Judge: Joseph Lipner, Case: 24STCV13357, Date: 2025-02-26 Tentative Ruling

Case Number: 24STCV13357    Hearing Date: February 26, 2025    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Plaintiff Fora Financial Asset Securitization 2021 LLC (“Plaintiff”) seeks default judgment against Defendants Turbo Ion, Inc. (“Turbo”) and Tae J. Park (“Park”) (collectively, “Defendants”).

Plaintiff requests:

(1) money judgment in the amount of $90,925.35, consisting of:

(a) damages in the amount of $78,500.00;

(b) prejudgment interest in the amount of $9,352.50;

(c) costs in the amount of $612.85; and

(d) attorney’s fees in the amount of $2,460.00.

The Court GRANTS the request for default judgment.

Background

This is a contract case.

On August 8, 2022, non-party For a Financial West, LLC (“FFW”) entered into a loan agreement (the “Agreement”) with Turbo whereby FFW loaned Turbo $250,000.00, with a repayment amount of $330,000.00. Park executed a guaranty of Turbo’s obligations under the Agreement. Both the Agreement and the Guaranty provide for the payment of attorney’s fees and costs in a legal action to enforce them.

Defendants executed a security agreement granting Plaintiff a security interest in certain collateral described in the security agreement. Plaintiff filed a UCC-1 Statement with the California Secretary of State. (Headley Decl., Ex. 4.)

On August 10, 2022, FFW subsequently assigned its rights under the Agreement to Plaintiff.

The Agreement contains an acceleration clause providing that the outstanding balance, including interest, principal, and any other amounts owed, will become due and payable immediately in the event of default.

On October 6, 2023, Turbo defaulted by failing to pay all sums which were then due. The last payment under the Agreement was made on October 3, 2023.

Plaintiff filed this action on May 29, 2024, raising claims for (1) breach of agreement (against Turbo only); (2) breach of guaranty (against Park only); (3) account stated; (4) foreclosure and security interest; and (5) unjust enrichment.

On November 8, 2024, default was entered against Defendants.

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 proofs of service filed on October 7, 2024, Park was served on Thursday, September 19, 2024 at 17502 Rainier Dr., Santa Ana, California 92705 via personal service, and Turbo was served at the same time and place via service on Park, its authorized agent.

Dismissal of Other Parties

The Doe defendants were dismissed from the action on January 30, 2025, pursuant to Plaintiff’s request.

Form CIV-100

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

Non-Military Status

Nick I. Iezza avers to the non-military status of Defendants.

Summary of the Case

Plaintiff provides a brief summary of the case in its Case Summary. 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.)

Jonathan Headley declares that the outstanding balance due under the Agreement is $78,500.00. (Headley Decl. ¶ 12.) Plaintiff provides a copy of the current account statement between Plaintiff and Defendants. (Headley Decl., ¶ 25, Ex. 3.)

Prejudgment Interest

The Complaint requests interest on the unpaid loan amount at a rate of 10 percent per annum. (Complaint at pp. 6:25-7:3.) The amount of principal damages is certain because it is laid out in the Agreement and account statement; pre-judgment interest is therefore permissible here.

Nick Iezza provides the interest computations in an exhibit to his declaration. (Iezza Decl. Re: Method of Calculating Interest ¶ 2.) The total amount of interest is $9,352.50.

Memorandum of Costs and Disbursements

Plaintiff includes a memorandum of costs in the submitted Form CIV-100. Nick I. Iezza avers that Plaintiff expended $612.85 in costs.

Attorney’s Fees

            Plaintiff requests $2,460.00 in attorney’s fees.

This is an action on a contract. Because the judgment is between $50,000.01 and $100,000, the maximum recovery of attorney’s fees is equal to $1,890 plus 2% of the excess over $50,000. (Local Rule 3.214.) Plaintiff’s request is within this amount.

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