Judge: Rupert A. Byrdsong, Case: 24STCV14579, Date: 2025-06-05 Tentative Ruling

Case Number: 24STCV14579    Hearing Date: June 5, 2025    Dept: 28

Tentative Ruling

Judge Rupert A. Byrdsong

Department 28

Hearing Date:                                  June 5, 2025    

Case Name:                                     Headway Capital, LLC v. V.C. Food Service Inc., et al.

Case No.                                          24STCV14579                               

Motion                                             Default Judgment

Moving Party:                                 Plaintiff Headway Capital, LLC

Responding Party:                         Unopposed

Notice                                               OK

Recommended Ruling:               Plaintiff’s request for entry of default judgment in its favor                                                                         and against Defendants V.C. Food Service Inc. and Nunzio                                                                          Donato Ciaraulo is GRANTED in the amount of $152,971.12.

BACKGROUND

 On June 11, 2024, Plaintiff Headway Capital, LLC (“Plaintiff”) filed a complaint against V.C. Food Service Inc. and Nunzio Donato Ciaraulo (collectively “Defendants”), as well as against Does 1 through 10. Plaintiff alleged a singular cause of action for breach of written contract.

Plaintiff alleges it entered into a Business Use Line of Credit Agreement with Defendants on January 20, 2023. Plaintiff claims Defendant Ciaraulo personally guaranteed repayment of the credit line. Allegedly, Defendants have defaulted by failing to make payments when due. As a result, Plaintiff seeks $148,907.05 for unpaid amounts due on the credit line.

Plaintiff substitute served both Defendants on October 21, 2024. The Clerk entered Defendants’ default on February 11, 2025. This is Plaintiff’s first request for default judgment.

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, Plaintiff used JC Form CIV-100 for both Defendants, completed items 2 and 8, and submitted a proposed form of judgment using a JUD-100 form. Plaintiff dismissed the Doe defendants from the case on February 11, 2025.

By defaulting, a defendant is deemed to admit all material allegations of the complaint that are well pleaded.  Molen v. Friedman (1998) 64 Cal.App.4th 1149, 1156.  The complaint need only alleged facts sufficient to apprise a defendant of the nature of the plaintiff’s demand, and it is immaterial that the complaint might have been subject to a demurrer for failure to make an allegation necessary to state a cause of action.  Id. at 1157.  See also CCP § 431.20; Bristol Convalescent Hospital v. Stone (1968) 258 Cal.App.2d 848, 859 (stating that defaulting defendant admits absolute verity of all allegations of complaint giving rise to liability).

The plaintiff must prove the amount of damages before an actual entry of default judgment.  See Ostling v. Loring (1994) 27 Cal.App.4th 1731, 1745.  In determining whether the plaintiff is entitled to an award of damages after the defendant has defaulted, the plaintiff is only required to present evidence establishing a prima facie case for damages.  Johnson v. Stanhiser (1999) 72 Cal.App.4th 357, 361-362.  The trial court must hear the evidence offered by the plaintiff and render judgment “‘in [its] favor for such sum, not exceeding the amount stated in the complaint, or for such relief, not exceeding that demanded in the complaint, as appears from the evidence to be just.  [Citations.]’”  Id. at 362.

A.           General Damages

The demand of the Complaint is $148,907.05. The parties entered into a Business-Use Line of Credit and Security Agreement on January 20, 2023. Pugh Decl., Ex. A. Defendant Ciaraulo personally guaranteed repayment. Pugh Decl., Ex. A. From the time of inception of the line of credit through March 18, 2024, Defendants incurred a total balance of $148,907.05, inclusive of interest. Pugh Decl., Ex. 2. This balance remains unpaid. Pugh Decl., ¶¶ 5-7.

Thus, Plaintiff has sufficiently proven its causes of action for the amount of $148,907.05.

B.           Costs

Plaintiff requests recovery of costs in the amount of $685.00.  The memorandum of costs states that the request is based on (a) $435.00 in clerk’s filing fees, (b) $125.00 in process server’s fees, and (c) $125.00 for non-service reports.  CIV-100, ln. 7.

Accordingly, Plaintiff is entitled to costs in the amount of $685.00.

C.           Attorney Fees

Plaintiff seeks $3,379.07 in attorney fees pursuant to the contract between the parties. The contract provides that Plaintiff is entitled to recover attorney fees that it may incur in prosecuting an action related to enforcing the agreement. Pugh Decl., Ex. A, p.5. Pursuant to Civil Code 1717, as the prevailing party obtaining a default judgment, Plaintiff is entitled to reasonable attorney fees for this breach of contract action. Plaintiff requests attorney fees consistent with LASC Local Rule 3.214. Rule 3.214 provides that in a case where a contract allows for attorney fees, and a party is seeking attorney fees on default judgment for a judgment amount over $100,000.00, then the party is entitled to $2,890.00 plus 1% of the excess over $100,000.00. As noted above, the total damage amount is $148,907.05. Therefore, Plaintiff may recover $2,890.00 plus 1% of $48,907.05, which is $489.07. When added together, the total is $3,379.07. Schlick Decl., ¶¶ 3, 4.

Plaintiff is entitled to recover $3,379.07 in attorney fees.  

D.           Total Judgment

The Court finds that Plaintiff proved the following judgment amount against Defendants:

CONCLUSION

Therefore, Plaintiff's request for entry of default judgment in its favor and against Defendants V.C. Food Service Inc. and Nunzio Donato Ciaraulo is GRANTED in the amount of $152,971.12.