Judge: Joseph Lipner, Case: 23STCV25563, Date: 2024-03-20 Tentative Ruling

Case Number: 23STCV25563    Hearing Date: March 20, 2024    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Plaintiff L.A. Arena Company, LLC (“Plaintiff”) seeks default judgment against Defendant Marijuana Company of America, Inc. (“Defendant”).

Plaintiff requests:

(1) money judgment in the amount of $244,035.77, consisting of:

(a) damages in the amount of $222,275.00;

(b) interest in the amount of $21,168.02; and

(c) costs in the amount of $592.75;

The Court GRANTS Plaintiff’s request for default judgment.  The Court will sign the proposed judgment submitted by Plaintiff.

Background

Plaintiff licenses seating at the Arena, a sports and entertainment venue in downtown Los Angeles.

On October 26, 2021, Plaintiff and Defendant entered a licensing agreement (the “Agreement”) whereby Defendant licensed the use of a premium lounge in exchange for annual licensing fees which Defendant was to pay in installments on set dates.

On October 11, 2022 and October 25, 2022, Defendant failed to pay installments that were then due under the Agreement. Defendant failed to cure after being given notice under the Agreement.

Plaintiff demanded that Defendant arbitrate the dispute with JAMS, but Defendant refused. Plaintiff incurred some arbitration fees in attempting to secure arbitration.

Plaintiff filed this case on October 19, 2023.

Defendant was served on November 1, 2023.

Default was entered against Defendant on December 4, 2023.

Plaintiff filed this request for default judgment on January 12, 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 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 November 7, 2023, Defendant was served on November 1, 2023 at 7533 S Center View Ct Ste R, West Jordan, Utah 84084-5526, via its registered agent for service of process.

Dismissal of Other Parties

The Doe defendants were dismissed from the action on January 18, 2024, pursuant to Plaintiff’s request.

Non-Military Status

Richard D. Buckley, Jr. avers to Defendant’s non-military status.

Summary of the Case

Plaintiff provides a brief summary of the case in its Summary of Case. Plaintiff adequately pleads its causes of action in the 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.)

The Agreement provides that Plaintiff shall be treated as a lost-volume seller for damages which accrue while other lounges or premium tables remain unlicensed. (Cockrell Decl. ¶ 14.) The lounges and premium tables were not fully licensed for the 2022-2023 year and are not fully licensed for the 2023-2024 year. (Cockrell Decl. ¶ 15.)

            Chris Cockrell avers that $49,500.00 in license fees were outstanding when the agreement was terminated on December 14, 2022. (Cockrell Decl. ¶ 17(A).)

The Agreement also provides that license fees which would have become due from the time of termination until a judgment is obtained on the Agreement are also recoverable. (Cockrell Decl. ¶ 13.) Cockrell avers that Defendant owes an additional $179,775.00 in that capacity. (Cockrell Decl. ¶ 17(B).)

Defendant also incurred $2,000.00 in attempting to arbitrate the dispute pursuant to the Agreement. (Cockrell Decl. ¶ 17(D).)

Thus, the total amount of damages is $222,275.00.

Interest

The Complaint requests interest.

Richard D. Buckley, Jr. avers that the total interest owed on the unpaid amount is $21,168.02 and provides his calculations. (Buckley Decl. ¶ 8, 9.)

Memorandum of Costs and Disbursements

Plaintiff includes a memorandum of costs in the submitted Form CIV-100, averring that it expended $592.75 in costs.

Attorney’s Fees

            Plaintiff does not seek attorney’s fees.

Proposed Form of Judgment

            Plaintiff has submitted a proposed form of judgment consistent with the foregoing.

Submission of the Written Agreement

            California Rule of Court 3.1806 states that “unless otherwise ordered” judgment upon a written obligation to pay money requires a clerk’s note across the face of the writing that there has been a judgment. Here, Plaintiff has not submitted the original documents. The Court does not discern any practical need for such a clerk’s note on the written obligation in the current case and therefore orders that it need not be included. If this causes any issues for any party or non-party they are authorized to bring the matter to the Court’s attention. 

Statement of Damages

Plaintiff does not need to submit a statement of damages because this is not a personal injury or wrongful death case.