Judge Monica Bachner, Case 19STCV02822 2022-10-26 Tentative Ruling

Department 71: Attorneys who elect to submit on these published tentative rulings, without making an appearance at the hearing, may so notify the Court by communicating this to the Department's staff at (213) 830-0771 before the set hearing time. See, e.g., CRC Rule 324(b). All parties are otherwise encouraged to appear by Court Call for all matters.

Plaintiff Rodulfo Sandoval’s unopposed motion for prejudgment interest is granted in the amount of $103,535.32.

Plaintiff Rodulfo Sandoval (“Sandoval”) (“Plaintiff”) moves unopposed for an award of prejudgment interest of $103,535.32, pursuant to Civil Code §3289(b). (Motion, pgs. 1-2.) Plaintiff moves for prejudgment interest from Defendant Ardas Yanik (“Yanik”) (“Defendant”) following the granting of summary judgment on June 20, 2022, for Plaintiff against Defendant in $233,000.00 in damages. (Motion, pgs. 1-2.)

Civil Code §3287(a) provides, in pertinent part, as follows: “A person who is entitled to recover damages certain, or capable of being made certain by calculation, and the right to recover which is vested in the person upon a particular day, is entitled also to recover interest thereon from that day.”

“In other words, prejudgment interest is awarded only when the sum is liquidated within the meaning of the statute. [Citation]” (Duale v. Mercedes-Benz USA, LLC (2007) 148 Cal.App.4th 718, 728.)

“Damages are deemed certain or capable of being made certain within the provisions of subdivision (a) of section 3287 where there is essentially no dispute between the parties concerning the basis of computation of damages if any are recoverable but where their dispute centers on the issue of liability giving rise to damage.’ [Citations.]’ Thus, ‘‘‘[t]he test for recovery of prejudgment interest under [Civil Code] section 3287, subdivision (a) is whether defendant actually know[s] the amount owed or from reasonably available information could the defendant have computed that amount. [Citation.]’ [Citations.] ‘The statute . . . does not authorize prejudgment interest where the amount of damage, as opposed to the determination of liability, ‘depends upon a judicial determination based upon conflicting evidence and it is not ascertainable from truthful data supplied by the claimant to his debtor.’ [Citations.]’ [Citation.] Thus, where the amount of damages cannot be resolved except by verdict or judgment, prejudgment interest is not appropriate. [Citation.]’ [Citation.]’ [Citations]” (Id. at 729.)

“If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.” (Civ. Code §3289(b).)

Plaintiff seeks an award of prejudgment interest against Defendant in the amount of $103,535.32 based on the Deal Memorandum Defendant executed on September 26, 2017, whereby Plaintiff would immediately sign a general assignment of his 50% interest in RY Investments LLC to Defendant, and Defendant would pay $233,000.00 to Plaintiff, with $133,000.00 due on or before October 6, 2017, and $100,000.00 due on or before April 1, 2018. (Motion, pgs. 1-2.) The Court finds that prejudgment interest began accruing on the first payment of $133,000.00 on October 6, 2017, the date the first sum certain was due but not paid by Defendant, and on the second payment of $100,000.00 on April 1, 2018, the date the second sum certain was due but not paid by Defendant.

Plaintiff is entitled to prejudgment interest under Civil Code §3287(a) because ASI’s damages were certain or capable of being made certain by calculation. Specifically, prejudgment interest for the first sum became certain on October 6, 2017, the date Defendant failed to pay Plaintiff $133,000.00, pursuant to the Deal Memorandum and prejudgment interest for the second sum became certain on April 1, 2018, the date Defendant failed to pay Plaintiff $100,000.00. (Motion, pgs. 1-2; Decl. of Sandoval. ¶7, Exh. 1 [Deal Memorandum].)

The Deal Memorandum does not stipulate a legal rate of interest. (See Decl. of Sandoval, Exh. 1.) Pursuant to Civil Code §3289(b), prejudgment interest on the damages bears an interest at a rate of 10 percent per annum after the breach. (Civ. Code §3289(b).) Plaintiff calculate that 10% of $133,000.00 from October 6, 2017, to June 20, 2022, the date of entry of Judgment, is $62,784.64 in prejudgment interest as to the first sum certain, and 10% of $100,000.00 from April 1, 2018, to June 20, 2022, the date of entry of Judgment, is $40,750.68 in prejudgment interest as to the second sum certain, and requests total prejudgment interest of $103,535.30.[1]

Based on the foregoing, Plaintiff’s unopposed motion for an award of prejudgment interest against Defendant in the amount of $103,535.30 is granted.

[1] Plaintiff seems to have made a slight mathematical calculation as to the interest due as the Court calculates that the sums are $62,601.10 and $42,219.18, totalling $104,820.28. As Plaintiff has requested $103,535.32 in the motion, the Court is awarding that amount.