Judge: Edward B. Moreton, Jr., Case: 23SMCV02041, Date: 2023-10-06 Tentative Ruling

Case Number: 23SMCV02041    Hearing Date: October 6, 2023    Dept: 205

HEARING DATE:  October 6, 2023 

JUDGE/DEPT:  Moreton/Beverly Hills, 205 

CASE NAME: Maxim Commercial Capital LLC v. Stoneridge Construction LLC, et al. 

CASE NUMBER:  23SMCV02041 

 

COMP. FILED:  May 10, 2023 

 

 

 

PROCEEDINGS: REQUEST FOR ENTRY OF DEFAULT JUDGMENT 

MOVING PARTY: Maxim Commercial Capital, LLC  

RESPONDING PARTY: Stoneridge Construction LLC and Onesimo Martinez, Jr. 

 

BACKGROUND 

This case arises from monies owed on an equipment finance agreement and guarantyDefendant Stoneridge Construction, LLC entered into a written equipment finance agreement (“Agreement”) whereby Plaintiff Maxim Commercial Capital LLC agreed to finance Stoneridge’s purchase of certain equipment, and Stoneridge agreed to make monthly payments.   

As further consideration, Defendant Onesimo Martinez, Jr. executed a personal guaranty (“Guaranty”) whereby he unconditionally guaranteed Stoneridge’s payment and performance obligations under the Agreement.   

The Agreement also provides Plaintiff with a security interest in commercial equipment purchased by Stoneridge, described as 2015 Vermeer D20x22 S3 w/ Falcon F5 GPS VIN No. 1VRA170VF1000313 (the “Collateral”).   

Additionally, Section 16 of the Agreement provides that Stoneridge shall pay the attorneys’ fees and costs incurred by Plaintiff in enforcing its rights under the Agreement.   

Stoneridge defaulted on the Agreement by failing to make monthly payments.  Martinez defaulted on the Guaranty by failing to make the payments Stoneridge failed to pay.      

On May 10, 2023, Plaintiff filed a Complaint against Defendants.  The Complaint alleges four claims for (1) breach of contract, (2) breach of guaranty, (3) common count for money lent, and (4) recovery of personal propertyThe Complaint seeks $121,748.22 in damages plus interest at the legal rate of 10% per annum from May 25, 2020, plus attorneys’ fees and costs.  The Complaint also seeks judgment for possession of the Collateral.      

Plaintiff filed a proof of service showing Defendants were served by personal service on June 13, 2023.  Defendants were obligated to respond within 30 days. Defendants did not do so. Plaintiff successfully requested the entry of Defendants default, which was entered by the Clerk’s Office on August 3, 2023.  Plaintiff requested a default judgment on July 28, 2023. Plaintiff 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 $168,799.90, which is comprised of: (1) $121,748.22, for damages, (2) $43,139.20 in interest, (3) $3,107.48 in attorneys’ fees and (2) $805, for costs.  Plaintiff also requests a judgment for possession of the Collateral, and if the Collateral is recovered, Plaintiff will sell the Collateral and apply the proceeds to the money judgment.   

 

ANALYSIS 

 

 

Code of Civil Procedure § 585 sets forth the two options for obtaining a default judgment. First, where the plaintiffs 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 Code Civ. Proc. § 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, Plaintiff has properly complied with all the substantive and procedural requirements for a default judgment. Substantively, Plaintiff declares via declaration that there have been damages in the amount of $121,748.22 as amounts owing on the Agreement and Guaranty.  Plaintiff has also stated the statutory basis for its request for interest (Civ. Code § 3289(b)) and submitted a declaration supporting the calculation of the interest of $43,139.20Plaintiff is entitled to attorneys’ fees under Section 16 of the Agreement, and its attorney’s declaration supports the calculation of attorneys’ fees pursuant to Cal. R. Court Rule 3.214.  A memorandum of costs in the amount of $805 is set forth in Item 7 of the CIV-100 form.  The evidence submitted (the Agreement, the Guaranty, and UCC Financing Statement) is authenticated by further declaration.  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, requested dismissal of fictitious defendants, 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, 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 Maxim Commercial Capital, LLC’s Request for Default Judgment is GRANTED as to Defendants Stoneridge Construction LLC and Onesimo Martinez, Jr.  Default judgment in the amount of $168,799.90 is awarded in favor of Plaintiff. Plaintiff is also entitled to immediate possession of the equipment, described as 2015 Vermeer D20x22 S3 w/ Falcon F5 GPS VIN No. 1VRA170VF1000313.  If the equipment is recovered, Plaintiff will sell the equipment and apply the proceeds to the money judgment.