Department 78, Stanley Mosk Courthouse

April 11, 2024

23STCV12991

Default Judgment

DECISION

Plaintiff’s request for entry of default judgment is GRANTED.

The Court will sign the proposed JUD-100 received on 12/19/23.

Moving party to provide notice.

Discussion

Plaintiff requests default judgment as follows.

Demand of the Complaint $31,415.34

Interest $3,555.93

Costs $752.81

Attorney Fees $1,200

Total $36,924.08

This is an action for breach of contract, open book account, account stated, and reasonable value. Assignor State Compensation Insurance Fund assigned the rights to its claims against Defendants to Plaintiff Creditors Adjustment Bureau. Plaintiff alleges Assignor agreed to provide a policy of workers’ compensation insurance to Defendants between June 2021 and June 2022. Defendants agreed to pay premiums for the policy. Defendants breached the insurance agreement, leaving $31,415.34 in unpaid premiums. 

12/5/2023 Default Entered

12/20/2023 Doe Dismissal Entered

Plaintiff provides the declaration of Melissa Klopstock, premium collections specialist with Assignor, who testifies that after making payments of $2,250.15, Defendants stopped making payments and now owe $31,415.34. (KlopstockDecl., ¶4.) Plaintiff also provides a copy of the invoice showing Assignor deducted a credit of $2,250.15 from Defendant’s premium, leaving a debt of $31,415.34. (Id., Exh 1.) The demand for damages is supported by evidence.

Plaintiff requests $3,555.93 in interest at a rate of 10% per annum, which is permitted under Civ. Code, section 3289(b) for a breach of contract action. Plaintiff’s counsel properly provides a calculation of interest. (Jyoo Decl., ¶4.)

Plaintiff also seeks $1,200 in attorney’s fees. Attorney’s fees are permitted by statute. Plaintiff cites Civ. Code, section 1717.5, which provides that in any action on a contract based on a book account entered into on or after January 1, 1987, which does not provide for attorney’s fees and costs, the party who is determined to be the prevailing party shall be entitled to reasonable attorney’s fees. Attorney’s fees allowed pursuant to this section shall be the lesser of the maximum amount allowed by this section, the amount provided by any default attorney’s fee schedule, or an amount as otherwise provided by the court. (Civ. Code, section 1717.5(b).) 

Local Rule of the Court, rule 3.214(a) provides, in relevant part: 

When a promissory note, contract, or statute provides for the recovery of reasonable attorneys’ fees, the following schedule will apply to the amount of the new judgement unless otherwise determined by the court. Default case: 

$0.01 to $1,000, 15% with a minimum of $75.00; 

$1,000.01 to $10,000, $150 plus 6% of the excess over $1,000; 

$10,000.01 to $50,000, $690 plus 3% of the excess over $10,000; 

$50,000.01 to $100,000, $1,890 plus 2% of the excess over $50,000; 

Over $100,000, $2,890 plus 1% of the excess over $100,000.

The calculation under Rule 3.214(a) is (($31,415.34 - $10,000) X .03) + 690 = $1,332.46. Because the amount provided under Civ. Code 1717.5, $1,200, is less than the amount provided under Rule 3.214(a), the proper award is $1,200.

Plaintiff seeks to recover costs for filing fees and service of process. These costs are allowable.