Judge: Stephen I. Goorvitch, Case: 25STCV00530, Date: 2025-01-23 Tentative Ruling

Case Number: 25STCV00530    Hearing Date: January 23, 2025    Dept: 82

South Pacific Rehabilitation Services, Inc. v.

G&R Alameda Healthcare Services LLC, et al.

Case No. 25STCV00530

[Tentative] Order Denying Ex Parte Application for Writ of Attachment

[Tentative] Order Vacating Temporary Protective Order

Plaintiff South Pacific Rehabilitation Services, Inc. (“Plaintiff”) seeks a writ of attachment in the amount of $1,957,783.75 based upon the alleged breach of a settlement agreement.  The settlement agreement provided that Defendants would make an initial payment of $400,000 and then pay $100,000 per month plus one month of 12 percent annual interest on the outstanding balance.  (See Epstein Decl. Exh. 5, ¶ 2.)  There is no dispute that Defendants made the initial payment of $400,000.  Plaintiff alleges that Defendants breached the agreement because, according to Meir Epstein, Defendants “have not made the requisite monthly installment payments.”  (Epstein Decl ¶ 12.)  There are two issues with this declaration.  First, Epstein identifies himself as “President of an affiliate of South Pacific Rehabilitation Services, Inc.”  (Id. ¶ 1.)  Defendants identify Plaintiff’s CEO as Jacob Cohen.  (Mercado Decl. ¶ 4; Agoncillo Decl. ¶ 15; Dror Decl. ¶ 3.)  Second, Epstein does not attach any of Plaintiff’s accounting records that clearly show an absence of required payments.  Epstein relies only on an aging report stating that the debt is $1,100,000 and $857,783.75 for a total of $1,957,783.75.)

By contrast, Defendants rely on declarations stating that, in fact, Defendants have made the required monthly payments.  Defendants rely on a declaration from Dyanne Diego Agoncillo, a vice president and controller for Defendant Saint Cabrini Healthcare Services, LLC, which maintains the books and records for three other defendants: (1) G&R Alameda Healthcare Services, LLC, (2) GEM Healthcare LLC, and (3) G and E Healthcare Services, LLC.  (Agoncillo Decl. ¶ 1.)  According to Agoncillo, commencing on August 1, 2024, she “ma[de] sure [her] team issued the payments of $100,000 per month, interest at the rate of 12% per annum on the balance, and payment of invoices received.”  (Id. ¶ 12.)  Agoncillo provided a summary of the payments.  (Id. ¶13.)  She also provided copies of the canceled checks.  (Id. Exh. B.)  Brian Dror, a certified public accountant for Defendants, corroborates that the settlement payments were made.  (See Dror Decl. ¶ 6.)  According to Agoncillo, Defendants made the required payment for December but Plaintiff’s CEO, Jacob Cohen, agreed to hold the checks until January 27, 2025.  (Mercardo Decl. ¶ 8.)

Based upon the foregoing, the court finds and orders as follows:

1.         Plaintiff has not demonstrated “probable validity of the claim upon which the attachment is based,” as required by Code of Civil Procedure section 484.090.  Therefore, the ex parte application is denied. 

2.         The court need not reach the additional issues raised by Defendants. 

3.         The court vacates its temporary protective order. 

4.         Plaintiff’s counsel shall provide notice and file proof of service with the court.