Judge: Armen Tamzarian, Case: 22STCV03225, Date: 2023-04-04 Tentative Ruling

Case Number: 22STCV03225    Hearing Date: April 4, 2023    Dept: 52

Order to Show Cause Re: Entry of Default Judgment

            Plaintiff Creditors Adjustment Bureau, Inc. requests court judgment by default against defendants Bella Luna Day Spa, Inc. dba Bella Luna Day Spa Inc adba Hammam Luna aka Bella Luna Day Spa; Nadia Habti; and Mohamed Mahamoud Sabah Jr. aka Mohamed Sabah.

            Plaintiff’s application meets all requirements.  The court will modify part of the proposed judgment, however, to reduce the stated rate of interest from 15.96% to 10%.  As the court noted in its minute order dated October 7, 2022, plaintiff sought interest of 15.96% without pleading or proving an exemption from the usury limitations.  (Cal. Const., Art. XV, § 1; Local Rule 3.206.)  Plaintiff therefore cannot collect more than 10% interest on defendants’ credit card balance. 

            Plaintiff seeks a total of $3,273.29 in interest.  That amount includes $1,590.46 for 15.96% annual interest on the credit card balance of $12,862.21 for 283 days from December 7, 2021, to September 15, 2022.  (Jun Decl., ¶ 5.)  Now, 483 days have passed since the debt was due.  Applying a rate of 10% now results in accrued interest exceeding the $1,590.46 plaintiff requested.  The default judgment therefore does not exceed the permitted amount of interest.

Plaintiff’s request for court judgment by default is granted.  The court will modify the proposed judgment and enter judgment for plaintiff.