Judge: Salvatore Sirna, Case: 21PSCV00851, Date: 2022-12-13 Tentative Ruling

Case Number: 21PSCV00851    Hearing Date: December 13, 2022    Dept: G

Plaintiff Kramer, Fox & Associates, Inc.’s Application for Default Judgment

Respondent: NO OPPOSITION

TENTATIVE RULING

Plaintiffs Kramer, Fox & Associates, Inc.’s Application for Default Judgment is DENIED without prejudice.  

BACKGROUND

This is a breach of contract action. On September 19, 2018, Defendants Kent Davila and KRJ Logistics, Inc. took a small business loan and subsequently failed to make payments due under the loan agreement. The debt was assigned to Plaintiff Kramer, Fox & Associates, Inc.

On October 20, 2021, Plaintiff filed a complaint against Defendants and Does 1-10, alleging breach of contract and common counts. Default was entered against Defendants on March 4, 2022. On May 26, Plaintiff submitted an application for default judgment and the court denied Plaintiff’s application on September 7 without prejudice. 

On November 29, 2022, Plaintiff submitted the present application. An OSC: Re Default Judgment is set for December 5, 2022.

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 $74,797.71, including $69,373.05 in damages, $2,192.94 in interest, $910.40 in costs, and $2,321.32 in attorney fees. For the following reasons, the court DENIES Plaintiff’s application without prejudice.

First, Plaintiff requests interest on the principal of $19,969.46 in the amount of $2,192.94 at $5.58 per day from November 1, 2021 to November 28, 2022. However, by the court’s calculations, this exceeds the allowable annual interest rate of 10%. (Civil Code, § 3289.)

Second, Plaintiff requests $2,321.32 in attorney fees. However, by the court’s calculations, this exceeds reasonable and allowable attorney fees under Local Rule 3.214.

CONCLUSION

Based on the foregoing, Plaintiff’s application for a default judgment against Defendants is DENIED without prejudice.