Judge: Curtis A. Kin, Case: 25STCV10295, Date: 2025-06-10 Tentative Ruling
Case Number: 25STCV10295 Hearing Date: June 10, 2025 Dept: 86
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CHAPMAN COURT, LLC, |
Plaintiff, |
Case No. |
25STCV10295 |
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vs. CNP CHAPMAN CORP., et al., |
Defendants. |
[TENTATIVE] RULING ON APPLICATIONS FOR RIGHT TO
ATTACH ORDER RE: (1) CNP CHAPMAN CORP. AND (2) DONGHUN YOO Dept. 86 (Hon. Curtis A. Kin) |
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Plaintiff Chapman Court
LLC moves for a right to attach order against defendants CNP Chapman Corp. aka
CNP Chapman Inc. and Donghun Yoo aka Dong Hun Yoo in the amount of $287,234.11.
I. Factual Background
On August 29, 2019, plaintiff
Chapman Court LLC and defendant CNP Chapman Corp. aka CNP Chapman Inc. (“CNP”)
entered into a written commercial lease agreement in connection with the Ground
Floor and Mezzanine Floor of the premises located at 3513 West 6th
Street, Los Angeles, CA 90020. (Neman Decl. ¶ 6, Ex. 1.) The lease was for a
period of ten years, and it was set to commence on January 1, 2020. (Ibid.)
CNP agreed to pay plaintiff a base rent on the first of the month for each
floor, and this rent amount was set to increase 3% each year. (Id., Ex.
1 at ¶ 4.) In addition to the payment of rent, CNP agreed to pay Common Area
Maintenance (“CAM”) charges each month. (Id. ¶ 7.) Also on August 29,
2019, defendant Donghun Yoo aka Dong Hun Yoo (“Yoo”) executed a “Guaranty of
Lease” in connection with the underlying lease agreement, agreeing to
personally guaranty CNP’s obligations. (Id. ¶ 9; Ex. 2..)
On
October 1, 2020, CNP breached the terms of the lease by failing to timely make
payment of the base rent owed and CAM charges, and CNP thereafter continued to
fail to pay the monthly rent that was due. (Id. ¶ 10.) Yoo failed to
comply with his obligations under the guaranty agreement. (Ibid.) By May
30, 2023, the parties entered into an Amendment to Lease (the “Amendment”),
wherein plaintiff agreed to defer collection efforts to enforce such debts in
return for additional payment from defendants through September 1, 2024. (Id.
¶ 10, Ex. 3.) Furthermore, because defendants had only paid $75,000 of the
$158,360 security deposit, defendants agreed through the Amendment to pay the
remaining balance of $83,360. (Id. 12, Ex. 1 at ¶ 8 & Ex. 3 at ¶ 1.)
Following the execution of the Amendment, defendants have continued to breach
the lease and Amendment by failing to make necessary payments for the rent and
CAM charges. (Id. at ¶ 12.) As of April 1, 2024, and after deducting the
existing security deposit of $75,000, defendants owe an unpaid balance of
$277,234.11. (Id. ¶ 13, Ex. 4.) While plaintiff has demanded payment for
the aforementioned amount, defendants have failed to pay any part of this
balance. (Id. ¶ 14.)
II. Applicable Law
“Upon
the filing of the complaint or at any time thereafter, the plaintiff may apply
pursuant to this article for a right to attach order and a writ of attachment
by filing an application for the order and writ with the court in which the
action is brought.” (CCP § 484.010.)
The application shall be executed under oath and
must include: (1) a statement showing that the attachment is sought to secure
the recovery on a claim upon which an attachment may be issued; (2) a statement
of the amount to be secured by the attachment; (3) a statement that the
attachment is not sought for a purpose other than the recovery on the claim
upon which the attachment is based; (4) a statement that the applicant has no
information or belief that the claim is discharged or that the prosecution of the
action is stayed in a proceeding under the Bankruptcy Act (11 U.S.C. § 101, et
seq.); and (5) a description of the property to be attached under the writ
of attachment and a statement that the plaintiff is informed and believes that
such property is subject to attachment. (CCP § 484.020.)
The
Court shall consider the showing made by the parties, as well as the pleadings
and other papers in the record. (CCP § 484.090(a), (d).) The Court shall issue
a right to attach order if it finds all of the following:
(1) The claim upon which the attachment is based is
one upon which an attachment may be issued.
(2) The plaintiff has established the probable
validity of the claim upon which the attachment is based.
(3) The attachment is not sought for a purpose
other than the recovery on the claim upon which the attachment is based.
(4) The amount to be secured by the attachment is
greater than zero.
(CCP § 484.090(a)(1-4).) “The Attachment Law
statutes are subject to strict construction….” (Epstein v. Abrams (1997)
57 Cal.App.4th 1159, 1168.)
III. Analysis
A.
Basis of Attachment
“[A]n
attachment may be issued only in an action on a claim or claims for money, each
of which is based upon a contract, express or implied, where the total amount
of the claim or claims is a fixed or readily ascertainable amount not less than
five hundred dollars ($500) exclusive of costs, interest, and attorney’s
fees.” (CCP § 483.010(a).) “An attachment may not be issued on a claim
which is secured by any interest in real property arising from agreement
….” (CCP § 483.010(b).)
Plaintiff’s
claim against defendants is based on the lease, the guaranty agreement, and
Amendment that defendants had previously signed. (Neman Decl. ¶¶ 6, 9-10 &
Exs. 1-3.) In opposition, defendants argue that the claimed amount is not fixed
or readily ascertainable because there are inconsistencies within plaintiff’s
internal accounting as amount shown on the accounting ledger does not match
with the amount stated in the Amendment. (Opp. at 3.) This argument is unpersuasive.
As plaintiff points out in Reply, defendants owed $297,935.68 as of May 1,
2023. (Reply at 2-3; Neman Decl., Ex. 4.) In taking into account the
outstanding security deposit of $83,360, defendants would owe $381,295.68.[1] (Reply at 3.) In comparing
this amount with the amount stated in the Amendment, there is only a difference
of $270, and, as plaintiff explains, this difference had resulted because the
parties originally believed that the unpaid portion of the security deposit was
$83,630, not $83,360. (Reply, Neman Suppl. Decl. ¶ 4.) Therefore, because
plaintiff does not seek recovery of the unpaid portion of the security deposit,
the amount that plaintiff seeks to attach is supported by the evidence
submitted.
Accordingly,
plaintiff demonstrates a valid basis for attachment pursuant to the guaranty
agreement.
B.
Probable Validity of Plaintiff’s Claims
“A claim has ‘probable validity’ where it is more
likely than not that the plaintiff will obtain a judgment against the defendant
on that claim.” (CCP § 481.190.) “If the defendant opposes the
application, ‘the court must then consider the relative merits of the positions
of the respective parties and make a determination of the probable outcome of
the litigation.’ [Citations.]” (Pech v. Morgan (2021) 61 Cal.App.5th
841, 855.)
The
evidence presented by plaintiff establishs that defendants owe $277,234.11. (Neman
Decl., Ex. 4.) Notably, defendants have not made any argument to suggest that
plaintiff has not performed its terms under the lease agreement or that they
did not breach their respective agreements.
Plaintiff
has thus demonstrated the probable validity of its breach of contract claim
against defendants.
C.
Purpose and Amount of Attachment
The
other required findings under CCP § 484.090 are that the “attachment is not
sought for a purpose other than the recovery on the claim upon which the
attachment is based” and that the “amount to be secured by the attachment is
greater than zero.” (CCP § 484.090(a)(3), (a)(4).)
Plaintiff
declares that “[a]ttachment is not sought for a purpose other than the recovery
on a claim upon which the attachment is based.” (Apps. ¶ 4.) Plaintiff also demonstrates
that the amount to be secured by the attachment is greater than zero. (Apps. ¶
8; see also Neman Decl. ¶ 15.)
With
respect to estimated attorney fees and costs, plaintiff seeks to attach $5,000 in
fees and $5,000 in costs against defendant. (See Apps. ¶ 8.) Defendants
do not challenge these amounts, and the Court finds them to be reasonable.
Based
on the foregoing, the Court finds that plaintiff is entitled to attachment
against defendants in the total requested amount of $287,234.11.
D.
Bankruptcy
CCP § 484.020(d) requires a “statement
that the applicant has no information or belief that the claim is discharged in
a proceeding under Title 11 of the United States Code (Bankruptcy) or that the
prosecution of the action is stayed in a proceeding under Title 11 of the
United States Code (Bankruptcy).” Plaintiff provides this statement. (Apps. ¶ 5.)
E.
Property Subject to Attachment
CCP
§ 487.010(a) states that, where the defendant is a corporation, all corporate
property for which a method of levy is provided in CCP § 488.300 et seq.
is subject to attachment. As to CNP, a corporation, plaintiff moves to attach
any property of this defendant.
CCP
§ 487.010(c) states that, where the defendant is a natural person, only the
specific properties are subject to attachment. (CCP § 487.010(c)(1)-(11).) Plaintiff
seeks to attach against Yoo all property permissible under CCP § 487.010(c). The
property which plaintiff seeks to attach against Yoo are permissible under CCP
§ 487.010(c)(1)-(11).
F.
Exemptions
No
claim of exemption was filed.
G.
Undertaking
CCP
§ 489.210 requires the plaintiff to file an undertaking before issuance of a
writ of attachment. CCP § 489.220 provides, with exceptions, for an undertaking
in the amount of $10,000. Plaintiff’s moving parties are silent as to this
requirement. Under the circumstances, the Court finds that an undertaking of
$10,000 is appropriate for each defendant.
IV. Conclusion
The application against defendant CNP Chapman LLC
is GRANTED in the amount of $287,234.11. The application against defendant Donghun Yoo is
GRANTED in the amount of $287,234.11. Before any writ will issue, plaintiff
Chapman Court LLC shall post an undertaking in the amount of $10,000 with
respect to each defendant. The Court
will sign the Proposed Right to Attach Orders, electronically received April
28, 2025, in accordance with the above.
[1] Per the Amendment, the payment of the outstanding
security deposit payment would have been waived if defendants had made all
necessary payments under the lease and Amendment by September 1, 2024. (Neman
Decl., Ex. 3 at ¶ 1.)