Perlmutter v. Lehigh Hanson, Inc.

CourtDistrict Court, N.D. California
DecidedSeptember 3, 2021
Docket4:21-cv-02571
StatusUnknown

This text of Perlmutter v. Lehigh Hanson, Inc. (Perlmutter v. Lehigh Hanson, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perlmutter v. Lehigh Hanson, Inc., (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 MICHAEL PERLMUTTER, et al., Case No. 21-cv-02571-HSG

8 Plaintiffs, ORDER DENYING MOTION TO DISMISS 9 v. Re: Dkt. No. 28 10 LEHIGH HANSON, INC., 11 Defendant.

12 13 Plaintiffs Michael Perlmutter and Rhiannon, on behalf of themselves and a putative class 14 of their residential neighbors, brought this case against Lehigh Hanson, Inc. (“Defendant”). 15 Pending before the Court is Defendant’s motion to dismiss the Plaintiffs’ Complaint, for which 16 briefing is complete. See Dkt. Nos. 28 (“Mot.”), 35 (“Opp.”), and 36 (“Reply”). Having carefully 17 considered the parties’ arguments, the Court DENIES Defendant’s motion.1 18 I. BACKGROUND 19 Defendant owns and operates the Berkley Asphalt industrial facility located at 699 20 Virginia Street in Berkeley, California (the “Facility”), where it produces hot mix asphalt and 21 other construction materials. Dkt. No. 1 (“Compl.”) ¶¶ 2,13. Plaintiffs are all owners, occupants, 22 or renters of residential property who reside within one mile of the Facility. Id. ¶ 43. Plaintiffs 23 allege that their residential property has been and continues to be “physically invaded by noxious 24 odors” emitted from the Facility. Id. ¶ 16. Plaintiffs concede that “hot mix batch plants like 25 Defendant’s facility are not inherently a nuisance,” but claim Defendant has failed to implement 26 “reasonably available” odor mitigation, elimination, and control systems to prevent the Facility’s 27 1 emissions from invading the surrounding community. Id. ¶ ¶ 15, 24-26. As a result, Plaintiffs 2 claim, they have suffered injuries and damages, including exposure to pollutants and “nauseating” 3 odors, interference with the use and enjoyment of their property, and decreased property value. Id. 4 ¶ ¶ 32-36. Plaintiffs also allege that Defendant has received multiple notices of violation from the 5 Bay Area Air Quality Management District due to these emissions.2 Id. ¶ 23. 6 II. LEGAL STANDARD 7 Federal Rule of Civil Procedure 8(a) requires that a complaint contain “a short and plain 8 statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). A 9 defendant may move to dismiss a complaint for failing to state a claim upon which relief can be 10 granted under Rule 12(b)(6). Dismissal under Rule 12(b)(6) is appropriate only where the 11 complaint “lacks a cognizable legal theory or sufficient facts to support a cognizable legal theory.” 12 Mendiondo v. Centinela Hosp. Med. Ctr., 521 F.3d 1097, 1104 (9th Cir. 2008). To survive a Rule 13 12(b)(6) motion, a plaintiff need only plead “enough facts to state a claim to relief that is plausible 14 on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible 15 when a plaintiff pleads “factual content that allows the court to draw the reasonable inference that 16 the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 17 In reviewing the plausibility of a complaint, courts “accept factual allegations in the 18 complaint as true and construe the pleadings in the light most favorable to the nonmoving party.” 19 Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). Nevertheless, 20 courts do not “accept as true allegations that are merely conclusory, unwarranted deductions of 21 fact, or unreasonable inferences.” In re Gilead Scis. Secs. Litig., 536 F.3d 1049, 1055 (9th Cir. 22 2008) (quoting Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001)). 23 2 In support of its motion to dismiss, Defendant asks this Court to take judicial notice of 24 “Notices of Violation” issued by the Bay Area Air Quality Management District and, separately, by the City of Berkeley. See Dkt. No. 28-1 (“RJN”). The Court finds that the Notices of 25 Violation and Administrative Citation Warning attached to Defendant’s Request for Judicial Notice as Exhibits 1, 2, 5, and 6 are properly subject to incorporation by reference because 26 Plaintiffs specifically referred to them in their complaint and because they form the basis for Plaintiffs’ Gross Negligence claim. See Compl. ¶¶ 23(b)(i)-(iv); see also Khoja v. Orexigen 27 Therapeutics, Inc., 899 F.3d 988, 1002 (9th Cir. 2018). The Court also takes judicial notice of the III. DISCUSSION 1 Defendant’s motion seeks to dismiss Plaintiffs’ Complaint in its entirety. Defendant first 2 argues that Plaintiffs’ Public Nuisance claim should be dismissed under Rule 12(b)(1) because, as 3 private parties, Plaintiffs have not properly pled standing to pursue a public nuisance claim. Mot. 4 at 2. Defendant next argues that Plaintiffs fail to state claims for Negligence and Gross 5 Negligence under Rule 12(b)(6) because Defendant does not owe Plaintiffs a duty of care as a 6 matter of law. Id. Defendant then argues that Plaintiffs’ Nuisance and Negligence claims are 7 redundant and violate California’s primary rights doctrine. Id. at 18-20. Defendant also argues 8 that Plaintiffs have not pled facts sufficient to authorize punitive damages or injunctive relief. Id. 9 at 3. Finally, Defendant claims that, if any portion of the complaint survives, the remaining claims 10 should be dismissed (or stayed) pursuant to the doctrine of primary jurisdiction. Id. As the Court 11 explains below, none of these arguments are persuasive. 12 A. Negligence/Gross Negligence Claims 13 To establish a cause of action for negligence under California law, the plaintiff must show 14 that the “defendant had a duty to use due care, that he breached that duty, and that the breach was 15 the proximate or legal cause of the resulting injury.” Brown v. USA Taekwondo, 11 Cal. 5th 204, 16 213 (2021) (citing Nally v. Grace Community Church, 47 Cal. 3d 278, 292 (1988)); see also 17 Rosencrans v. Dover Images, Ltd., 192 Cal. App. 4th 1072, 1082 (2011) (“Gross negligence is 18 pleaded by alleging the traditional elements of negligence: duty, breach, causation, and 19 damages.”). Whether a duty exists is a question of law to be resolved by the court. Bily v. Arthur 20 Young & Co., 3 Cal. 4th 370 (1992). The “general rule” is that “people owe a duty of care to 21 avoid causing harm to others and that they are thus liable for injuries their negligence inflicts.” 22 So. Cal. Gas Leak Cases, 7 Cal. 5th 391, 398 (2019)); see also Cal. Civ. Code § 1714(a). But as 23 the California Supreme Court recently reaffirmed in Southern California Gas Leak Cases, there is 24 generally no duty in tort to guard against “purely economic loss,” which is a loss that “does not 25 arise from actionable physical, emotional, or reputational injury to persons or physical injury to 26 property.” So. Cal. Gas Leak Cases, 7 Cal. 5th at 398. 27 Citing the California Supreme Court’s ruling in Southern California Gas Leak Cases, 1 Defendant argues that it owes no duty here because Plaintiffs’ two categories of damages— 2 diminution of property value and the interference with the right of use and enjoyment of property 3 —are not actionable physical injury to property. Mot. at 16-18.

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Perlmutter v. Lehigh Hanson, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/perlmutter-v-lehigh-hanson-inc-cand-2021.