Judge: Elaine Lu, Case: 24STCV21640, Date: 2025-06-09 Tentative Ruling

Case Number: 24STCV21640    Hearing Date: June 9, 2025    Dept: 9

24STCV21640

ORDER

Based on a joint status report filed in the related case, 24STCV15233, it appears that the parties have scheduled a mediation in the related case to take place on August 18, 2025.  The Parties are ordered to file a Joint Status Report re Mediation Efforts by no later than September 8, 2025 advising as (1) whether the mediation encompassed the instant action (24STCV21640), and (2) whether the mediation was successful in resolving the case.  The Court hereby sets a Status Conference re mediation efforts for September 15, 2025 at 10 am.

In the instant action, Plaintiff has filed proof of service of the Operative Summons and Complaint as to certain defendants who have not responded, including HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP..

The time to respond for these defendants who have been served has already lapsed.

The Court reminds the parties that ultimately, the Court may not enter default judgment in an amount exceeding the amount demanded in the Complaint.  (CCP 585(b).)  The Court may not grant relief not demanded in the complaint by default judgment even though that relief otherwise would have been proper. (CCP § 580(a); Airs Aromatics, LLC v. CBL Data Recovery Technologies, Inc. (2018) 23 Cal.App.5th 1013, 1018 (default judgment for sum in excess of that demanded in complaint is void).  “It is fundamental to the concept of due process that a defendant be given notice of the existence of a lawsuit and notice of the specific relief which is sought in the complaint served upon him.” (Marriage of Lippel (1990) 51 Cal.3d 1160, 1166 [emphasis added].)  Thus, for example, where the complaint does not request attorney fees, the court cannot award fees against a defaulting defendant. It makes no difference that the fees are awardable by statute. (Feminist Women's Health Ctr. v. Blythe (1995) 32 Cal.App.4th 1641, 1675).  Accordingly, prior to seeking any Defendant’s default, Plaintiff may wish to review the operative Complaint for whether the operative Complaint gives notice of the amount of damages that Plaintiff seeks to recover; if the operative Complaint fails to do so, it may be futile for Plaintiff to seek entry of Defendant’s default without first amending the Complaint to clearly state and give notice of the amount of damages that Plaintiff is seeking to recover.  In the event that Plaintiff wishes to amend the Complaint for this purpose, the Court hereby lifts the stay to grant leave to amend the operative complaint.  If Defendant again fails to respond upon being served with the amended complaint, a request for entry of Defendant’s default on the Amended Complaint may then possibly lead to a request for entry of default judgment in an amount equal to or less than that stated in the Amended Complaint.

No later than August 1, 2025, Plaintiff’s Counsel must: (a) file either a request for entry of HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP.’s defaults or a declaration explaining the failure to seek and obtain HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP.’s defaults in this action, setting forth any and all efforts undertaken to obtain HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP.’s defaults, and explaining why sanctions (including monetary sanctions of at least $1,000) should not be imposed for failure to timely seek HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP.’s default, in compliance with California Rules of Court, Rule 3.720, or (b) file a further amended complaint that gives notice of the amount of damages that Plaintiff will be seeking to recover in the event of a default and default judgment, and file proof of service of the operative amended complaint and amended summons.  Failure to comply by August 1, 2025 may result in the Court setting an OSC re sanctions.  Finally, if Defendants HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP. again fail to respond upon being served with the further amended complaint, Plaintiff must timely file a request for entry of HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP.’s defaults on the further Amended Complaint

The Initial Status Conference is CONTINUED to September 15, 2025 at 10:00 am in Department 9 re entry of HIGH RISE GOODIES RESTAURANT GROUP, INC. and MUSEUM ELYAD CORP.’s defaults.  The parties are ordered to file a Joint Initial Status Conference Report addressing all the topics in the Court’s April 8, 2025 Initial Status Conference Order by no later than September 8, 2025.

The Case Management Order filed 1/24/25 in the related case, 24STCV15233 will apply to the instant action (24STCV21640) in that discovery is phased with the stay lifted once Defendants file and serve an answer or, if applicable, after the Court rules on any pleading challenge. Because multiple Defendants have already answered in this action, the Court will permit class certification discovery only at this time.  Informal discovery is permitted.  Merits based discovery will be allowed after a successful class certification motion. If there is a dispute concerning whether a given discovery request is certification or merits-based, the parties are to set up a telephonic conference with the court pursuant to the instructions herein.

The Court’s Judicial Assistant shall give notice to Plaintiff’s Counsel.  Plaintiff’s Counsel is ordered to give notice to all other parties.