Default judgment recommended in lawsuit against Vanderbilt Commercial Lending

By Chandra Lye | Jan 3, 2019

SACRAMENTO — A California District Court has recommended that a motion for default judgment against Vanderbilt Commercial Lending be granted.

The decision, written by Judge Deborah Barnes of the U.S. District Court for the Eastern District of California, was filed on Dec. 27.

“The amended complaint’s alleged causes of action include claims for breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, and intentional misrepresentation,” the court document stated. 

“Plaintiffs allege, generally, that defendant VCL and defendant Cook (VCL’s president) engaged in breach of contract and misrepresentation in failing to provide a commercial loan to fund plaintiffs’ construction project. Plaintiffs had to obtain financing elsewhere and lost profits as a result,” the court document stated.

The action was initiated in October 2015. According to the court finding and recommendation document, the defendants filed a motion to withdraw in March 2017, which was granted in July of that year. On Dec. 27, 2017, the plaintiffs received a court order to amend their complaint, which they did and filed on Jan 9., 2018.

“Defendants, having previously appeared in this action, elected to forgo participation in these proceedings, and default was consequently entered against them,” the court documents stated.

“As a result of the default, all well-pleaded factual allegations made by plaintiffs are now taken as true,” Judge Barnes wrote.

“Taking the well-pleaded factual allegations of the amended complaint as true, the undersigned finds that the factual allegations of the amended complaint are sufficient and that plaintiffs’ claims appear meritorious,” the court documents stated. 

The plaintiff has asked for $4,928,397.28 in damages. The court findings recommended that they be granted $4,770,000 in damages.

“Because defendants have refused to defend this action, if default judgment is not entered, plaintiffs would be left without a proper remedy,” Judge Barnes wrote in the court documents.

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