Judge: Joseph Lipner, Case: 24STCV07586, Date: 2025-04-21 Tentative Ruling

Case Number: 24STCV07586    Hearing Date: April 21, 2025    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Plaintiff 1025 E 18th St., LLC (“Plaintiff”) seeks default judgment against Defendants Stratum Brands, Inc. (“Stratum”) and Fiberlab, Inc. (“Fiberlab”) (collectively, “Defendants”).

Plaintiff requests:

(1) money judgment in the amount of $106,142.16, consisting of:

(a) damages demanded in the Complaint in the amount of $20,843.35;

(b) special damages in the amount of $6,276 85;

(c) additional general damages in the amount of $77,262.13;

(d) prejudgment interest in the amount of $4,295.38;

(e) costs in the amount of $902.07; and

(f) attorney’s fees in the amount of $2,839.33.

The Court CONTINUES the application for default judgment.

Plaintiff must dismiss the Doe defendants prior to obtaining default judgment.

Plaintiff must correct its request for damages.

Plaintiff must correct its request for attorney’s fees.

Background

This is an unlawful detainer case.

Plaintiff is the owner of the real property located at 1025 E 18th Street, Unit A, Los Angeles, California 90021 (the “Property”).

On April 18, 2023, Plaintiff and Defendants entered into a lease agreement (the “Lease”), whereby Defendants leased the Property from Plaintiff. The lease commenced on May 1, 2023 and expires on April 30, 2027.

Beginning on November 17, 2023, Defendants failed to pay rent and other charges owed to Plaintiff under the lease.

On March 13, 2024, Plaintiff served a Three Business Day Notice to Pay Estimated Rent or Quit (the “Notice”) on Defendants, demanding $20,843.35 in unpaid rent.

The Notice expired on March 18, 2024. Defendants failed to cure the default or vacate the Property.

Plaintiff filed this action on March 25, 2024, raising one claim for unlawful detainer.

Default was entered against Defendants on June 11, 2024.

On July 30, 2024, the clerk entered a default judgment for possession only.

On September 23, 2024, a writ of possession was issued.

Plaintiff now seeks default judgment for damages against Defendants.

Legal Standard

Code of Civil Procedure, section 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

            On May 16, 2024, the Court ordered service of the complaint and summons by posting as to both Defendants.

According to the proofs of service filed on June 11, 2024, Defendants were served on May 22, 2024 by posting of the complaint and summons at 1025 E 18th Street, Unit A, Los Angeles, California 90021.

Dismissal of Other Parties

The Doe defendants have not yet been dismissed from this action. Plaintiff must dismiss them before obtaining default judgment.

Form CIV-100

Plaintiff has filed a form CIV-100 seeking default judgment.

Non-Military Status

Natalia A. Minassian avers to Defendant’s non-military status.

Summary of the Case

Plaintiff provides a brief summary of the case in its Case Summary in Support of Default Judgment by Court. 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.) 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.)

Plaintiff has provided evidence that it suffered the $20,843.35 in damages demanded in the Notice in the form of unpaid rent, unpaid property taxes, and late charges. (Cha Decl. ¶¶ 20, 22.) This amount is demanded in the Complaint. (Complaint 5:19-20.)

There are problems with the ‘per diem’ rent damages that Plaintiff seeks. In the Complaint, Plaintiff demands $319.26 per day from April 1, 2024 to the date of judgment (the judgment of possession was entered on July 30, 2024). However, the Complaint does not apprise Defendants of the maximum potential amount of liability. “[P]laintiffs’ inability to state a precise amount of damages does not justify allowing pleadings that, in the event of defaults, will not have apprised defendants of the maximum dollar amounts to which they may be held liable.” (Sass v. Cohen (2020) 10 Cal.5th 861, 864.) And because this is not a personal injury or wrongful death action, Plaintiff cannot rely on a statement of damages to prove damages in excess of the Complaint.

Furthermore, Plaintiff’s per diem requests are themselves inconsistent. Plaintiff’s 585 declaration, it variously requests per diem amounts of $949.33 and $638.53. Plaintiff’s calculations appear to be based on $638.53 per diem. This amount is in excess of the per diem amount demanded in the Complaint.

Prejudgment Interest

“(a) A person who is entitled to recover damages certain, or capable of being made certain by calculation, and the right to recover which is vested in the person upon a particular day, is entitled also to recover interest thereon from that day, except when the debtor is prevented by law, or by the act of the creditor from paying the debt. This section is applicable to recovery of damages and interest from any debtor, including the state or any county, city, city and county, municipal corporation, public district, public agency, or any political subdivision of the state.

(b) Every person who is entitled under any judgment to receive damages based upon a cause of action in contract where the claim was unliquidated, may also recover interest thereon from a date prior to the entry of judgment as the court may, in its discretion, fix, but in no event earlier than the date the action was filed.”

(Civ. Code, § 3287.)

“(a) Any legal rate of interest stipulated by a contract remains chargeable after a breach thereof, as before, until the contract is superseded by a verdict or other new obligation.

(b) If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.”

(Civ. Code, § 3289.)

The Complaint requests interest. (Complaint 5:24-25.) The amount of principal damages is certain because it results from the unpaid rent and other fees.

Plaintiff provides its interest calculations. (Cha Decl. ¶ 22, Ex. D.) The interest demanded is based on the $20,843.35 demanded in the Complaint and evidenced on default judgment. The Court therefore tentatively approves this interest.

Memorandum of Costs and Disbursements

Plaintiff includes a memorandum of costs in the submitted Form CIV-100. Dean P. Sperling avers that Plaintiff expended $902.07 in costs. (See also Sperling Decl. ¶ 4.)

Attorney’s Fees

            Plaintiff requests $2,839.33in attorney’s fees.

            The amount of attorney’s fees will need to be calculated based on the schedule laid out in Local Rule 3.214. Because Plaintiff’s damages demand is too high, the attorney fee will also need to be recalculated.

Proposed Form of Judgment

            Plaintiff has submitted a proposed form of judgment.

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 cannot submit a statement of damages because this is not a personal injury or wrongful death case.