Judge: Rupert A. Byrdsong, Case: 19STCV21321, Date: 2025-01-07 Tentative Ruling

Case Number: 19STCV21321    Hearing Date: January 7, 2025    Dept: 28

Tentative Ruling

Judge Rupert A. Byrdsong

Department 28

Hearing Date:                                  January 07, 2025         

Case Name:                                      Shane et al. v. Ygrene Energy Fund, Inc., et al.

Case No.:                                           19STCV21321                                               

Motion:                                              Default Judgment

Moving Party:                                 Plaintiffs Maria Shane, et al.

Responding Party:                         Unopposed

Notice:                                                OK

Recommended Ruling:               Plaintiffs’ request for entry of default judgment in its favor                                                                         and against Defendants Beatrice Maldonado and Smart                 Solar                                                                   Energy Sales, Inc. Is DENIED.

BACKGROUND

On June 19, 2019, Plaintiffs Maria Shane, Yuri D. Shane and Claudia L. Shane, Trustees of the Shane Family Trust Dated December 7, 2002, Ravi Financial, LLC, Moysey Vaynberg and Anna Vaynberg Trustees of the Vaynberg Family Trust Dated June 6, 2002, and Oscar Polishuk (collectively “Plaintiffs”) filed a complaint against Ygrene Energy Funds, Inc., Pace Funding Group, LLC, Renovate America, Inc., Beatrice Maldonado, Smart Solar Energy Sales, Inc., and Does 1 through 100. Plaintiffs alleged causes of action for (1) fraud, (2) cancellation of instruments based on fraud, (3) slander of title, (4) negligence, (5) fraud, (6) unfair business practices, (7) declaratory relief, (8) quiet title, and (9) injunctive relief.  In their First Amended Complaint filed on September 16, 2019, Plaintiffs deleted their fraud cause of action. Plaintiffs filed a verified Second Amended Complaint on December 12, 2019. In this Second Amended Complaint, Plaintiffs alleged causes of action for (1) fraud, (2) conspiracy to commit fraud, (3) aiding and abetting fraud, (4) negligence per se, (5) negligence, (6) cancellation of instruments, (7) unfair business practices, (8) declaratory relief, and (9) quiet title.

Plaintiffs allege that Beatrice Maldonado and her alter ego, Smart Solar Energy Sales Inc., engaged in an elaborate scheme to borrow funds from private investors or lending institutions to acquire various properties in Southern California. Allegedly, after closing on the properties, Maldonado and Smart Solar entered into Property Assessed Clean Energy (“PACE”) contracts to create priority liens that were superior to mortgages on the properties. PACE is a financing program that enables California homeowners to contract for energy-efficient improvements to their home. Plaintiffs claim Maldonado and Smart Solar would do little to no work on the properties, collect the PACE funds, default on the loans, and abandon the properties.  

This case has been filled with multiple demurrers, special motions to strike, appeals, and settlement and dismissal of certain parties. Nevertheless, since August of 2022, Plaintiffs have filed requests for entry of default as to Beatrice Maldonado and Smart Solar Energy Sales, Inc. at least half-a-dozen times. On August 21, 2024, the Clerk entered default against Smart Solar Energy Sales, Inc., but the Clerk rejected entry of default against Beatrice Maldonado.

ANALYSIS

Code of Civil Procedure (“CCP”) Section 585 permits entry of a judgment after a defendant’s default has been entered.  A party seeking judgment on the default by the Court must file a Request for Court Judgment, and: (1) a brief summary of the case; (2) declarations or other admissible evidence in support of the judgment requested; (3) interest computations as necessary; (4) a memorandum of costs and disbursements; (5) a proposed form of judgment; (6) a dismissal of all parties against whom judgment is not sought; (7) a dismissal of all parties against whom judgment is not sought or an application for separate judgment under CCP Section 579, supported by a showing of grounds for each judgment; (8) exhibits as necessary; and (9) a request for attorneys’ fees if allowed by statute or by the agreement of the parties.  CRC 3.1800.

JC Form CIV-100 must be used to request court judgment.  Item number 2 must be completed.  Item number 8 must be completed if the Defendant is an individual.  Plaintiff must submit a proposed form of judgment. 

Here, while the Clerk entered default against Smart Solar Energy Sales, Inc. on August 21, 2024, the Clerk rejected Plaintiffs’ two requests for entry of default against Beatrice Maldonado. The Clerk rejected the requests because Plaintiffs failed to complete Section 7d of CIV-100, failed to show three attempts at service, failed to match Section 1b to Plaintiffs’ Second Amended Complaint exactly, and failed to properly update the dates of execution and declaration of mailing. Moreover, Plaintiff has not submitted a proposed form of judgment or other affidavits, exhibits, and memoranda as required by CRC 3.1800. To obtain entry of default judgment, Plaintiffs must successfully obtain entry of default and file all materials required under CRC 3.1800.

CONCLUSION

Therefore, Plaintiffs’ request for entry of default judgment in its favor and against Defendants Beatrice Maldonado and Smart Solar Energy Sales, Inc. is DENIED.