Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_02-cv-01575/USCOURTS-caed-2_02-cv-01575-5/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1441 Petition For Removal--Other Contract

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

JOHN HEALY,

NO. CIV. S-02-1575 LKK/DAD

Plaintiff,

v. O R D E R

MCI WORLDCOM NETWORK

SERVICE, INC., a Delaware,

corporation; ELECTRONIC

DATA SYSTEMS CORPORATION,

a foreign corporation; and 

EDS/SHL CORPORATION, a Delaware

corporation,

Defendants.

 /

In Engalla v. Permanente Medical Group, Inc., 15 Cal.4th

951, 974 (1997), the California Supreme Court held that

”‘[F]alse representations made recklessly and without regard for

their truth in order to induce action by another are the

equivalent of misrepresentations knowingly and intentionally

uttered,” quoting Yellow Creek Logging Corp. v. Dare, 216

Cal.App.2d 50, 55 (1963).

Case 2:02-cv-01575-LKK -DAD Document 163 Filed 11/18/05 Page 1 of 2
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Based on the evidence tendered to the court, it appears

appropriate to find that:

1. Barbara Iman (“Iman”) misrepresented to John Healy

(“Healy”) that he could not legally be terminated until he

returned from disability;

2. Under the circumstances, a failure to ascertain whether

such statements were true was reckless, even though Iman

believed such misrepresentations were true.

3. The representations were made to induce reliance on the

part of Healy and he reasonably relied on them to his detriment.

Based on the facts above, the court directs the parties to

brief whether such facts constitute fraud under California law. 

Each side shall submit to the court one brief, no more than ten

pages, by December 8, 2005 at 10:00 a.m.

IT IS SO ORDERED. 

DATED: November 18, 2005.

/s/Lawrence K. Karlton 

LAWRENCE K. KARLTON

SENIOR JUDGE

UNITED STATES DISTRICT COURT

Case 2:02-cv-01575-LKK -DAD Document 163 Filed 11/18/05 Page 2 of 2