622 NINETEEN AVE LLC VS. MARY TRAN ET AL

Real Property/Housing Court Law and Motion Calendar for June 2, 2026. Line 7. DEFENDANT MARY TRAN, AN INDIVIDUAL DEMURRER to COMPLAINT is OVERRULED, in part and SUSTAINED with and without leave to amend.

The First and Third Causes of Action are sustained with leave to amend for Plaintiff to allege additional facts supporting that the loan in question was a consumer loan. The Court notes, however, that it is not convinced that Plaintiff, an LLC, qualifies as a borrower of a consumer loan. While the statute does not explicitly restrict borrowers to natural persons by name, the purpose-based definition-requiring proceeds to be used "primarily for personal, family, or household purposes"-is inherently inapplicable to a business entity like an LLC. While Plaintiff is correct that the definition for consumer loans hinges entirely on the intended use of the proceeds and not the legal identity of the borrower, an LLC as a legal entity is distinct from its members, has no "personal" life, no "family," and no "household." An LLC borrows for business purposes by its very nature.

The Court further notes that Plaintiff is suing for libel per se. For an LLC to prevail on a libel per se claim, the allegedly defamatory statement must be injurious to the LLC's business reputation on its face.

The Second cause of action for Violation of Business and Professions code section 17200 is overruled. Plaintiff alleges sufficient facts under the fraudulent prong. (Complaint, paras. 18-19, 24-27, 45-47, 51,52.)

The Fourth Cause of Action for Declaratory Relief is sustained without leave to amend. The declaratory relief sought is duplicative of the first and the third cause of action for violation of section 22750 and restitution. (Complaint, para. 69.)

The Fifth cause of action is for Intentional Infliction of Emotional Distress is sustained without leave to amend. As a matter of law, a limited liability company cannot bring, nor can it maintain, a cause of action for Intentional Infliction of Emotional Distress. (Huntingdon Life Scis., Inc. v. Stop Huntingdon Animal Cruelty USA, Inc. (2005) 129 Cal.App.4th 1228, 1260.) Plaintiff failed to state any authority which would permit nonparties such as principles and members of an LLC, to be included on Plaintiff's cause of action.

The Sixth cause of action is for Libel per se is overruled. Plaintiff alleges Defendant falsely accused Plaintiff LLC of nonpayment, which on demurrer the Court takes as true. (Complaint, paras. 91-75.) =(501/CFH)

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