Judge: Michael Shultz, Case: 24STCV20344, Date: 2025-05-20 Tentative Ruling

Case Number: 24STCV20344    Hearing Date: May 20, 2025    Dept: 40

24STCV20344 Market Lofts Community Association v. Roopinder S. Goraya

Tuesday, May 20, 2025 at 8:30 a.m.

 

[TENTATIVE] ORDER CONTINUING THE HEARING ON PLAINTIFF’S REQUEST FOR COURT JUDGMENT IN ORDER TO FILE A SUPPLEMENTAL DECLARATION AND ADMISSIBLE EVIDENCE

 

       The complaint alleges that Defendant failed to comply the with the Covenants, Conditions & Restrictions (“CC&R”) that required Defendant, as a real property owner, to pay delinquent assessments which attached to the real property. Plaintiff, the governing body of the common interest development, claims damage of $18,985.93 and alleges claims for foreclosure of lien, breach of the CC&Rs, and common counts for account stated as well as for attorney’s fees and costs.

       The clerk entered default against Defendant on December 17, 2024. All DOE defendants were dismissed on December 23, 2024.

       Defendant’s failure to answer admits the well-pleaded allegations of the complaint. (Carlsen v. Koivumaki (2014) 227 Cal.App.4th 879, 883.) To that end, the complaint must be examined. Carlsen at 900.) Plaintiff must submit evidence of facts “concerning the damages alleged in the complaint.” (Petty v. Manpower, Inc. (1979) 94 Cal.App.3d 794, 798.) Damages not fixed by contract must be proved. (Id.; Kim v. Westmoore Partners, Inc. (2011) 201 Cal.App.4th 267, 272 [“… it is incumbent upon the plaintiff to prove up his damages, with actual evidence.”].) The California Rules of Court require declarations or other admissible evidence in support of the judgment requested. (Cal. Rules of Court, Rule 3.1800 subd. (a)(2).)

       Plaintiff submits the declaration of Diane Kravif in support of the judgment. Ms. Kravif that she is a member of the Board of Directors for Plaintiff. She submits an account itemization for Defendant as of December 20, 2024. (Kravif decl., Ex. 3.) The document is not authenticated.  The declaration does not assert foundational facts necessary to support a business records exception to the hearsay rule. (Evid. Code, §1271, [requiring facts to establish that the writing was made in the regular course of business, at or near the time of the act, by a custodian or other qualified witness testifying to its identity and mode of preparation and indicate its trustworthiness.].) Exhibits 3-5, 7-8, which appear to be business records, are not admissible.

       Additionally, Plaintiff does not explain how the principal amount requested of $18,243.76 was calculated. Even if admissible, Defendant’s account statements do not support the principal amount sought by Plaintiff.   

       The Defendant’s transaction history between April 1, 2023 through January 30, 2024 which Plaintiff recorded with the County Recorder along with Plaintiff’s lien does not reflect a principal balance due. The itemization as of December 20, 2024, shows a balance due of $30,252.43. (Exhibit 3.) The transaction history as of August 29, 2023 does not show a balance due. (Exhibit 5.) The lien on the property recorded by Plaintiff on February 7, 2024, shows a recorded balance is $6,423.30. (Exhibit 6.) The notice of decision to foreclose dated July 17, 2024, asserts that the delinquent assessments total $16,107.34. (Exhibit 8.)

       The proposed judgment requests $10,737.50 in attorney’s fees actually incurred. Plaintiff contends the court is precluded from applying local court rules or fee schedules to limit attorney’s fees. (Velasquez decl., ¶ 5.) For this proposition, Plaintiff cites Cortez v. Bootsma (1994) 27 Cal.App.4th 935 which is inapposite. In Cortez, the court of appeal determined that the San Diego Superior Court’s rule could not limit the plaintiff’s attorney’s fees in a personal injury action to the amount that Plaintiff agreed to be paid under Labor Code § 3709, which required reasonable attorney’s fees to be determined by the court. (Id. 937.)

       As applied to default judgments, the Legislature expressly provided that in an action on contract, "[i]f, by rule of court, a schedule of attorneys' fees to be allowed has been adopted, the clerk may include in the judgment attorneys' fees in accordance with the schedule.” (Code Civ. Proc., § 585 subd (a).) The California Rules of Court expressly states that the court "may by local rule establish a schedule of attorney's fees to be used by that court in determining the reasonable amount of attorney's fees to be allowed in the case of a default judgment." (Cal. Rules of Court, Rule 3.1800.)

       Assuming Plaintiff can prove principal damage of $18,243.76 based on admissible evidence, the court will apply scheduled fees. (Local Rule 3.214 [“$10,000.01 to $50,000, $690 plus 3% of the excess over $10,000.”.)

       Based on the foregoing, the court continues the hearing to July 14, 2025. Plaintiff to file within 10 court days before the hearing, a supplemental declaration authenticating the business records submitted, a calculation of the principal damage sought by a person with personal knowledge and based on what evidence, and a proposed judgment that reflects scheduled attorney’s fees.





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