Judge: Armen Tamzarian, Case: 20STCV09866, Date: 2023-02-17 Tentative Ruling

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Case Number: 20STCV09866    Hearing Date: February 17, 2023    Dept: 52

Plaintiff Roberto Corleto’s Application for Court Judgment by Default

Plaintiff Roberto Corleto applies for court judgment by default against defendants KDB Restaurants, Inc. and Dollin Davis.

A plaintiff seeking default judgment must submit “[a] dismissal of all parties against whom judgment is not sought or an application for separate judgment against specified parties under Code of Civil Procedure section 579, supported by a showing of grounds for each judgment.”  (Cal. Rules of Court, rule 3.1800(a)(7).) 

Plaintiff’s operative third amended complaint names fictitious defendants Does 1 to 20.  Plaintiff has not requested dismissal of the fictitious defendants.  The court hereby dismisses the action without prejudice as to defendants Does 1 to 20.

Plaintiff’s application seeks excessive interest.  In an action for unpaid wages, the plaintiff can recover “interest in a rate of 10 percent per annum.”  (Civ. Code, § 3289(b); Lab. Code, § 218.6.)  “As a general rule, compound interest is impermissible unless specifically authorized by statute or by stipulation of the parties.”  (Salton Bay Marina, Inc. v. Imperial Irrigation Dist. (1985) 172 Cal.App.3d 914, 961.)  A provision for interest “per annum” “calls for simple interest, not compound interest.”  (Ninety Five Ten v. Crain (1991) 231 Cal.App.3d 36, 40; accord Hess v. Ford Motor Co. (2002) 27 Cal.4th 516, 530-531.)

Plaintiff seeks $8,892.14 in interest compounded annually.  (Corleto Decl., ¶ 40 [applying 10% interest each year to increasing amounts of $20,142, $22,156.20, $24,371.82, and $26,809].)  Plaintiff can only recover simple interest.  Since December 15, 2019, plaintiff’s unpaid wages of $20,142 has accrued $6,403.20 in interest. 

Plaintiff’s application also seeks excessive attorney fees of $32,400 based on counsel’s lodestar.  Local Rule 3.214(a) provides a schedule for reasonable attorney fees on default judgments.  Plaintiff does not show an adequate basis for “a fee greater than listed in the schedule because of extraordinary services.”  (Local Rule 3.214(d).)  Under Local Rule 3.214(a), for recovery of amounts between $50,000 and $100,000, fees are set at “$1,890 plus 2% of the excess over $50,000.”  Plaintiff’s reasonable attorney fees are therefore $2,272.26.

After making these adjustments, plaintiff shall recover $62,710 in damages, $6,403.20 in prejudgment interest, $2,328.48 in costs, and $2,272.26 in attorney fees, for a total of $73,713.94, from defendants KDB Restaurants, Inc. and Dollin Davis.

Plaintiff’s application for court judgment by default is granted in part.  The court will sign plaintiff’s proposed judgment as modified to reflect the reduced amounts of interest and attorney fees.