New High Limited v. Global Merch Group, LLC

District Court, C.D. California·Decided July 6, 2026·No. 2:21-cv-09608·Unknown

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:21-cv-09608-CAS-PVCx Date July 6, 2026 Title New High Limited v. Global Merch Group, LLC

Present: The Honorable CHRISTINA A. SNYDER Catherine Jeang Not Present N/A Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Not Present Not Present Proceedings: (IN CHAMBERS) - DEFENDANTS-IN JUDGMENT DANIEL GUEZ AND GLOBAL MED GROUP, LLC’S MOTION TO VACATE AND SET ASIDE AMENDED JUDGMENT (Dkt. 129, filed on May 29, 2026) I. INTRODUCTION AND BACKGROUND On December 10, 2021, plaintiff New High Limited (“New High”) commenced this action against defendant Global Merch Group, LLC (“GMG”). See Dkt. 1 (“Compl.”). New High is a Hong Kong corporation with its principal place of business in Hong Kong, and GMG 1s a limited liability company with its principal place of business in Nevada. Id. New High’s complaint alleges that GMG failed to pay for apparel and personal protective equipment (“PPE”) that New High delivered to it, that GMG wrongfully cancelled purchases for products after New High had already produced them pursuant to contracts entered into with GMG, and that New High was in the process of producing additional goods ordered by GMG at the time that GMG breached. Id. 8- 10. New High began selling and shipping apparel and PPE to GMG in January 2020. Id. | 6. New High asserts that each time it delivered products to GMG, New High would provide an invoice with information about the products, the payment due, and the instructions for payment. Id. 7. New High claims that GMG failed to pay for $1,451,168.49 in apparel and PPE, that GMG wrongfully cancelled purchases for $176,797.50 in goods, and that New High was in the process of producing additional apparel valued at $688,670.55 at the time of New High’s complaint. Id. {J 8-10. New High asserts claims for: (1) breach of written contracts; (2) account stated; and (3) goods sold and delivered. Id. 4{§ 11-26.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:21-cv-09608-CAS-PVCx Date July 6, 2026 Title New High Limited v. Global Merch Group, LLC

On January 11, 2022, New High requested that the Clerk enter default against GMG for failure to appear or otherwise respond to New High’s complaint within the time prescribed by the Federal Rules of Civil Procedure. Dkt. 12. On January 12, 2022, the Clerk entered default against GMG. Dkt. 13. On February 23, 2022, New High filed a motion for default judgment against GMG. Dkt. 14. On March 14, 2022, GMG filed a motion to set aside default. Dkt. 15. That same day, GMG also filed an opposition to New High’s motion for default judgment. Dkt. 16. On April 11, 2022, the Court granted GMG’s motion to set aside default, on the condition that GMG effectuate payment of the $7,500 in attorneys’ fees New High incurred in drafting its motion for default judgment and opposing GMG’s motion to set aside default, on or before April 25, 2022. Dkt. 19. On April 28, 2022, New High’s counsel submitted a declaration stating that “[a|s of April 27, 2022, Defendant had not complied with [the Court’s April 11, 2022 order] in that it had neither paid the $7,500 fee award to Plaintiff, nor made any contact with Plaintiff's counsel to arrange for payment.” Dkt. 20. On May 16, 2022, the Court ordered GMG to show cause, on or before May 23, 2022, why default judgment against it should not be entered as a result of its failure to pay the Court-imposed attorney fee award on or before the Court-ordered deadline. Dkt. 21. GMG did not file a response to the Court’s May 16, 2022 order. On June 8, 2022, the Court reserved judgment on New High’s motion for default judgment and ordered New High to file and serve supplemental information to support its claim for damages, attorneys’ fees, and costs on or before July 5, 2022. See dkt. 22. On June 24, 2022, in response to the Court’s June 8, 2022 order, New High submitted a supplemental statement of damages in support of its motion for default judgment. Dkt. 23 (“Supplemental Damages Statement”). New High served the Supplemental Damages Statement on GMG through the Court’s CM/ECF system on June 24, 2022, and via email on July 19, 2022. See dkts. 24, 25. GMG did not respond to the Supplemental Damages Statement. On July 21, 2022, the Court granted New High’s motion for default judgment, and, on July 27, 2022, the Court entered default judgment against GMG in the amount of $2,541,206.86. Dkts. 26 (order), 28 (judgment).

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:21-cv-09608-CAS-PVCx Date July 6, 2026 Title New High Limited v. Global Merch Group, LLC

On August 26, 2022, GMG filed a motion to vacate default judgment or, in the alternative, to set aside default. Dkt. 35. On September 21, 2022, the Court denied GMG’s motion. Dkt. 45. On October 20, 2022, GMG appealed the default judgment and the Court’s denial of its motion to vacate, or in the alternative, set aside default. Dkt. 46. On September 13, 2023, New High filed a motion to amend the judgment to add Global Med Group, LLC (“Global Med”) and Daniel Guez (“Guez”) as judgment debtors. Dkt. 58-1. On October 1, 2023, GMG filed a response to and notice of deficiencies in New High’s motion to amend judgment. Dkt. 59. On October 2, 2023, New High filed a reply in support of its motion to amend judgment. Dkt. 60. On October 14, 2023, the Court denied New High’s motion without prejudice, in light of the fact that an appeal was pending. Dkt. 62. On August 14, 2024, the Court of Appeals for the Ninth Circuit affirmed the Court’s order denying GMG’s motion to vacate, or in the alternative set aside, the default judgment. Dkt. 64. On September 5, 2024, the Ninth Circuit’s judgment went into effect. Dkt. 65. On November 5, 2024, New High filed a renewed motion to amend the default judgment to add Global Med, Mapleton Capital, LLC (“Mapleton”), and Guez as judgment debtors. Dkt. 66. On November 14, 2024, New High filed a proof of service of the motion to amend the default judgment on Mapleton. Dkt. 67. On December 16, 2024, New High filed proofs of service of the motion to amend the default judgment on Guez and Global Med. Dkts. 71, 72. On December 20, 2024, New High filed a notice that no opposition had been filed to their renewed motion. Dkt. 74. On January 6, 2025, the Court held a hearing and granted New High’s renewed motion to amend the default judgment to add Global Med, Mapleton, and Guez as judgment debtors. Dkt. 75. On December 17, 2025, New High filed an application for a Judgment Debtor Exam as to Guez. Dkt. 104. On December 22, 2025, Magistrate Judge Pedro V. Castillo ordered Guez to appear on March 10, 2026, for a judgment debtor examination. Dkt. 109. On February 4, 2026, New High filed its proof of service by substituted service on Guez. Dkt. 111. Guez did not appear at the March 10, 2026, hearing. Dkt. 119.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:21-cv-09608-CAS-PVCx Date July 6, 2026 Title New High Limited v. Global Merch Group, LLC

On March 11, 2026, Magistrate Judge Castillo ordered Guez to show cause as to why he should not be held in contempt for their failure to appear at the March 10 hearing or to appear on March 24, 2026. Id. On March 18, 2026, Guez filed an ex parte application to quash or vacate the order requiring him to appear for a judgment debtor examination on March 24, 2026, and for an order staying and discharging any related order to show cause, on the ground that he was not personally served with any order requiring him to appear. Dkt. 121.

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