Carnes v. Atria Senior Living, Inc.

Filing 43

Order by Hon. Vince Chhabria granting 26 Motion to Dismiss with Leave to Amend within 21 days.(knm, COURT STAFF) (Filed on 11/6/2014)

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1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 THOMAS CARNES, Case No. 14-cv-02727-VC Plaintiff, 8 v. ORDER GRANTING DEFENDANTS' MOTION TO DISMISS 9 10 ATRIA SENIOR LIVING, INC., Re: Dkt. No. 26 Defendant. United States District Court Northern District of California 11 12 Defendant Atria Senior Living, Inc. ("Atria"), owns and operates a number of assisted 13 14 living facilities throughout California. Plaintiff Thomas Carnes, a resident of one of these 15 facilities, filed this putative class action alleging violations of California's Consumer Legal 16 Remedies Act ("CLRA"), Cal Civ. Code § 1750 et seq., and unfair competition law, Cal. Bus. & 17 Prof. Code § 17200 et seq. ("UCL"), and elder financial abuse in violation of California Welfare 18 and Institutions Code § 15610.30. Atria moved to dismiss. The motion is granted, with leave to 19 amend. 20 At bottom, Carnes's complaint rests on a theory that Atria, by representing that it both 21 provides care and charges residents according to its resident evaluation system, is necessarily also 22 representing that it uses the same evaluation system to determine its overall staffing levels at a 23 particular facility. It is this second (and implied) representation that Carnes alleges is fraudulent— 24 Carnes alleges that Atria instead determines overall staffing levels at a facility based on corporate 25 labor budgets and profit margins, without regard to the evaluations of each resident. FAC ¶ 5. 26 But Carnes does not identify any actual representation that relates to Atria's overall staffing levels 27 or explain why Atria's representations about its resident evaluation system would necessarily 28 imply that overall facility staffing levels would be dictated by this system. 1 If Carnes had alleged that Atria provided less individual care than what it promised its 2 residents, that claim might sound in fraud. But Carnes never alleges that Atria does not provide 3 residents with the number of hours of care that corresponds to each resident's point value. Nor 4 does he allege that Atria's policies for determining how facilities should be staffed preclude those 5 facilities from providing the care Atria itself determines each resident needs—and for which Atria 6 charges additional fees. Carnes thus fails to state a plausible claim of misrepresentation, let alone 7 one that provides the specificity necessary to satisfy Rule 9(b). 8 9 Accordingly, Atria's motion to dismiss is granted. Should Carnes wish to file an amended complaint, he must do so within 21 days of this order or the dismissal will be with prejudice. 10 United States District Court Northern District of California 11 12 13 14 IT IS SO ORDERED. Dated: November 6, 2014 ______________________________________ VINCE CHHABRIA United States District Judge 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

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