Choy v. General Motors LLC

Background

General Motors LLC moved to dismiss Frank L. Choy’s fourth and fifth causes of action for failure to state a claim. Choy did not file an opposition. The court vacated the scheduled hearing and decided the motion based on the written filings.

Fourth Cause of Action: Fraud

The fourth cause of action alleged fraud based on statements General Motors allegedly made to Choy, including statements that supposedly omitted important information. The court dismissed this claim because Federal Rule of Civil Procedure 9(b) requires fraud to be pleaded with particularity—that is, the complaint must identify details such as the time, place, and specific content of the alleged false statements. The court found that Choy did not allege when or where he heard the statements. Except for one statement, the complaint also did not provide the statements’ specific content and instead generally paraphrased them.

Fifth Cause of Action: Business and Professions Code Section 17200

The fifth cause of action alleged violations of section 17200 of the California Business and Professions Code. The court dismissed this claim because it was based on the same alleged false statements and omissions as the fraud claim and therefore was not pleaded in conformity with Rule 9(b).

Disposition

Judge Maxine M. Chesney granted General Motors’ motion to dismiss. The court dismissed the fourth and fifth causes of action and allowed Choy to amend the complaint to address the identified deficiencies. Any amended complaint was due by March 9, 2024. If Choy did not file one by that deadline, the action would proceed on the first, second, and third causes of action in the original complaint. The order did not state that the dismissed causes of action were dismissed with or without prejudice.