People Ex Rel. Sepulveda v. Highland Federal Savings & Loan
Opinion
Opinion
Croskey, J.
Plaintiffs appeal from the judgment of dismissal following the sustaining without leave to amend demurrers to the second amended complaint of defendants Highland Federal Bank (Highland), Ben Karmelich (Karmelich), Selina Elizabeth Pratt (Pratt), and H.F.S. Corporation (HFS; collectively, the Highland defendants). The court found the complaint failed to state a cause of action for Racketeer Influenced and Corrupt Organizations Act (RICO) ( 18 U.S.C. § 1961 et seq.) violations, fraud or fraudulent concealment. The court further found the entire complaint, except the RICO cause of action, was barred by federal preemption.
Because the trial court erred in finding no cause of action was stated and the doctrine of federal preemption barred the state claims, we reverse the judgment.
Factual Statement
1. The Parties
Plaintiffs consist of the People of the State of California (People) and numerous individuals in their individual capacity and as guardians ad litem and on behalf of a class who resided in one or more of the subject slum Los Angeles City buildings (tenant plaintiffs).
The defendants who are parties to this appeal are Highland, Karmelich (its president), Pratt…