Sheny Juarez vs Contreras Corporation et al

Case Number

22CV01960

Case Type

Hearing Date / Time

Fri, 06/27/2025 - 10:00

Nature of Proceedings

CMC; Default

Tentative Ruling

The complaint, filed May 24, 2022, asserts claims by plaintiff Sheny Juarez against defendants Contreras Corp. (Contreras), Alvaro Family Trust (Alvaro FT), and Doe defendants. On October 21, 2022, plaintiff filed Doe amendments to identify as Doe 1 and 2, respectively, Rodolfo G. Alvaro and Alma V. Alvaro, both as trustees of the Alvaro Family Trust (collectively with Alvaro FT, the Alvaro defendants). On December 9, 2022, plaintiff requested, and the court entered, defaults as to Contreras and Alvaro FT.

On February 14, 2023, with leave of court, plaintiff-in-intervention State Farm and Casualty Company (State Farm) filed its complaint-in-intervention against Contreras, Alvaro FT, and Roe defendants asserting claims based upon the payment of workers’ compensation for the benefit of plaintiff. On June 6, 2023, State Farm requested, and the court entered, defaults as to Contreras and Alvaro FT on its complaint-in-intervention.

On January 16, 2024, plaintiff requested, and the court entered, defaults as to Rodolfo G. Alvaro and Alma V. Alvaro.

On February 29, 2024, State Farm requested, and the court entered, dismissal as to the Roe defendants in State Farm’s complaint-in-intervention. On October 7, 2024, following a prove-up hearing, the court entered a default judgment against Contreras and Alvaro FT on State Farm’s complaint in intervention.

On March 28, 2025, plaintiff filed a notice of default prove-up as to all defendants, and supporting documents, for hearing on June 20, which the court later reset for this hearing on June 27.

On June 10, 2025, Truck Insurance Exchange (Truck IE) filed its motion for leave to intervene. Truck IE, the insurer of defendant Contreras, stated its interest in the litigation because Contreras has been suspended by the Franchise Tax Board. Hearing on this motion is now scheduled for October 3, 2025.

On June 13, 2025, on the stipulation of the parties, the court entered its order to set aside the defaults entered against the Alvaro defendants and granting them 30 days leave to answer plaintiff’s complaint. Thus, the default prove-up is now moot as to the Alvaro defendants.

As to Contreras, entering a default judgment while Truck IE’s motion for leave to intervene is problematic. Truck IE would not be bound by a default judgment and, if entered now, may move to set aside such a default judgment against its insured after the motion is granted (assuming it is granted) or take other protective steps that may otherwise prove unnecessary. (See Western Heritage Ins. Co. v. Superior Court (2011) 199 Cal.App.4th 1196, 1210-1211.)

Under the circumstances, the hearing on the default prove-up will be continued to October 3, 2025, to be heard with Truck IE’s motion for leave to intervene. Plaintiff shall serve Truck IE with this order and the parties are ordered to meet and confer prior to the October 3 hearing regarding Truck IE’s motion, the status of the default against Contreras, and other matters required by California Rules of Court, rules 3.724 and 3.727. The case management conference will also be continued to October 3, 2025. The parties shall report on their meet and confer efforts in their case management statements to be filed prior to the October 3 conference.