Department 58

Hearing Date: October 9, 2024

Case Name: Corbel Architects, Inc., et al. v. Hot Hand Corporation, et al.

Case No.: 23STCV21008

Motion: Request for Default Judgment

Moving Party: Plaintiffs Corbel Architects, Inc. and David Seong Bae Kim

Responding Party: N/A (Defaulted Defendants Hot Hand Corporation and Hyo Suk Kim)

Tentative Ruling: Hearing on OSC continued for supplemental filings.

Background

Plaintiffs Corbel Architects, Inc. and David Seong Bae Kim sued defendants Hot Hand Corporation and Hyo Suk Kim on August 31, 2023 for breach of contract and related claims.

Plaintiffs now request entry of default judgment in against both defendants.

Applicable Law

Judgment may be entered against a defendant by default where “the defendant has been served, other than by publication, and no answer, demurrer, [or other responsive paper] has been filed with the clerk of the court within the time specified in the summons ... .” (Code Civ. Proc., § 585(b).) In such cases, the clerk shall enter default upon plaintiff’s written application and the plaintiff “thereafter may apply to the court for the relief demanded in the complaint.” (Ibid.)

A party seeking a default judgment on declarations must use the mandatory form CIV-100 and also file with the clerk (1) a brief summary of the case, (2) declarations or other admissible evidence in support, (3) interest computations as necessary, (4) a memorandum of costs and disbursements, (5) a declaration of non-military status, (6) a proposed form of judgment, (7) a dismissal of all parties against whom judgment is not sought, (8) exhibits as necessary, and (9) a request for attorneys’ fees, if they are sought. (Cal. R. Ct., Rule 3.1800(a).)

Service and Default

Plaintiffs filed proofs of service indicated they served Defendants via mail with acknowledgment of receipt. The proofs of service were accompanied by Notices of Acknowledgment signed by defendant Hyo Suk Kim individually and as chief executive for Hot Hand Corporation. Plaintiffs’ counsel attested to mailing the necessary documents on March 7, 2024, setting defendants’ date to file a responsive pleading on April 16, 2024. (See Code Civ. Proc., § 415.40 [adding ten days to service on persons outside of state].)

Neither defendant filed a responsive pleading. The clerk entered Defendants’ defaults on September 16, 2024. Plaintiffs’ CIV-100 Request for Default contains a declaration of mailing and of nonmilitary status. Plaintiffs dismissed all fictitiously-named defendants on September 19, 2024.

Judgment Form, Notice of Damages, and Proof of Facts

Plaintiffs’ CIV-100 contains a statement of the amount of the judgment and a memorandum of costs, as well its own declarations of mailing and nonmilitary service. However, the statement is unsigned. A signed form must be submitted before the Court may enter judgment.

Plaintiffs request no more than what they expressly pray for in their complaint. Defendants had notice of their potential liability when they defaulted.

Plaintiffs’ complaint and the declaration of David Kim in support of judgment lay out the parties’ contract verbatim and attest that Corbel Architects performed all services required, but Defendants failed to pay $721,916.43 owed to Plaintiffs in return. They have proven Hot Hand’s liability to Corbel Architects.

However, the parties’ contract (Kim Decl., Exh. A) reveals that the contract was between Hot Hand Corporation and Corbel Architects only. Hyo Suk Kim is listed on the contract as CEO, and David Kim as Principal for Corbel Architects. Neither signed in their individual capacity. Kim’s declaration also explains “Hot Hand agreed to pay Corbel”, that Kim and his “team ... at Corbel Architects ... have performed all obligations”, and “Defendants have failed to pay the remaining balance ... to Corbel Architects, Inc.” (Kim Decl., ¶¶ 2, 4-5.) In fact, the declaration attests “Defendants are indebted to Corbel Architects”, not to Kim. (Id., ¶ 6.) The allegations in Plaintiffs’ complaint similarly establish Kim is not a party.

Once counsel cures the unsigned CIV-100, the Court may enter judgment against Hot Hand Corporation in Corbel Architects, Inc.’s favor. But Hyo Suk Kim must first be dismissed from the complaint, and David Kim may not recover from either defendant on the current record.

Prejudgment Interest

Plaintiffs are entitled to $197.79 in per diem damages beginning at least from the date their complaint was filed. That calculation, accounting for 405 days until the date of this hearing, results in an amount higher than the claim in Plaintiffs’ JUD-100. They are entitled to recover all the prejudgment interest claimed.

Fees

Fees upon default are awarded according to the schedule in Local Rule 3.214. For a principal judgment of $721,916.43, Plaintiffs are entitled to $2,890 plus 1% of the excess over $100,000.00. Plaintiffs request approximately $2,500.00 less than the amount in the schedule. The Court may award what is claimed.

Costs

Plaintiffs’ counsel attests to reasonable filing and service fees totaling $1,076.75.

Conclusion

The Court continues the hearing on Plaintiffs’ Request for Default to a date to be determined.

Prior to the continued hearing, Counsel is instructed to:

(1) submit a signed CIV-100 Request for Entry of Judgment,

(2) prove up the individual plaintiff and individual defendant or dismiss the individual defendant from the complaint.