Judge: Joseph Lipner, Case: 24STCV25737, Date: 2025-04-18 Tentative Ruling

Case Number: 24STCV25737    Hearing Date: April 18, 2025    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Plaintiff Western Funding, Inc. (“Plaintiff”) seeks default judgment against Defendants Ellas Auto Outlet Incorporated dba Ellas Auto Outlet Inc ADBA Ellas Auto Outlet (“Ellas”) and Alyas Abady aka Alyas O Abady (“Abady”) (collectively, “Defendants”).

Plaintiff requests:

(1) money judgment in the amount of $43,127.70, consisting of:

(a) damages in the amount of $36,718.00;

(b) prejudgment interest in the amount of $4,382.62;

(c) costs in the amount of $535.54; and

(d) attorney’s fees in the amount of $1,491.54.

The Court tentatively grants the request for default judgment with one change. The statutory 10 percent rate yields $2434.45 in interest. The Court is prepared to award this amount in interest. If Plaintiff wants to seek the 18 percent rate, the Court requests that Plaintiff explain the basis for it.

Background

On February 27, 2021, Plaintiff and Ellas entered into a Master Dealer Agreement (the “Agreement”) wherein Plaintiff agreed to purchase retail installment sales contracts for the financing of motor vehicles being sold to Ellas’s customers. (Complaint, Ex. 1; see also Williams Decl. ¶ 4, Ex. 1.) Abady executed a personal guaranty of the Agreement. (Complaint, Ex. 2; see also Williams Decl. ¶ 5, Ex. 2.)

Pursuant to the Agreement, Plaintiff purchased contracts from Ellas with a total outstanding sum of $36,718.00 after applying credits. (Williams Decl. ¶ 6, Ex. 3.) Plaintiff alleges that the debt was due as of January 6, 2024 and has not been paid.

Plaintiff filed this action on October 3, 2024, raising claims for (1) open book account; (2) account stated; (3) reasonable value; (4) breach of contract (against Ellas); and (5) breach of guaranty (against Abady).

Default was entered against Defendants on January 22, 2025.

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

            According to a proof of service filed on January 6, 2025, the Complaint and Summons, inter alia, were mailed to Abady at 11771 Gatlemont Court, Woodford, Virginia 22192. The documents were mailed on November 1, 2024. Service was thus complete on November 11, 2024, which is 10 days after mailing. (Code Civ. Proc., § 415.40.)

            According to a proof of service filed on January 6, 2025, the Complaint and Summons, inter alia, were mailed to Ellas’s agent for service, Alyas Abady, at 6241 Jefferson Davis Highway, Woodford, Virginia 22580. The documents were mailed on November 1, 2024. Rafael Munoz declares that the U.S. Post Office returned an inaccurate return receipt that lacked a date of when the Defendant signed to confirm receipt of service. (Munoz Decl. re Service, ¶ 4.) The Post Office’s website indicates that delivery was completed on November 7, 2024. (Munoz Decl. re Service, ¶ 4, Ex. 1.) The Court accepts these submission as proof of service by mail.

Dismissal of Other Parties

The Doe defendants were dismissed from the action on April 10, 2025, pursuant to Plaintiff’s request.

Form CIV-100

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

Non-Military Status

Jakob S. Weitz avers to Defendant’s non-military status.

Summary of the Case

Plaintiff provides a brief summary of the case in the Declaration of Daylene Williams. 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 purchased contracts with a total outstanding sum of $36,718.00 after applying credits. (Williams Decl. ¶ 6, Ex. 3.) Plaintiff provides a Default Schedule which Daylene Williams declares accurately reflects the current status of Defendants’ account. (Williams Decl. ¶ 6, Ex. 3.)

            The Court finds that Plaintiff has adequately evidenced its damages.

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 on the unpaid loan amount. (Complaint at 6:7-14.)

The amount of principal damages is certain because it is laid out in the Default Schedule; pre-judgment interest is therefore permissible here.

Jakob S. Weitz provides the interest computations his declaration regarding interest. (Jun Decl. for Accrued Interest ¶ 3.) Plaintiff computes interest at an 18 percent rate rather than the statutory 10 percent rate. Plaintiff requests $4,382.62 in interest.

The statutory 10 percent rate yields $2434.45 in interest. The Court is prepared to award this amount in interest. If Plaintiff wants to seek the 18 percent rate, the Court requests that Plaintiff explain the basis for it.

Memorandum of Costs and Disbursements

Plaintiff includes a memorandum of costs in the submitted Form CIV-100. Jakob S. Weitz declares that Plaintiff expended $535.54 in costs.

Attorney’s Fees

            Plaintiff requests $1,491.54 in attorney’s fees.

This is an action on a contract. Because the judgment is between $10,000.01 and $500,000, the maximum recovery of attorney’s fees is equal to $690 plus 3% of the excess over $10,000. (Local Rule 3.214.)

The maximum attorney fee under the schedule is $1,564.57 (accounting for the adjusted interest). 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.