Rivera v. CortiCare Inc.

Summary

The United States District Court for the Southern District of California granted CortiCare, Inc.’s motion to dismiss Joenathan Rivera’s First Amended Complaint. The court held that rescission is a remedy rather than a standalone cause of action and found that the plaintiff had not plausibly alleged grounds for rescission of the severance agreement. The court also held that the agreement’s release barred the remaining employment-related claims, dismissed the first through eighth causes of action with leave to amend, and dismissed the ninth cause of action without leave to amend while permitting rescission to be pursued as a remedy for a properly pleaded underlying claim.

Holdings

1. Rescission is not a cause of action but a common-law remedy on the contract.
2. Plaintiff's allegations are insufficient to establish a plausible basis for rescission based on improper consent.
3. Plaintiff's conclusory allegation that Defendant failed to provide consideration is insufficient for rescission.
4. The comprehensive release in the Severance Agreement bars Plaintiff's remaining causes of action because they all arise from his employment and termination.
5. Plaintiff is granted leave to amend to pursue rescission as a remedy and state a cognizable underlying claim, but amendment of the rescission cause of action would be futile.

Questions Presented

1. Whether Plaintiff's cause of action for rescission states a claim upon which relief can be granted.
2. Whether the Severance Agreement's release bars Plaintiff's remaining causes of action.
3. Whether leave to amend should be granted.

Disposition

dismissed