985 F.3d 657, 666 (9th Cir. 2021). Even if a document “violated the best evidence rule,” it does “not preclude the district court from granting summary judgment,” as the document itself “does not have to be in a form that would be admissible at trial.” See Hughes v. United that friend “failed” to do so. (Id. at 9.) Predictably, “MCAS Miramar authorities” eventually requested that the truck be towed. (Id.) Enter defendant Ali Ganji, the “owner and operator” of defendant Guardian Towing, Inc. (ECF 33, at 7, 9.) Ganji “transported [the truck] to Guardian’s impound lot.” (Id. at 10.) Later, the truck was “sold via lien sale,” much to Nelson’s dismay. (Id. at 12.) A key dispute in this case is what defendants knew at the time of sale, particularly about Nelson’s military status. The defense pleads ignorance. They explain that Guardian Towing “utilizes the services of a company called LienTek Solutions, Inc.,” which transmits a vehicle’s “identification number to the California Department of Motor Vehicles.” (Id. at 10–11.) They believed that if “a vehicle is registered to a member of the armed services,” the DMV will “report this information to LienTek, and LienTek will in turn” notify defendants. (Id. at 11.) Defendants followed that process here, but LienTek “gave no indication” the truck was owned by a servicemember. (Id. at 11–12.) On the other hand, Ganji was the one who towed the truck off a military base. (ECF 33, at 10.) And several weeks before the sale, Ganji handwrote a note in the file stating that the truck’s registered owner “called. He’s deployed.” (ECF 33-2, at 230–31.) Based on the loss of his truck, Nelson sued Ganji and Guardian Towing under the federal Servicemembers Civil Relief Act and California’s Military and Veterans Code, Rosenthal Act, and Unfair Competition Law, as well as for negligence and intentional infliction of emotional distress. (ECF 1, at 8–10.) Defendants move for summary judgment on most of these claims, as well as on Nelson’s requests for punitive and emotional-distress damages. (See ECF 27-1.) Summary judgment is proper when the record, taken in the light most favorable to the nonmoving party, demonstrates that “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A fact is “material” if it “might affect the outcome of the suit.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). An issue is “genuine” if “a reasonable jury could return a verdict for the nonmoving party.” Id. When the “nonmoving party will bear the burden of proof at trial,” the party urging summary judgment shoulders the initial burden of demonstrating that “there is an absence of evidence to support the nonmoving party’s case.” Celotex Corp. v. Catrett, 477 U.S. 317, 324–25 (1986). This may be accomplished by “‘showing’—that is, pointing out through argument—the absence of evidence.” Fairbank v. Wunderman Cato Johnson, 212 F.3d 528, 532 (9th Cir. 2000). The burden then shifts to the nonmoving party to “go beyond the pleadings and identify facts which show a genuine issue for trial.” Id. at 531. A. Ganji’s Individual Liability Defendants move for summary judgment on all claims against Ganji. They assume “plaintiff is attempting to hold Mr. Ganji liable for the actions of Guardian on an alter ego theory” without any “identification evidence to support” such a theory. (ECF 27-1, at 10–12.) But plaintiff Nelson denies making “that argument.” (ECF 33-1, at 9.) Rather, he insists that “Ganji is actually the person, the employee, the owner and operator of Guardian, who took and approved of all actions to confiscate and sell Plaintiff’s vehicle without a court order.” (Id.) Plaintiff stands on much firmer ground. Under both California and federal law, the rule is well settled: “Directors and officers of a corporation are not rendered personally liable for its torts merely because of their official positions, but may become liable if they directly ordered, authorized or participated in the tortious conduct.” Wyatt v. Union Mortgage Co., 598 P.2d 45, 52 (Cal. 1970); Transgo, Inc. v. Ajac Transmission Parts Corp., 768 F.2d 1001, 1021 (9th Cir. 1985) (“A corporate officer or director is, in general, personally liable for all torts which he authorizes or directs or in which he participates, notwithstanding that he acted as an agent of the corporation and not on his own behalf.” (quotation marks omitted)). It is undisputed that Ganji “remove[d] the subject pickup truck from MCAS Miramar,” “transport[ed] it to Guardian’s impound lot,” and “made the decision to sell [plaintiff’s] car.” (ECF 33, at 10–11; ECF 33-2, at 222.) Because Ganji participated in the allegedly tortious conduct, he may be subject to personal liability. His summary-judgment argument to the contrary is denied. B. Rosenthal Act California’s Rosenthal Fair Debt Collection Practices Act applies only to “consumer credit transactions.” Traylor v. Wyndham Resort Dev. Corp., No. CV 16-7670 PSG (AJWx), 2017 WL 5172240, at *3 (C.D. Cal. May 2, 2017) (citing Cal. Civ. Code § 1788.2 (b), (c), (e), (f)). Defendants argue there “was never any transaction between plaintiff and defendant whereby defendant agreed to provide plaintiff with something on credit.” (ECF 27-1, at 22.) Nelson responds that he “owed Defendants money for the storage of his vehicle,” so “the storage was a service provided to [Nelson] on credit,” establishing a consumer credit transaction. (ECF 33-1, at 14.) But merely owing money does not establish the sort of “transaction” needed for liability. The Rosenthal Act focuses on debts incurred from “‘consensual transactions’ for consumer goods or services.” Vartanian v. Portfolio Recovery Assocs., LLC, No. 2:12-CV-08358-ODW, 2013 WL 877863, at *6 (C.D. Cal. Mar. 7, 2013) (emphasis added). Defendants towed, kept,

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