Judge: Michael P. Linfield, Case: 23STCV03273, Date: 2023-08-16 Tentative Ruling

Case Number: 23STCV03273    Hearing Date: August 16, 2023    Dept: 34

PLAINTIFF'S REQUEST FOR ENTRY OF DEFAULT JUDGMENT

I.           BACKGROUND

On February 14, 2023, Plaintiff Joe Lo filed his Complaint against Defendants United Global Services (LAX) Inc. and Yat Wai Fong.

On April 27, 2023, by request of Plaintiff, the Clerk’s Office entered default on both Defendants.

On July 27, 2023, Plaintiff filed:

(1)       Form CIV-100, Request for Court Judgment;

(2)       Form CIV-110, Request for Dismissal;

(3)       Form JUD-100, Proposed Judgment;

(4)       Memorandum of Points & Authorities (“Memorandum”); and

(5)       Declaration.

On July 31, 2023, by request of Plaintiff, the Clerk’s Office dismissed without prejudice the Doe defendants.

II.        ANALYSIS

It appears that Plaintiff and his Counsel have not correctly calculated various figures in their default prove-up package.

        Regarding the waiting time penalties, Plaintiff’s Counsel argues that these penalties should be based on the pay for calendar year 2021. (Memorandum, p. 4:19–22.) Plaintiff and his Counsel further asserts that the total pay for this period is $529,122.57, which leads to $1,469.78 in daily waiting time penalties and $44,093.54 in total waiting time penalties. (Ibid.; Decl. Lo, ¶ 13.) Yet Plaintiff declares that his total amount of pay for 2021 was $129,918.52 in base pay and $399,204.05 in guaranteed bonuses, which adds up to $495,136.04. (Decl. Lo, ¶¶ 6, 10.) It appears that the incorrect figure asserted by Plaintiff and his Counsel (which has downstream effects on calculations) improperly included Plaintiff’s bonus for 2020, which was $33,986.53. (Id. at ¶ 9.) However, even this figure is incorrect. There are no allegations that Plaintiff was not paid his base wage for 2020 or 2021, and Plaintiff only declares that he was not paid his guaranteed bonuses for 2020 or 2021. (Ibid.) Thus, the only wages unpaid for 2021 were the guaranteed bonuses. The calculation of 30 days unpaid wages based upon those unpaid wages ($365,217.52) are actual daily waiting time penalties of $1,000.60 and an actual total waiting time penalty of $30,017.88.

        Regarding prejudgment interest, the allegations indicate that these damages (based on base pay and bonuses) were liquidated as of January 1, 2022. (Decl. Lo, ¶ 11.) Thus, prejudgment interest is allowed as of that date. (Civ. Code, § 3287, subd. (a).) According to Plaintiff, the relevant amount is the total unpaid bonuses of $399,204.05 (for both 2020 and 2021) — but not the base pay for 2021, as that appears to have been paid — and the relevant period is from January 1, 2022 (the date the damages were liquidated) to July 25, 2023 (two days prior to requesting default judgment), which is 570 days. (Decl. Lo, ¶¶ 12, 15.) Because this is a contract claim, the appropriate prejudgment interest rate is 10%. (Civ. Code, § 3289, subd. (b).) Therefore, the total amount of prejudgment interest allowed is $62,341.45, not $62,652.85.

        Regarding attorney’s fees, the total of damages ($399,204.05, for 2020 and 2021 bonus pay), waiting time penalties ($30,017.88, based on 30 days of 2021 bonus pay), and prejudgment interest ($62,341.45, from the date of liquidation to shortly before the filing of the request for default judgment) is $491,563.38. Based on that figure, a maximum of $6,805.63 in attorney’s fees are allowed for this uncontested case, not $20,000.00.

The Court GRANTS in part the Request for Default Judgment. Judgment is awarded in favor of Plaintiff and against Defendants, jointly and severally, in the total amount of $499,084.01 as indicated in the spreadsheet below.