Judge: Bruce G. Iwasaki, Case: 21STCV30009, Date: 2024-05-17 Tentative Ruling

Case Number: 21STCV30009    Hearing Date: May 17, 2024    Dept: 58

Judge Bruce G. Iwasaki

Department 58

Hearing Date:              May 17, 2024

Case Name:                 Can Capital, Inc. v. Richard Raya, et al.

Case No.:                    23STCV30009

Matter:                        Default Judgment Application

Moving Party:             Defendant Can Capital, Inc.

Background

In this breach of contract action, Can Capital, Inc. (Plaintiff) sued Richard Raya, individually and dba Sam’s Tacos (Defendant) for breach of contract and common counts. Plaintiff alleges it is the assignee to a Loan Agreement entered into by WebBank and Defendant on May 4, 2023 with a personal guaranty by Defendant (the “Agreement”). Plaintiff alleges that Defendant failed and refused to pay amounts due under the Agreement.

The Court entered default against Defendant on February 21, 2024. The Doe defendants were dismissed on March 18, 2024.

Summary of Request

• Compensatory Damages:                             $115,900.00
• Prejudgment Interest (10% per year):            $7,366.00
• Costs:                                                             $511.00
• Attorney’s Fees:                                            $3,049.00
• Total:                                                              $126,826.00

Discussion

Compensatory damages

Plaintiff requests damages in the total amount of $115,900, which represents the repayment balance Defendant owes on the $136,500 loan he took out, plus fees. (O’Connell Decl., ¶¶ 9 & 11, Exhs. A & B.)

Interest

            As to the interest, Plaintiff requests $7,366.00. The amount was calculated by applying the statutory rate of 10% per annum on the outstanding balance of $115,900.00 for a period of 232 days, from July 23, 2023 to March 11, 2024. (O’Connell Decl., ¶ 13.) Interest started to accrue on July 23, 2023 because Defendant did not make his July 18, 2023 payment, and pursuant to paragraph 7.1 of the Agreement, the borrower is considered to be in default when a payment amount has become due but remains unpaid for 5 days. (O’Connell Decl., ¶ 10; Exh. A.) This results in a figure of $7,366.79. Plaintiff requests $7,366.00. The Court awards this amount.

Attorney fees

            Counsel requests $3,049.00 in fees “pursuant to the court’s default fee schedule.” (O’Connell Decl., ¶ 14.) This amount complies with Local Rule 3.214 and the amount is awarded.

Costs

            Plaintiff also requests $511.00 in costs, representing $435.00 in filing fees, and $76.00 in service fees. These amounts are proper under Code of Civil Procedure sections 1033.5, subdivisions (a)(1) and (a)(4). Accordingly, the Court grants these amounts.

Conclusion

            Plaintiff Can Capital, Inc. is awarded default Judgment in the total amount of $126,826.00 against Defendant Richard Raya.