Judge: Armen Tamzarian, Case: 23STCV17130, Date: 2024-02-22 Tentative Ruling

Case Number: 23STCV17130    Hearing Date: February 22, 2024    Dept: 52

Plaintiff Chill Space LLC’s Request for Court Judgment

Plaintiff Chill Space LLC requests court judgment by default against defendants Refurbished Lifts Inc. and Adam Thomas Martinelli.  The request for court judgment has three defects.

First, plaintiff has not shown sufficient grounds for judgment against defendant Adam Thomas Martinelli.  In general, the law recognizes “separation between an individual and a business entity.”  (Curci Investments, LLC v. Baldwin (2017) 14 Cal.App.5th 214, 221.)  Where “the liability of the individual defendants” relies “upon disregard of the corporate entity by application of the alter ego doctrine,” a complaint’s “bare conclusory allegation[s]” are insufficient for a default judgment against the individuals.  (Vasey v. California Dance Co. (1977) 70 Cal.App.3d 742, 748-749.)  “In order to prevail in a cause of action against individual defendants based upon disregard of the corporate form, the plaintiff must plead and prove such a unity of interest and ownership that the separate personalities of the corporation and the individuals do not exist, and that an inequity will result if the corporate entity is treated as the sole actor.”  (Id. at p. 749.)

The complaint’s allegations include defendant Adam Thomas (later changed to Adam Thomas Martinelli via an amendment to the complaint) as a party to the subject contract.  (¶¶ BC-1-3.)  Plaintiff’s application for default judgment, however, demonstrates that is not true.  Plaintiff brings a sole cause of action for breach of contract.  The parties’ contract states, “This Agreement is entered into by and between Refurbished Lifts, Inc. (‘RL’) and the entity … specified in the ‘FOR’ section above (‘Buyer’).”  (Grover Decl., Ex. 1, p. 4.)  It does not state Adam Thomas Martinelli is a party to the agreement.    

Dale Grover, the founder and manager of plaintiff Chill Space LLC (Grover Decl., ¶ 1), explains the basis for naming Adam Thomas Martinelli as a defendant: “At all relevant times discussed herein, Adam Thomas Martinelli held himself out as the Chief Executive Officer of Refurbished Lifts, Inc. and was the sole representative at Refurbished Lifts, Inc. whom I, on behalf of the Company, negotiated and communicated with in contracting for the forklifts and executing the Contract.”  (Id., ¶ 6.)  That does not suffice to make Adam Thomas Martinelli liable for Refurbished Lifts Inc.’s obligations any more than it would make Dale Grover liable for plaintiff Chill Space LLC’s obligations.  To obtain judgment against Adam Thomas Martinelli, plaintiff must either amend the complaint to allege sufficient facts for alter ego liability or provide sufficient evidence showing Martinelli is liable as an individual.  (See Vasey v. California Dance Co., supra, 70 Cal.App.3d at pp. 748-749.)

Second, an application for default judgment must include “[a] proposed form of judgment.”  (Cal. Rules of Court, rule 3.1800(a)(6).)  Plaintiff did not submit a proposed form of judgment.  The court will require plaintiff to submit a proposed judgment on Judicial Council form JUD-100.    

Third, an application for default judgment must include “[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.”  (Rule 3.1800(a)(7).)  Plaintiff’s complaint names Does 1-20 as defendants.  Plaintiff has not dismissed them or shown grounds for a separate judgment against the other defendants.

Disposition

            Plaintiff Chill Space LLC’s request for court judgment by default is denied without prejudice. 

The court hereby sets an order to show cause re: default judgment for April 11, 2024, at 8:30 a.m.