Judge: Michael P. Linfield, Case: 22STCV20955, Date: 2023-01-05 Tentative Ruling

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Case Number: 22STCV20955    Hearing Date: January 5, 2023    Dept: 34

PLAINTIFF’S REQUEST FOR ENTRY OF DEFAULT JUDGMENT

I.           BACKGROUND

On June 28, 2022, Plaintiff David Gelbard filed his Complaint against Defendants Cyrus O’Connor and Valerius Capital, Inc. on causes of action for breach of contract, money had and received, fraud, and conversion.

On August 9, 2022, the Clerk’s Office entered default on Defendant Valerius Capital, Inc.

On August 26, 2022, Plaintiff filed: (1) Request for Court Judgment against Defendant Valerius Capital, Inc.; (2) Memorandum of Points and Authorities; (3) Gelbard Declaration; (4) Kluewer Declaration; and (5) Proposed Judgment.

On October 10, 2022, the Court issued an Order for Publication regarding Defendant O’Connor.

On December 16, 2022, the Clerk’s Office entered default on Defendant Cyrus O’Connor.

II.        ANALYSIS

Plaintiff requests $538,184.93 in “prejudgment interest.”  This is apparently derived from a contract which allows $500,000 in “interest” on Plaintiff’s $500,000 investment.  (See Gelbard Declaration, filed 12/19/2022, Exh. 1.)  However, while Plaintiff may be entitled to a contractual remedy that would require payment of this $500,000, this is not “prejudgment interest”, which is limited to 10% per annum.  Further, payment of these contractual damages would exceed the $500,000 in damages that was requested in the complaint.  Therefore, the Court declines to award this additional $500,000 in damages.

The Court GRANTS Entry of Default Judgement in the amount of $540,007.46, as indicated below: