TENTATIVE 

Plaintiff Centra Freight Services, Inc. (“Plaintiff”) filed this action against defendants Anthony Velazquez, Centra Global Logistics LLC, and Does 1-10 to recover on a written promissory note. 

A defaulting party confesses the material allegations of the complaint. (Csordas v. United Slate Title & Composition Roofers (1960) 177 Cal. App. 2d 184, 186.) Plaintiff obtained entry of default against defendants Anthony Velazquez and Centra Global Logistics LLC (collectively, “Defendants”) on July 8, 2024. Dismissal was entered against Does 1-10 on August 2, 2024.  

The first cause of action for default on a $250,000 Promissory Note against only Anthony Velazquez alleges that Plaintiff and Defendants agreed to purchase, and Plaintiff agreed to sell, all assets associated with freight operations at 104th Street, Inglewood, CA 90304. (Compl. ¶¶ 6-7.) The purchase price was agreed at $250,000, and the price was secured by a promissory note in the sum of $250,000 (“Note No. 1”) executed by Defendants in favor of Plaintiff. (Id. ¶ 7.) The complaint pleads the specific terms of the contract. Defendants breached the terms of Note No. 1 by having defaulted in payment under the terms, in that they failed to pay any monthly installments and failed to pay the balance due on the Due date. In addition to the sum of $250,000, Plaintiff alleges 2% interest per annum due from January 21, 2021 (the execution date of Note No. 1) until entry of judgment. (Id. ¶ 10.) Note No. 1 includes the recovery of attorneys’ fees. (Id. ¶ 11.) 

The second cause of action for default on a $260,000 Note against both Defendants alleges that on February 3, 2021, Defendants executed and delivered to Plaintiff a written promissory note (“Note No. 2”.) (Compl. ¶ 13.) Under the terms of Note No. 2, Defendants promised and agreed to pay to Plaintiff the principal sum of $260,000, with interest on the unpaid principal balance at the rate of three percent (3.00%) per annum from February 3, 2021, until paid in full. (Id. ¶ 14.) Any unpaid principal and interest shall be due in full no later than September 1, 2021 (the “Maturity Date”). (Id. ¶ 16.) Defendants defaulted in payment. Plaintiff alleges damages in the sum of $260,000, plus 3% interest per annum from February 3, 2021 from January 31, 2021 until entry of judgment, in addition to recovery of attorneys’ fees pursuant to the terms of Note no. 2. (Id. ¶¶ 17-18,) 

The third cause of action against Centra Global Logistics LLC for Account Stated alleges that Plaintiff provided freight services to Defendants at their request, and Defendants agreed to pay Plaintiff within 30 days after rendering an invoice to Defendants. (Compl. ¶ 20). As a result of furnishing freight services, an account was stated by and between Plaintiff and Defendants by which it was agreed that Defendants were indebted to Plaintiff in the sum of $61,359.41. (Id. ¶ 21.) Plaintiff alleges no part of that sum has been paid, and that Defendants owe Plaintiff the sum plus interest at 10% per annum until entry of judgment. 

Plaintiff seeks $510,000.00 in principal damages against Anthony Velazquez, and separately $321,359.41 against Centra Global Logistics LLC in principal damages.  

Plaintiff proffers the declaration of its Chief Operating Officer, Jonathan Wang (“Wang”), in support thereof. Plaintiff provides support regarding the terms of Note No. 1 between Plaintiff and borrower Anthony Velazquez (Wang Decl. Exh 1) and the terms of Note No. 2. Between Plaintiff and borrowers Anthony Velazquez and Centra Global Logistics LLC. Additionally, Plaintiff has provided evidence of the $61,359.41 owed by Centra Global Logistics LLC. 

However, the Court notes that both Anthony Velazquez and Centra Global Logistics LLC are jointly and severally liable for the $260,000 (Note No. 2). Thus, Plaintiff seeking $260,000 in principal damages against both Anthony Velazquez and Centra Global Logistics LLC on a separate basis is double recovery for the same Note. 

Although the Court will grant the principal damages as stated in the complaint, and as supported with evidence, the Court clarifies that it will be $250,000 against Anthony Velazquez for Note No. 1, $260,000 against both Anthony Velazquez and Centra Global Logistics LLC for Note No. 2 on a joint and several liability basis, and $61,359.41 against Centra Global Logistics LLC for the outstanding balance due in the account for services rendered. 

Plaintiff provides the interest calculation for Note No. 1 at a rate of 2% per annum from January 31, 2021 to January 1, 2024, amounting to $15,000.00, and from January 1, 2024 to July 24, 2024 at the rate of 10% per annum, amounting to $14,583.00. 

Plaintiff provides the interest calculation for Note No. 2, from February 3, 2021 at the rate of 3% per annum through September 1, 2021, amounting to $5,200.00, and at the legal rate of 10% per annum from January 31, 2021 to July 24, 2024, the date of Wang’s declaration, amounting to $90,999.99. 

The Court has done its own calculations based on the rate per annum provided in the contract for the duration of the agreement, and the statutory rate per annum for breach of contract since the contract does not provide a legal rate for the breach. 

In terms of the calculations for Note No. 1, the interest rate of 2% per annum from January 31, 2021 to January 1, 2024 is $14,602. The interest from January 1, 2024 to July 8, 2024 (based on the date of entry of default, rather than the date of Wang’s declaration) at 10% per annum is $10,958.90.  

As for the calculation for Note No. 2, the calculation of interest at 3% per annum from February 3, 2021 to September 1, 2021 based on the principal amount of $260,000 amounts to $4,509.04. The interest of 10% per annum from January 31, 2021 to July 8, 2024 (date of entry of default) is $89,397.26. 

Therefore, interest against Anthony Velazquez for Note No. 1 amounts to a total of $25,560.90. The interest against both Anthony Velazquez and Centra Global Logistics LLC, jointly and severally, for Note No. 2 is $93,906.30. Interest will be granted in these amounts. 

Both Note No. 1 at paragraph 4 and Note No. 2 at paragraph 3 both state: “If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process.” (Wang Decl. Exhs. 1 and 2.) Plaintiff has properly supported entitlement to attorney fees in terms of the first cause of action (Note No. 1) and second cause of action for the second cause of action (Note No. 2.) No contractual provision or other basis for attorney fees was provided for the third cause of action, and therefore none will be provided as to that cause of action. 

Plaintiff requests attorney fees against Anthony Velazquez in the amount of $16,877 and against Centra Global Logistics LLC in the amount of $10,470. However, the Court notes that the calculation as provided seeks independently from each defendant Note No. 2’s principal of $260,000, which the Court already provided above amounts to potential double recovery since both Defendants are jointly and liable for the same amount.  

Pursuant to the fee schedule provided in Los Angeles Superior Court, Local Rule 3.214, doe defaults over $100,000, the following shall apply: $2,890 plus 1% of the excess over $100,000. 

Thus, the amount of attorney fees against Anthony Velazquez for the first cause of action (Note No. 1) is $4,390 [$2,890 + 1% of ($250,000 minus $100,000)].  

The amount of attorney fees against both Anthony Velazquez and Centra Global Logistics LLC, jointly and severally, for the second cause of action (Note No. 2) is $4,490 [$2,890 + 1% of ($260,000 minus $100,000)]. 

Plaintiff seeks costs in the amount of $547.50 for clerk’s filing fees and process server’s fees. The amount is allowable pursuant to CCP § 1033.5, and therefore granted. 

Plaintiff’s request for default judgment against defendants Anthony Velazquez and Centra Global Logistics LLC is GRANTED as follows: