Woo v. United Express Group, Inc.

CourtDistrict Court, E.D. California
DecidedSeptember 29, 2023
Docket2:22-cv-01253
StatusUnknown

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

Bluebook
Woo v. United Express Group, Inc., (E.D. Cal. 2023).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 AMBER WOO, et al., No. 2:22-cv-01253-DAD-JDP 12 Plaintiffs, 13 v. ORDER GRANTING DEFENDANTS UNITED EXPRESS GROUP, INC., AND 14 UNITED EXPRESS GROUP, INC., et al., PETREA GHERASIM’S MOTION TO DISMISS PLAINTIFFS’ COMPLAINT, WITH 15 Defendants. LEAVE TO AMEND 16 (Doc. No. 15)

17 18 This matter is before the court on the motion to dismiss filed by defendants United 19 Express Group, Inc. (“UEG”) and Petrea Gherasim (collectively, “the moving defendants”) on 20 October 21, 2022. (Doc. No. 15.) On November 7, 2022, the pending motion was taken under 21 submission on the papers. (Doc No. 20.) For the reasons explained below, the moving 22 defendants’ motion to dismiss will granted, with leave to amend. 23 BACKGROUND 24 On July 14, 2022, plaintiffs Amber Woo and Stephen Woo filed the complaint initiating 25 this action against six named defendants (People Movers California, Inc.; Long Distance Moving 26 Experts, Inc.; Satellite Logistics, Inc.; Nicolae Gutu; United Express Group, Inc.; and Petrea 27 Gherasim) and unnamed Doe defendants 1–50, alleging that all defendants used fraudulent 28 business practices and were responsible for damaging or destroying plaintiffs’ personal property 1 (household goods) while transporting that property across the country. (Doc. No. 1.) In their 2 complaint, plaintiffs assert the following four claims against all defendants, each of whom 3 plaintiffs allege are alter egos and doing business as each other: (1) violation of the Carmack 4 Amendment, 49 U.S.C. § 14706; (2) unlawful carrier activity in violation of 49 U.S.C. §§ 13902, 5 14707, 14901, 14912; (3) violation of a federal consumer protection statute governing household 6 goods carriers, 49 U.S.C. § 14104; and (4) unfair business practices in violation of California 7 Business and Professions Code §§ 17200, et seq. (Doc. No. 1 at ¶¶ 11–12, 33–61.) 8 In their complaint, plaintiffs allege the following. All of the defendants were doing 9 business under the fictitious business name “People Movers.” (Id. at ¶ 12.) In addition, all 10 defendants “are alter egos of each other based upon their undercapitalization, commingling of 11 funds, and disregard for corporate formalities.” (Id. at ¶ 11.) Defendant UEG “is, and . . . was, a 12 corporation doing business as ‘People Movers’ in the State of California as a moving and storage 13 company . . . .” (Id. at ¶ 5.) Records from the U.S. Department of Transportation (“DOT”) and 14 the Sacramento County Citizen Access Fictitious Business Name files, copies of which plaintiffs 15 have attached to their complaint, reflect that defendant UEG is doing business as, and has the 16 same business and mailing address as, People Movers. (Id. at 23, 25.) Similarly, defendant 17 Petrea Gherasim “is, and . . . was, an individual doing business as ‘People Movers’ in the State of 18 California as a moving and storage company,” and “an owner, designated officer, operator, and 19 alter ego of defendant UEG.” (Id. at ¶ 10.) Through their “doing business as” name of People 20 Movers, all defendants contracted with plaintiffs to “move their household goods [] from 21 California to Arkansas.” (Id. at ¶¶ 12, 18–20.) In an attachment to their complaint, plaintiffs 22 provide a copy of the “contract for service – [Bill of Lading]” invoice from “People Movers” for 23 this transaction, complete with the People Movers logo, street address, and website address 24 (https://peoplemoversus.com/) appearing on the top of the invoice. (Id. at 30.) Plaintiffs allege 25 that due to defendants’ short-staffed crew and negligent haste to move their household goods, 26 “nearly the entire shipment was significantly damaged or missing.” (Id. at 53–159, ¶ 26.) 27 On October 21, 2022, defendants UEG and Gherasim filed the pending motion to dismiss 28 plaintiffs’ complaint on the grounds that they neither signed the contract with plaintiffs nor 1 actually transported their household goods. (Doc. No. 15 at 5.) Rather, the moving defendants 2 argue in their pending motion that “the responsible [household goods] motor carrier against 3 whom this lawsuit should be litigated” is defendant Long Distance Moving Experts, Inc. 4 (“LDME”) dba People Movers. (Id. at 9.) The moving defendants have attached as exhibits to 5 their motion to dismiss other U.S. DOT “motor carrier details” records purporting to show that 6 defendant LDME is also doing business as People Movers and using the same mailing address as 7 the mailing address used by defendant UEG dba People Movers, albeit with a different U.S. DOT 8 identification number and docket number—defendant LDME has DOT # 3078650 and docket 9 number MC00065379 whereas defendant UEG has DOT # 3737346 and docket number 10 MC01321644.1 (Doc. No. 15-1 at 19.) In essence, the moving defendants contend there are two 11 legally distinct entities, both of which do business as People Movers, and both of which use the 12 same mailing address. According to the moving defendants, the “People Movers” entity that 13 contracted with plaintiffs is defendant LDME, while the other “People Movers” entity (moving 14 defendants UEG and Gherasim)—has no relation to this case or the plaintiffs. 15 On November 3, 2022, plaintiffs filed an opposition to the pending motion, reiterating 16 their allegations that each defendant is the alter ego of, and doing business as, each other 17 defendant, making all six defendants liable on the contract for the damage done to their household 18 goods. (Doc. No. 19.) On November 17, 2022, defendants filed a reply to plaintiffs’ opposition, 19 arguing that plaintiffs have failed to allege sufficient facts in their complaint in support of their 20 alter ego, agency, or joint venture theories of liability. (Doc. No. 21.) 21 LEGAL STANDARD 22 The purpose of a motion to dismiss pursuant to Rule 12(b)(6) is to test the legal 23 sufficiency of the complaint. N. Star Int’l v. Ariz. Corp. Comm’n, 720 F.2d 578, 581 (9th Cir. 24 1983). “Dismissal can be based on the lack of a cognizable legal theory or the absence of 25 sufficient facts alleged under a cognizable legal theory.” Balistreri v. Pacifica Police Dep’t, 901 26

27 1 The different U.S. DOT identification and docket numbers of these entities are also alleged in plaintiffs’ complaint and are reflected in the motor carrier records attached as exhibits thereto. 28 (See Doc. No. 1 at 2–3, 23, 27.) 1 F.2d 696, 699 (9th Cir. 1990). A plaintiff is required to allege “enough facts to state a claim to 2 relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A 3 claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw 4 the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. 5 Iqbal, 556 U.S. 662, 678 (2009). 6 In determining whether a complaint states a claim on which relief may be granted, the 7 court accepts as true the allegations in the complaint and construes the allegations in the light 8 most favorable to the plaintiff. Hishon v. King & Spalding, 467 U.S. 69, 73 (1984).

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Woo v. United Express Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/woo-v-united-express-group-inc-caed-2023.