Plaintiff bank filed a complaint against defendant

Plaintiff bank filed a complaint against defendant

BUSINESS

Plaintiff bank filed a complaint against defendant debtor seeking money damages by alleging causes of action for breach of contract and common counts of open book account and account stated. The Los Angeles County Superior Court, California, dismissed the complaint without prejudice. Plaintiff appealed.

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Overview

The complaint sought damages in the amount of $2,290.37, interest at the rate of 10 percent per annum, and attorney fees. The appellate division concluded that plaintiff’s allegations constituted a common count on open book account. No prove-up was required. The result of the clerk’s entry of default was that defendant effectively admitted all of the allegations of plaintiff’s complaint. Plaintiff’s common count cause of action was for a fixed and definite sum. Defendant’s default admitted that plaintiff’s complaint was on open book account with $2,290.37 due and owing. All that was left to do was for the clerk to enter judgment in the amount of the open book account as alleged in the complaint.

Outcome

The order of dismissal was reversed, and the case was remanded with directions to the trial court to order the clerk to enter a default judgment in favor of plaintiff for $2,290.37 plus interest and costs.