Judge: Salvatore Sirna, Case: 24PSCV00820, Date: 2024-08-14 Tentative Ruling
Case Number: 24PSCV00820 Hearing Date: August 14, 2024 Dept: G
Plaintiff US Air Conditioning Distributors LLC’s Application
for Default Judgment
Respondent: NO OPPOSITION
TENTATIVE RULING
Plaintiff US Air Conditioning Distributors LLC’s Application for Default Judgment is GRANTED in the reduced amount of $62,380.63
BACKGROUND
This is a breach of contract action arising from a credit agreement. In July 2007, Plaintiff US Air Conditioning Distributors LLC (US Air Conditioning) entered into a credit account agreement with Defendant Troy Travis Myrick, doing business as Precision Comfort Heating and Air, in which US Air Conditioning agreed to lend credit to Myrick. Subsequently, US Air Conditioning alleges Myrick breached the agreement by failing to pay for goods or services in the amount of $56,629.96.
On March 15, 2024, US Air Conditioning filed a complaint against Myrick and Does 1-100, alleging the following causes of action: (1) breach of written agreement, (2) goods sold and delivered, (3) reasonable value, (4) indebtedness, and (5) open book account. On March 27, 2024, US Air Conditioning’s process server served Myrick with substitute service in Paso Robles.
On May 21, 2024, the court entered default against Myrick after Myrick failed to file a timely answer. On June 4, 2024, US Air Conditioning submitted the present application for default judgment.
A case management conference is set for August 14, 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
US Air Conditioning seeks default judgment against Myrick in the total amount of $63,857.96, including $56,629.96 in damages, $4,440.41 in interest, $2,022.59 in attorney fees, and $765.00 in costs. Because the court finds Myrick has submitted sufficient evidence, the court GRANTS Myrick’s application for default judgment but reduces the total amount awarded to $62,380.63 for the following reasons.
First, while US Air Conditioning requests reasonable attorney fees be awarded pursuant to Civil Code section 1717.5, the court finds US Air Conditioning’s request for $2,022.59 in attorney fees exceeds the amount allowed by statute. Although US Air Conditioning based this request on the court’s attorney fee schedule pursuant to Local Rule 3.214, Civil Code section 1717.5, subdivision (b) only allows use of this schedule if the resulting fees are less than the maximum amount allowed by Civil Code section 1717.5. This provision provides reasonable attorney fees in open book account actions “shall not exceed the lesser of: (1) nine hundred sixty dollars ($960) for book accounts based upon an obligation owing by a natural person for goods, moneys, or services which were primarily for personal, family, or household purposes; and one thousand two hundred dollars ($1,200) for all other book accounts to which this section applies; or (2) 25 percent of the principal obligation owing under the contract.” (Civ. Code, § 1717.5, subd. (a).) Because $1,200 is the lesser amount than twenty-five percent of $56,629.96, US Air Conditioning may not obtain fees in excess of this amount. Thus, the court reduces the award of attorney fees to $1,200.00.
Second, while US Air Conditioning requests interest calculated at eighteen percent (18%) per year, the Complaint makes contradictory requests for rates of ten percent (10%) and eighteen percent (18%). (Complaint, ¶ 9, 15, 18, 20, 23.) Furthermore, US Air Conditioning failed to point to any legal authority or contractual provision that allows it to exceed the ten percent (10%) annual rate established in Civil Code section 3289, subdivision (b). Accordingly, the court calculates interest at the default annual rate of ten percent (10%) pursuant to Civil Code section 3289, subdivision (b) for a total of $3,785.67 (10% of $56,629.96 divided by 365 = $15.5150575342 per diem multiplied by 244 days (12/14/2023 – 8/14/2024)).
CONCLUSION