Judge: Thomas Falls, Case: 21PSCV01089, Date: 2023-03-13 Tentative Ruling

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Case Number: 21PSCV01089    Hearing Date: March 13, 2023    Dept: O

HEARING DATE:                 Monday, March 13, 2023

RE:                                          INSURANCE COMPANY OF THE WEST, A CALIFORNIA CORPORATION, vs R & B SANCHEZ, AN UNKNOWN BUSINESS ENTITY (21PSCV01089)

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Plaintiff’s Application for Default Judgment

Tentative Ruling

Plaintiff’s Application for Default Judgment is TBD.

Background

Plaintiff, INSURANCE COMPANY OF THE WEST (“ICW”) alleges that it issued a worker’s compensation insurance policy to Defendant R & B Sanchez but that Defendant has not paid $285,863.00 in outstanding premiums.

On December 30, 2021, Plaintiff filed suit.

On April 27, 2022, default was entered against Defendant.

On January 31, 2023, Plaintiff filed the instant application.

Discussion

Plaintiff’s application complies with requirements for entry of default judgment, notably that it seeks the amount as alleged in the complaint ($285,863.00) and has provided evidence thereof.

However, on December 21, 2022, Plaintiff filed a DECLARATION OF CHRISTIAN J. GASCOU RE OSC RE DEFAULT JUDGMENT AND FAILURE TO APPEAR ON 9/1/2022. In this declaration, Plaintiff stated the following:

After the default was entered, our office was advised by ICW’s auditing department that there had been a revision to the previous invoice/amount due. The revision resulted in an additional amount due of $146,021.00, bringing the total damages being sought to $393,424. We have been in communications with our client as to adding this additional amount to the judgment. A new default judgment packet has been drafted and has been sent to our client for signature.

Here, however, the default judgment sought does not account for an additional $146,021.00. And if it did, Plaintiff would need to serve and file an amended complaint because CCP section 580 states that “[t]he relief granted to the plaintiff, if there is no answer, cannot exceed that which he or she shall have demanded in his or her complaint, in the statement required by Section 425.11, or in the statement provided for by Section 425.115.” What’s more, “[t]he Legislature enacted section 580 and related statutes to ensure that a defendant who declines to contest an action does not suffer open-ended liability.” (Electric Funds Solutions, LLC v. Murphy (2005) 134 Cal.App.4th 1161, 1173) (emphasis added). 

Conclusion

Based on the foregoing, the ruling will be determined at the hearing.

If Plaintiff seeks damages on the complaint in the amount of $285,863.00 (plus $584.00), the court grants the application.

If, however, Plaintiff seeks than alleged in the complaint, the application is denied with prejudice.