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Pulver v. Avco Financial Services

Citations: 182 Cal. App. 3d 622; 227 Cal. Rptr. 491; 1986 Cal. App. LEXIS 1732Docket: B009160

Court: California Court of Appeal; June 19, 1986; California; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by the plaintiff against the dismissal of her complaint after the trial court sustained the defendant's demurrer to all causes of action without leave to amend. The plaintiff's complaint included claims for breach of the implied covenant of good faith and fair dealing, intentional infliction of emotional distress, defamation, and intentional misrepresentation, all arising from the defendant's alleged wrongful debt collection practices. The defendant successfully demurred on the grounds that the claims were preempted by federal and state statutes, and the plaintiff failed to establish elements necessary for her causes of action. On appeal, the court rejected the defendant's motion to dismiss the appeal, finding good cause to proceed despite procedural defects, and held that the demurrer was improperly sustained regarding the claims for emotional distress and defamation. The court reasoned that the plaintiff sufficiently alleged outrageous conduct and special damages, allowing these claims to proceed. However, the demurrer concerning the breach of the implied covenant and intentional misrepresentation was upheld due to insufficient allegations. As a result, the judgment was reversed in part, allowing certain claims to be reconsidered, while affirming the dismissal of others. No costs were awarded to either party on appeal.

Legal Issues Addressed

Appeal from Nonappealable Order

Application: The court treats the notice of appeal as valid despite being filed prematurely to favor resolution of appeals on their merits.

Reasoning: The court recognizes a policy favoring the resolution of appeals on their merits and finds sufficient 'good cause' to treat the notice of appeal as valid despite being filed prematurely.

Breach of Implied Covenant of Good Faith and Fair Dealing

Application: The court upheld the demurrer as the plaintiff's complaint did not demonstrate how the defendant's conduct breached this covenant.

Reasoning: The complaint failed to demonstrate how the defendant's conduct, which allegedly threatened the plaintiff's credit, breached this covenant, as the loan agreements did not explicitly indicate such a purpose.

Defamation and Special Damages

Application: The plaintiff sufficiently alleged special damages resulting from the defendant's report to credit agencies, establishing a cause of action for libel.

Reasoning: Special damages, as defined in Section 48a, were sufficiently alleged by the plaintiff, who claimed that the defendant's report to credit agencies led to credit denial, permanent credit rating damage, economic harm from inability to obtain credit, and loss of earnings capacity.

Intentional Infliction of Emotional Distress

Application: The court finds the allegations meet the criteria for outrageous conduct, and the demurrer to this cause of action was wrongly upheld.

Reasoning: The court found the allegations met the criteria for outrageous conduct, and the demurrer to this cause of action was wrongly upheld.

Intentional Misrepresentation

Application: The demurrer was sustained because the plaintiff did not establish the necessary elements for fraud, including a false representation made with intent to induce reliance.

Reasoning: The necessary elements for fraud include a false representation made with intent to induce reliance, which the plaintiff failed to establish.

Statute of Limitations for Emotional Distress and Defamation

Application: The complaint does not conclusively show that the claims are barred by the one-year statute of limitations, allowing the case to proceed.

Reasoning: A demurrer against the second and third causes of action cannot be upheld based on the one-year statute of limitations, as the complaint must affirmatively show that the action is necessarily barred.