Judge Sandy N. Leal, Case 2022-01245428 2023-08-10 Tentative Ruling

Judge: Sandy N. Leal, Case: 2022-01245428, Date: 2023-08-10 Tentative Ruling

Motion for Summary Judgement and/or Adjudication

Plaintiff Balboa Capital Corporation moves for summary adjudication against defendant William Gwathmey, Jr., on two of the three causes of action asserted against him in the complaint.

Specifically, as framed in the notice of motion, plaintiff seeks summary adjudication of the following issues:

1. Plaintiff Balboa Capital Corporation established all of the elements of its third cause of action for breach of guaranty in connection with the Equipment Finance Agreement No. 289865-000 against defendant William Gwathmey, Jr., including damages.

2. Plaintiff Balboa Capital Corporation established all of the elements of its fourth cause of action for indebtedness against defendant William Gwathmey, Jr., due to his breach of the guaranty in connection with the Equipment Finance Agreement No. 289865-000.

A plaintiff moving for summary judgment or summary adjudication has met his or her burden of showing that there is no defense to a cause of action if that party has proved each element of the cause of action entitling the party to judgment on the cause of action. Code Civ. Proc. § 437c(p)(1). Once the plaintiff has met that burden, the burden shifts to the defendant to show that a triable issue of one or more material facts exists as to the cause of action or a defense thereto. Code Civ. Proc. § 437c(p)(1). The defendant cannot rely upon the allegations or denials of his or her pleadings to show that a triable issue of material fact exists but must set forth the specific facts showing that a triable issue of material fact exists as to the cause of action or a defense thereto. Code Civ. Proc. § 437c(p)(1).

Issue 1: Plaintiff Balboa Capital Corporation established all of the elements of its third cause of action for breach of guaranty in connection with the Equipment Finance Agreement No. 289865-000 against defendant William Gwathmey, Jr., including damages.

In the third cause of action for breach of guaranty, plaintiff alleges that, concurrently with Equipment Finance Agreement No. 289865-000 that it entered into with co-defendant King & Queen Family Practice, defendant William Gwathmey, Jr., and co-defendant Pamela Gwathmey, “guaranteed in writing, the payment of the then existing and future indebtedness due and owing to [plaintiff] under the terms of [Equipment Finance Agreement No. 289865-000]” in part to induce plaintiff to enter into the underlying agreement. (Complaint, ¶ 25.) It alleges that, after a default by King & Queen Family Practice under the terms of Equipment Finance Agreement No. 289865-000, plaintiff demanded that the individual defendant guarantors make the payments required under Equipment Finance Agreement No. 289865-000. (Complaint, ¶ 26.)

It alleges that, under the terms of the guaranties, the sum of $130,569.25 plus interest at the rate of 10% per annum from January 26, 2022, is due and payable to plaintiff from the individual defendant guarantors. (Complaint, ¶ 27.) It alleges that the complaint, in addition to previous demands constituted demand upon the guarantors to pay the entire indebtedness due and owing from King & Queen Family Practice under the terms of Equipment Finance Agreement No. 289865-000. (Complaint, ¶ 27.)

In its separate statement submitted with the moving papers, plaintiff cites evidence, including matters in requests for admissions propounded to William Gwathmey, Jr., that were deemed admitted as a result of his failure to respond to them, for facts that include the following in support of the first issue:

• that King & Queen Family Practice entered into Equipment Finance Agreement No. 289865-000 with plaintiff and that that agreement required King & Queen Family Practice to make six initial monthly payments of $99.00 and then sixty monthly payments of $4,326.35 of the 26th of each month for 60 months, beginning January 26, 2019 (facts 1 and 2)

• that the last payment received by plaintiff from King & Queen Family Practice was credited toward the monthly payment due on December 26, 2021 (fact 4)

• that King & Queen Family Practice did not make any payments required by the Equipment Finance Agreement No. 289865-000 after December 26, 2021 (fact 5)

• that, as provided in the terms of Equipment Finance Agreement No. 289865-000, plaintiff declared the entire balance of payments under the agreement to be immediately due and payable as a result of the default, as well as late charges (facts 6, 7, and 8)

• that plaintiff performed all of the terms, conditions, and covenants required to be performed by it under Equipment Finance Agreement No. 289865-000 (fact 9)

• that, concurrently with the making of Equipment Finance Agreement No. 289865-000, individual defendants Pamela Gwathmey and William Gwathmey, Jr., entered into a written guaranty with plaintiff whereby they unconditionally guaranteed payment and performance by King & Queen Family Practice when due under the agreement (facts 11 and 12)

• that, after default by King & Queen Family Practice, plaintiff demanded that the individual defendant guarantors make the payments due, but they failed to make them (facts 13 and 14)

• that, as of the date that the complaint was filed, the amount of $130,569.24 in unpaid obligations was due and owing from the defendants (fact 15)

These facts establish plaintiff’s claim for breach of contract against William Gwathmey, Jr., and plaintiff has met its initial burden on the motion. Because William Gwathmey, Jr., has not filed any opposition to the motion, he did not meet his responding burden. As a result, plaintiff is entitled to summary adjudication in its favor on the first issue.

Issue 2: Plaintiff Balboa Capital Corporation established all of the elements of its fourth cause of action for indebtedness against defendant William Gwathmey, Jr., due to his breach of the guaranty in connection with the Equipment Finance Agreement No. 289865-000.

In the fourth cause of action for indebtedness, plaintiff alleges that all defendants, including defendant William Gwathmey, Jr., are indebted to plaintiff in the sum of $130,569.25 plus interest at the rate of 10% per annum from January 26, 2022. (Complaint, ¶ 30.)

In its separate statement, plaintiff cites evidence, for facts that include the following in support of the second issue:

• that the last payment received by plaintiff from King & Queen Family Practice was credited toward the monthly payment due on December 26, 2021 (fact 28)

• that King & Queen Family Practice did not make any payments required by the Equipment Finance Agreement No. 289865-000 after December 26, 2021 (fact 29)

• that, after default by King & Queen Family Practice, plaintiff demanded that the individual defendant guarantors make the payments due, but they failed to make them (facts 37 and 38)

• that, as of the date that the complaint was filed, the amount of $130,569.24 in unpaid obligations was due and owing from the defendants (fact 40)

These facts establish plaintiff’s claim for breach of indebtedness against William Gwathmey, Jr., and plaintiff has met its initial burden on the motion. Because William Gwathmey, Jr., has not filed any opposition to the motion, he did not meet his responding burden. As a result, plaintiff is entitled to summary adjudication in its favor on the second issue.

Plaintiff is entitled to summary adjudication in its favor on the two issues identified in its notice of motion.