Judge: Salvatore Sirna, Case: 24PSCV02108, Date: 2024-11-18 Tentative Ruling

Case Number: 24PSCV02108    Hearing Date: November 18, 2024    Dept: G

Plaintiff ACN Marketing Corp’s Application for Default Judgment

Respondent: NO OPPOSITION

TENTATIVE RULING

Plaintiff ACN Marketing Corp’s Application for Default Judgment is GRANTED in the reduced amount of $600,609.00.

BACKGROUND

This is a breach of contract action. In February 2019, Plaintiff ACN Marketing Corp (ACN) entered into an asset purchase agreement with Defendant Mahmud Ulkarim in which ACN agreed to sell certain assets to Ulkarim. As part of the sale transaction, ACN agreed to make a loan of $600,000 to Defendant Megna Tofu Manufacturing Company, Inc. (Megna Tofu). In support of the loan agreement, Ulkarim executed a personal guaranty. On July 1, 2024, ACN alleges Ulkarim and Megna Tofu breached the loan agreement by failing to make the required payments.

On July 2, 2024, ACN filed a complaint against Ulkarim, Megna Tofu, and Does 1-50, alleging causes of action for (1) breach of contract and (2) declaratory relief. On July 9, 2024, ACN’s process server served Ulkarim and Megna Tofu with substitute service in El Monte.

On August 28, 2024, the court entered default against Ulkarim and Megna Tofu after they failed to file a timely answer. On the same day, ACN submitted the present application for default judgment.

On August 29, 2024, Ulkarim and Megna Tofu submitted an untimely answer. On November 6, 2024, the court struck their answer.

A case management conference and OSC Re: Default Judgment is set for November 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

ACN seeks default judgment against Ulkarim and Megna Tofu in the total amount of $605,609.00, including $600,000.00 in damages, $5,000.00 in interest, and $609.00 in costs. Because the court finds ACN has submitted sufficient evidence, the court GRANTS ACN’s application for default judgment with the following modification.

While ACN requests $5,000.00 in interest, the court declines to award such relief as ACN failed to provide interest calculations supporting this request as required by Rule 3.1800, subdivision (a)(3) of the California Rules of Court. Furthermore, the Complaint fails to request such relief. (See Flores v. Smith (1941) 47 Cal.App.3d 253, 260-261 [“Interest may be allowed only to the extent to which it is claimed in the complaint.”].)

CONCLUSION

Based on the foregoing, ACN’s application for default judgment is GRANTED in the reduced amount of $600,609.00.