Judge Salvatore Sirna, Case Number: 19PSCV00318, Date: 2023-08-24 Tentative Ruling

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Plaintiff Accu-Blend Corporation’s Application for Default Judgment is GRANTED in the reduced amounts of $239,158.23 and $645,405.99.

This is an action arising from alleged fraud. Plaintiff Accu-Blend Corporation (Accu-Blend) is in the business of manufacturing wax. Defendant Henry James Shishiso[1] has served as Accu-Blend’s daily operations manager since 2005. In January 2008, Accu-Blend alleges Henry began replacing key personnel in Accu-Blend’s accounting department, packaging and shipping department, and receiving department with individuals close to Henry. In particular, Accu-Blend alleges Henry hired Defendant Alona Lynn Shishido, who was Henry’s wife, as bookkeeper and controller. Accu-Blend alleges Henry then began stealing purchasing orders placed with Accu-Blend by fulfilling orders under Henry’s name or under the name of Defendant H&S Mfg. (H&S), a sole proprietorship owned and operated by Henry.

In order to fulfill these orders, Henry allegedly utilized Accu-Blend’s raw material, equipment, and labor. Henry would then package and ship the final products with the H&S logo and would collect payment on those orders. After Accu-Blend conducted an audit, they discovered a shortage of approximately $1,200,000 worth of raw materials.

On April 8, 2019, Accu-Blend filed a complaint against the Shishidos, H&S, and Does 1-50, alleging the following causes of action: (1) fraud, (2) conversion, (3) intentional interference with contract, (4) violation of Business and Professions Code section 17200, (5) conspiracy, (6) breach of fiduciary duty, and (7) constructive trust.

On August 12, 2019, Accu-Blend filed a First Amended Complaint (FAC) against the Shishidos, H&S, Robert Fuentes, Desirae Fuentes, Athena Marie Soto, and Does 1-20, alleging the same causes of action and additional causes of action for (7) violation of Business and Professions Code section 17044, (8) constructive trust, and (9) injunctive relief.

On September 27, 2019, Accu-Blend amended the FAC to name Doe 2 as Defendant Nicolas James Shishido. On February 10, 2023, Accu-Blend filed a motion for terminating or evidentiary/issue sanctions. On April 17, the court granted Accu-Blend’s motion for terminating sanctions and entered default against Henry, Alona, H&S, Robert Fuentes, the Fuenteses, and Soto (collectively, Defendants).

On July 3, 2023, Accu-Blend filed an application for default judgment that the court denied on July 18. On July 27, Accu-Blend filed the present application. An OSC Re: Default Judgment is set for August 24.

Code of Civil Procedure section 585 permits entry of a default judgment after a party has filed to timely respond or appear. 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 or an application for separate judgment under CCP § 579, supported by a showing of grounds for each judgment; (7) exhibits as necessary; and (8) a request for attorneys’ fees if allowed by statute or by the agreement of the parties. (Cal. Rules of Court 3.1800.)

Accu-Blend seeks default judgment against Henry in the total amount of $239,158.23, including $150,000 in damages and $89,158.23 in interest. Accu-Blend also seeks a default judgment against all Defendants in the total amount of $789,933.47, including $520,036.18 in damages, $266,782.29 in interest, and $3,115 in costs. Because the court finds Accu-Blend has submitted sufficient evidence, the court GRANTS their application for default judgment with the following modification.

As to the request for damages and interest against all Defendants, the court notes Accu-Blend’s calculations in Exhibit L appear to be inaccurate and do not add up. Thus, the court will award simple interest at an annual rate of seven percent on $492,275.19 in damages (Accu-Blend’s total damages of $591,138.24 minus $98,863.05 in credits for payments by Defendants) from the date Accu-Blend’s first complaint was filed on April 8, 2019, to present. Accordingly, the court awards total damages against all Defendants in the amount of $645,405.99, including $492,275.19 in damages, $150,015.80 in interest, and $3,115 in costs.

Based on the foregoing, Accu-Blend’s application for default judgment is GRANTED in the reduced amounts of $239,158.23 and $645,405.99.

[1] Because Defendants Henry Shishido, Alona Lynn Shishido, Nicholas James Shishido, Robert Fuentes, and Desirae Fuentes have the same last names, the court will refer to them individually by their first names and collectively by their last names.