Judge Salvatore Sirna, Case Number: 23PSCV01243, Date: 2024-07-18 Tentative Ruling

Judge: Salvatore Sirna, Case: 23PSCV01243, Date: 2024-07-18 Tentative Ruling

Case Number: 23PSCV01243 Hearing Date: July 18, 2024 Dept: G

Plaintiff TBK Bank, SSB’s Application for Default Judgment

Respondent: NO OPPOSITION

TENTATIVE RULING

Plaintiff TBK Bank, SSB’s Application for Default Judgment is GRANTED in the reduced amount of $2,135,814.76.

BACKGROUND

This is a breach of contract action. In 2021, Plaintiff TBK Bank, SSB (TBK Bank) entered into five secured loan agreements with Defendant Little Fat Trucking in which TBK Bank agreed to loan a total amount of $2,334,846.71, including $669,132.00 in March 2021, $650,933.45 in April 2021, $80,520.00 in August 2021, $483,717.26 in September 2021, and $450,544.00 in November 2021. In support of the loan agreements, Defendant Xing Wang executed a personal guaranty. In February 2023, Little Fat Trucking allegedly defaulted on its obligations and now owes a total amount of $1,923,248.81, including $573,298.67 on the first loan, $554,039.61 on the second loan, $58,699.55 on the third loan, $348,374.61 on the fourth loan, and $388,836.37 on the fifth loan.

On April 26, 2023, TBK Bank filed a complaint against Little Fat Trucking, Wang, Fanuga Express, December World Inc. (December World), WBD Trucking Inc. (WBD Trucking), Flying Space, WL Trucking Inc. (WL Trucking), and ZYG World Inc. (ZYG World), alleging the following causes of action: (1) breach of contract against Little Fat Trucking, (2) breach of contract against Wang, and (3) claim and delivery.

On May 12, 2023, the Court granted TBK Bank’s application for a temporary restraining order and writ of possession against Fanuga Express, Little Fat Trucking, December World, WL Trucking, and ZYG World.

On June 17, 2023, TBK Bank’s process server served December World with substitute service in Yucaipa. On June 20, 2023, TBK Bank’s process server served ZYG World with substitute service in Chino Hills. On October 4, 2023, the Court entered default against December World and ZYG World after they failed to file a timely answer.

On January 22, 2024, TBK Bank dismissed WBD Trucking and Flying Space from the present action.

In February 2024, TBK Bank served Little Fat Trucking, Wang, Fanuga Express, December World, ZYG World, and WL Trucking by publication.

On April 18, 2024, the Court entered default against Little Fat Trucking, Wang, Fanuga Express, and WL Trucking after they failed to file a timely answer. On June 13, 2024, TBK Bank submitted the present application for default judgment.

A case management conference and OSC Re: Default/Default Judgment is set for July 18, 2024.

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

TBK Bank seeks default judgment against Little Fat Trucking and Wang in the total amount of $2,366,963.29, including $1,923,248.81 in damages, $410,679.50 in interest, $25,306.57 in attorney fees, and $7,728.41 in costs. TBK Bank also seeks a judgment of possession against all defendants as to one 2022 Peterbilt Model 579, two 2022 Freightliner PT126SLP tractors, one 2019 Freightliner PT126SLP tractor, and one 2020 Kenworth T680. While the court finds TBK Bank has submitted sufficient evidence, the court GRANTS TBK Bank’s application with the following modifications.

First, while TBK Bank requests $25,306.57 in attorney fees, the court calculates reasonable attorney fees as $21,122.49 pursuant to Local Rule 3.214 ($2,890 + $18,232.49 (1% of amount over $100,000 or $1,823,248.81) = $21,122.49).

Second, while TBK Bank requests interest calculated at 18% per year, the Complaint only requests an interest rate of 7.45% per year. (Complaint, ¶ 59, 64.) Because a party may not obtain damages in a default judgment that exceed the amount requested in the complaint, the Court will limit interest to the rate requested in the Complaint and calculates interest at a rate of 7.45% from April 7, 2023, to July 18, 2024 for a total of $183,715.05. (Greenup v. Rodman (1986) 42 Cal.3d 822, 826.)

Accordingly, court GRANTS TBK Bank’s application in the reduced amount of $2,135,814.76.

CONCLUSION

Based on the foregoing, TBK Bank’s application for default judgment is GRANTED in the reduced amount of $2,135,814.76 (Damages of $1,923,248.81 + Interest of $183,715.05 + Attorney's Fees of $21,122.49 + Costs of $7,728.41 = $2,135,814.76).