Judge: Joseph Lipner, Case: 22STCV38704, Date: 2024-06-17 Tentative Ruling



Case Number: 22STCV38704    Hearing Date: June 17, 2024    Dept: 72

 

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

 

DEPARTMENT 72

 

TENTATIVE RULING

 

INGRAM WASHINGTON,

 

                                  Plaintiff,

 

         v.

 

 

CAPITAL LOGISTICS WAREHOUSING, INC.,

 

                                  Defendant.

 

 Case No:  22STCV38704

 

 

 

 

 

 Hearing Date:  June 17, 2023

 Calendar Number:  2

 

 

 

Plaintiff Ingram Washingotn (“Plaintiff”) seeks default judgment against Defendant Capital Logistics Warehousing, Inc. (“Defendant”).

 

Plaintiff requests:

 

(1) money judgment in the amount of $547,584.00, consisting of:

 

(a) damages in the amount of $514,780.00;

 

(b) interest in the amount of $2,260.00;

 

(c) costs in the amount of $544.00;

 

(d) attorney’s fees in the amount of $30,000.00 (or $32,900 in Plaintiff’s proposed judgment);

 

The Court DENIES Plaintiff’s request for default judgment. Plaintiff has not adequately pled his fraud claims. Plaintiff must correct his damages request or provide adequate evidence for his damages. Plaintiff must correct his interest and attorney fee requests.

 

Background

 

This is an employment case.

 

Plaintiff alleges that Defendant hired her as an employee with a salary of $80,000.00, but then informed her on her first day that she would be an independent contractor with a salary of $75,000.00.

 

Plaintiff alleges that she reported several unlawful activities, including Labor Code violations, fire safety issues, theft, operation of heavy machinery after drinking, and a fraudulent client invoice scheme.

 

Plaintiff alleges that she was terminated in retaliation for reporting these violations.

 

Plaintiff filed this action on December 13, 2022. The operative complaint is now the First Amended Complaint (“FAC”), which raises claims for (1) retaliation in violation of Labor Code, section 1102.5; (2) wrongful termination in violation of Labor Code, section 1102.5; (3) wrongful termination in violation of public policy; (4) breach of contract; (5) promissory fraud (deceit); (6) promissory fraud (negligent misrepresentation); and (7) earned but unpaid wages.

 

Default was entered against Defendant on March 25, 2024.

 

Legal Standard

 

CCP § 585 permits entry of a judgment after a Defendant has failed to timely answer after being properly served.  A party seeking judgment on the default by the Court must file a Form CIV-100 Request for Court Judgment, and:

 

(1) Proof of service of the complaint and summons;

(2) A dismissal of all parties against whom judgment is not sought (including Doe defendants) or an application for separate judgment under CCP § 579, supported by a showing of grounds for each judgment (CRC 3.1800(a)(7));

(3) A declaration of non-military status as to the defendant (typically included in Form CIV-100) (CRC 3.1800(a)(5));

(4) A brief summary of the case (CRC 3.1800(a)(1));

(5) Admissible evidence supporting a prima facie case for the damages or other relief requested (Johnson v. Stanhiser (1999) 72 Cal.App.4th 357, 361-362);

(6) Interest computations as necessary (CRC 3.1800(a)(3));

(7) A memorandum of costs and disbursements (typically included in Form CIV-100 (CRC 3.1800(a)(4));

(8) A request for attorney’s fees if allowed by statute or by the agreement of the parties (CRC 3.1800(a)(9)), accompanied by a declaration stating that the fees were calculated in accordance with the fee schedule as per Local Rule 3.214.  Where a request for attorney fees is based on a contractual provision the specific provision must be cited; (Local Rule 3.207); and

(9) A proposed form of judgment (CRC 3.1800(a)(6));

(10) Where an application for default judgment is based upon a written obligation to pay money, the original written agreement should be submitted for cancellation (CRC 3.1806). A trial court may exercise its discretion to accept a copy where the original document was lost or destroyed by ordering the clerk to cancel the copy instead (Kahn v. Lasorda's Dugout, Inc. (2003) 109 Cal.App.4th 1118, 1124);

(11) Where the plaintiff seeks damages for personal injury or wrongful death, they must serve a statement of damages on the defendant in the same manner as a summons (Code Civ. Proc. § 425.11, subd. (c), (d)).

 

 

(California Rules of Court rule 3.1800.)

 

Pursuant to Code Civ. Proc., § 1033.5(a)(1), items are allowable as costs under Section 1032 if they are “filing, motion, and jury fees.”

 

A party who defaults only admits facts that are well-pleaded in the complaint or cross-complaint. (Molen v. Friedman (1998) 64 Cal.App.4th 1149, 1153-1154.) Thus, the complaint must state a claim for the requested relief.

             

 

Discussion

 

Service of the Complaint and Summons

 

            According to the proof of service filed on March 22, 2024, Defendant was served on January 11, 2024 at 525 W Manville St, Compton, CA 90220 via substitute service on Candice Doe, the person in charge of Defendant’s office.

 

 

Non-Military Status

 

Nichelle D. Jordan avers to Defendant’s non-military status.

 

 

Summary of the Case

 

Plaintiff provides a brief summary of the case in his declaration.

 

Intentional Misrepresentation

Plaintiff has not adequately pled his claim for fraud by intentional misrepresentation.

 

“The elements of fraud are (a) a misrepresentation (false representation, concealment, or nondisclosure); (b) scienter or knowledge of its falsity; (c) intent to induce reliance; (d) justifiable reliance; and (e) resulting damage.” (Hinesley v. Oakshade Town Ctr. (2005) 135 Cal.App.4th 289, 294.)

 

The facts constituting the alleged fraud must be alleged factually and specifically as to every element of fraud, as the policy of “liberal construction” of the pleadings will not ordinarily be invoked. (Lazar v. Superior Court (1996) 12 Cal.4th 631, 645.) To properly allege fraud against a corporation, the plaintiffs must plead the names of the persons allegedly making the false representations, their authority to speak, to whom they spoke, what they said or wrote, and when it was said or written. (Tarmann v. State Farm Mut. Auto. Ins. Co. (1991) 2 Cal.App.4th 153, 157.)

 

Plaintiff has not pled that Defendant intended to induce his reliance or that Plaintiff relied on Defendant’s representations.

 

Negligent Misrepresentation

 

The elements of a cause of action for negligent misrepresentation include “[m]isrepresentation of a past or existing material fact, without reasonable ground for believing it to be true, and with intent to induce another’s reliance on the fact misrepresented; ignorance of the truth and justifiable reliance on the misrepresentation by the party to whom it was directed; and resulting damage.” (Hydro-Mill Co., Inc. v. Hayward, Tilton & Rolapp Ins. Associates, Inc. (2004) 115 Cal.App.4th 1145, 1154, quotation marks omitted.) The facts constituting the alleged fraud must be alleged factually and specifically as to every element of fraud, as the policy of “liberal construction” of the pleadings will not ordinarily be invoked. (Lazar v. Superior Court (1996) 12 Cal.4th 631, 645.) To properly allege fraud against a corporation, the plaintiff must plead the names of the persons allegedly making the false representations, their authority to speak, to whom they spoke, what they said or wrote, and when it was said or written. (Tarmann v. State Farm Mut. Auto. Ins. Co. (1991) 2 Cal.App.4th 153, 157.)

 

“California courts have recognized a cause of action for negligent misrepresentation, i.e., a duty to communicate accurate information, in two circumstances. The first situation arises where providing false information poses a risk of and results in physical harm to person or property. The second situation arises where information is conveyed in a commercial setting for a business purpose.” (Friedman v. Merck & Co. (2003) 107 Cal.App.4th 454, 477.)

 

Plaintiff has not pled intent to reduce reliance or that Plaintiff relied on Defendant’s representations.

 

If Plaintiff wishes to state a claim for these causes of action, Plaintiff must amend his complaint.

 

 

Evidence of Damages

 

“Code of Civil Procedure section 580 prohibits the entry of a default judgment in an amount in excess of that demanded in the complaint.”  (Kim v. Westmoore Partners, Inc. (2011) 201 Cal.App.4th 267, 286.) Moreover, “a statement of damages cannot be relied upon to establish a plaintiff's monetary damages, except in cases of personal injury or wrongful death.” (Ibid.) “In all other cases, when recovering damages in a default judgment, the plaintiff is limited to the damages specified in the complaint.” (Ibid.) Moreover, a plaintiff must submit admissible evidence supporting a prima facie case for the damages or other relief requested (Johnson v. Stanhiser (1999) 72 Cal.App.4th 357, 361-362.)

 

            There are several problems with Plaintiff’s damages prove-up.

 

            First, although Plaintiff requests $514,780.00 in damages on default judgment, Plaintiff’s declaration only purports to support $326,589.00 in damages. Plaintiff cannot obtain damages in excess of proof.

 

            Second, Plaintiff requests two years in front pay, but does not provide evidence as to how long he would have been employed but for his alleged wrongful termination.

 

            Third, Plaintiff provides only minimal, conclusory statements as to the emotional distress he suffered as a result of his termination. This is inadequate to support his request for $100,000.00 in pain and suffering damages.

 

            Plaintiff must resolve these inconsistencies in his damages requests. 

 

 

Interest

 

Plaintiff requests $2,260.00 in interest.

 

A plaintiff may only recover pre-judgment interest interest when the damages are “certain, or capable of being made certain by calculation[.]” (Civ. Code, section 3287.)

 

Plaintiff’s damages are not certain or capable of being made certain because they include speculative front-pay damages and emotional distress damages– damages which lack adequate evidentiary support, at that. Plaintiff therefore has not shown an entitlement to pre-judgment interest.

 

 

Memorandum of Costs and Disbursements

 

Nichelle D. Jordan avers that Plaintiff expended $544.00 in costs.

 

 

Attorney’s Fees

 

            Plaintiff requests $30,000.00 in attorney’s fees.

 

            A plaintiff in a retaliation action can recover their reasonable attorney’s fees. (Lab. Code, § 1102.5, subd. (j).)

 

Because the judgment is in excess of $100,000.00, the maximum recovery of attorney’s fees is equal to $2,890 plus 1% of the excess over $100,000. (Local Rule 3.214.)

 

Taking as granted Plaintiff’s damages request of $514,780.00, the excess over $100,000 here is $414,780.00. 1% of that amount is $4,147.80. Thus, the maximum amount of attorney’s fees, even accepting Plaintiff’s unsupported damages claim, is $7,037.80. Plaintiff’s request far exceeds this amount.

 

After correcting his damages and interest request, Plaintiff must also correct his attorney fee request to be consistent with Local Rule 3.214.

 

 

Proposed Form of Judgment

 

            Plaintiff has submitted a proposed form of judgment. Plaintiff’s proposed judgment includes inconsistent attorney’s fees, which are excessive in any event.