Judge: Melissa R. Mccormick, Case: "JPMorgan Chase Bank, N.A. v. Triple Threat Dancewear, Inc., et al.", Date: 2023-05-18 Tentative Ruling

Plaintiff JPMorgan Chase Bank, N.A.’s Motion to Amend Judgment

Plaintiff JPMorgan Chase Bank, N.A. moves for entry of an amended default judgment to remove defendant Mary A. Maglia.  The court entered a default judgment against defendants Triple Threat Dancewear, Inc. and Mary A. Maglia on December 19, 2022.  ROA 33.  Plaintiff states that after the court entered the default judgment, plaintiff learned Maglia had filed for bankruptcy on December 15, 2022.  On January 17, 2023 plaintiff filed a notice of stay of proceedings based on Maglia’s bankruptcy.  ROA 42. 

Upon the filing of Maglia’s bankruptcy petition, this case was automatically stayed as against Maglia.  The default judgment entered against Maglia on December 19, 2022 must therefore be set aside.

Plaintiff appears to seek entry of an amended default judgment against only Triple Threat Dancewear, Inc.  The court is skeptical a default judgment should be entered against one defendant while the case remains pending, albeit stayed, against the other defendant.  A default judgment against one of several co-defendants is improper if another defendant has raised defenses which, if proven, would establish that the defaulting defendant is not liable to the plaintiff.  Adams Mfg. & Eng’g Co. v. Coast Centerless Grinding Co. (1960) 184 Cal.App.2d 649, 655 (“The rule is definitely established that where there are two or more defendants and the liability of one is dependent upon that of the other the default of one of them does not preclude his having the benefit of his codefendants establishing, after a contested hearing, the nonexistence of the controlling fact; in such case the defaulting defendant is entitled to have judgment in his favor along with the successful contesting defendant.”).  While Maglia’s default was entered before her bankruptcy, and thus Maglia had not asserted any defenses in this case when she filed for bankruptcy, it seems premature at this juncture to assume Maglia will never attempt to set aside the default and defend the case.  Accordingly, the court’s intention is to set aside the December 19, 2022 default judgment in its entirety, subject to plaintiff renewing its application for entry of a default judgment against one or both defendants as may be appropriate later.     

This case is stayed as against defendant Mary A. Maglia.  The defaults entered against Triple Threat Dancewear, Inc. and Maglia on November 9, 2022 are not affected by this ruling. 

A bankruptcy review hearing is scheduled for October 19, 2023 at 9:00 a.m. in Department C13.

Clerk to give notice.