Judge: Joseph Lipner, Case: 25STCV00027, Date: 2025-05-05 Tentative Ruling
Case Number: 25STCV00027 Hearing Date: May 5, 2025 Dept: 72
SUPERIOR COURT OF CALIFORNIA
COUNTY OF LOS ANGELES
DEPARTMENT 72
TENTATIVE
RULING
|
CFT DEVELOPMENTS, LLC, Plaintiff, v. JUICY SEAFOOD, LLC, Defendants. |
Case No:
25STCV00027 Hearing Date: May 5, 2025 Calendar Number: 3 |
Plaintiff CFT Developments, LLC (“Plaintiff”) seeks default
judgment against Defendant Juicy Seafood, LLC (“Defendant”).
Plaintiff requests:
(1) money judgment in the amount of $1,398,046.17,
consisting of:
(a) damages in the amount of $1,366,806.05;
(b) costs in the amount of $634.00;
and
(c) attorney’s fees in the amount
of $30,606.12.
The Court SETS AN OSC RE DEFAULT JUDGMENT regarding the
application for default judgment. Plaintiff must file additional papers to
remedy the following issues. Plaintiff
must provide evidence showing the nature of the sums that it claims are due
under the lease and showing Plaintiff’s entitlement to those sums. If any of
the amount that Plaintiff lists as damages is in fact prejudgment interest,
Plaintiff must state that interest separately from damages and provide its
interest calculations. If Plaintiff seeks interest in excess of 10 percent, the
Court requests that Plaintiff explain the legal basis for the interest rate’s
validity. Plaintiff must reduce its attorney fee request to comply with Local
Rule 3.214.
This is a breach of lease case. The following facts are
taken from the allegations of Plaintiff’s complaint.
On February 12, 2020, Plaintiff and Defendant entered into a
commercial lease (the “Lease”), whereby Defendant leased the property located
at 7340 W Central Avenue, Toledo, Ohio 43617 (the “Property”) from Plaintiff. (See
Complaint, Ex. 1; Song Decl., Ex. 1.) The lease contains a forum selection
clause stating that any enforcement action shall be brought in the County of
Los Angeles, California.
Defendant failed to make a number of rental payments and
other payments due under the lease. Plaintiff served Defendant with a Default
Notice (See Song Decl., Ex. 3), but Defendant continued to fail to make
payments.
Defendant eventually vacated the premises, but has not paid
the missing sums.
Plaintiff filed this action on January 2, 2025, raising
claims for (1) rent and damage pursuant to commercial real property lease
agreement; (2) indebtedness; and (3) account stated.
Default was entered against Defendant on March 25, 2025.
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.
According
to the proof of service filed on February 18, 2025, Defendant was served
through its registered agent for service of process, Zuo Hang Gao. Service on
Gao was conducted on February 11, 2025 at 5514 Old Hickory Boulevard, #5516,
Hermitage, Tennessee 37076, via substituted service on John Doe, a competent
member of the household of approximately 45 years of age.
The Doe defendants were dismissed from the action on April
22, 2025, pursuant to Plaintiff’s request.
Plaintiff has filed a form CIV-100 seeking default judgment.
Paul N. Andonian avers to Defendant’s non-military status.
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.
“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.)
Carol
Song, Plaintiff’s property manager, declares that the past-due rent owed by
Defendant is $316,788.44 and provides a copy of the Lease ledger in support.
(Song Decl. ¶ 19, Ex. 4.)
Plaintiff
requests far more than $316,788.44 in unpaid rent. Plaintiff seeks a total of
$1,366,806.05 in damages. (Song Decl. ¶ 21.) Song characterizes the additional
amounts as “unpaid sums … as well as damages” (Song Decl. ¶ 21), but provides
no further explanation as to the nature of these sums or why Defendant owes
them. The attached ledger does not clearly state what each of these fees or
charges are for, either.
Further, Song implies, but does not state, that some of the
amounts sought are prejudgment interest accruing at a contractual rate of 12
percent per annum. Interest must be requested separately from damages, and
Plaintiff must provide its calculations for any such interest. Prejudgment
interest on a contract generally accrues at a rate of 10 percent. (Civ. Code, §
3289; see also Cal. Const., Art. XV, § 1.) If Plaintiff seeks interest at a
higher rate, the Court requests that Plaintiff explain the legal basis on which
this is permissible.
“(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.)
As discussed above, Plaintiff must provide its calculations
for any interest it seeks and explain the legal basis for any interest it seeks
in excess of 10 percent per annum.
Plaintiff includes a memorandum of costs in the submitted
Form CIV-100. Paul N. Andonian avers that Plaintiff expended $634.00 in costs.
Plaintiff
requests $30,606.12 in attorney’s fees.
This is an action on a contract.
Because the judgment is greater than $100,000.00, the maximum recovery of
attorney’s fees is equal to $2,890 plus 1% of the excess over $100,000. (Local
Rule 3.214.)
Even
crediting Plaintiff’s full claimed damages amount, this leaves the maximum
attorney fee at $16,558.06. Plaintiff’s request is well in excess of this
amount. Plaintiff must reduce its attorney fee request to comply with Local
Rule 3.214. If Plaintiff’s damages require any downward adjustment, the
attorney’s fees must be consistent with the new amount.
Plaintiff
has submitted a proposed form of judgment.
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.
Plaintiff does not need to submit a statement of damages
because this is not a personal injury or wrongful death case.