Judge: Bruce G. Iwasaki, Case: 24STCV21228, Date: 2025-04-29 Tentative Ruling

Case Number: 24STCV21228    Hearing Date: April 29, 2025    Dept: 58

Hadley v United Lending Group  24STCV21228

OSC re Entry of Default Judgment

            The request for default judgment is Denied.

Plaintiffs Bruce Hadley and Kori Hadley request default judgment against Defendants Cars Warehouse, LLC, United Loans, LLC, and United Lending Group, Inc. in the amount of $75,000. This amount exceeds the amount requested in the Complaint as no specific amount was requested in the Complaint.

A statement of damages was filed on April 14, 2025. However, this was filed and served on April 14, 2025. Even assuming this was a personal injury case necessitating a statement of damages, a statement of damages must be served prior to the entry of default. (Code Civ. Proc., § 425.11, subds. (c)-(d); CRC 3.250(a)(20).) Here, default was entered as to all three Defendants on November 27, 2024. Thus, damages are limited to recovery of the jurisdictional minimum. (Greenup v. Rodman (1986) 42 Cal.3d 822, 829-830.)

The Complaint arises from allegations that Defendants charged improper fees in the servicing of a car loan, failed to provide an accounting of the loan amounts owed upon request, and then wrongfully repossessed Plaintiff Kori Hadley’s vehicle. To date, according to Plaintiffs, the Defendants have also failed to provide the necessary information to permit Plaintiffs to retrieve personal property from the repossessed vehicle. The Complaint alleges causes of action for (1.) violation of California Rosenthal Fair Debt Collection Practices Act, (2.) Violations of Business and Professions Code section 17200, (3.) breach of covenant of good faith and fair dealings, (4.) breach of contract, (5.) promissory estoppel, (6.) wrongful and illegal repossession, and (7.) conversion.

The Complaint alleges that Kori Hadley’s father, Plaintiff Bruce Hadley, has a “vested interest in the subject property” “despite the absence of a formal agreement.” (Compl., ¶ 16.)  These allegations appear to be insufficient to demonstrate any standing by Plaintiff Bruce Hadley under any of the causes of action.

Moreover, Plaintiffs request “damages for the unauthorized processing fees in the amount of $3,000, the harm caused to [their] credit in the amount of $25,000, for emotional distress in the amount of $20,000.00, the cost of the vehicle and loss of use of a vehicle in the amount of $12,000.00 and punitive damages in the amount of $25,000.00, and any other relief deemed appropriate by the Court.” (Hadley Decl., ¶ 32.) The evidence does not adequately support this conclusory request for damages.