Commercial Credit Group Inc. v. SHR Transport, Inc.

CourtDistrict Court, E.D. California
DecidedOctober 14, 2022
Docket2:21-cv-01020
StatusUnknown

This text of Commercial Credit Group Inc. v. SHR Transport, Inc. (Commercial Credit Group Inc. v. SHR Transport, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Credit Group Inc. v. SHR Transport, Inc., (E.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 COMMERCIAL CREDIT GROUP INC., a No. 2:21-cv-01020 JAM AC Delaware corporation, 12 Plaintiff, 13 FINDINGS AND RECOMMENDATIONS v. 14 SHR TRANSPORT, INC., a California 15 corporation; JASWINDER SINGH, an individual; RANGIT SINGH BAINS, an 16 individual, 17 Defendants. 18 19 This matter is before the court on plaintiff’s motion for default judgment. ECF No. 24. 20 The motion was referred to the undersigned pursuant to E.D. Cal. R. 302(c)(19). This motion was 21 set for hearing on the papers on October 5, 2022. ECF No. 24. Defendants have not appeared or 22 submitted any response. For the reasons set forth below, the undersigned recommends plaintiff’s 23 motion be GRANTED. 24 I. Relevant Background 25 Plaintiff brought its complaint in federal court based on diversity jurisdiction on June 8, 26 2021, alleging one count of possession of personal property with a requested remedy of claim and 27 delivery with respect to vehicles used as collateral on two loans. ECF No. 1. The complaint 28 alleges, in relevant part, as follows. 1 Defendant SHR Transport Inc. (“Borrower”) entered into a Negotiable Promissory Note 2 and Security Agreement dated May 7, 2018, in the sum of $849,615.00 evidencing a loan made 3 by plaintiff to Borrower. ECF No. 1 at 2. In connection with the loan, Borrower executed a 4 Security Agreement granting a lien to plaintiff in certain personal property described therein 5 (“Note 1”). Id. Pursuant to the terms of Note 1 as amended by a First Amendment to Security 6 Agreement, Borrower was to make 39 monthly installment payments of $21,785.00 until the loan 7 evidenced by Note 1 was paid in full. Id. at 3. A copy of Note 1 is attached to the Complaint, 8 marked Exhibit “1,” and is incorporated into the Complaint by reference. Id. In connection with 9 Note 1 the Borrower granted plaintiff a blanket lien on all its assets (collectively “the Collateral”). 10 Id. The grant of a security interest in the specific items of Collateral which are vehicles are set 11 forth in section 26 of Note 1. Id. Plaintiff perfected its liens on the Collateral by filing UCC-1 12 Financing Statements on April 13, 2018, and on June 3, 2020, which are attached as Exhibits “3” 13 and “4” and are incorporated into the Complaint. Id. With respect to the specific vehicles 14 pledged as collateral, plaintiff was named as the lienholder on the titles for the collateral vehicles 15 with the Department of Motor Vehicles perfecting its liens, documents attached to the Complaint 16 as Exhibit “5.” Id. 17 On or about January 23, 2020, plaintiff made a second loan to Borrower in the sum of 18 $1,104,064.00 pursuant to the terms of a Negotiable Promissory Note and Security Agreement 19 whereby Borrower was to make 12 monthly payments of $12,000.00 followed by 28 monthly 20 payments of $34,288.00 until the loan was paid in full. Id. at 4. A copy of the Negotiable 21 Promissory Note and Security Agreement and the First Amendment thereto is attached to the 22 Complaint, marked Exhibit “6” and is incorporated into the Complaint by reference (“Note 2”). 23 Id. By an Amendment to Negotiable Promissory Note and Security Agreement/Lease/ 24 Conditional Sale Contract, Borrower agreed that the sum due and payable was $1,142,396.00 and 25 commencing June 15, 2020, and on the 15th day of each month thereafter was obligated to make 26 12 monthly payments of $12,000.00 and 28 monthly payments of $35,657.00 until the loan 27 evidenced by Note 2 was paid in full. Id. A copy of the Amendment to Negotiable Promissory 28 Note and Security Agreement/Lease/Conditional Sale Contract is attached to the Complaint, 1 marked Exhibit “7” and is incorporated to the Complaint by reference (“Note 2 Amendment”). 2 Id. In connection with entering Note 2, Borrower once again granted plaintiff a blanket lien on 3 the Collateral together with a Security Interest in the specific vehicles set forth in Section 26 of 4 Note 2. Copies of the UCC-1 Financing Statements perfecting Plaintiff’s liens on the Collateral 5 and the Specific Vehicles set forth in Section 26 of Note 2 are attached to the Complaint, marked 6 Exhibit “8,” and are incorporated by reference. Id. Plaintiff perfected its lien on Note 2 Specific 7 Vehicles by being lienholder on the title to the Note 2 Vehicles. Copies of the Titles to the Note 2 8 Vehicles showing plaintiff as a lienholder are attached to the Complaint, marked Exhibit “9,” and 9 are incorporated by reference. Id. at 5. 10 In connection with entering the loans with Borrower, individual named defendants Singh 11 and Bains executed a Guaranty, individually obligating themselves to pay all sums due and 12 payable by Borrower to Plaintiff. Id. at 5. A copy of the Guaranty is attached to the Complaint, 13 marked Exhibit “10,” and is incorporated by reference. Id. Plaintiff has performed all conditions, 14 covenants, and promises it is required to perform in accordance with the terms of all loan 15 documents entered between plaintiff, on the one hand, and Defendants, and each of them, on the 16 other hand. Id. Defendants, and each of them, have defaulted on Note 1 and Note 2 and the 17 Second Amendment and Note 2 Amendment and Bains and Singh have defaulted on the 18 Guaranties. Id. 19 With respect to the Loans, the Defendants made irregular payments for months and failed 20 to make the payment due on Note 1 for December 2020, and each month thereafter. Id. Demand 21 has been made on Defendants to pay the sums due but Defendants, and each of them, have failed 22 to do so. Id. Plaintiff has declared all sums due and payable, and the following sums are due: (a) 23 Note 1: Principal in the sum of $168,546.64, interest in the sum of $1,179.83; the total sum due is 24 $169,726.47; (b) Note 2: Principal in the sum of $801,643.10, interest in the sum of $5,611.50, 25 repossession expenses and other fees in the sum of $2,501.24; the total Sum due is $809,755.84. 26 Id. at 5-6. Demand was made on Defendants, and each of them, to pay all sums due, but they 27 failed and refused to do so. Id. at 6. As a result, as of April 5, 2021, plaintiff was owed a total of 28 $ 979,482.31. Id. 1 A summons in this case was issued to defendant on June 9, 2021 (ECF No. 3) and 2 summons were returned executed as to each defendant on July 16, 2021. ECF Nos. 7, 8, 9. On 3 September 2, 2021, upon plaintiff’s motion, the Honorable District Judge John A. Mendez issued 4 an Order for Writ of Possession following a hearing. ECF No. 14. Judge Mendez found 5 defendants had properly been served, that plaintiff had established the probable validity of claims 6 to possession as to the identified vehicles. ECF No. 14 at 2. The Clerk of Court was directed to 7 issue a writ of possession and defendants were ordered to transfer the possession of the property 8 at issue. Id. at 4. The writ of possession was issued on October 5, 2021. ECF No. 17. 9 Defendants have not appeared, and plaintiff moved for entry of default on August 24, 10 2022. ECF No. 22. The clerk entered default on August 25, 2022. ECF No. 23. Plaintiff moved 11 for default judgment on August 31, 2022. Defendants did not respond to the motion for entry of 12 default judgment and have not otherwise appeared in this case. 13 II. Motion 14 Defendant moves for default judgment on its single claim of possession of personal 15 property, seeking the following relief: that Default Judgment be entered in favor of Plaintiff 16 Commercial Credit Group, Inc., a Delaware corporation and against Defendants SHR Transport, 17 Inc., a California corporation, Jaswinder Singh, and Rangit Singh Bains, and each of them, for 18 Claim and Delivery and for the immediate possession of the vehicles described as follows: 19 1. 2015 Utility Trailer VIN: 1UYVS2532FU238207, License plate number 4NK7336, 20 2. 2013 Utility Trailer VIN: 1UYVS2535DU711515, 21 3.

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Commercial Credit Group Inc. v. SHR Transport, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-credit-group-inc-v-shr-transport-inc-caed-2022.