Salvador v. Live At Home Care Connection, Inc.

District Court, N.D. California·Decided August 3, 2021·No. 5:18-cv-07159·Unknown

Opinion

WILLIAM G SALVADOR, Case No. 18-cv-07159-EJD Plaintiff, v. ORDER GRANTING IN PART MOTION FOR DEFAULT LIVE AT HOME CARE CONNECTION, JUDGMENT; JUDGMENT INC., et al., Re: Dkt. No. 70 Defendants.

Plaintiff William G. Salvador, a citizen of Canada, initiated this suit against Defendant Mylah G. Spears (“Spears”) and her home care businesses, Defendants Live At Home Care Connection, Inc. (“LAHCC”) and Care Connection Transport, Inc. (“CCT”), asserting two claims of wrongful conversion. Pending before the Court is Plaintiff’s motion for default judgment against all Defendants. For the reasons set forth below, the Court will grant in part Plaintiff’s motion for default judgment. A. Allegations in the First Amended Complaint Defendant LAHCC is a home care business. First Amended Complaint (“FAC”) ¶ 14. Spears owns 80 shares of stock in LAHCC, which amounts to forty (40) percent of the total number of shares issued and outstanding. Id. ¶ 8. Defendant CCT is a handicapped transportation business. Id. ¶ 21. Spears owns 60 shares of stock in CCT, which amounts to thirty (30) percent of the total number of shares issued and outstanding. Id. ¶ 9. The Defendant corporations are allegedly the alter egos of Spears. Id. ¶ 10. In 2016, Spears induced Plaintiff to invest in LAHCC and CCT. Id. ¶¶ 14, 21. Plaintiff invested $5,000 in LAHCC for a thirty (30) percent stock ownership interest. Id. Plaintiff also loaned $10,000 to LAHCC. Id. Plaintiff invested $1,500 in CCT for a fifty (50) percent stock ownership interest. Id. ¶ 21. Plaintiff also loaned CCT $11,000 for the purchase of a handicapped accessible van, licensing, rent and insurance expenses. Id. On or about April 30, 2017, Spears withdrew $14,000 from LAHCC for her personal use. Id. ¶ 15. Spears also withdrew $47,000 from CCT and converted the van for her personal use. Id. ¶¶ 22-23. As a result, Plaintiff has been deprived of his investment and repayment of the loans. Id. ¶¶ 16, 24. Plaintiff made demands for an accounting, but has not received replies. Id. ¶¶ 17, 25. Based on the foregoing, Plaintiff asserts two claims for conversion against Defendants. Plaintiff seeks general damages in the sum of $200,000, punitive damages, and costs of the suit. B. Procedural History Plaintiff initiated suit in November of 2018. Dkt. No. 1. Summons were returned executed in June of 2019. Dkt. Nos. 29-31. Thereafter, Spears moved to dismiss the original complaint pursuant to Rules 12(b)(1) and 12(b)(6) of the Federal Rules of Civil Procedure. Dkt. No. 35. The Court granted the motion in part with leave to amend. Dkt. No. 48. Plaintiff filed the FAC of March 6, 2020. Dkt. No. 49. Spears filed an unsigned answer on March 20, 2020 in response to the FAC. Dkt. No. 50. It is unclear whether this answer was intended to be filed on behalf of all Defendants. An initial case management conference was scheduled for June 11, 2020, but Spears did not appear despite the Court attempting to contact her. Dkt. No. 56. The conference was continued three more times until February 8, 2021 due to Spears’s failure to respond to any communications from Plaintiff or the Court. Dkt. Nos. 56, 58, 60. On December 8, 2020, Plaintiff filed a motion to strike answer and for entry of default. Dkt. No. 61. The Court granted the motion to strike the answer, directed the Clerk of Court to enter default as to all Defendants, and set a briefing schedule and hearing date for Plaintiff’s motion for default judgment. Dkt. No. 65. The Court concluded that entry of default was appropriate because Defendants had repeatedly failed to file a case management statement and failed to appear at a case management conference. Further, the Court noted that the corporate Defendants had not appeared through counsel, as required by Civil Local Rule 3-9(b). The Clerk of the Court entered default against all Defendants on February 16, 2021. Dkt. No. 66. The instant motion followed. Following entry of default, the Court may enter a default judgment upon request. Federal Rule of Civil Procedure 55(b)(2). The Court’s decision to enter default judgment is “discretionary.” Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). In assessing a request for default judgment, the Court has an “affirmative duty” to examine its jurisdiction over “both the subject matter and the parties.” In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). Upon confirming that jurisdictional requirements have been met, the court must weigh the following factors to determine whether default judgment is appropriate:

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Salvador v. Live At Home Care Connection, Inc., (N.D. Cal. 2021).

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