Judge: Michael E. Whitaker, Case: 21SMCV01495, Date: 2024-12-09 Tentative Ruling

Case Number: 21SMCV01495    Hearing Date: December 9, 2024    Dept: 207

TENTATIVE RULING

Plaintiffs Trinidad Velazquez, Hector Velazquez, and Wilson Acevedo (“Plaintiffs”) request for default judgment against Defendant Chisvin Law Group, a Professional Law Corporation (“Defendant”) in the amount of $515,281.44, which is composed of special damages in the amount of $315,000.00; prejudgment interest in the amount of $199,701.44; and costs in the amount of $580.00.

A.    Damages

            Plaintiff’s Complaint alleges eight causes of action for (1) Breach of Written Contract; (2) Fraud; (3) Breach of Fiduciary Duty; (4) Negligence; (5) Conversion; (6) Goods and Services Rendered; (7) Open Book Account; and (8) Account Stated against Defendants Craig Chisvin and Chisvin Law Group, a Professional Law Corporation.  Craig Chisvin (the individual) has since been dismissed from the case. 

            Defendant Chisvin Law Group was served with a copy of the summons and complaint by substitute service on September 17, 2021.  Default was entered against Defendant on February 14, 2022, and the Doe defendants were dismissed on June 21, 2024. 

            Plaintiff’s Complaint seeks $495,000 in compensatory damages. (See Compl.)  Therefore, Plaintiff does not seek damages that are in excess of what is pled in the Complaint. (See Code Civ. Proc., § 580, subd. (a) [“The relief granted to the plaintiff, if there is no answer, cannot exceed that demanded in the complaint”]; Levine v. Smith (2006) 145 Cal.App.4th 1131, 1136-1137 [“when recovering damages in a default judgment, the plaintiff is limited to the damages specified in the complaint”].) 

            In support of the request, Plaintiff has provided the Declaration of Michael J. Armenta, attached to which as Exhibit B is a copy of the January 1, 2015 promissory note signed by Craig L. Chisvin, which provides that replaces eleven loans pertaining to money Craig L. Chisvin borrowed from Plaintiffs, totaling $313,500.00, to be paid back from money Defendant (Chisvin Law Group) deposits into a particular bank account, that Chisvin shall use to pay back the loans, with a due date of January 1, 2018.

            However, only Chisvin, in his individual capacity, is listed as “borrower” on the promissory note, which is simply signed by Chisvin, without reference to the Defendant law corporation entity at the signature line.  Although the Court recognizes that the intent was for Defendant law corporation to make payments and the law corporation bears the same name as Chisvin, there is no evidence in the record establishing that Chisvin can bind Defendant law corporation.

            Further, Plaintiffs have provided no evidence that the money was actually loaned or that any portion thereof remains unpaid.  Moreover, Plaintiffs have not explained the discrepancy between the $315,000 sought and the $313,500 loan amount listed on the promissory note.

            Therefore, the Court finds that Plaintiffs have not sufficiently substantiated they are entitled to the requested $315,000 in damages from Defendant.

B.    Prejudgment Interest

            Because Plaintiffs have not demonstrated entitlement to the requested $315,000 damages, the Court similarly cannot calculate the appropriate prejudgment interest.          

C.    Costs

            Plaintiff also requests $580 in costs composed of $495 in filing fees and $85 in process server fees. (CIV-100; see also Memorandum of Costs.)  Plaintiffs’ request for costs is granted as Plaintiffs are the prevailing parties in this action. (Code Civ. Proc., § 1032, subd. (a)(4).)

CONCLUSION

            Because Plaintiffs have not sufficiently substantiated the requested $315,000 in damages, the Court denies Plaintiffs’ request for default judgment. 

DATED:  December 9, 2024                         ________________________________

                                                                        Michael E. Whitaker

                                                                        Judge of the Superior Court