Judge: Joseph Lipner, Case: 23STCV27357, Date: 2024-03-20 Tentative Ruling

Case Number: 23STCV27357    Hearing Date: March 20, 2024    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Plaintiff CVD Diamond, Inc. (“Plaintiff”) seeks default judgment against Defendants Fair Gems, Inc. (“Fair Gems”) and Gidi Uzan (collectively, “Defendants”).

Plaintiff requests:

(1) money judgment in the amount of $51,077.75, consisting of:

(a) damages in the amount of $46,905.90;

(b) interest in the amount of $1,750.85;

(c) costs in the amount of $1,221.00; and

(d) attorney’s fees in the amount of $1,200.

The Court CONTINUES Plaintiff’s request for default judgment so that Plaintiff may correct its damages and interest calculations in the CIV-100 and JUD-100. Plaintiff must calculate requested interest as interest, and not as damages.

Background

Plaintiff sold and delivered diamonds to Defendants on an open book account. Defendants agreed to pay for the diamonds that they purchased from Plaintiff. Defendant provided Plaintiff with a memorandum of goods for each sale stating the cost. Defendants owe an outstanding amount of $36,615.84. Plaintiff has demanded that Defendants pay this amount, but Defendants have continually refused to pay.

Plaintiff filed this case on November 7, 2023.

Default was entered against Fair Gems on January 26, 2024. Default was entered against Uzan on February 6, 2024.

Plaintiff filed this request for default judgment on February 13, 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

            Plaintiff provides proofs of service indicating that Fair Gems and Uzan wer served on December 15, 2023 via substitute service at 5713 Cedros Avenue, Van Nuys, California 91411.

Dismissal of Other Parties

The Doe defendants were dismissed from the action on February 15, 2024, pursuant to Plaintiff’s request.

Non-Military Status

Timothy Krantz avers to Defendants’ non-military status.

Summary of the Case

Plaintiff provides a brief summary of the case in the Declaration of Alpesh Ramani. 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.)

            Alpesh Ramani avers that Defendants owe a principal sum of $36,615.84. (Ramani Decl. ¶ 13.)

Alpesh Ramani avers that the principal accrues contractual interest at the rate of 1.5 percent per month from 90 days after each of the invoices, totaling $10,290.06. (Ramani Decl. ¶ 14.) Plaintiff appears to include this interest in its damages calculation. This figure must be included under interest, and not damages, in the CIV-100 Form.

Interest

The Complaint requests interest.

Alpesh Ramani avers that the principal accrues contractual interest at the rate of 1.5 percent per month from 90 days after each of the invoices, totaling $10,290.06. (Ramani Decl. ¶ 14.) Plaintiff appears to include this interest in its damages calculation. This figure must be included under interest, and not damages, in the CIV-100 Form.

Timothy Krantz clarifies that the above interest ran from the time of the invoices through the time when the Complaint was filed. (Krantz Decl. at p. 2:1-5.) Krantz further declares that the requested prejudgment interest accrued since the filing of the Complaint amounts to $1,750.85.

Plaintiff may properly request these amounts, but they must both be included in the interest calculations in the CIV-100 and JUD-100 forms, and not in damages.

Memorandum of Costs and Disbursements

Plaintiff includes a memorandum of costs in the submitted Form CIV-100, averring that it expended $1,221.00 in costs.

Attorney’s Fees

Plaintiff requests $1,200.00 in attorney’s fees.

This is an action on a contract. Because the judgment is between $10,000.01 and $50,000, the maximum recovery of attorney’s fees is equal to $690 plus 3% of the excess over $10,000. (Local Rule 3.214.)

            The requested attorney’s fees are within this amount.

Proposed Form of Judgment

            Plaintiff has submitted a proposed form of judgment. The form must be corrected as discussed under damages and interest.

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.