Superior Court of California 

County of Los Angeles – West District  

Beverly Hills Courthouse / Department 205 

 

 

BACKGROUND 

This action arises from a breach of promissory notes.  Plaintiff A&M Engineering Inc. (“AME”) made three short-term loans to Global Automotive Solutions LLC (“GAS”) and its successor-in-interest, Stelaro LLC (“Stelaro”).  The loans total $14 million, only $1 million of which Plaintiff claims has been repaid.  The loans were purportedly used to buy cars in Mexico which were re-sold for a profit in other countries.   

AME obtained a right to attach order (“RTAO”) against Stelaro.  In granting AME the RTAO, the Court found that AME is likely to prevail on its claims against Stelaro and is likely to obtain at least $11,065,000.   

AME now seeks a lien on Stelaro’s pending claims, including on its suit against Scott Smith, Stelaro’s former Chief Financial Officer.  Stelaro has sued Smith and his company, Waterfront Partners, Inc., for breach of fiduciary duty and unjust enrichment arising from Smith’s admitted embezzlement from Stelaro.  Stelaro alleges it was harmed in an amount that exceeds $3 million and also prays for punitive damages.  No opposition to the application for lien was filed as of the posting of this tentative ruling.     

REQUEST FOR JUDICIAL NOTICE 

AME requests judicial notice of (1) minute order titled “Ruling on Submitted Matter Re Plaintiff’s Applications for Writ of Attachment” entered in this matter on July 25, 2024; (2) RTAO in the amount of $11,065,000 against Defendant Stelaro, LLC, entered in this matter on November 22, 2024; (3) the Complaint in Stelaro, LLC v. Scott Smith et al., Los Angeles Superior Court case number 23TRCV01356; and (4) minute order dated November 28, 2023 and titled “Case Management Conference” entered in Stelaro, LLC v. Scott Smith et al.. 

The Court denies the request as to (1) and (2).  It is not necessary to seek judicial notice of documents filed in this action.  All that is necessary is to call the Court’s attention to the orders.  The Court grants the request as to (3) and (4) pursuant to Cal. Evid. Code §§ 452(d) and 453.   

ANALYSIS 

 

AME seeks an order creating a lien in the amount of $11,065,000, the amount of the RTAO the Court granted, which it will then file in the pending Stelaro v. Scott Smith matter and any other pending Stelaro lawsuits.  The Court concludes that AME has complied with the substantive and procedural requirements for seeking a lien. 

Procedurally, Code of Civil Procedure section 491.415, subdivision (b) requires parties moving for an order creating a lien to apply for it “in the same manner as a writ of attachment[.]”  AME submits Judicial Council form AT-105 with this application, which is normally used for applications for right to attach orders. 

Substantively, “[a] plaintiff may obtain an attachment lien on any pending cause of action of the defendant for money or property, if the money or property would be subject to attachment.” (Ahart, Cal. Practice Guide: Enforcing Judgments & Debts (Rutter Group 2024) ¶ 4:617 [citing Code Civ. Proc., § 491.410, subd. (a)].) “If a RTAO has already been obtained, the application is made in the same manner as for a [writ of attachment].” (Id. at ¶ 4:618 [citing Code Civ. Proc., § 491.415, subd. (b)].)   

The Court granted AME the RTAO in July and signed the RTAO in November. AME submits nearly identical evidence with this application that it submitted to support that RTAO application. As such, there can be no question that AME is also entitled to an order creating a lien in Stelaro’s pending case against Smith given that this application uses the same standard that the Court previously applied on AME’s RTAO application.  

CONCLUSION 

For the foregoing reasons, the Court GRANTS Plaintiff’s application for a lien on all pending claims brought by Stelaro, including Stelaro’s pending suit against Scott Smith and Waterfront Partners, Inc. in Stelaro, LLC v. Scott Smith et al., Los Angeles Superior Court Case Number 23TRCV01356. 

 

IT IS SO ORDERED. 

 

DATED: March 18, 2025 ___________________________ 

Edward B. Moreton, Jr. 

Judge of the Superior Court