Case Number: BC542270    Hearing Date: July 30, 2014    Dept: 58

BC542270
Pacific Mercantile Bank v. Hansom Enterprises, Inc., et al.
CMC and OSC re: Proof of Service of Summons set for 7/30/14, continued to 9-5-14

On 4/10/14, Plaintiff Pacific Mercantile Bank filed this action against Defendants Hansom Enterprise, Inc.; B S News Corporation dba Cali Natural and Cali Organic; Kwan H. Lee; Jeong H. Park; John Park; and John Park dba Oxford Golf & Tennis arising out of the alleged failure to repay a promissory note. On 5/28/14, defaults were entered against Hansom Enterprise and John Park, individually and dba Oxford Golf & Tennis. On 6/2/14, defaults were entered against B S News, Kwan Lee, and Jeong Park.

Default Judgment –
Plaintiff requests default judgment against Defendants in the total amount of $149,075.44 as follows:
1. Damages of $136,055.94
2. Interest of $12,126.90
3. Costs of $892.60

There are three issues that prevent entry of default judgment as requested.

First, the damages appear to be incorrectly calculated. Plaintiff’s evidence states that the unpaid principal is $132,933.32 as of 1/15/13. Jansen Decl. ¶¶ 8, 12, Ex. D. However, Plaintiff submits late fees (calculated at 5% of the monthly payment of $3,286.92) of $2,793.88 which would total $135,727.20 in damages.

Second, it is unclear as of which date interest is being claim: Plaintiff appears to indicate that interest is calculated from 12/15/12 (Jansen Decl. ¶ 12), despite the date of default being 1/15/13 (id. ¶ 8).

Third, the promissory note evidences Plaintiff’s security interests in certain collateral of Hansom Enterprise (Jansen Decl. Ex. A § 10 [p. 5]; see also Complaint Ex. G), which Plaintiff has failed to address. The Court further notes that Plaintiff attached commercial security agreements for collateral of B S News (Complaint Ex. F) and John Park and Jeong Park dba Oxford Golf & Tennis (Complaint Ex. H), which Plaintiff has also failed to address.

Lastly, Plaintiff requests judgment against all other defendants except Hansom Enterprise based on guaranty agreements. Jansen Decl. ¶¶ 4, 5, Ex. B. However, there is no guaranty agreement for John Park dba Oxford Golf & Tennis submitted.

Plaintiff to submit revised judgment package within ten days.