Hollywood Garden v. Li CA2/1

INTRODUCTION

Hollywood Garden, LLC (Hollywood Garden or the LLC) sued its former managing member, Ji Li, for forging corporate documents to secretly encumber its sole asset, real property located on Hollywood Boulevard in Los Angeles (the Property), with a $4 million hard money loan. The loan’s onerous terms meant that after the LLC defaulted it eventually came to owe the lender more than $12 million in principal, interest, and late fees. Nearly three years into the case, Li’s counsel withdrew. Li then failed to appear for his deposition three times, including twice after being specifically ordered by the court to do so. The LLC moved for terminating sanctions, which the trial court granted, finding Li willfully and repeatedly failed to appear for deposition. After a prove-up hearing, the court entered a default judgment against Li, awarding the LLC $4 million plus prejudgment interest, costs, and attorney’s fees. Li appeals, contending that the court erred in granting terminating sanctions for various reasons, including that Li was not represented by counsel during the relevant period and made an 11th hour offer before terminating sanctions issued to appear for deposition. We…