Judge: Armen Tamzarian, Case: 23STCV08824, Date: 2024-09-05 Tentative Ruling

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Case Number: 23STCV08824    Hearing Date: September 5, 2024    Dept: 52

Order to Show Cause Re: Entry of Default Judgment

Plaintiff Vernel Trainor filed a complaint alleging a single cause of action for breach of contract against defendants Los Angeles Hostel, LLC, Dmitry Shabliuk, Jamoliddin Yuldashev, and Does 1-100.  The clerk has entered the defaults of each defendant.  Plaintiff has not yet requested entry of default judgment against them.  This action was stayed as against Los Angeles Hostel, LLC due to its bankruptcy petition.  The bankruptcy proceeding ended in April 2024.  (Plaintiff’s Statement Re: Status of Bankruptcy, Ex. A.) 

Assuming plaintiff had requested entry of default judgment against all defendants, the court could not enter default judgment against defendants Shabliuk and Yuldashev.  “Under the ‘well pleaded’ complaint rule, it is error to enter a default judgment on a complaint that fails to state a cause of action against the defaulting defendant.”  (Ferraro v. Camarlinghi (2008) 161 Cal.App.4th 509, 539.)

Plaintiff’s complaint alleges each defendant breached an agreement titled “Memorandum of Agreement in Mediation.”  (Comp., ¶ 10, Ex. A.)  Plaintiff further alleges, “Under the terms of the AGREEMENT, defendants agreed to make monthly payments to plaintiff.  Specifically, section 1 of the AGREEMENT provides as follows: ‘Defendant LA Hostel, LLC agrees to pay Plaintiff, Vernel Trainor, the sole and single sum of Forty-five Thousand Dollars ($45,000.00) such sum to be paid in increments of two thousand dollars ($2,000) per month…’ ”  (Id., ¶ 11.)  The agreement does not require Shabliuk or Yuldashev to make any payments.  The law generally recognizes “separation between an individual and a business entity.”  (Curci Investments, LLC v. Baldwin (2017) 14 Cal.App.5th 214, 221.)  The complaint thus fails to allege sufficient facts to constitute a cause of action against Shabliuk or Yuldashev.   

The court hereby continues the order to show cause re: entry of default judgment to December 2, 2024, at 8:30 a.m.  Plaintiff shall file a complete default judgment application including all documents listed in California Rules of Court, rule 3.1800(a), no later than November 19, 2024.