FEUER, J.—
Refugio Valdez alleged Seidner-Miller, Inc. (Seidner), violated the Consumers Legal Remedies Act (CLRA; Civ. Code, § 1750 et seq.), the unfair competition law (UCL; Bus. & Prof. Code, § 17200 et seq.), and Civil Code section 1632
On appeal, Valdez contends Seidner's correction offer was not timely or appropriate under the CLRA. Although we conclude Seidner's correction offer was timely, it was not appropriate. To the extent Benson reached a contrary conclusion, we disagree with it. Where a business conditions its offer to remedy a violation of the CLRA on the consumer waiving his or her right to injunctive relief and remedies under other statutes and common law, the offer is not an appropriate correction offer as contemplated by section 1782, subdivision (b), and does not bar a lawsuit by the consumer.
On August 11, 2015, Valdez sent Seidner a "notice of rescission and demand for rectification" under the CLRA. The CLRA notice alleged on August 15, 2014, Valdez and his wife, Bertha Valdez, entered into an agreement with Seidner, doing business as Toyota of Glendora, to lease a 2014 Toyota Camry. Valdez wanted to purchase the car, but a Seidner salesperson told Valdez and his wife they did not have sufficient credit to qualify for a purchase. The salesperson represented they could lease the car and refinance the contract after 10 payments. The salesperson also stated GAP insurance
When Valdez returned to the dealership approximately 10 months later, he learned he could not refinance the car at the initial price. Rather, the purchase would cost more than the vehicle's price under the lease. Moreover, Valdez applied for and was denied credit for refinancing by four banks. The CLRA notice alleged Seidner's actions violated the CLRA and the UCL, and constituted fraud.
The CLRA notice sought rescission of the transaction; removal of the transaction from Valdez's credit report; a refund of $1,500 for the downpayment, $4,626 for the monthly payments, and $1,500 for insurance; and payment of $2,750 for attorney's fees and costs. The CLRA notice also requested Seidner "[i]dentify and make whole all similarly situated consumers." The CLRA notice stated Seidner's response must be in writing and sent within 30 days to Valdez's attorney.
On September 14, 2015, Seidner's attorney, Andrew Stearns, sent an e-mail to Valdez's attorney, David Valdez, with an attached draft "settlement agreement and release of claims." Under the draft settlement agreement, Seidner
The draft settlement agreement required the parties to keep confidential the facts relating to Valdez's CLRA notice and the terms of the agreement. It also contained a release of all known and unknown claims and a covenant not to sue. In addition, the draft agreement provided Valdez would dismiss any actions he had filed with prejudice within five days of receipt of Seidner's consideration.
The parties engaged in settlement negotiations through their attorneys from September to early December 2015. During the negotiations, Valdez disclosed the vehicle had been in an accident in October 2014 and the repair costs were approximately $3,300. According to Seidner, the vehicle history report showed the vehicle was also in an accident on July 6, 2015.
On October 9, 2015 Stearns sent a letter to David Valdez confirming the parties had agreed to "all items except the manner in which the vehicle was to be surrendered." Seidner requested inspection of the vehicle before it would provide Valdez with the settlement funds. David Valdez responded that "making the settlement subject to an inspection is . . . not acceptable." He added in a followup e-mail, "There is no way this agreement can be based upon your client's subjective review of the car's condition."
Stearns responded that Seidner was prepared to remove the covenant not to sue language and confidentiality provision, but not the requirement the vehicle be inspected prior to release of the settlement funds. Although Valdez indicated he would agree to an inspection if Seidner paid the costs of his attorney and expert to be present, Seidner did not agree to this modification. Valdez did not respond to Seidner's final settlement letter sent on December 4, 2015, which reiterated the inspection requirement.
On January 22, 2016 Valdez filed a complaint against Seidner and Toyota Motor Credit Corporation, alleging causes of action for violations of the
Valdez also alleged violations of the CLRA based on Seidner's failure to provide a Spanish translation and specified misrepresentations, including that Valdez could return to Seidner in 10 months to refinance at the initial price and Valdez was required to pay for GAP insurance and an alarm. According to the complaint, Seidner "failed to provide or offer a reasonable remedy within thirty days of receiving the [CLRA notice]." Valdez sought $15,342.50 in damages under the lease and unspecified damages for emotional distress (§ 1780, subd. (a)(1)); punitive damages (§ 1780, subd. (a)(4)); rescission; "injunctive relief prohibiting [Seidner] from entering into lease agreements without providing appropriate translations . . . when negotiations are conducted primarily in a language other than English"; other relief deemed proper (§ 1780, subd. (a)(5)); and attorney's fees and costs (§ 1780, subd. (e)).
Valdez further alleged Seidner's business practices violated the UCL based on the CLRA and section 1632 violations. He sought rescission of the lease, restitution, and injunctive relief (Bus. & Prof. Code, § 17203), as well as attorney's fees and costs under the lease. Finally, Valdez alleged a fraud claim based on the same alleged misrepresentations, including that Seidner "made the promise of refinancing the [lease] without any intention of performing" and "willfully deceived [Valdez] with the intent to induce him to enter into the [lease]." Valdez alleged he reasonably relied on the representations and would not have signed the lease but for the representations. He sought $15,342.50 in damages, rescission, restitution, punitive damages under Civil Code section 3294, and attorney's fees and costs under the lease.
On September 14, 2016 Seidner filed a motion for summary judgment, or in the alternative, summary adjudication.
Seidner responded in its reply that the offer of correction was timely because Seidner received the CLRA notice on August 13, 2015, and the 30th day following receipt of the notice fell on September 12, 2015, which was a Saturday. Thus, under Code of Civil Procedure section 12a, subdivision (a), Seidner's time to respond was extended to the next day that was not a "holiday," which was Monday, September 14, 2015. Seidner presented evidence it e-mailed David Valdez a proposed settlement agreement on that date.
At the January 23, 2017 hearing, the trial court heard argument on whether the correction offer was timely and appropriate, then took the matter under submission. On January 25 the trial court granted Seidner's motion for summary judgment.
On February 21, 2017 the trial court signed an order for entry of summary judgment.
On February 23, 2017 Valdez filed a notice of appeal of the February 21, 2017 order. However, the trial court did not enter the judgment until March 28, 2017.
Summary judgment is appropriate only if there are no triable issues of material fact and the moving party is entitled to judgment as a matter of law. (Code Civ. Proc., § 437c, subd. (c); Regents of University of California v. Superior Court (2018) 4 Cal.5th 607, 618 [230 Cal.Rptr.3d 415, 413 P.3d 656]; Delgadillo v. Television Center, Inc. (2018) 20 Cal.App.5th 1078, 1085 [229 Cal.Rptr.3d 594].) A defendant moving for summary judgment has the initial burden of presenting evidence that a cause of action lacks merit because the plaintiff cannot establish an element of the cause of action or there is a complete defense. (Code Civ. Proc., § 437c, subd. (p)(2); Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826, 853 [107 Cal.Rptr.2d 841, 24 P.3d 493]; Gund v. County of Trinity (2018) 24 Cal.App.5th 185, 193 [234 Cal.Rptr.3d 187] [defendant has burden of showing worker's compensation was complete defense to lawsuit]; Drexler v. Petersen (2016) 4 Cal.App.5th 1181, 1188 [209 Cal.Rptr.3d 332] ["`A defendant has the initial burden to show that undisputed facts support summary judgment based on the application of an affirmative defense.'"].) If the defendant satisfies this initial burden, the burden shifts to the plaintiff to present evidence demonstrating there is a triable issue of material fact. (Code Civ. Proc., § 437c, subd. (p)(2); Aguilar, at p. 850; Gund, at p. 193.)
We independently review the trial court's grant of summary judgment, considering all the evidence set forth in the moving and opposing papers
The CLRA proscribes "unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer" (§ 1770, subd. (a)), including, as alleged by Valdez: "(5) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have. . . . [¶] . . . [¶] (14) Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law. [¶] . . . [¶] (17) Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction. [¶]
Section 1780, subdivision (a), provides, "Any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 may bring an action against that person to recover or obtain any of the following: [¶] (1) Actual damages. . . . [¶] (2) An order enjoining the methods, acts, or practices. [¶] (3) Restitution of property. [¶] (4) Punitive damages. [¶] (5) Any other relief that the court deems proper." In addition, a prevailing plaintiff is entitled to attorney's fees and costs. (§ 1780, subd. (e) ["The court shall award court costs and attorney's fees to a prevailing plaintiff in litigation filed pursuant to this section."].)
At least 30 days "prior to the commencement of an action for damages" under the CLRA, the consumer must provide written notice "of the particular alleged violations of Section 1770" and "[d]emand that the person correct, repair, replace, or otherwise rectify the goods or services alleged to be in violation of Section 1770." (§ 1782, subd. (a)(1), (2).) Further, "no action for damages may be maintained under Section 1780 if an appropriate correction, repair, replacement, or other remedy is given, or agreed to be given within a reasonable time, to the consumer within 30 days after receipt of the notice." (§ 1782, subd. (b).)
Valdez contends Seidner's correction offer was not timely because it was sent 32 days after Seidner received the CLRA notice.
It is undisputed Valdez sent his CLRA notice by certified mail on August 11, 2015, and Seidner received it on August 13. Pursuant to section 1782, subdivision (b), Seidner had to make a correction offer "within 30 days after receipt of the notice." The 30th day was September 12, 2015, which was a Saturday. Code of Civil Procedure section 12a, subdivision (a), provides that "[i]f the last day for the performance of any act provided or required by law to be performed within a specified period of time is a holiday, then that period is hereby extended to and including the next day that is not a holiday."
Contrary to Valdez's contention, nothing in Code of Civil Procedure section 12a limits its application to business institutions and government offices that would be inaccessible on weekends. (See DeLeon v. Bay Area Rapid Transit Dist. (1983) 33 Cal.3d 456, 460-461 [189 Cal.Rptr. 181, 658 P.2d 108] ["Consistent with the need for certainty in the method of computing time, a case will not be found to come under an exception to the general rule [under section 12a] unless there is a clear expression of provision for a different method of computation."]; Ystrom v. Handel (1988) 205 Cal.App.3d 144, 147-148 [252 Cal.Rptr. 110] [rejecting contention that Code Civ. Proc., § 12a only applies to acts requiring access to a courthouse or other public office].)
Accordingly, Seidner made a timely correction offer under section 1782, subdivision (b), when its attorney sent the draft settlement agreement to Valdez's attorney on Monday, September 14, 2015.
Seidner's draft settlement agreement contained a broad release of known and unknown claims, including an agreement that the parties release each other "from any and all past, present, and future claims, demands, causes of action, obligations, damages, injuries, liens, and liabilities, of any nature whatsoever, relating to or arising out of the Action."
Here, Valdez sought injunctive relief under the CLRA and UCL, prohibiting Seidner "from entering into lease agreements without providing appropriate translations, prior to execution, when negotiations are conducted primarily in a language other than English. . . ." Injunctive relief is available under both the CLRA and the UCL. (See McGill, supra, 2 Cal.5th at p. 955 ["public injunctive relief under UCL[and] CLRA . . . is relief that has `the primary purpose and effect of prohibiting unlawful acts that threaten future injury to the general public"]; Cruz v. PacifiCare Health Systems, Inc. (2003) 30 Cal.4th 303, 316 [133 Cal.Rptr.2d 58, 66 P.3d 1157] [an injunction under the UCL "is designed to prevent further harm to the public at large rather than to redress or prevent injury to a plaintiff"]; Broughton v. Cigna Healthplans (1999) 21 Cal.4th 1066, 1080 [90 Cal.Rptr.2d 334, 988 P.2d 67] ["[T]he evident purpose of the injunctive relief provision of the CLRA is not to resolve a private dispute but to remedy a public wrong."].) Because Seidner's draft settlement agreement did not provide the requested injunctive relief, it was not appropriate for Seidner to condition its correction offer on release of Valdez's claims for injunctive relief.
In addition, as our colleagues in Division Five concluded in Flores, a "reasonable correction offer prevent[s] [the plaintiff] from maintaining a cause of action for damages under the CLRA, but [does] not prevent [the plaintiff] from pursuing remedies based on other statutory violations or common law causes of action based on conduct under those laws." (Flores, supra, 17 Cal.App.5th at p. 850.) As the Flores court observed, "plaintiffs routinely plead fraud, UCL, and CLRA claims based on similar allegations." (Ibid.) Further, "[t]he remedies of the CLRA are cumulative of other rights." (Id. at p. 849.) Section 1752 provides, "The provisions of this title are not exclusive. The remedies provided herein for violation of any section of this title or for conduct proscribed by any section of this title shall be in addition to any procedures or remedies for any violation or conduct provided for in any other law. [¶] . . . If any act or practice proscribed under this title also constitutes a cause of action in common law or a violation of another statute, the consumer may assert such common law or statutory cause of action under the procedures and with the remedies provided for in such law."
Valdez presented evidence the negotiations occurred in Spanish, but Seidner did not provide him with a Spanish language translation of the terms and conditions of the lease agreement. In response to Valdez's request for admissions, Seidner admitted "a Spanish translation of the subject contact was orally made to plaintiff before the plaintiff signed the document but inadvertently no written translated document or written Spanish language contract was provided to [Valdez]." Seidner's failure to provide a Spanish language translation of the lease agreement as required under section 1632 constituted a separate statutory violation, independent of the misrepresentations alleged as part of Valdez's CLRA claim.
In addition, Valdez's UCL claim—based on violations of the CLRA and section 1632—was independently actionable. "The UCL addresses `unfair competition,' which `mean[s] and include[s] any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by [the false advertising law].'" (McGill, supra, 2 Cal.5th at p. 954; accord, Zhang v. Superior Court (2013) 57 Cal.4th 364, 370 [159 Cal.Rptr.3d 672, 304 P.3d 163].) "By prohibiting unlawful business practices, `"section 17200 `borrows' violations of other laws and treats them as unlawful practices" that the [UCL] makes independently actionable.'" (De La Torre v. CashCall, Inc. (2018) 5 Cal.5th 966, 980 [236 Cal.Rptr.3d 353,
Relying on the Fourth Appellate District's decision in Benson, Seidner contends its correction offer barred Valdez's section 1632, UCL, and fraud claims because they were "inextricably intertwined" with his CLRA damages claim and added no value. (See Benson, supra, 239 Cal.App.4th at p. 1210.) In Benson, the plaintiff asserted claims against a car dealer under the CLRA, Automobile Sales Finance Act (§ 2981 et seq.), Vehicle Code, Song-Beverly Consumer Warranty Act (Civ. Code, § 1790 et seq.), and UCL, as well as for negligent and intentional misrepresentations. (Benson, at p. 1204.) The plaintiff and car dealer settled the action but agreed to litigate whether the plaintiff was entitled to attorney's fees as a prevailing party under the CLRA in light of the dealer's prelitigation correction offer under the CLRA. (Benson, at pp. 1204-1205.) Although the Court of Appeal acknowledged the remedies under the CLRA are nonexclusive, it concluded the correction offer was appropriate because the non-CLRA claims "were `inextricably intertwined with the CLRA claim and based on the same conduct,'" and "[s]ubstantial evidence supported the trial court's exercise of discretion in finding that the other claims had little or no independent value." (Benson, at p. 1210.)
As an initial matter, the court in Benson applied a deferential substantial evidence standard of review in the context of the plaintiff's request for attorney's fees. (Benson, supra, 239 Cal.App.4th at pp. 1207, 1210.) To the extent Benson may be read to hold that a business may condition its correction offer on a release of claims other than a claim for damages under the CLRA, we conclude otherwise. As the Flores court stated, a correction offer made under the CLRA does not bar a consumer from seeking remedies for violations of other statutes or under the common law based on conduct that violates those laws. (Flores, supra, 17 Cal.App.5th at p. 850; see Loeffler, supra, 58 Cal.4th at p. 1125 ["Like the UCL, CLRA remedies are not
Although Flores was decided in the context of an appeal of a judgment awarding the consumer damages for fraud and injunctive relief under the UCL following a CLRA correction offer, the same reasoning applies to the analysis of whether a correction offer is appropriate under section 1782, subdivision (b). A correction offer cannot require the consumer to release claims that would not otherwise be barred under section 1782, subdivision (b). That is precisely what Seidner's proposed settlement agreement required by demanding Valdez release his section 1632, UCL, and fraud claims.
To hold otherwise would lead to incongruous results. If Valdez had not asserted a CLRA claim for damages, he could have maintained his section 1632, UCL, and fraud claims because the claims were not subject to the notice requirement and provision for a voluntary correction under section 1782, subdivisions (a) and (b). Yet under Seidner's reasoning, once Valdez joined these claims with a CLRA claim for damages, all his claims were barred by a correction offer under section 1782, subdivision (b). This broad reading of the preclusive effect of section 1782, subdivision (b), is inconsistent with the Legislature's intent that the CLRA "be liberally construed and applied." (§ 1760; accord, McGill supra, 2 Cal.5th at p. 954.) In addition, Seidner's reading of section 1782, subdivision (b), as a bar to all Valdez's claims is contrary to the language in section 1752 that "[i]f any act or practice proscribed under this title also constitutes a cause of action in common law or a violation of another statute, the consumer may assert such common law or statutory cause of action under the procedures and with the remedies provided for in such law."
Finally, Seidner's correction offer improperly allowed Seidner unilaterally to void the proposed settlement agreement if it determined after an inspection that the vehicle was in an unacceptable condition.
Seidner could have made an appropriate correction offer had it offered simply to refund Valdez's downpayment and monthly payments, pay off the outstanding loan balance, and pay attorney's fees and costs. Although Valdez would still have been able to pursue his other claims, nothing would have prevented Seidner from attempting to negotiate a separate settlement of those claims. But Seidner's effort to exact additional concessions from Valdez as part of a global settlement ran afoul of sections 1752 and 1782, subdivisions (b) and (d), of the CLRA. Because Seidner did not make an appropriate correction offer, it failed to meet its burden of showing a complete defense to Valdez's claims to support the grant of summary judgment.
The judgment is reversed, and the matter remanded with directions to enter a new order denying Seidner's motion for summary judgment. Valdez is entitled to recover his costs on appeal.
Perluss, P. J., and Segal, J., concurred.