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  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
  • Swan Engineering, Inc. vs. United Secured Capital, LLC et al Contract: Breach Cont/Warranty (06) document preview
						
                                

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06/25/2020 1 Richard Morin (SBN 285275) Bryce Fick (SBN 322951) 2 Law Office of Rick Morin, PC 3 555 Capitol Mall Suite 750 Sacramento, CA 95814-4508 4 Phone: (916) 333-2222 Email: legal@rickmorin.net 5 6 Attorneys for Plaintiff Swan Engineering, Inc. 7 8 SUPERIOR COURT OF CALIFORNIA COUNTY OF PLACER 9 10 Swan Engineering, Inc., Case No.: SCV0041659 11 12 Plaintiff, PLAINTIFF’S TRIAL BRIEF (OR v. STATUS STATEMENT) 13 United Secured Capital, LLC; Ace Funding Complaint Filed: August 23, 2018 14 Source, LLC; Business Financial Services, Trial Date: July 6, 2020 15 Inc.; and DOES 1 through 10, Civil Trial Conference 16 Defendants. Date: June 26, 2020 Time: 8:30 a.m. 17 18 19 INTRODUCTION 20 Plaintiff filed this action against two financers, Ace Funding Source, LLC and Business 21 Financial Services, Inc., and their broker United Secured Capital, LLC. On June 19, 2020, Plaintiff 22 settled with Ace Funding Source and Business Financial Services at the Mandatory Settlement 23 Conference. 24 United Secured Capital has been without an attorney for nearly a year, and Plaintiff filed a 25 Motion to Strike USC’s answer on May 29, 2020. On June 25, 2020 the court issued a tentative ruling 26 that ordered United Secured Capital’s answer stricken and directing the clerk to enter a default against 27 it. As of 4:01 p.m., no one has requested a hearing on the matter, so that tentative ruling has become 28 the ruling of the court. Accordingly, there is no longer anything to try in this case as Plaintiff will now 1 PLAINTIFF’S TRIAL BRIEF (OR STATUS STATEMENT) 1 need to proceed to obtain a default judgment against USC. 2 SUMMARY OF THE FACTS 3 United Secured Capital, LLC brokered two separate loans/financing agreements on behalf of 4 Business Financial Services, Inc. and Ace Funding Source, LLC, within the course and scope of its 5 agency with each party, to provide financing to Swan Engineering, Inc.. During the negotiations, 6 United Secured Capital made material promises as to the amounts and repayment terms of the 7 financing. When Business Financial Services, or its affiliate, and Ace Funding Source presented terms 8 that materially differed from those promised to Swan Engineering, Swan Engineering protested but 9 United Secured Capital assured Swan Engineering that the originally promised terms would be what 10 Swan Engineering would be obligated. Relying on those assurances, Swan Engineering accepted 11 financing. Swan Engineering was then subsequently denied the more favorable terms that it had 12 actually agreed, which harmed it as a result. Business Financial Services and Ace Funding Sourceboth 13 acted in concert with United Secured Capital to perpetrate this fraudulent scheme. As a group, these 14 financers prey upon distressed businesses to sell predatory financing packages that contain egregious 15 interest rates and repayment terms. 16 ANALYSIS 17 The operative complaint in this action is the Second Amended Complaint filed March 28, 2019. 18 Plaintiff alleged Breach of Contract, Fraudulent Inducement, Unfair Competition pursuant to Business 19 and Professions Code §§ 17200, et seq., and Civil Conspiracy. 20 United Secured Capital has effectively admitted all of the material factual allegations of the 21 complaint. “Where a defendant is served with a summons and complaint stating the facts upon which 22 he is required to act, and he makes default, he is presumed to admit all the facts which are well pleaded 23 in the complaint.” Morehouse v. Wanzo, 266 Cal. App. 2d 846, 853 (1968) (quoting Brown v. Brown, 24 170 Cal. 1, 5 (1915)); Bristol Convalescent Hosp. v. Stone, 258 Cal.App.2d 848, 859 (1968) (“The 25 default of the defendant in an ordinary action . . . admits, so far as such defaulting defendant is 26 concerned, the absolute verity of all the allegations of the complaint giving rise to liability.”) (citing to 27 Los Angeles v. Los Angeles Farming Mill. Co., 150 Cal. 647 (1907)); Carlsen v. Koivumaki, 227 Cal. 28 App. 4th 879, 883-84 (2014) (“A defendant's failure to answer the complaint admits the well-pleaded 2 PLAINTIFF’S TRIAL BRIEF (OR STATUS STATEMENT) 1 allegations of the complaint, and no further proof of liability is required.”). Accordingly, Plaintiff 2 anticipates scheduling a prove-up hearing and providing evidence of the damages caused by United 3 Secured Capital. 4 CONCLUSION 5 Two defendants have settled and the only remaining defendant has now defaulted. Unless the 6 Court directs otherwise, Plaintiff intends to move forward with the process to obtain a default judgment 7 against USC. 8 Dated: June 25, 2020 Law Office of Rick Morin, PC 9 10 _________________________ 11 Richard Morin* Bryce Fick 12 Attorneys for Plaintiff 13 Swan Engineering, Inc. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 PLAINTIFF’S TRIAL BRIEF (OR STATUS STATEMENT) Proof of Service by Mail Swan Engineering, Inc. v. United Secured Capital, LLC, et al Case No. SCV0041659 I declare that: I am employed in Sacramento County, California. I am over the age of eighteen years and not a party to this lawsuit. My business address is 555 Capitol Mall #750, Sacramento, CA 95814. On June 25, 2020, I served the attached PLAINTIFF’S TRIAL BRIEF (OR STATUS STATEMENT) by placing a true copy thereof enclosed in a sealed envelope addressed as follows: Gabriel Mann Isaac Kassab United Secured Capital, LLC 1202 U Street Brooklyn, NY 11229 United Secured Capital, LLC Michael R. Williams Jennifer M. Millier Hefner, Stark & Marois, LLP Millier Law, Inc. 2150 River Plaza Dr Ste 450 10100 Venice Blvd Sacramento, CA 95833-4136 Culver City, CA 90232 Attorney for Business Financial Services, Inc. Attorney for Ace Funding Source, LLC [XXXX] BY MAIL: I placed each such sealed envelope, with postage thereon fully prepaid for first-class mail, for collection and mailing at Sacramento, California, following ordinary business practices. I am familiar with the practice of the Law Office of Rick Morin, PC for processing correspondence, said practice being in the ordinary course of business, correspondence is deposited in the United States Postal Service the same day as it is placed for processing. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. This declaration was executed on June 25, 2020, at Sacramento, California. _______________________________ Richard Morin