(PS) Jones v. Liberty Mutual

District Court, E.D. California·Decided January 30, 2020·No. 2:19-cv-02049·Unknown

Opinion

DYLAN LLOYD JONES, No. 2:19-cv-02049-MCE-KJN (PS) Plaintiff, FINDINGS AND RECOMMENDATIONS ON DEFENDANTS’ MOTION TO DISMISS v. AND PLAINTIFF’S MOTION FOR LEAVE TO AMEND LIBERTY MUTUAL, et al., (ECF Nos. 15, 16) Defendants. This case concerns a dispute between Plaintiff and his insurer, Liberty Mutual, as well as two claims adjusters, Amber Cruz and Stephen Tognetti (collectively, “Defendants”). Plaintiff asserts Defendants failed to pay the full amount owed to him related to a 2014 claim for stolen property (ECF Nos. 7, 12, 13), and then improperly filed a temporary restraining order against him when he attempted to pursue reimbursement (ECF No. 16). Defendants have moved to dismiss the contract claims as time–barred, and assert Plaintiff’s claims concerning a temporary restraining order (“TRO”) are barred by California’s Anti–SLAPP laws.1 For the reasons that follow, the Court recommends Defendants’ motion to dismiss (ECF No. 15) be GRANTED. Further, given the futility of the claims asserted in Plaintiff’s proposed second amended complaint (ECF No. 16), Plaintiff’s motion to amend should be DENIED. 1 This action proceeds before the undersigned pursuant to Local Rule 302(c)(21). Pursuant to Local Rule 230(g), the Court resolves this motion on the papers without oral argument. Procedural History and Brief Factual Background Plaintiff filed three separate lawsuits against each Defendant in Sacramento County Superior Court, and Defendants removed each action to this Court. (See, generally, ECF No. 1 in Case Nos. 2:19-cv-02049-MCE-KJN (PS), 2:19-cv-02050-MCE-KJN (PS), and 2:19-cv-02051- MCE-KJN (PS).) The District Judge consolidated the cases. (See ECF NO. 9 in Case No. 2:19- cv-02049-MCE-KJN.) On October 29, 2019, Plaintiff filed a first amended complaint (“1AC”) against each Defendant. (ECF Nos. 7, 12, 13.2) On November 12, 2019, Plaintiff moved for leave to file a second amended complaint (“2AC”). (ECF No. 16.) In the 1AC, Plaintiff principally alleges that Liberty Mutual failed to pay him his full policy limit on a 2014 claim for stolen property. (ECF No. 7 at 1:16–19.) He asserts claims for breach of contract, breach of the implied obligation of good faith and fair dealing, failure to properly investigate his claim, and breach of duty to inform insured of rights. (See, generally, ECF No. 7.) Defendants moved to dismiss these claims for failure to state a claim upon which relief may be granted. In his proposed second amended complaint (“2AC”), Plaintiff asserts claims for violation of the Fair Debt Collection Practices Act (“FDCPA”), improper use of judicial proceedings, and violation of his freedom of speech. (See, generally, ECF No. 16.) Plaintiff reiterates his previous allegations regarding Defendants’ failure to pay him his full policy limits on his claim, (Id. at 2:10–18.), and also alleges that Defendants obtained a “workplace temporary restraining order” (“TRO”) against him by means of “fraud.” (Id. at 1:19–21.) Specifically, Plaintiff alleges that Defendants lied in their application for the TRO by representing that Plaintiff was “paid in full” for his claim, and that he only continued contacting Defendants to harass them. (Id. at 4:11–18.) Plaintiff also alleges that Defendants submitted to the court certain emails sent by him out of context. (Id. at 4:20–5:1.) Plaintiff is currently serving a ten-year prison sentence for violating the TRO. (ECF No. 1 at 2:4–27.) Defendants oppose amendment, and moved to strike any portion of the 1AC concerning the TRO, per California’s Anti–SLAPP laws. (ECF No. 15.) 2 The amended complaints were filed in all three actions prior to the consolidation order, and are identical. For simplicity, the Court will cite to ECF No. 7 in the 19–2049 action only. I. Defendants’ Motion to Dismiss Plaintiff’s Four Contract Claims Legal Standard A motion to dismiss brought pursuant to Federal Rule of Civil Procedure 12(b)(6) challenges the sufficiency of the pleadings set forth in the complaint. Vega v. JPMorgan Chase Bank, N.A., 654 F. Supp. 2d 1104, 1109 (E.D. Cal. 2009). When a court considers whether a complaint states a claim upon which relief may be granted, all well-pled factual allegations must be accepted as true, Erickson v. Pardus, 551 U.S. 89, 94 (2007), and the complaint must be construed in the light most favorable to the non–moving party, Corrie v. Caterpillar, Inc., 503 F.3d 974, 977 (9th Cir. 2007). The court is not, however, required to accept as true “conclusory [factual] allegations that are contradicted by documents referred to in the complaint,” or “legal conclusions merely because they are cast in the form of factual allegations.” Paulsen v. CNF Inc., 559 F.3d 1061, 1071 (9th Cir. 2009). To avoid dismissal for failure to state a claim, a complaint must contain more than “naked assertions,” “labels and conclusions,” or “a formulaic recitation of the elements of a cause of action.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555-57 (2007). Simply, the complaint “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Twombly, 550 U.S. at 570). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. Pro se pleadings are to be liberally construed. Hebbe v. Pliler, 627 F.3d 338, 342 & fn.7 (9th Cir. 2010) (liberal construction appropriate even post–Iqbal). Prior to dismissal, the court is to tell the plaintiff of deficiencies in the complaint and give the plaintiff an opportunity to cure them––if it appears at all possible the defects can be corrected. See Lopez v. Smith, 203 F.3d 1122, 1130-31 (9th Cir. 2000) (en banc). However, if amendment would be futile, no leave to amend need be given. Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 339 (9th Cir. 1996). /// /// /// Analysis Plaintiff’s four claims in the 1AC are rooted in the law of contracts, and Defendant has moved to dismiss Plaintiff’s claims as barred by the statute of limitations. Because these actions are governed by California law, the Court looks to California’s statute of limitations for the applicable time period. See Solomon v. N. Am. Life & Cas. Ins. Co., 151 F.3d 1132, 1137 (9th Cir. 1998) (analyzing the motion to dismiss of a plaintiff’s insurance–related claims under California’s statute of limitations). A. Breach of Contract In California, there is a four-year statute of limitations governing breach of contract actions. See Cal. Code. Civ. Proc. § 337. Further, “[a] cause of action for breach of contract accrues at the time of breach, which then starts the limitations period running.” Bjorklund v. North American Companies for Life and Health Ins., 72 Fed. Appx. 550, 551 (9th Cir. 2003) (citing Cochran v. Cochran, 56 Cal. App. 4th 1115, 1120 (1997)). Here, Plaintiff alleges that Defendants “thoroughly investigated and concluded” his claim for stolen property in 2014, and that the investigator determined Plaintiff was entitled to recover his “full policy limits.” (ECF No. 7 at 3:4–6.) He further alleges that in August 2014, he received a final check for his claim that was $29,000 short o

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