P. v. Mackone Development CA2/7
The City of Los Angeles filed a complaint against Mackone Development and its owner, Scott Yang, seeking civil penalties under California’s unfair competition law (Bus. & Prof. Code, §§ 17200, 17206) and false advertising law (Bus. & Prof. Code, §§ 17500, 17536.) The City alleged Mackone had failed to comply with the prevailing wage law and overtime requirements in connection with a public works project, and then attempted to conceal its misconduct by submitting falsified payroll records to a government entity.
Defendants filed demurrers arguing that: (1) the City’s claims were uncertain because they failed to identify which employees had been denied prevailing wage and overtime pay; (2) the complaint failed to allege any conduct that violated the false advertising law; and (3) Scott Yang could not be held personally liable for the misconduct of his company. The court sustained the demurrers without leave to amend.
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