CALIFORNIA STRENGTHENS THE OBLIGATION TO NOTIFY REGARDING POSSIBLE DEFAULT
Written by Kermit D. Marsh*
APPELLATE COURTS MANDATE PROFESSIONAL COURTESY IN SEEKING ENTRY OF DEFAULT TO ENSURE DUE PROCESS AND REMAIN CRITICAL OF AGGRESSIVE DEFAULT SEEKING
In 2022, the Court of Appeal decided Shapell Socal Rental Properties, LLC v. Chico’s Fas, Inc. (2022) 85 Cal.App.5th 198 (Shapell). Shapell demonstrates the serious consequences that can befall a party by seeking a default without first notifying the affected party’s known legal counsel. In the words of the Court of Appeal, "[t]he policy of the state is that the parties to a lawsuit ‘shall cooperate.’ Period. Full stop." The Court of Appeal also expressed disapproval of tactics designed "to produce a substantial possibility of default."
THE HISTORICAL CONTEXT ON PROFESSIONAL COURTESY FOR ENTRY OF DEFAULT