Judge: Curtis A. Kin, Case: 24STCV10674, Date: 2024-10-10 Tentative Ruling

Case Number: 24STCV10674    Hearing Date: October 10, 2024    Dept: 86

APPLICATION FOR RIGHT TO ATTACH ORDER

Date:               10/10/24 (1:30 PM)

Case:                           Banco Agrícola, S.A. v. Sigue Corporation et al. (24STCV10674)

TENTATIVE RULING:

Plaintiff Banco Agrícola, S.A.’s UNOPPOSED application for right to attach order with respect to defendant Sigue Corporation is GRANTED.

Pursuant to CCP §484.090, the Court finds:

1. the claim is one upon which attachment may be issued;
2. plaintiff has established the probable validity of the claim;
3. attachment is not sought for any purpose other than recovery on the claim; and
4. the amount to be attached is greater than zero.

On October 6, 2009, plaintiff Banco Agrícola, S.A. and defendant Sigue Corporation entered into an International Money Transfer Processing and Service Agreement (“Service Agreement”). (Magaña Decl. ¶ 4 & Ex. 1.) Under the Service Agreement, defendant transmitted remittance orders to plaintiff, who then advanced monetary disbursements to payees in El Salvador. (Magaña Decl. ¶ 5.) The Service Agreement required defendant to pay transaction fees, as well as the amounts that plaintiff advanced to payees based on defendant’s remittance orders. (Magaña Decl. ¶¶ 5-7 & Ex. 1 at Appx. A, C.)

Beginning July 2023, defendant began to untimely reimburse plaintiff for the remittances. (Magaña Decl. ¶ 8.) In the fourth quarter of 2023, plaintiff warned defendant that it would be forced to terminate the Service Agreement unless defendant became current on its payment. (Magaña Decl. ¶ 9.) Defendant subsequently became current but thereafter failed to pay for remittances for January 15-22, 2024, as well as for transaction fees for December 2023 and January 2024. (Magaña Decl. ¶ 10.) On January 22, 2024, plaintiff notified defendant that it was stopping services and demanded immediate reimbursement of remittances and transaction fees in an amount of $1,036,245.81 to date. (Magaña Decl. ¶ 10 & Ex. 2; see also Magaña Decl. ¶ 4 & Ex. 1 at § XI(d) [allowing for suspension of Service Agreement].)

On January 26, 2024, defendant’s Chief Executive Officer acknowledged that a total of $1,036,245.81 for remittances and transaction fees was payable to plaintiff. (Magaña Decl. ¶ 11 & Ex. 3.) The total balance stated in the January 22, 2024 letter did not include transaction fees up to the end of January 2024, which totaled $3,460.50. (Magaña Decl. ¶ 13.) Accordingly, plaintiff seeks to attach a principal sum of $1,039,706.31 ($1,036,245.81 balance as of 1/22/24 + $3,460.50 additional transaction fees for January 2024).

Accordingly, the application will be granted in the amount of $1,341,778.71, which includes $1,039,706.31 in principal, as well as $622.40 in costs and $301,450.00 for attorney fees.  (See Linzer Decl. ¶¶ 9, 12-13 & Ex. B.)

The writ shall issue upon the posting of bond in the amount of $10,000. (CCP § 489.220.)

The Court will sign the proposed order, electronically received on August 28, 2024.