Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_14-cv-02727/USCOURTS-cand-3_14-cv-02727-10/pdf.json

Nature of Suit Code: 370
Nature of Suit: Other Fraud
Cause of Action: 28:1332 Diversity-Fraud

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

THOMAS CARNES,

Plaintiff,

v.

ATRIA SENIOR LIVING, INC.,

Defendant.

Case No. 14-cv-02727-VC 

ORDER DENYING MOTION TO 

DISMISS

Re: Dkt. No. 54

1. Atria argues that the Court should dismiss Carnes' claims for injunctive relief and 

restitution on judicial abstention grounds. California's judicial abstention doctrine gives courts 

applying California law the discretion to abstain from hearing equitable claims where (1) "the 

lawsuit involves determining complex economic policy, which is best handled by the Legislature 

or an administrative agency," or (2) "granting injunctive relief would be unnecessarily 

burdensome for the trial court to monitor and enforce given the availability of more effective 

means of redress." Alvarado v. Selma Convalescent Hosp., 64 Cal. Rptr. 3d 250, 254 (Ct. App.

2007). Atria argues both that the equitable relief Carnes seeks would require the Court to assume 

the role of a state regulatory agency, and that the requested injunction would place an undue 

burden on the Court. See Winans v. Emeritus Corp., No. 13-CV-03962-SC, 2014 WL 970177, at 

*8 (N.D. Cal. Mar. 5), clarified on denial of reconsideration, No. 13-CV-03962-SC, 2014 WL 

2586370 (N.D. Cal. June 9, 2014) (abstaining from adjudicating a plaintiff's equitable claims 

related to understaffing of assisted living facilities). But, in contrast to the plaintiff in Winans, 

Carnes does not appear to seek injunctive relief that would require the Court to determine staffing 

needs at Atria facilities. Nor does it appear that Carnes' requested relief would require the Court 

to monitor staffing at Atria facilities on an ongoing basis. Carnes alleges that Atria falsely

represents that it uses its resident evaluation system to determine facility staffing, and that it will 

Case 3:14-cv-02727-VC Document 61 Filed 02/20/15 Page 1 of 2
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United States District Court

Northern District of California

provide each patient with the number of hours of care it has determined are necessary to meet that 

patient's individual needs—hours of care that the patient is charged for. The equitable relief 

Carnes seeks is limited to an injunction prohibiting Atria from continuing to make these allegedly 

false representations. Accordingly, the Court declines, at this stage of the proceedings, to exercise 

its discretion to abstain from adjudicating Carnes' equitable claims.

2. Atria argues that Carnes fails to state a claim for elder financial abuse because "at all 

times relevant to Plaintiff’s claims, his non-elderly daughter, Juliana Clegg, was acting to protect 

his interests[,]" and because "Ms. Clegg—and not Plaintiff—signed the agreement[.]" Docket No. 

54, p.9. But while Ms. Clegg signed the admissions agreement with Atria when Carnes moved 

into Atria's Hillsdale facility, Carnes' complaint alleges that Ms. Clegg was acting on Carnes' 

behalf pursuant to a durable power of attorney when she did so. SAC ¶ 65. While there may be 

no claim for elder financial abuse when a plaintiff alleges fraudulent conduct relating to a contract 

that was consummated before the plaintiff became an elder, see Davenport v. Litton Loan 

Servicing, LP, 725 F. Supp. 2d 862, 879 (N.D. Cal. 2010), the defendants cite to no authority 

suggesting that a plaintiff cannot state a claim where a contract was signed by an elder's nonelderly guardian, but where the elder is taken advantage of and suffers the financial consequences 

of the alleged fraud. Accordingly, the Court denies Atria's motion to dismiss Carnes' claim for 

elder financial abuse.

IT IS SO ORDERED.

Dated: February 20, 2015

______________________________________

VINCE CHHABRIA

United States District Judge

Case 3:14-cv-02727-VC Document 61 Filed 02/20/15 Page 2 of 2