Judge: Peter A. Hernandez, Case: 23PSCV01900, Date: 2024-05-20 Tentative Ruling

Case Number: 23PSCV01900    Hearing Date: May 20, 2024    Dept: K

Plaintiff Heavy Metal Steel Company, Inc.’s Application for Default Judgment is DENIED without prejudice.

Background   

Case No. 23PSCV01900

Plaintiff Heavy Metal Steel Company (“Heavy Metal”) alleges as follows:

Heavy Metal is a licensed reinforcing steel construction contractor. On April 5, 2022, Heavy Metal entered into a sub-subcontract with Sahara Construction Company, Inc. (“Sahara”) to install the rebar required for the mixed-use construction project called “Lumia Azusa II” in Azusa, California (the “Lumia Project”).

On or about August 31, 2022, Sahara informed Heavy Metal that its rebar supplier could not supply further rebar in a timely manner. Heavy Metal offered to take over supplying the rebar needed for the Lumia Project at a price of 76 cents per pound including delivery, plus sales tax. Sahara agreed, so Heavy Metal ordered rebar from InteRebar Fabricators LLC (“InteRebar”). InteRebar made several deliveries of rebar to the Lumia Project between September 5, 2022 and November 3, 2022 and invoiced Heavy Metal a total of $621,300.91 which Heavy Metal included in its invoices to Sahara without any markup. Heavy Metal also invoiced for its labor on the Lumia Project a total of $802,705.00 on its subcontract with Sahara, plus change orders approved by Sahara totaling $20,535.00. Sahara defaulted in paying the final two invoices, dated October 3, 2022 and November 7, 2022.

Sahara also owes Heavy Metal $9,962.87 on the sub-subcontract entered into on the “Sony Adjacent” residential project, $18,052.10 on the sub-subcontract entered into on the Righetti Ladera project and $300.00 for services on the CHP Visalia project.

On June 26, 2023, Heavy Metal filed a complaint, asserting causes of action against The Avenue Azusa, LLC (“Avenue”), Pacific Empire Builders, Inc. (“PEB”), Sahara, Buchanan Mortgage Holdings, LLC (“Buchanan”), Stewart Title Guaranty Company as trustee fbo Buchanan (“Stewart Title”), InteRebar and Does 1-50 for:

1.                  Breach of Contract

2.                  Foreclosure of Mechanic’s Lien

3.                  Quantum Meruit

4.                  Account Stated

5.                  Violation of Civil Code 8208 and 8210

6.                  Negligent Misrepresentation

7.                  Conversion, Violation of Business & Professions Code § 7108, Accounting

8.                  Breach of Contract, Quantum Meruit, Account Stated

9.                  Breach of the Implied Covenant of Good Faith and Fair Dealing

10.              Violation of Business & Professions Code §§ 17200 et seq.;

11.              Intentional Interference with Contractual Advantage

On June 29, 2023, Heavy Metal filed two “Amendment[s] to Complaint,” wherein BMH Lumia, LLC (“BMH”) was named in lieu of Doe 1 and Zions Bancorporation, N.A. dba California Bank & Trust (“Zions”) was named in lieu of Doe 2.

On July 7, 2023, Stewart Title filed a “Declaration of Non-Monetary Status.”

On September 27, 2023, Case Nos. 23PSCV01900 and 23STCV15420 were deemed related; Case No. 23PSCV01900 was designated as the lead case.

On October 11, 2023, Heavy Metal dismissed the 1st, 3rd, 4th, and 9th-11th causes of action against BMH and Zions.

On October 30, 2023, Sahara’s default was entered.

On December 28, 2023, Plaintiff dismissed Avenue, PEB, Buchanan, Stewart Title, InteRebar, BMH, Zions and Does 3-25, with prejudice.

Case No. 23STCV15420

InteRebar alleges as follows: InteRebar furnished rebar for the Lumia Project. InteRebar recorded a mechanic’s lien against the Lumia Project on April 5, 2023 after it was not paid.

On June 30, 2023, InteRebar filed a complaint, asserting a causes of action against Heavy Metal, Avenue, Pacific, Buchanan, Stewart Title and Does 1-100 for:

1.                  Foreclosure of Mechanic’s Lien

On July 14, 2023, Stewart Title filed a “Declaration of Non-Monetary Status.”

On September 27, 2023, Case Nos. 23PSCV01900 and 23STCV15420 were deemed related; Case No. 23PSCV01900 was designated as the lead case.

On December 27, 2023, InteRebar dismissed the entire action of all parties and all causes of action, with prejudice.

Discussion

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

1.                  Heavy Metal has failed to dismiss Does 26-50.

2.                  Paragraph F. of the proposed judgment reads as follows: “F. Prejudgment interest

continues to run beginning November 16, 2023 at the rate of $143.28 per day.” The foregoing paragraph should be omitted, as Heavy Metal is not entitled to prejudgment interest once judgment is entered.

3.                  Paragraph G. of the proposed judgment reads as follows: “Statutory penalties continue to run beginning November 16, 2023 at the rate of $329.77 per day.” Heavy Metal is requested to provide the court with authority reflecting that statutory penalties continue to accrue after entry of judgment.

4.                  It is unclear to the court why Heavy Metal would be entitled to recoup its first appearance fee (i.e., $435.00) in the related case here. It is also unclear why Heavy Metals would be entitled to recoup service of process fees and/or electronic filing service fees incurred as to other co-defendants from Sahara.

5.                  Plaintiff is requested to provide the subcontracts and schedule of unpaid invoices for the Sony Adjacent, Righetti and CHP Visalia projects.