Judge: Edward B. Moreton, Jr, Case: 23SMCV05874, Date: 2024-09-16 Tentative Ruling

Case Number: 23SMCV05874    Hearing Date: September 16, 2024    Dept: 205

PROCEEDINGS:                          REQUEST FOR ENTRY OF DEFAULT JUDGMENT

MOVING PARTY:               Forwardline Financial, LLC  

RESPONDING PARTY:      Dragan Perovic

BACKGROUND

This is a breach of contract case.  PD Freight LLC (“Borrower”) applied for a loan from Plaintiff Forwardline Financial, LLC, pursuant to a Loan and Security Agreement (the “Agreement”).  Defendant Dragan Perovic executed a personal guarantee whereby, if PD Freight, LLC defaulted on the loan, he would be personally liable to Plaintiff.  Borrower defaulted on the loan, owing $29,921.58.

On December 18, 2023, Plaintiff filed a complaint alleging claims for breach of contract, account stated and open book account.  The Complaint seeks damages in the amount of $29,921.58, plus interest at the rate of 10% per annum, attorneys’ fees and costs. 

Plaintiff served Defendant by substitute service on February 13, 2024.  Defendant was obligated to respond within 30 days.  Defendant did not do so.  Plaintiff successfully requested the entry of Defendant’s default, which was entered by the Clerk’s Office on April 10, 2024.  Plaintiff requested a default judgment on June 4, 2024.  Plaintiff served Defendant by mail with both the Request for Entry of Default and Request for Default Judgment.  Defendant has not appeared.

RELIEF REQUESTED

Default judgment against Defendant for a total of $37,005.66, which is comprised of: (1) $29,921.58, for damages, (2) $5,394.08 in interest, (3) $1,200 in attorneys’ fees and (4) $490, for costs.

ANALYSIS

Code Civ. Proc. § 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 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 $29,291.58 as amounts owing under the loan and guaranty.  A memorandum of costs in the amount of $490 is set forth in Item 10 of the CIV-100 form.  The evidence submitted (the Agreement, the Guaranty and the Statement of Account) is authenticated by further declaration.  Plaintiff seeks $1,200 in attorneys’ fees, which is authorized under Civ. Code § 1717.5 and also supported by declaration.  Plaintiff seeks $5,394.08 in interest, from the default date of June 22, 2022 through and including April 10, 2024, which calculation is supported by declaration.  Procedurally, Plaintiff properly served Defendant 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, requested dismissal of doe defendants and filed a proposed judgment (JUD-100).  As default has already been entered and there has been no appearance or filing whatsoever from Defendant, default judgment is appropriate here.

CONCLUSION AND ORDER

For the foregoing reasons, Plaintiff Forwardline Financial, LLC’s Request for Default Judgment is GRANTED as to Defendant Dragan Perovic.  Judgment in the amount of $37,005.66 is awarded in favor of Plaintiff.