Abdollah Nouri v. Ryobi America Corporation et al

Filing 14

ORDER DENYING DEFENDANT HOME DEPOT USA, INC.S MOTION TO STRIKE PUNITIVE DAMAGES 7 by Judge Otis D. Wright, II (lc). Modified on 10/10/2014 .(lc).

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O 1 2 3 4 5 6 United States District Court Central District of California 7 8 9 10 Case No. CV 2:14-6283-ODW(PJWx) ABDOLLAH NOURI, Plaintiff, 11 ORDER DENYING DEFENDANT v. 12 13 RYOBI AMERICA CORPORATION, a HOME DEPOT USA, INC.’S 14 subsidiary of ONE WORLD MOTION TO STRIKE PUNITIVE 15 TECHNOLOGIES, INC.; HOME DEPOT DAMAGES [7] 16 USA, INC.; and DOES 1-50, inclusive Defendants. 17 I. 18 INTRODUCTION 19 Before the Court is Defendant Home Depot USA, Inc.’s Motion to Strike 20 Punitive Damages from Plaintiff’s Complaint paragraphs 22 through 24, inclusive, 21 and Prayer paragraph 7 pursuant to Federal Rule of Civil Procedure 12(f). (ECF No. 22 7.) For the reasons discussed below, the Court DENIES Defendant’s Motion.1 II. 23 FACTUAL BACKGROUND 24 On June 22, 2012, Abdollah Nouri used a Ryobi circular saw to cut a 2 x 2 25 piece of wood. (Compl. ¶ 6.) When the wood became lodged between the blade and 26 the guard of the saw Nouri attempted to remove it with his hand. (Compl. ¶ 7.) At 27 28 1 After carefully considering the papers filed in support of and in opposition to the Motion, the Court deems the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; L.R. 7-15. 1 this point, the saw became active and severed Nouri’s left index finger. (Compl.¶ 7- 2 8.) That same day Nouri underwent surgery with Dr. Bruce M. Ascough. (Compl. ¶ 3 9.) Nouri suffered pain, bruising, swelling, and the loss of his index finger, which has 4 made it difficult for him to engage in daily tasks. (Compl. ¶ 10.) 5 On June 18, 2014, Nouri filed suit against Ryobi America Corporation 6 (“Ryboi”), a subsidiary of One World Technologies, Inc., and Home Depot USA, Inc. 7 (“Home Depot”) in Los Angeles Superior Court alleging three causes of action: (1) 8 Strict Products Liability—Design Defect; (2) Negligence; and (3) Failure to Warn. 9 (Compl. ¶ 1.) The first two apply only to Ryobi and the third applies to Ryobi and 10 Home Depot. (Compl. ¶ 3-7.) 11 In the First Cause of Action, Plaintiff alleges that “the conduct and acts of 12 Defendant Ryobi…in allowing such an extremely dangerous saw to be used by a 13 member of the general public…constitute fraud, malice, and oppression toward 14 Plaintiff and a willful and conscious disregard of the safety of Plaintiff.” (Compl. 15 ¶ 22.) Plaintiff further alleges that Defendant Ryobi “had advance knowledge of the 16 unfitness of any employee” responsible for the actions and omissions alleged in the 17 Complaint, and that Defendant Ryobi “authorized the ratified wrongful conduct upon 18 which punitive damages are claimed.” 19 advance knowledge, conscious disregard, authorization, ratification or acts of 20 oppression, fraud, or malice” to “the officers, directors, and/or managing agents of 21 Defendant Ryobi.” (Compl. ¶ 24.) (Compl. ¶ 23.) Plaintiff attributes “the 22 On August 11, 2014, Defendant Home Depot removed the case to federal court 23 pursuant to 28 U.S.C. § 1441(b), and one week later filed the instant Motion moving 24 to strike from Plaintiff’s Complaint paragraphs 22 through 24, inclusive, and Prayer 25 paragraph 7 pursuant to Federal Rule of Civil Procedure 12(f). (ECF Nos. 1,7.) 26 Defendant Home Depot contends that Plaintiff’s punitive damages allegations are 27 “conclusory” and therefore do not meet the minimum pleading requirements under 28 California law. (Mot 3.) 2 III. 1 LEGAL STANDARD 2 Federal Rule of Civil Procedure 12(f) provides that “[t]he court may strike from 3 a pleading an insufficient defense or any redundant, immaterial, impertinent, or 4 scandalous matter.” Fed. R. Civ. P. 12(f). The decision whether to grant a motion to 5 strike is made at the court’s discretion. Fantasy, Inc. v. Fogerty, 984 F.2d 1524, 1528 6 (9th Cir. 1993), rev’d on other grounds in Fogerty v. Fantastic, Inc., 510 U.S. 517 7 (1994)). In using its discretion, the court must view the pleadings in the light most 8 favorable to the non-moving party. In re 2TheMart.com Sec. Litig., 114 F. Supp. 2d 9 955, 965 (C.D. Cal. 2000). 10 Courts may grant a motion to strike “to avoid the expenditure of time and 11 money that must arise from litigating spurious issues by dispensing with those issues 12 prior to trial . . . .” Whittlestone, Inc. v. Handi-Craft Co., 618 F.3d 970, 973 (9th Cir. 13 2010) (quoting Fantasy, 984 F.2d at 1527 (9th Cir. 1993). Courts may also grant such 14 a motion in order to streamline the resolution of the action and focus the jury’s 15 attention on the real issues in the case. Fantasy, 984 F.2d at 1528. Motions to strike 16 are generally disfavored due to the limited role that pleadings play in federal practice, 17 and because they are often used as a delaying tactic. Cal. Dept. of Toxic Substances 18 Control v. Alco Pacific, Inc., 217 F. Supp. 2d 1028, 1033 (C.D. Cal. 2002). 19 California law governs a Plaintiff’s substantive claim for punitive damages 20 under California Civil Code § 3294; however, the Federal Rules of Civil Procedure 21 govern punitive damages claims procedurally with respect to the adequacy of 22 pleadings. Clark v. State Farm Mut. Auto. Ins. Co., 231 F.R.D. 405, 406 (C.D. Cal. 23 2005) (citing Bureerong v. Uvawas, 922 F.Supp. 1450, 1480 (C.D. Cal. 1996). 24 Pursuant to Federal Rule of Civil Procedure 8(a), a pleading need only “contain … a 25 short and plain statement of the claim showing that the pleader is entitled to relief, and 26 … a demand for judgment for the relief the pleader seeks.” Fed. R. Civ. P. 8(a). The 27 Central District of California has previously held that “conclusory allegations of 28 3 1 oppression, fraud, or malice compl[y] with federal pleading standards for a claim of 2 punitive damages under California law.” Clark, 231 F.R.D. at 405 (C.D. Cal. 2005). IV. 3 DISCUSSION 4 Defendant Home Depot filed the instant Motion to Strike from Plaintiff’s 5 Complaint paragraphs 22 through 24, inclusive, and Prayer paragraph 7 pursuant to 6 Federal Rule of Civil Procedure 12(f). (Mot 1.) Defendant contends that Plaintiff’s 7 punitive damages allegations do not meet California Civil Code requirements because 8 they are “conclusory” and therefore do not meet the minimum pleading requirements 9 under California law. (Mot 3.) 10 The instant Motion is premised on the flawed proposition that Defendant’s 11 attack on Plaintiff’s punitive damages allegations in the Complaint is a substantive 12 issue. (Mot 3.) 13 state tort claims is a substantive issue so California Civil Code § 3294 governs even if 14 the litigation occurs in federal court. Clark, 231 F.R.D. at 406 (C.D. Cal. 2005) 15 (citing Bureerong, 922 F.Supp. at 1480 (C.D.Cal.1996). However, the adequacy of 16 Plaintiff’s pleading is a procedural issue and therefore the Federal Rules of Civil 17 Procedure govern. Id. The determination of an award of punitive damages brought under 18 Defendant concedes that Rule 8 “creates liberal pleading requirements for 19 litigants,” yet continues to argue that Plaintiff’s punitive damages allegations do not 20 meet the minimum pleading requirements under California law. 21 Defendant has not provided the Court with any federal authority that contradicts what 22 this District has already held—that is, “conclusory allegations of oppression, fraud, or 23 malice” are sufficient to survive a motion to strike because they “compl[y] with 24 federal pleading standards for a claim of punitive damages under California law.” 25 Clark, 231 F.R.D. at 405 (C.D. Cal. 2005). (Reply 2.) 26 If Defendant wanted to eliminate Plaintiff’s punitive damages allegations 27 pursuant to California’s heightened pleading standards, Defendant should not have 28 removed the case to federal court. 4 V. 1 CONCLUSION 2 Plaintiff’s punitive damages allegations, even if “conclusory” as Defendant 3 contends, are sufficient to survive a motion to strike. For the reasons discussed above, 4 the Court DENIES Defendant’s Motion to Dismiss. (ECF No. 7.) 5 IT IS SO ORDERED. 6 7 October 9, 2014 8 9 10 ____________________________________ OTIS D. WRIGHT, II UNITED STATES DISTRICT JUDGE 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5

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