Judge: Edward B. Moreton, Jr., Case: 22SMCV00491, Date: 2023-11-17 Tentative Ruling

Case Number: 22SMCV00491    Hearing Date: November 17, 2023    Dept: 205

PROCEEDINGS:                          REQUEST FOR ENTRY OF DEFAULT JUDGMENT

MOVING PARTY:                      Happyland LLC

RESPONDING PARTY:           BPM Asset Management, LLC, BPM Global, LLC, Cain McKnight aka Aaron Cain McKnight, and Harmony Brooke

BACKGROUND

This case arises from a dispute over the sale of protective masks.  Plaintiff Happyland LLC and Defendant BPM Asset entered into a written production contract pursuant to which Plaintiff agreed to purchase from BPM Asset, and BPM Asset agreed to sell to Happyland, 35,000 boxes of 3 ply protective masks per day, at the rate of $1.35 per box through an initial term of 90 consecutive days (a total of 3,150,000 boxes).  Defendants Aaron Cain McKnight and Harmony Brooke are agents of BPM Asset.    

At the same time, Happyland entered into a contract with Global Comm Prop LLC (“Global Comm”) to sell Global Comm 3,000,000 boxes of the masks purchased from BPM Asset at the rate of $2.50 per box for a contract totaling (at least) $7,500,000. 

BPM Asset breached the contract by failing to deliver any of the 3,150,000 boxes of masks it promised to deliver.  BPM Asset also did not return in full Happyland’s initial deposit of $47,250, returning only $28,000.  The deposit was wired to an account owned by Defendant BPM Global LLC.     

Happyland would have realized a profit of $1.15 per box based on its contract with Global Comm for a total profit of $3,247,500. 

On April 6, 2022, Happyland brought a complaint against Defendants for: (1) breach of contract, (2) breach of implied covenant of good faith and fair dealing, (3) fraud, (4) intentional interference with contractual relations, and (5) conversion.  The complaint seeks damages in an amount between $3,469,250 and $6,919,250. 

Happyland filed proofs of service showing (1) BPM Global was personally served through its agent for service of process on July 15, 2022, (2) Harmony Brooke was served by substituted service on July 15, 2022, (3) BPM Asset was served by substitute service on January 17, 2023, and (4) Cain Aaron McKnight was served by substitute service on May 24, 2023.  Defendants were obligated to respond within 30 days.  Defendants did not do so. 

Happyland successfully requested the entry of Defendants’ default, which was entered by the Clerk’s Office on August 26, 2022 (for Brooke), on January 24, 2023 (for BPM Global), on March 13, 2023 (for BPM Asset) and July 10, 2023 (for McKnight).  Happyland requested a default judgment on July 28, 2023.  Happyland served Defendants by mail with both the Request for Entry of Default and Request for Default Judgment.  Defendants have not appeared.

RELIEF REQUESTED

Default judgment against Defendants for a total of $3,909,735, which is comprised of: (1) $3,266.740, for damages, (2) $641,715 for interest, and (3) $1,270 for costs.

ANALYSIS

Code of Civil Procedure section 585 sets forth the two options for obtaining a default judgment. First, where the plaintiff’s complaint seeks compensatory damages only, in a sum certain which is readily ascertainable from the allegations of the complaint or statement of damages, the clerk may enter the default judgment for that amount. However, if the relief requested in the complaint is more complicated, consisting of either nonmonetary relief, or monetary relief in amounts which require either an accounting, additional evidence, or the exercise of judgment to ascertain, the plaintiff must request entry of judgment by the court. In such cases, the plaintiff must affirmatively establish his entitlement to the specific judgment requested.  (Kim v. Westmoore Partners, Inc. (2011) 201 Cal.App.4th 267, 287.) Section 585 also allows for interest, costs and attorney fees, where otherwise allowed by law. (Code of Civ. Proc.  585(a).)

Multiple specific documents are required, such as: (1) form CIV 100, (2) a brief summary of the case; (3) declarations or other admissible evidence in support of the judgment requested; (4) interest computations as necessary; (5) a memorandum of costs and disbursements; (6) a proposed form of judgment; (7) a dismissal of all parties against whom judgment is not sought or an application for separate judgment under CCP § 579, supported by a showing of grounds for each judgment; (8) exhibits as necessary; and (9) a request for attorneys’ fees if allowed by statute or by the agreement of the parties.  (CRC Rule 3.1800.)

Here, Happyland has properly complied with all the substantive and procedural requirements for a default judgment. Substantively, Happyland declares via declaration that there have been damages in the amount of $3,247,500 as lost profits plus $19,250 of Plaintiff’s unrefunded initial deposit, for a total of $3,266,750.  Plaintiff has provided a calculation of prejudgment interest of $641,715.00 (for the period through July 28, 2023) which continues to accrue at the rate of $895 per day.  A memorandum of costs in the amount of $1,270.00 is set forth in Item 7 of the CIV-100 form.  Procedurally, Plaintiff properly served Defendants more than 30 days prior to requesting entry of default and default judgment, correctly completed JC Form CIV-100 in a manner that would not void or put at issue the entry of default, provided a declaration of non-military status, requested damages in amounts supported by the filings and not in excess of the amount stated in the Complaint, dismissed all other defendants, and filed a proposed judgment (JUD-100).   As default has already been entered and there has been no appearance or filing whatsoever from Defendants, default judgment is appropriate here.

CONCLUSION AND ORDER

For the foregoing reasons, Plaintiff Happyland, LLC’s Request for Default Judgment is GRANTED as to Defendants BPM Asset Management LLC, BPM Global LLC, Cain Aaron McKnight and Harmony Brooke.  Default judgment in the amount of $3,909,735 is awarded in favor of Plaintiff, with interest accruing at the rate of $895 per day after July 28, 2023.