Judge: Joseph Lipner, Case: 24STCV00350, Date: 2024-08-19 Tentative Ruling

Case Number: 24STCV00350    Hearing Date: August 19, 2024    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Plaintiff Credit Corp Solutions, Inc. (“Plaintiff”) seeks default judgment against Defendant Angie Grigorian (“Defendant”).

Plaintiff requests:

(1) money judgment in the amount of $184,590.03, consisting of:

            (A) $184,066.03 in damages; and

            (B) $524.00 in costs.

Plaintiff’s request for default judgment is GRANTED.

Background

This is a debt collection action.

Citibank, N.A. (“Citibank”) issued a credit account to Defendant. Defendant made use of the credit account and defaulted in making required payments. The date of the last payment was May 25, 2021. Citibank, N.A. transferred its interest in the credit account to Plaintiff.

Plaintiff filed this action on January 5, 2024, raising claims for (1) account stated; and (2) open book account.

Default was entered against Defendant on July 16, 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

The Proof of Service filed on January 22, 2024 indicates that Defendant was served on January 15, 2024 at 821 Palm Place, Montebello, California 90640, via substitute service on John Doe, a co-resident.

Dismissal of Other Parties

On July 16, 2024, Plaintiff requested the dismissal of the Doe defendants. The Court hereby grants Plaintiff’s request.

Non-Military Status

Nathalia A. Aguirre aver to the non-military status of Defendant.

Summary of the Case

Plaintiff provides a brief summary of the case in the Declaration of Aliyah Huerta in support of default judgment. Plaintiff adequately pleads its causes of action.

Evidence of Damages

Huerta avers that the balance on Defendant’s account at charge-off was $184,066.03. (Huerta Decl. ¶ 11.) This was, of course, the amount requested in the complaint based on Citibank records that were also attached to the complaint.

There is an arguable hearsay problem, however – Huerta relies on business records of Citibank which were later acquired by Plaintiff in order to establish this fact. (Huerta Decl. ¶¶ 3-6.) Huerta provides declarations that appear to state that the records are business records of Plaintiff for hearsay purposes. (Huerta Decl. ¶¶ 3-5.) However, these are records of Citibank, which has not provided its own declaration.

In the context of this default proceeding the Court accepts Plaintiff’s evidence as admissible and credits Plaintiff’s testimony.  There is a reasonable legal position that these are not hearsay statements at all.  Credit card statements of the sort at issue here are created mechanically and automatically.  Hearsay applies to out of court statements, which can be made by a person and not a machine.  (See Evidence Code § 1200 [defining hearsay evidence as evidence “of a statement that was made other than by a witness while testifying.”].)  Plaintiff has authenticated the documents as Citibank documents that served as the basis for Plaintiff’s decision to buy the debt. (Huerta Decl. ¶¶ 5-6.)  Federal law required Citibank to send Defendant these monthly statements.  (Huerta Decl. ¶ 6.)  The documents appear to be in the form of a normal credit card statement.  Moreover, they were attached to the complaint and Defendant had the opportunity to contest them if Defendant had appeared in this case. 

For all these reasons, the Court finds that Plaintiff has provided adequate evidence of its damages.

Interest

Plaintiff does not seek interest.

Memorandum of Costs and Disbursements

Nathalia A. Aguirre avers that Plaintiff expended $524.00 in costs.

Attorney’s Fees

            Plaintiff does not request attorney’s fees.

Proposed Form of Judgment

            Plaintiff provides a proposed form of judgment consistent with the above.

Submission of the Written Agreement

            The Court’s record does not appear to reflect that the original agreements have been submitted. The Court requests that Plaintiff submit the original loan agreements or aver as to whether the original documents have been lost or destroyed.

Statement of Damages

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