Porcu v. Geico General Insurance Company

CourtDistrict Court, S.D. California
DecidedAugust 9, 2024
Docket3:23-cv-02302
StatusUnknown

This text of Porcu v. Geico General Insurance Company (Porcu v. Geico General Insurance Company) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porcu v. Geico General Insurance Company, (S.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 EDMONDO PORCU, Case No.: 23cv2302-LL-BJC

12 Plaintiff, ORDER GRANTING DEFENDANT’S 13 v. MOTION TO DISMISS WITH LEAVE TO AMEND 14 GEICO GENERAL INSURANCE

COMPANY, 15 [ECF No. 4] Defendant. 16 17 18 Pending before the Court is Defendant Geico General Insurance Company’s Motion 19 to Dismiss Plaintiff Edmondo Porcu’s Putative Class Action Complaint Pursuant to Rules 20 12(b)(1) and 12(b)(6), or in the Alternative for Joinder under Rule 19 and to Strike under 21 Rule 12(f). ECF No. 4. Plaintiff filed an Opposition to Defendant’s Motion, and Defendant 22 filed a Reply. ECF Nos. 7, 8. A request for oral argument and motions for leave to file and 23 comment on supplemental authority were made. ECF Nos. 9, 11, 12. The Court finds this 24 matter suitable for determination on the papers and without oral argument pursuant to Civil 25 Local Rule 7.1. For the reasons set forth below, the Court GRANTS Defendant’s Motion 26 to Dismiss WITH LEAVE TO AMEND and DENIES AS MOOT the remaining requests 27 and motions. 28 // 1 I. BACKGROUND 2 Plaintiff leased a car from BMW Financial Services (“BMW”) in December 2022. 3 ECF No. 1, ¶ 10. Under the lease agreement, Plaintiff agreed to pay BMW an initial 4 payment of $3,000, plus $590.46 per month for 36 months, in exchange for the right to 5 possess and drive the car for three years. ECF No. 1-3, at 3. If and when he elected and 6 completed the necessary steps, Plaintiff also had the option to purchase the car, including 7 at the end of the lease term for an additional $21,270. Id. at 3, 6. As required by the lease 8 agreement, Plaintiff bought a car insurance policy from Defendant that provided physical 9 damage and collision coverage for the car. ECF No. 1, ¶ 10; ECF No. 1-3, at 4. The 10 insurance policy was active when Plaintiff leased the car, and he renewed the policy for 11 the period of January 26, 2023, through July 26, 2023. ECF No. 1, ¶ 10. 12 On February 8, 2023, Plaintiff was in a traffic accident in San Diego, California. Id., 13 ¶ 11. Defendant accepted coverage for the accident and declared the leased car a total loss. 14 Id. Defendant determined it owed $37,099.22 for the totaled car. Id. Plaintiff does not 15 dispute how much Defendant owed for the totaled car. Id. Instead, Plaintiff disputes who 16 was entitled to payment under the insurance policy—him or BMW. Id. 17 At the time of the traffic accident, Plaintiff owed $31,106.82 to BMW under the 18 lease agreement. Id. Plaintiff argues BMW was only entitled to that $31,106.82 amount 19 while he should have been paid the remaining $5,992.50 equity surplus. Id. However, 20 Defendant paid the full $37,099.22 to BMW. Id. So, Plaintiff alleges to have suffered an 21 injury in fact and lost money due to Defendant’s unlawful, unfair, and fraudulent actions. 22 Id., ¶¶ 11, 85. Specifically, Plaintiff sues Defendant for (1) breach of contract; (2) violations 23 of California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code §§ 17200 et seq.; 24 (3) breach of the implied covenant of good faith and fair dealing; and (4) declaratory relief. 25 Id., ¶¶ 60–106. 26 II. LEGAL STANDARD 27 Under Federal Rule of Civil Procedure 12(b)(1), a party may move to dismiss based 28 on the Court’s lack of subject matter jurisdiction. Fed. R. Civ. P. 12(b)(1). Plaintiff has the 1 burden of establishing that this Court has subject matter jurisdiction. Kokkonen v. Guardian 2 Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Challenges to subject matter jurisdiction 3 may be facial or factual. Edison v. United States, 822 F.3d 510, 517 (9th Cir. 2016). Facial 4 challenges assert that the allegations are insufficient to invoke federal jurisdiction, while 5 factual challenges dispute the truth of legally sufficient allegations. Id. (citing Safe Air for 6 Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004)). In a facial challenge, the Court 7 accepts a plaintiff’s allegations as true and draws all reasonable inferences in their favor. 8 Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014) (citing Pride v. Correa, 719 F.3d 9 1130, 1133 (9th Cir. 2013)) (noting that facial attacks are resolved using the same standard 10 as a Rule 12(b)(6) motion to dismiss). However, if a defendant brings a factual challenge, 11 usually by introducing evidence outside the pleadings, the plaintiff must support their 12 jurisdictional allegations with competent proof under the same evidentiary standard that 13 governs summary judgment evidence. Id. (citations omitted). 14 If the Court has jurisdiction to address the merits, a complaint may be dismissed 15 under Rule 12(b)(6) for failure to state a claim upon which relief may be granted. Fed. R. 16 Civ. P. 12(b)(6). The Court evaluates whether a complaint states a cognizable legal theory 17 and sufficient facts in light of Federal Rule of Civil Procedure 8(a), which requires a “short 18 and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. 19 P. 8(a)(2). To survive a Rule 12(b)(6) motion, a complaint must plead “enough facts to 20 state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 21 544, 570 (2007). “A claim has facial plausibility when the plaintiff pleads factual content 22 that allows the court to draw the reasonable inference that the defendant is liable for the 23 misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Twombly, 550 24 U.S. at 555). In reviewing the plausibility of a complaint, courts “accept factual allegations 25 in the complaint as true and construe the pleadings in the light most favorable to the 26 nonmoving party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th 27 Cir. 2008) (citation omitted). Nonetheless, courts are not required to “accept as true 28 allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable 1 inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (quoting 2 Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001)). 3 III. DISCUSSION 4 Defendant’s Motion to Dismiss, brought under Rules 12(b)(1) and 12(b)(6), argues 5 that Plaintiff has not sufficiently alleged the causes of action for all four claims and that 6 Plaintiff lacks standing to seek injunctive relief. ECF No. 4, at 2. 7 A. Claim 1: Breach of Contract 8 Defendant argues that since Plaintiff did not have an equity interest in the totaled 9 car, it was required to pay the car’s actual cash value to the one with the controlling interest, 10 which the insurance policy permits. ECF No. 4-1, at 11–18; ECF No. 8, at 2–5. 11 A claim for breach of contract under California law requires the (i) existence of a 12 contract; (ii) plaintiff’s performance of the contract or excuse from non-performance; (iii) 13 defendant’s breach of the contract; and (iv) plaintiff incurring damage. D’Arrigo Bros. of 14 California v. United Farmworkers of Am., 224 Cal.App.4th 790, 800 (2014) (citations 15 omitted). A plaintiff must plead “appreciable and actual damage” in relation to their breach 16 of contract claim. Low v. LinkedIn Corp., 900 F. Supp. 2d 1010, 1028 (N.D. Cal. 2012) 17 (citing Aguilera v.

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Porcu v. Geico General Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porcu-v-geico-general-insurance-company-casd-2024.