Paragon Six v. Girgis CA2/1

California Court of Appeal·Decided November 26, 2025·No. B327441M·Unpublished

Opinion

Filed 11/26/25 Paragon Six v. Girgis CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

PARAGON SIX, LLC, et al., B327441, B337407 (Los Angeles County Plaintiffs and Respondents, Super. Ct. No. 21LBCV00258)

v.

RYAN GIRGIS,

Defendant and Appellant. B331507 PARAGON SIX, LLC, et al., (Los Angeles County Plaintiffs and Respondents, Super. Ct. No. 21LBCV00258)

v. ORDER MODIFYING OPINION (CHANGE IN NADER BASTA, JUDGMENT) AND DENYING PETITIONS FOR REHEARING Defendant and Appellant.

THE COURT: The opinion in the above-entitled matter filed on October 31, 2025 is modified as follows:

The Disposition on page 17 is deleted and replaced with the following Disposition: DISPOSITION The judgment is vacated. Following remand, the court shall enter a new judgment, identified as a default judgment, against Basta and Girgis only, severally and jointly, awarding $75,000 in compensatory damages, plus postjudgment interest, accruing from the date of the original judgment (October 17, 2022). The judgment shall not award attorney fees or costs, nor any further monetary relief. The court shall award the same injunctive relief as that awarded in the original judgment, except to the extent that it purports to restrict the conduct of any individuals or entities not named in and/or properly served with the complaint, including specifically “Blake Elliott, an individual,” “Laura Washington, an individual,” “Poker Pendants” and “Smoking Keychains.” The court may, consistent with this opinion, include language in the injunction restraining the conduct of Girgis and Basta acting under aliases or fictious business names, and may choose to specifically identify monikers Girgis and Basta may use for this purpose. The appeals from the postjudgment orders are dismissed as moot. The parties shall bear their own costs on appeal. ____________________________

This modification constitutes a change in judgment. The two petitions for rehearing filed on November 17, 2025 by respondents Paragon Six LLC, et al. (in consolidated case Nos. B327441, B337407 and B331507) are denied.

____________________________________________________________ ROTHSCHILD, P. J. BENDIX, J. M, KIM, J.

2 Filed 10/31/25 Paragon Six v. Girgis CA2/1 (unmodified opinion) NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

PARAGON SIX, LLC, et al., B327441 B337407

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. 21LBCV00258) v.

Defendant and Appellant. B331507 PARAGON SIX, LLC, et al.,

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. 21LBCV00258) v.

NADER BASTA,

Defendant and Appellant.

APPEALS from the judgment and orders of the Superior Court of Los Angeles County, Michael P. Vicencia, Judge. Vacated with directions as to the judgment. Dismissed as to the orders. Gusdorff Law, Janet Gusdorff; The Law Office of Greg May, Greg May; The Law Office of Stanley Stern and Stanley Stern, for Defendant and Appellant Ryan Girgis. Zarmi Law and David Zarmi for Defendant and Appellant Nader Basta. Walker Law, Justin O. Walker, Lorrie A. Walker, Jared A. Veliz; Williams Iagmin, Jon R. Williams; Wallin & Russell and Michael A. Wallin for Plaintiffs and Respondents Paragon Six LLC and Richard Larson.

__________________________________

Defendants Nader Basta and Ryan Girgis (defendants) appeal a judgment against them in the amount of $1,579,280.90 in favor of Paragon Six, LLC and Richard Larson (collectively, Paragon). Defendants argue the judgment is a default judgment awarding more than the complaint requests, thereby exceeding the court’s jurisdiction. Paragon disagrees and instead characterizes the judgment as one following a bench trial and thus not subject to the restrictions applicable to default judgments. We agree with defendants that the court lacked jurisdiction to hold a trial after it entered and declined to set aside the defaults against them. We treat the judgment as a default judgment following a default prove-up hearing. As such, it may not award relief greater than that requested in the appropriate pleadings. We further conclude that the judgment is void to the extent it purports to bind additional individuals not named in and/or served with the complaint. Accordingly, we vacate the judgment and instruct the court to enter a new one for $75,000, the amount of damages requested in the complaint, and the injunctive relief previously awarded, as against Girgis and Basta only.1 In issuing a new judgment, the

1 Defendants do not challenge the judgment’s award of injunctive relief.

2 court may also restrain the conduct of Girgis and Basta acting under aliases or fictious business names, and may choose to specifically identify monikers Girgis and Basta may use for this purpose. We dismiss as moot the defendants’ appeals from the postjudgment orders.

FACTUAL BACKGROUND A. Lawsuit and Proceedings Leading to Entries of Default Against Basta and Girgis Paragon sells a product for cleaning marijuana pipes called the “Kush Key.” In 2018, Basta worked as an independent contractor for Paragon. In July 2021, Paragon sued Basta, alleging that, both individually and through various fictitious business names and entities, Basta “converted the design of the Kush Key, which design was and is confidential information subject to the terms of the parties’ written contract . . . [¶] . . . in particular, . . . by selling knockoff products . . . derived directly from their unlawful conversion and misappropriation . . . on various online marketplaces including, but not limited to, Etsy.com” under various “shops/account names” including “420Keychains”; “AlienPokers”; “SmokerCharms”; “SmokingKeychains”; and “PokerPendants” and “by way of their website at https://smokingkeychains.com/.” (Italics omitted.) Paragon alleged causes of action for, inter alia, breach of contract, conversion, and misappropriation of trade secrets. In addition to Basta, Paragon named as defendants two “entit[ies] of unknown origin and form,” “Smoking Keychains,” and “Poker Pendants” (capitalization omitted), and does 1 through 50. On August 10, 2021, Etsy responded to a subpoena identifying Girgis as the “owner” of the Etsy “shop” associated with various names, including SmokerKeychains, SmokingKeychains, 420Keychains, and PokerKeychains. Thereafter, in September 2021, Paragon amended the operative

3 complaint substituting Girgis in place of one of the doe defendants. The operative complaint seeks “damages . . . in excess of $75,000,” punitive damages, costs of suit, and attorney fees, as well as “an injunction prohibiting defendants from engaging in the wrongful conduct alleged herein.” On January 5, 2022, “Blake Elliot” of “Smoking Keychains,” as a “plaintiff in pro per” filed a motion to quash a subpoena Paragon sent to Google regarding the domain name “Smoking Keychains.” (Capitalization omitted.) The motion was unsuccessful, and Google informed Paragon in response to the subpoena that Basta was the owner of the Google account associated with the domain name “Smoking Keychains.”

B.

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