Judge: Peter A. Hernandez, Case: 23PSCV01308, Date: 2024-01-04 Tentative Ruling

Case Number: 23PSCV01308    Hearing Date: January 4, 2024    Dept: K

Plaintiff First Citizens Bank & Trust Company’s Application for Default Judgment is DENIED without prejudice.

Background   

Plaintiff First Citizens Bank & Trust Company (“Plaintiff”) alleges as follows:

On May 16, 2022, Plaintiff approved Helping Hands Nationwide’s (“HH”) application for a $150,000.00 revolving line of credit, which was evidenced by a Business Loan Agreement (“HH Loan Agreement”). The HH Loan Agreement has a maturity date of May 25, 2023. That same day, Zaher Abukhadra (“Abukhadra”) executed a Commercial Guaranty (“Abukhadra Guaranty #1”) of the HH Loan Agreement as well as a Promissory Note on behalf of HH for the

principal amount of $150,000.00 (“HH Note”). On October 3, 2022, HH and Abukhadra defaulted.

On May 19, 2022, Plaintiff approved Franchize Wize Management Team’s (“FWMT”) application for a $100,000.00 revolving line of credit (“FWMT Loan Agreement”). The FWMT Loan Agreement has a maturity date of May 25, 2023. That same day, Abukhadra executed a Commercial Guaranty (“Abukhadra Guaranty #2”) of the FWMT Loan Agreement as well as a Promissory Note on behalf of FWMT for the principal amount of $100,000.00 (“FMWT Note”). On October 3, 2022, FWMT and Abukhadra defaulted.

FWMT also applied for and obtained a credit card from Plaintiff. On May 19, 2022, Abukhadra executed a Commercial Guaranty (“Abukhadra Credit Card Guaranty”). FWMT and Abukhadra have defaulted.

On May 1, 2023, Plaintiff filed a complaint, asserting causes of action against FWMT, HH, Abukhadra and Does 1-20 for:

1.                  Breach of Contract (v. HH and Abukhadra)

2.                  Breach of Contract (v. FMWT and Abukhadra)

3.                  Breach of Contract (v. FMWT and Abukhadra)

4.                  Common Counts

5.                  Unjust Enrichment

On June 23, 2023, FWMT’s, Helping Hands’ and Abukhadra’s defaults were entered.

An Order to Show Cause Re: Default Judgment is set for January 4, 2024.

Discussion

Plaintiff’s Application for Default Judgment is denied without prejudice. The following defects are noted:

1.                  Attorney’s fees must be recalculated pursuant to Local Rule 3.214.

2.                  Michael O’Hare (“O’Hare”), Plaintiff’s Recovery Resolution Group, Manager | Vice President Credit Resolution Group, authenticates the HH Loan Agreement, Abukhadra Guaranty #1, HH Note (collectively, “HH Loan Documents”), FWMT Loan Agreement, Abukhadra Guaranty #2, FWMT Note (collectively, “FWMT Loan Documents”) and the Abukhadra Credit Card Guaranty and attests that HH and Abukhadra defaulted with respect to the HH Loan Documents “[a]s of October 3, 2022” (O’Hare Decl., ¶ 8; see also ¶ 12) and with respect to the FWMT Loan Documents “[a]s of October 3, 2022” (Id., ¶ 16; see also ¶ 19); however, it is unclear to the court whether any payments were made with respect to the HH Loan Documents and/or FWMT Loan Documents and if so, when and in what amount. Plaintiff is requested to provide statements of account with respect to the HH Loan Documents and the FWMT Loan Documents, to the extent they exist. Attorney Rosaline Ayoub (“Ayoub”) has attested that “FCB has informed me that since Defendants’ default and the serving of the Complaint, Defendants have not made payments and continue to remain in default” (Ayoub Decl., ¶ 18); however, she clearly does not have personal knowledge of the foregoing information.