Creditors Adjustment Bureau v. J and S Painting CA2/2

FACTS AND PROCEDURAL HISTORY

CAB’s Judgment and Writ of Execution J&S had a policy with the State Compensation Insurance Fund (SCIF). In May 2022, SCIF’s assignee CAB sued J&S for unpaid insurance premiums, alleging breach of contract and open book account theories. The court clerk entered default against J&S in August 2022. In September 2022, the court entered judgment by default against J&S for $159,101. After a writ of execution was issued in

1 Undesignated statutory references are to the Code of Civil Procedure.

2 January 2023, CAB levied on J&S’s bank account in the amount of $98,969.45. J&S Moves to Vacate the Judgment by Default In March 2023, J&S moved to set aside the default and judgment, claiming excusable neglect. (§ 473.) J&S learned of CAB’s lawsuit in September 2022. It mistakenly believed that no judgment would be entered or enforced because it was negotiating with CAB to resolve the dispute, and SCIF was reducing the debt after an audit. J&S sought relief after CAB levied on its bank account. CAB argued that J&S’s neglect was inexcusable. It did not show that the summons and complaint were improperly served or a meritorious defense, and waited almost six months…