Judge: Joel L. Lofton, Case: 22AHCV00049, Date: 2022-08-23 Tentative Ruling

Case Number: 22AHCV00049    Hearing Date: August 23, 2022    Dept: X

   Tentative Ruling

Judge Joel L. Lofton, Department X

HEARING DATE:      August 23, 2022                                 TRIAL DATE:  No date set.

CASE:                         JAMIE ZHAO, an individual, v. A-MAY INVESTMENT, LLC, a California Limited Liability Company.

CASE NO.:                 22AHCV00049

MOTION TO SET ASIDE DEFAULT

MOVING PARTY:              Defendant A-May Investment, LLC

RESPONDING PARTY:     Plaintiff Jamie Zhao

SERVICE:                             Filed July 27, 2022

OPPOSITION:                      Filed August 10, 2022

REPLY:                                  Filed August 16, 2022

RELIEF REQUESTED

            Defendant moves to set aside default

BACKGROUND

            This case arises out of Plaintiff Jamie Zhao’s (“Plaintiff”) claim that Defendant A-May Investment, LLC (“Defendant”) failed to repay under a promissory note. Plaintiff filed this complaint on January 31, 2022, alleging that Defendant owed $663,786.22 in unpaid principal, $39,156.72 in unpaid late fees, and accrued interest. Plaintiff alleges two causes of action for (1) breach of contract and (2) common counts.

TENTATIVE RULING

Defendants’ motion to set aside default and default judgment is GRANTED.

            Defendant is ordered to file and serve their answer within five (5) days of the notice of ruling.

REQUESTS FOR JUDICIAL NOTICE

            Defendant’s requests for judicial notice for exhibits A, B, C, and D, are granted pursuant to evidence code section 452, subdivision (d).

LEGAL STANDARD

“When service of a summons has not resulted in actual notice to a party in time to defend the action and a default or default judgment has been entered against him or her in the action, he or she may serve and file a notice of motion to set aside the default or default judgment and for leave to defend the action. The notice of motion shall be served and filed within a reasonable time, but in no event exceeding the earlier of: (i) two years after entry of a default judgment against him or her; ¿or (ii) 180 days after service on him or her of a written notice that the default or default judgment has been entered.” (Code Civ. Proc. section 473.5, subd. (a).)

DISCUSSION

            Defendant argues that the motion to set aside default should be granted because it did not receive actual notice of the case. Defendant argues that although the summons for this case was served on Ashley Liu (“Liu”), no actual notice was given to Defendant. Rachel Jin, a co-managing member of Defendant, provided that prior to June 21, 2022, she had no knowledge of the present lawsuit and was never informed by Liu that Liu had been served with a lawsuit. (Jin Decl. ¶ 1-3.) Defendant’s counsel is a separate matter provides that he was not aware of this lawsuit until default judgment was entered on June 21, 2022. (Wang Decl. ¶ 3.) In opposition, Plaintiff submits the declaration of Ashley Liu who does not state that she informed any other member of Defendant or Defendant’s counsel about the lawsuit.

            The Court finds that the service of summons on Ashley Liu did not result in actual notice to A-May Investment, LLC.

CONCLUSION

            Defendants’ motion to set aside default and default judgment is granted.

            Defendant is ordered to file and serve their answer within five (5) days of the notice of ruling.

Dated:   August 23, 2022                                ___________________________________

                                                                                    Joel L. Lofton

                                                                                    Judge of the Superior Court

Parties who intend to submit on this tentative must send an email to the court indicating their

intention to submit.  Parties intending to appear are strongly encouraged to appear remotely.  alhdeptx@lacourt.org