fraud judgement against stephane marchand in anaheim school guidance counselor case
DESCRIPTION
An Anaheim School Guidance Counselor successfully sued Stephane Marchand for over $25,000 for fraudulent business dealings and accused him of, among other things, spending investors money on luxuries like a trip to Hawaii and a Rolex watch. Follow the story on http://www.laderaportal.comTRANSCRIPT
• • CIV-130 ATIORNEY OR PARTY WITHOUT ATIORNEY (Neme, State Bar number, and ad:1re3s): FOR COURT USE ONLY
Adriana E. Dominguez (265502) :-DOMINGUEZ LAW OFRCE
FILED 228~ La Playa Drive South Costa Mesa, CA 92627 SUPERIOR COUI'tT OF CA"IFORNIA
TELEPHONE NO.o 949-860-7152 FAX NO. (0~49-666-6497 COUNiY OF ORANGE
- CENT~Ab J~iliiCe CENTER •-tL AOOREss ropliomVo adriana@ dominguezlawoffice.com
DEC 02 20, ATIORNEY FOR (Namet Plaintiff, SUPERIOR COURT OF CALIFORNIA, COUNTY OF Orange
ALA\11 GARLSON. Cieri< of lhe Court STREET AOORESS: 700 Civic Center Drive West MAIUNG ADDRESS: Ill~<;~ CITY AND ZIP CODE: Santa Ana, CA 92701
BRANCH NI\ME: Central Justice Center
PLAINTIFF/PETITIONER: an individual DEFENDANT/RESPONDENT: Stephane Marchand, an individual; et. aJ.
NOTICE OF ENTRY OF JUDGMENT CASE NUMBER:
OR ORDER 30-2011-00451527
(Check one): 0 UNLIMITED CASE D LIMITED CASE (Amount demanded (Amount demanded was exceeded $25,000) $25,000 or less)
TO ALL PARTIES :
1. A judgment, decree, or order was entered in this action on (date): September 14, 2011
2. A copy of the judgment, decree, or order is attached to this notice.
Date: November 28, 2011
Adriana E. Dominguez ~~-'-.L::l~..lll.I:Jil.d~P.:~fA,L.J.L..i;t..-,J>L----(TYPE OR PRINT NAME OF ~ ATTORNEY c=J PARTY WITHOUT ATTORNEY)
Fo"" Approved tor O~onal Use Judicial Councll of california
CIV-130 {New January 1, 20101 NOTICE OF ENTRY OF JUDGMENT OR ORDER
Page.1 of'2
~W~W.courtinfo.ce.gov
"-:()
CIV-130 i r-Jivi~\ ASENUMBER PLAINTIFF/PETITIONER: P.,\ 'b.(\ 1"\\ L ~'be\
DEFENDANT/RESPONDENT: S r,~. \. ?0- 2cHI -00'1515;/J:+--
PROOF OF SERVICE BY FIRST -CLASS MAIL NOTICE OF ENTRY OF JUDGMENT OR ORDER
(NOTE: You cannot serve the Notice of Entry of Judgment or Order if you are a party in the action. The person who served the notice must complete this proof of service.)
1. I am at least 18 years old and not a party to this action. I am a resident of or employed in the county where the mailing took
place, and my residence or business address is (specify): ()a, €.;( La_ p (~ 2,. be. S .
Cos~M-r'>k/(A- ?d0ct.+-2. l served a copy of the Notice of Entry of Judgment or Order by enclosing it in a sealed envelope with postage
fully prepaid and (check one):
a. 0 deposfted the sealed envelope with the United States Postal Service.
b. D placed the sealed envelope for collection and processing for mailing, following this business's usual practices, with which I am readily familiar. On the same day correspondence is placed for collection and mailing, it is deposited in the ordinary course of business with the United States Postal Service.
3. The Notice of Entry of Judgment or Order was mailed:
a. on (date): \ \j ?Dj,) 0 \\
b. from (city and state): () ( a...~ ~ 1
( ;1\
4. The envelope was addressed and mailed as follows:
a. Name of person served: Stephana Marchand
Street address: 8730 Sunset Blvd., Suite 270
City: West Hollywood
State and zip code: CA, 90069
b. Name of person served: Stephana Marchand
Street address: 5 Lindenwood Farm
Cfty: Ladera Ranch
State and zip code: CA, 92694
c. Name of person served:
Street address:
City:
State and zip code:
d. Name of person served:
Street address:
City:
State and zip code:
D Names and addresses of additional persons served are attached. (You may use form POS-030(P).)
5. Number of pages attached _0 __ .
I declare under penalty of pe~ury under the laws of the State of California that the foregoing is true and correct.
Date (\j30j ;7-0\l
Adriana E. Dominguez, Esq. {1YPE OR PRINT NAME OF DECLARANT)
Page2of2
CJV -130 (New January 1, 201 OJ NOTICE OF ENTRY OF JUDGMENT OR ORDER
• • 2
Adriana E. Dominguez 1 . Attorney at Law
Dominguez Law Office FILED
SUPERIOR COURT OF CALIFORNIA COUNTY OF ORANGE
CENTRAL JUSTICE CENTER
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2282 La Playa Drive South Costa Mesa, CA 92627 Phone (949) 860-7152 Fax (949) 666-6497 E-mail: [email protected]
Attorney for Plaintiff
SEP 14 2011
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF ORANGE COUNTY
UNLIMITED CIVIL JURISDICTION
an individual;
Plaintiff,
vs.
STEPHANE MARCHAND, an individual; and Does 1 through 25, inclusive
Defendants.
Case No.: 30-2011-00451527
[W«JfvS!&] ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT
No Hearing Set Judge: Robert J. Moss Department: C2 3 Date Action Filed: 2/18/2011 No Trial Date Set
22 The Court, pursuant to California Rules of Court Sectio
23 3.110 (g) and California Code of Civil Procedure Section 585 (d),
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having read the papers submitted and considered the arguments i
support of the Order on Plaintiff's Application for Entry o
Default Court Judgment, and good cause appearing,
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ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 1 -
• • THE COURT FINDS IN FAVOR OF PLAINTIFF ON THE THIRD CAUSE 0
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2 ACTION, FRAUD, AGAINST THE DEFENDANT, IN THAT:
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1. Within the last three years, the Defendant, Stephane
Marchand, knowingly made false representations to Plaintiff.
a. That Defendants made these statements in an effort
mislead Plaintiff as to the worth of the
Entertainment, LLC and to mislead the Plaintiff
Defendant's role in obtaining and conducting the business
of the company in order to induce Plaintiff to enter int
the Letter of Understanding and Power of Attorne
agreements, Exhibits Al and A2 of the Complaint.
b. That Plaintiff relied on these false representations i
his decision to sign and adhere to the Letter o
Understanding and Power of Attorney agreements.
c. That Plaintiff's reliance on these false representations
was reasonable and justifiable because Defendant was th
only person working at the Sunset Towers office on
daily basis; made purchases on corporate credit cards i
Plaintiff's presence; Plaintiff knew the Sunset
office to be an exclusive and expensive business area an
the office had lavish furnishings; and Plaintiff kne
Defendants also lived in an exclusive and expensive
neighborhood; and finally, because Plaintiff did not see
the actual Secretary of State Filings for Altitud
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 2 -
• • . 1
Entertainment, signed thes until after he LLC
2 agreements.
3 d. That as a consequence Plaintiff's reliance on Defendant's
4 false representations, Plaintiff engaged in the Letter o
5 Understanding and Power of Attorney and suffered a loss
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of $25,000.00 with interest on the loans secured t 7
8 provide these funds.
9 2. Within the last three years, Defendant made promises t
10 Plaintiff in the Letter of Understanding and Power of Attorne
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agreements, Exhibits Al and A2, without any intention of performin
on these promises.
a. Pursuant to the Letter of Understanding, Defendants promise
Plaintiff that Altitude Entertainment would accept all debt
created as corporate debt, and relieve the Plaintiff of all
liability from the debts incurred.
b. Pursuant to the Letter of Understanding, Defendant promise
Plaintiff to provide complete transparency with regard to
all business dealings of the company, and that Defendant
would not transfer, sale or encumber any corporate asset
without providing full disclosure of such to Plaintiff.
c. Pursuant to the Power of Attorney agreement, Defendant
promised Plaintiff that all funding, including the debt
required to fund capital for Altitude Entertainment, LLC,
would be the responsibility of the Defendant and not of th
ORDER ON PLAINTIFF'S APPLICATION. FOR ENTRY OF DEFAULT COURT JUDGMENT - 3 -
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• • Plaintiff .
d. Defendant made the promises to Plaintiff pursuant to th
contracts listed supra without any intention of performin
on them.
e. Defendant knowingly made these promises to Plaintiff becaus
Defendant drafted the contracts himself.
f. Defendants made these false promises with the purpose o
inducing Plaintiff to sign and adhere to the agreements b
providing him false assurances that the debt created fo
funding Altitude Entertainment, LLC, would become corporate
debt rather than the Plaintiff's individual responsibility.
g. To Date, Defendant have not made a single payment on th
personal loans Plaintiff incurred to provide capital fundin
for Altitude Entertainment, LLC. And Defendants have
repeatedly taken actions, sent emails and made verbal
comments indicating an intent not to make a single payment
on the debts, but rather to leave Plaintiff with the sole
responsibility for the debts.
h. To Date, Defendant have never given an accounting of the
business dealings, financial status, or the encumbrances, o
assets of Altitude Entertainment, LLC, to Plaintiff, despit
Plaintiff's repeated requests for such disclosures.
i. Plaintiff relied on the promises in his decision to sign an
adhere and perform on these agreements. And Plaintiff's
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 4 -
• • 1
reliance was justifiable because Plaintiff had no reason t
2 doubt Defendant's truth and voracity in the promises at th
3 time he signed and agreed and performed on the contracts.
4 j. As a direct result of Plaintiff's reliance on the
5 Defendant's false promises and Plaintiff's performance unde
6 the contracts, Plaintiff suffered a loss of $25,000.00
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8 interest on the loans secured to provide these funds.
9 3. Within the last three years, Defendant made promises t
10 Plaintiff in the Fee Agreement for New Member of
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Entertainment, LLC, in Exhibit C of the Complaint, without
intention of performing on these promises.
a. Pursuant to the Fee Agreement, Exhibit C, Defendant promise
Plaintiff to pay Plaintiff a spread of 20% of all net income
created per contract by the Plaintiff during his employment
with Altitude Entertainment.
b. Defendant made these false promises with the purpose o
inducing Plaintiff to sign and adhere to the agreements b
providing him false assurances that he would earn income
from Plaintiff's work with the Defendant and on behalf o
Altitude Entertainment, LLC.
c. Defendant made the promises to Plaintiff pursuant to the Fe
Agreement listed supra without any intention of performin
on them.
d. Defendant knowingly made these promises to Plaintiff because
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 5 -
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• • Defendant drafted the contracts himself.
e. To date, Defendant has not engaged in the business model h
discussed with Plaintiff by routinely refusing to pursue th
business opportunities and clients that Plaintiff has
brought to Altitude Entertainment, LLC.
f. To date, Defendant has never disclosed the business,
contracts, sources of income, or profits, of Altitude
Entertainment, LLC, to Plaintiff, nor paid him a commissio
spread on any business opportunities which Plaintiff has
brought to the company. Instead, Defendants routinely spent
the funds Plaintiff has brought to the company o
Defendant's own personal expenses.
g. Plaintiff relied on the Defendant's false promises in his
decision to sign and adhere and perform on this agreement.
And Plaintiff's reliance was justifiable because Plaintif
had no reason to doubt Defendant's truth and voracity in th
promises at the time he signed and agreed and performed o
the contracts.
h. As a direct result of Plaintiff's reliance on th
Defendant's false promises and Plaintiff's performance unde
the contracts, Plaintiff suffered a loss of $25,000.00 wit
interest on the loans secured to provide these funds.
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 6 -
• • 1
4. Within the last three years, Defendant made promises t
2 Plaintiff in the Pre-IPO Vested Interest Agreements, Exhibits G an
3 I of the Complaint, without any intention of performing on thes
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promises.
a. Pursuant to the Pre-IPO Vested Interest Agreements, Exhibits
G and I of the Complaint, Defendants promised Plaintiff t
use the Plaintiff's funds to take Altitude Entertainment,
LLC, public through a reverse-merger process.
b. Pursuant to the Pre-IPO Vested Interest Agreements, Exhibits
G and I of the Complaint, Defendant promised Plaintiff that
the personal loans used to supply funds to Altitude
Entertainment would be characterized as company debt,
that the company would be responsible for all payments o
the loans.
c. Pursuant to the Pre-IPO Vested Interest Agreements, Exhibits
G and I of the Complaint, Defendant promised Plaintiff that
he would participate in the shareholder returns process o
Altitude Entertainment, LLC, and that Plaintiff's capital
investments into the company would entitle Plaintiff to
proportionate vested interest in the company during the
process of taking the company public.
d. Defendant made these false promises with purpose of inducin
Plaintiff to sign and adhere to the agreements by providin
him false assurances that he would earn a return on his
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 7 -
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• • investment from his capital funds raised for Altitud
Entertainment.
e. Defendant made the promises to Plaintiff pursuant to the
Pre-IPO Vested Interest Agreements listed supra without an
intention of performing on them.
f. Defendant knowingly made these promises to Plaintiff because
Defendant read the agreements and signed them
hand, in the presence of Plaintiff's attorney.
g. To date, Defendant has not used the funds provided b
Plaintiff to pay for the reverse-merger process of takin
Altitude Entertainment, LLC, public for these purposes.
Instead, Defendant has used the funds provided by Plaintif
for Defendant's own personal expenses, and not for th
payment of attorney fees, public relations fees, advertisin
fees, or other expenses associated with the reverse-merge
process.
h. To Date, Defendant has not made a single payment on the
personal loans Plaintiff incurred to provide capital fundin
for Altitude Entertainment, LLC. And Defendant has
repeatedly made actions, sent emails and made verbal
comments indicating an intent not to make a single payment
on the debts, but rather to leave Plaintiff with the sole
responsibility for the debts.
i. To date, Defendant has made no efforts to take Altitud
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 8 -
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• • Entertainment, LLC public through a reverse-merger process,
nor made any other efforts to issue shares in the company.
Instead, Defendant has written emails rescinding the intent
to do this as evinced by Defendant's email to the Plaintif
on January 4, 2 011, in Exhibit 0 of the Complaint, wher
Defendant states they would not be taking Altitud
Entertainment, LLC, through the reverse-merger process.
j. Plaintiff relied on the Defendant's false promises in his
decision to sign and adhere and perform on these agreements.
And Plaintiff's reliance was justifiable because Plaintif
had no reason to doubt Defendant's truth and voracity in th
promises at the time he signed and agreed and performed o
the contracts.
k. As a direct result of Plaintiff's reliance on the
Defendant's false promises and Plaintiff's performance unde
the contracts, Plaintiff suffered a loss of $25, 000. 00 plus
the interest accrued to date on the personal loans used t
fund Altitude Entertainment, LLC's, reverse-merger process.
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 9 -
• • • 1
2 THEREFORE, IT IS ORDERED THAT:
3 1. Judgment is entered in favor of Plaintiff, ALAN MICHAE
4 REZA, an individual, and against Defendant, STEPHANE MARCHAND, a
5 individual, pursuant to the terms of Plaintiff's Application fo
6 Entry of Default Court Judgment attached hereto, including actual
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8 damages of $25,000.00, consequential damages of $1,583.00 i
9 interest accrued to date of judgment on the Plaintiff's loa
10 agreements, and $480.00 in costs.
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2. Pursuant to California Civil Code Sections 1572, 1573,
and 1692:
DATED:
a. The Court grants rescission of the Letter o
Understanding, Power of Attorney, and both Pre-IPO Veste
Interest Agreements and return of the $25,000.00 in damages t
restore Plaintiff to his original position before th
agreements; and
b. The Court grants dissolution of Plaintiff, ALA
MICHAEL REZA'S, membership in Altitude Entertainment, LLC, a
California Limited Liability Company, and removal of the
Plaintiff from the California Secretary of State Filings fo
Altitude Entertainment, LLC.
9(14/!1 ROBERT J. MOSS
JUDGE OF THE SUPERIOR COURT ROBERT J. MOSS
ORDER ON PLAINTIFF'S APPLICATION FOR ENTRY OF DEFAULT COURT JUDGMENT - 10 -
• • CIV-100 A TIORIIEY OR PARTY \MlHOUT A TIORNEY!lYJ:, state Bar number, and IJtJd'e$s):
1- Adriana E. Dominguez (265 ) FOR COURT USE ONLY
DOMINGUEZ LAW OFFICE 2282 La Playa Drive South Costa Mesa, CA 92627
• TELEPHONENO' (949) 860-7152 FAXNO.{Opt;oneJ}c ( 949) 666-6497 FILED e-MAJ~AOORESS to_, [email protected] AHORr.EYFORtNa-Jc Plaintiff, SUPERIOR COURT OF CALIFORNIA
COUNTY OF ORANGE SUPERIOR COURT OF CAUFORNIA, COUNTY OF ORANGE CENTRAL JUSTICE CENTER
STREET ADDRESS:
MAIUNG ADDRESS:
700 Civic Center Drive West AUG 2 3 2011 CITY NO ZIP COCE: Santa Ana, CA 92701 ALAN CARl..;t.ON, Clsrll: gf tt. Court
BRANCH NAME: Central Justice Center PLAINTIFF/PETITIONER: an individual
B'l': •t N fJQrJFMfN .i;Jf!I'UTY
DEFENDANT/RESPONDENT: Stephane Marchand, an individual; et. al.
REQUEST FOR 0 D Cler1<'s Judgment CASE NUMBER:
Entry of Default (Application)
0 30-2011-00451527
Court Judgment 1. TO THE CLERK: On the complamt or cross-complaint filed
a. on (date): February 18, 2011 b. by (name): , an individual
c. 0 Enter default of defendant (names): Stephane Marchand, an individual
d. 0 I request a court judgment under Code of Civil Procedure sections 585(b), 585(c), 989, etc., against defendant (names):
Stephane Marchand, an individual, pursuant to the attached Declarations and Proposed Order.
(Testimony required. Apply to the clerk for a hearing date, unless the court will enter a judgment on an affidavit under Code Civ. Proc., § 585(d).)
e. D Enter clerk's judgment (1) D for restitution of the premises only and issue a writ of execution on the judgment. Code of Civil Procedure section
1174(c) does not apply. (Code Civ. Proc., § 1169.) D Include in the judgment all tenants, subtenants, named claimants, and other occupants of the premises. The
Prejudgment Claim of Right to Possession was served in compliance with Code of Civil Procedure section 415.46.
(2) D under Code of Civil Procedure section 585(a). (Complete the declaration under Code Civ. Proc., § 585.5 on the reverse (item 5).)
(3) D for default previously entered on (date): 2. Judgment to be entered. Amount
a. Demand of complaint . . . . . . . . . . . . $ 25,000.00 b. Statement of damages •
(1) Special .................. . (2) General ................... .
c. Interest ...................... . d. Costs (see reve!Se) . ............ . e. Attorney fees .................. . f. TOTALS ................ .
$ $ $ 1,583.00 $480.00 $ $27 063.00
g. Daily damages were demanded in complaint at the rate of: $ (* Pe!Sonal injury or wrongful death actions; Code Civ. Proc., § 425.11.)
Credits acknowledged $0.00
$ $ $0.00 $0.00 $
$0.00
Balance $25,000.00
$ $ $ 1,583.00 $480.00 $ $27 063.00
per day beginning (date):
3. D (Check if filed in an unlawful detainer case) Legal document assistant or unlawful deta· the reverse (complete item 4). ru
Date: ~/11/Uil lo. II ' Adnana E. Dominguez, Esq. '-,.-'===~lua.~~~~~~~oqe~~:;-:-:;=:----
(TYPE OR PRINT NAME)
FOR COURT USE ONLY
(1) (2)
Form Adopted for Mandatory Use Judicial Council of California CIV·100 (Rev. January 1, 2007]
Default entered as requested on (dateJAUG 2 ° 2011 Default NOT entered as requested (state reason):
ALAN ARLSON::1erk. by
REQUEST FOR ENTRY OF DEFAULT (Application to Enter Default)
R. RENISON , Deputy
Page 1 of2
Code of Civil Procedure, §§ 585-587, 1169
VMW.courtinfo.ca.gt:N
PLAINTIFF/PETITIONER: , an individual DEFENDANT/RESPONDENT: Ste hane Marchand, an individual; et. al.
CASE NUMBER;
30-2011-00451527
CIV-100
4. Legal document assistant or unlawful detainer assistant (Bus. & Prof. Code, § 6400 et seq.). A legal document assistant
or unlawful detainer assistant D did 0 did not for compensation give advice or assistance with this form. (If dec/atant has received any help or advice for pay from a legal document assistant or unlawful detainer assistant, state):
a. Assistant's name: c. Telephone no.: b. Street address, city, and zip code: d. County of registration:
e. Registration no.:
f. Expires on {date):
5. 0 Declaration under Code of Civil Procedure Section 585.5 (required for entry of default under Code Civ. Proc., § 585(a)). This action
a. D is 0 is not on a contract or installment sale for goods or services subject to Civ. Code, § 1801 et seq. (Unruh Act). b. D is 0 is not on a conditional sales contract subject to Civ. Code, § 2981 et seq. (Rees-Levering Motor Vehicle Sales
and Finance Act). c. 0 is 0 is not on an obligation for goods, services, loans, or extensions of credit subject to Code Civ. Proc., § 395(b).
6. Declaration of mailing (Code Civ. Proc., § 587). A copy of this Request for Entry of Default was
a. 0 not mailed to the following defendants, whose addresses are unknown to plaintiff or plaintiff's attorney (names):
b. 0 mailed first-class, postage prepaid, in a sealed envelope addressed to each defendant's attorney of record or, if none, to each defendant's last known address as follows:
(1) Mailed on (date): ...,._./\:3> /I"L 0
\, (2) To (specify names and addresses shown on the envelopes):
Stephane Marchand, 8730 Sunset Blvd., Suite 270, West Hollywood, CA 90069
7. Memorandum of costs (required if money judgment requested). Costs and disbursements are as follows (Code Civ. Proc., § 1033.5):
a. Clerk's filing fees
b. Process server's fees
c. Other (specify):
$395.00 $85.00 $
d .................. . ....... $ e. TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4'-'8~0"'.0"-'0'------
f. D Costs and disbursements are waived.
g. I am the attorney, agent, or party who claims these costs. To the best of my knowledge and belief this memorandum of costs is correct and these costs were necessarily incurred in this case.
I declare under penalty of pe~ury under the laws of the State of California that the foregoing is true and correct.
Date: -:::t/ty'l..o''
Adriana E. Dominguez, Esq. (TYPE OR PRINT NAME)
8. ~ Declaration of nonmilitary status (required for a judgment). No defendant named in item 1c of the application is in the military service so as to be entiUed to the benefits of the Servicemembers Civil Relief Act (50 U.S. C. App. § 501 et seq.).
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Date:; --.:::r/l)l2...o\l . ! • , li
Adriana E. Dominguez, Esq. ~-l..~~r..c.""""~"""~~~-#..,~.::cp,;z,....c..__ (TYPE OR PRINT NN.-fE)
Civ-100[Rav. January 1. 2007]
• REQUEST FOR ENTRY OF DEFAULT
(Application to Enter Default) .-