Judge Salvatore Sirna, Case 21PSCV00079 2023-03-20 Tentative Ruling

Judge: Salvatore Sirna, Case: 21PSCV00079, Date: 2023-03-20 Tentative Ruling

The Court may change tentative rulings at any time. Therefore, counsel are advised to check this website periodically to determine whether any changes or updates have been made to the tentative ruling. Counsel may submit on the tentative rulings by calling the clerk in Department G at (909) 802-1104 prior to 8:30 a.m. the morning of the hearing.

Case Number: 21PSCV00079 Hearing Date: March 20, 2023 Dept: G

Plaintiff Paragon Industries II, Inc.’s Application for Default Judgment

Respondent: NO OPPOSITION

TENTATIVE RULING

Plaintiff Paragon Industries II, Inc.’s Application for Default Judgment is GRANTED in the amount of $136,617.39 against Defendants KB Depot Inc., KB Cabinet & Countertop Inc., and Xiaowei Hong. Attorney fees are also awarded to Plaintiff against Defendant Xiaowei Hong in the amount of $2,933.43.

BACKGROUND

This is a collections action arising from a lease agreement. On January 1, 2019, Plaintiff Paragon Industries II, Inc. entered into a written lease agreement with KB Depot Inc. (KB Depot) and KB Cabinet & Countertop Inc. (KB Cabinet) for property in Anaheim. Xiaowei Hong (Hong) also signed a personal guaranty for the lease agreement. Plaintiff alleges KB Depot, KB Cabinet, and Hong (collectively, Defendants) breached the agreement and personal guaranty on December 31, 2019 by owing a principal sum of $247,343.33.

On February 1, 2021, Plaintiff filed a complaint against Defendants and Does 1-10, alleging the following causes of action: (1) open book account, (2) account stated, (3) reasonable value of goods/services received, (4) breach of agreement, (5) personal guaranty, and (6) unjust enrichment. On March 17, Defendants were served with substitute service and personal service by Plaintiff’s registered process server in the City of Industry.

On July 6, 2022, default was entered against Hong. On January 10, 2023, default was entered against KB Depot and KB Cabinet. On January 12, Plaintiff submitted the present application for default judgment.

An OSC Re: Default and Default Judgment is set for March 20, 2023.

LEGAL STANDARD

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.)

ANALYSIS

Plaintiff seeks default judgment against Defendant in the total amount of $184,358.94, including $104,343.33 in damages, $75,016.18 in interest, $4,363.43 in attorney fees, and $636 in costs. Because the court finds Plaintiff has submitted sufficient evidence, the court GRANTS Plaintiff’s application for default judgment with the following modifications.

First, while Plaintiff requests $75,016.18 in interest, Plaintiff’s calculation is based on the original principal amount of $247,343.33, not the $104,343.33 requested as damages. Thus, the court finds the proper amount of interest is $31,638.06 (10% of $104,343.33 divided by 365 days = $28.58 per diem multiplied by 1,107 days from December 31, 2019 to January 11, 2023).

Second, while Plaintiff requests $4,363.43 in attorney fees, the court finds the proper and reasonable amount of attorney fees pursuant to Local Rule 3.214 to be $2,933.43 ($2,890 + $43.43 or 1% of $4,343.33). Furthermore, while the guaranty agreement signed by Hong includes a provision for attorney fees, the lease agreement signed by KB Depot and KB Cabinet does not include a provision for attorney fees. Accordingly, attorney fees will only be awarded against Hong and not KB Depot or KB Cabinet.

CONCLUSION

Based on the foregoing, Plaintiff’s application for default judgment is GRANTED in the amount of $136,617.39 against all Defendants and attorney fees are awarded against Hong in the amount of $2,933.43.

Plaintiff is ordered to file an updated proposed judgment with the court that reflects these changes.