Judge: Lee W. Tsao, Case: 23NWCV04153, Date: 2024-01-10 Tentative Ruling

Case Number: 23NWCV04153    Hearing Date: February 8, 2024    Dept: C

FOUR STARS DISTRIBUTION & DELIVERY, LLC v. MEDMEN ENTERPRISES, INC.

CASE NO.:  23NWCV04153

HEARING:  02/08/24

 

#4

 

Plaintiff FOUR STAR DISTRIBITION & DELIVERY’s  application for right to attach order against Defendant MEDMEN ENTERPRISES, INC. is GRANTED.  An undertaking of $10,000.00 is ordered as provided for by statute.

 

Moving Party to give Notice.

 

Plaintiff FOUR STAR DISTRIBUTION & DELIVERY (“Plaintiff”) applies for a writ of attachment against Defendant MEDMEN ENTERPRISES, INC. (“Defendant”) in the amount of $234,543.18.

“The application [for a writ of attachment] shall be supported by an affidavit showing that the plaintiff on the facts presented would be entitled to a judgment on the claim upon which the attachment is based.” (CCP §484.030.) “The declarations in the moving papers must contain evidentiary facts, stated ‘with particularity’ and based on actual personal knowledge with all documentary evidence properly identified and authenticated.” (Hobbs v. Weiss (1999) 73 Cal.App.4th 76, 79-80.) “In contested applications, ‘the court must consider the relative merits of the positions of the respective parties and make a determination of the probable outcome of the litigation.” (Id. at 80.)

At the hearing, the court shall consider the showing made by the parties appearing and shall issue a right to attach order, which shall state the amount to be secured by the attachment determined by the court in accordance with Section 483.015 or 483.020, if it finds all of the following: 

1.       The claim upon which the attachment is based is one upon which an attachment may be issued 

2.       The plaintiff has established the probable validity of the claim upon which the attachment is based 

3.       The attachment is not sought for a purpose other than the recovery on the claim upon which the attachment is based.

(CCP § 484.090(a).) 

The court's determinations shall be made upon the basis of the pleadings and other papers in the record; but, upon good cause shown, the court may receive and consider at the hearing additional evidence, oral or documentary, and additional points and authorities, or it may continue the hearing for the production of the additional evidence or points and authorities.  (CCP § 484.090(d).) 

CLAIM: An attachment may be issued only in an action on a claim or claims for money, each of which is based upon a contract, express or implied, where the total amount of the claim or claims is a fixed or readily ascertainable amount not less than five hundred dollars ($500) exclusive of costs, interest, and attorney's fees. (CCP 483.010.) Plaintiff's claim against a natural person must arise out of the defendant's conduct of a trade, business or profession.  (CCP § 483.010(c); Kadison, Pfaelzer, Woodard, Quinn & Rossi v. Wilson (1987) 197 Cal.App.3d 1, 4. CCP 483.010.) The court has the power to determine disputed facts on the basis of preponderance of evidence as disclosed in the declarations. (Hobbs v. Weiss (1999) 73 Cal.App.4th 76, 80.) 

 

The claim is proper. The claim is for money and based upon written agreements, whose total sums are more than $500.  Plaintiff alleges that between June 22, 2023 and October 25, 2023, Defendant MedMen placed ninety-two (92) separate purchase orders for cannabis-related product with Plaintiff.  On these Invoices, there remains an open balance of at least $225,834.10 in principal that is owed and due to Plaintiff on account of the Invoices. (Haroni Decl., ¶ 5.) As of December 20, 2023, accrued interest on each Invoice, calculated at the legal rate of 10% per annum from the date of each payment was due, cumulatively totals $3,709.08, with an additional $61.87 of interest accruing daily. (Id., ¶ 6.) The total amount due and owed by MedMen to Plaintiff on account of the Invoices, including principal obligations and accrued interest, is $229,543.18 as of December 20, 2023. (Id., ¶ 7.) 

 

PROBABLE VALIDITY:  A claim hasprobable validitywhere it ismore likely than not” that the plaintiff will obtain a judgment against the defendant on that claim.  (CCP § 481.190.) 

 

Plaintiff has established probable validity of its claim by presenting evidence of the Invoices between the parties.

 

In Opposition, Defendant argues that Plaintiff’s Declarations submitted in support of the Application fail to state the following required facts: (1) that attachment is sought to recover on a claim upon which an attachment may issue; (2) that the attachment is not sought for a purpose other than for recovery upon the claim; (3) that the applicant has no information or belief that the claims is discharged in bankruptcy or that the claims are otherwise stayed under Title 11; and (4) a description of the property to be attached and that such property is subject to attachment. However, the Declaration(s) of Attorney Weisberg state these required facts. Defendant argues that this Court should disregard the sworn statements of Attorney Weisberg because he does not have personal knowledge of every fact in the Application. Notwithstanding Defendant’s arguments to the contrary, Attorney Weisberg sufficiently declares, under penalty of perjury, that he has “personal knowledge either as a direct participant in the matters described, or in [his] capacity as one of the attorneys principally responsible for the handling of this case on behalf of BG Law LLP.” (Weisberg Decl., ¶2.)

 

Based on a preponderance of the evidence, the court finds Plaintiff’s claim has probable validity because it is “more likely than not” that Plaintiff will obtain a judgment. 

 

PURPOSE OF ATTACHMENT: As stated on the Application for Right to Attach Order (Judicial Council Form AT-105, No. 4), the attachment is not sought for a purpose other than the recovery on the claim upon which the attachment is based. 

 

AMOUNT OF WRIT: The writ will issue for the amount of the claimed indebtedness, plus an amount to cover costs and allowable attorney fees as determined by the court reduced byany security interest held by plaintiff in defendant's property. (CCP § 483.015.) A writ of attachment issued without the mandated bond is void. (Vershbow v. Reiner (1991) 231 Cal.App.3d 879, 882.) Defendant mustproduce detailed, factual declarations showing the nature and extent of the claimed offset.” (Weil & Brown, Civil Procedure Before Trial at 9:933.)  Plaintiff seeks a writ amount of $234,543.18, consisting of $229,543.18 in monies owed plus estimated costs of $5,000 through trial. 

The amount of the writ against Defendant is $234,543.18 and an undertaking of $10,000.00 is ordered as provided by statute.  (CCP § 489.220.)