Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_06-cv-01861/USCOURTS-caed-1_06-cv-01861-1/pdf.json

Nature of Suit Code: 196
Nature of Suit: Franchise
Cause of Action: 28:1332 Diversity-Account Receivable

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

ERA FRANCHISE SYSTEMS, INC., CASE NO.1:06-cv-1861 LJO NEW (TAG)

Plaintiff, ORDER TO ADOPT FINDINGS AND 

RECOMMENDATIONS TO GRANT

 vs. PLAINTIFF’S APPLICATION FOR

DEFAULT JUDGMENT

BRAGER & ASSOCIATES, (Doc. 39)

Defendants.

 /

BACKGROUND

Plaintiff ERA Franchise Systems, Inc. (“Plaintiff”) is a real estate brokerage business

franchisor. Defendant Brager & Associates, Inc. is a real estate brokerage business franchisee doing

business as ERA Stargate Realty, and is a California corporation. Defendant Alisha Brager is an

individual and the president of Brager& Associates, Inc. 

In 2001, Defendant Brager & Associates, Inc. contracted with Plaintiff to own and operate

five real estate brokerage franchises in Ceres, Turlock, Modesto, Oakdale, and Merced, California,

all within the Eastern District of California. The parties’ contractual relationship is memorialized by

five written franchise and security agreements, and one promissory note. Defendant Brager &

Associates, Inc.’s obligations under the franchise agreements are personally guaranteed by Defendant

Alisha Brager, who is also the co-maker on the promissory note. 

On December 22, 2006, Plaintiff filed a complaint against Defendants Brager & Associates,

Inc. and Alisha Brager (collectively, the “Defendants”). Plaintiff’s complaint alleges claims for

(first, second, and third) breach of contract related to the franchise agreements, guaranties, and

Case 1:06-cv-01861-LJO-DLB Document 41 Filed 08/21/07 Page 1 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

 The Court has calculated this amount to be $149,165.12 as of August 21, 2007. There are 736 days in the period 1

from August 16,2005 to August 21, 2007. 736 multiplied by $202.67 equals $149,165.12. 

 The Court has calculated this amount to be $6,259.40 as of August 21, 2007. There are 119 days in the period 2

from April 25,2007 to August 21, 2007. 119 multiplied by $52.60 equals $6,259.40. 

2

promissory note, (fourth) account stated, (fifth) money lent, (sixth) quantum meruit, (seventh)

possession of personal property collateral, and (eighth) accounting. 

 Plaintiff served Defendant Brager & Associates, Inc. with a copy of the complaint on

January 11, 2007. Plaintiff served Defendant Alisha Brager with a copy of the complaint on February

1, 2007. Plaintiff filed requests for entry of default against both Defendants, with supporting papers

on February 27, 2007. On February 27, 2007, this Court’s clerk entered defaults as to both

Defendants. 

On May, 22, 2007, Plaintiff filed an application for default judgment by the Court against

both Defendants, with supporting documents. (Docs. 32, 33). Plaintiff seeks a default judgment

against both Defendants to award $2, 206,086.40 in damages, plus prejudgment interest in the

amount of $202.67 per day from August 15, 2005 until paid based on the balance due under the 

franchise agreements , plus prejudgment interest in the amount of $52.60 per day until paid based on 1

the principal balance of the promissory note , plus an award of $17, 034.43 in attorney’s fees and 2

costs pursuant to the parties’ written agreements and California Civil Code § 1717, for a total

judgment of at least $2,422,495.23. 

On August 2, 2007, the Magistrate Judge issued Findings and Recommendations (Doc. 39)

to grant Plaintiff a default judgment against both Defendants as follows:

1. $2,206,087.48 for obligations due pursuant to the franchise agreements and the 

promissory note as of August 15, 2005; 

2. $43,948.80 for interest on the remaining principal balance of the promissory note as

of April 24, 2007; 

3. Interest at the rate of 18% per annum on the sum of $410,976.30, in the amount of

$202.67 per day from August 16, 2005 through the date of judgment;

///

Case 1:06-cv-01861-LJO-DLB Document 41 Filed 08/21/07 Page 2 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3

4. Interest on the remaining principal balance of the promissory note in the amount of 

$52.60 per day from April 25, 2007 through the date of the judgment; and 

5. $17,034.43 for attorney’s fees and costs.

The Findings and Recommendations granted 15 days after their service to file written objections. 

No objections were filed.

ORDER

Pursuant to 28 U.S.C. § 636(b)(1), this Court conducted a de novo review of this case. 

Having carefully reviewed the entire file, the Court finds the Magistrate Judge’s Findings and

Recommendations are supported by the record and the Magistrate Judge’s analysis. 

Accordingly, this Court ORDERS:

1. The Magistrate Judge’s Findings and Recommendations to Grant Plaintiff’s

Application for Default Judgment by Court, filed August 2, 2007 (Doc. 39), 

are adopted in full;

2. Plaintiff ERA Franchise Systems, Inc. is GRANTED a $2,422,495.23 default

judgment against Defendant Brager & Associates, Inc., doing business as ERA

Stargate Realty, and against Defendant Alisha Brager, an individual, as follows:

a. $2,206,087.48 for obligations due pursuant to the franchise agreements and the

promissory note as of August 15, 2005; 

b. $43,948.80 for interest on the remaining principal balance of the promissory note

as of April 24, 2007; 

c. $149,165.12 for interest at the rate of 18% per annum on the sum of $410,976.30,

in the amount of $ 202.67 per day from August 16, 2005 through August 21, 2007,

and thereafter at the rate of $202.67 per day until the date of the judgment; 

d. $6,259.40 for interest on the remaining principal balance of the promissory note in

the amount of $52.60 per day from April 25, 2007 through August 21, 2007, and 

thereafter at the rate of $52.60 per day until the date of judgment; and 

e. $17,034.43 for attorney’s fees and costs.

Total as of August 21, 2007: $2,422,495.23. 

Case 1:06-cv-01861-LJO-DLB Document 41 Filed 08/21/07 Page 3 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

4

The Clerk of this Court is DIRECTED to enter a $2,422,495.23 judgment in favor of

Plaintiff ERA Franchise Systems, Inc. and against Defendant Brager & Associates, Inc., a California 

corporation doing business as ERA Stargate Realty, and against Defendant Alisha Brager, an

individual, as provided above. The Clerk of the Court is further DIRECTED to close this action.

IT IS SO ORDERED.

Dated: August 21, 2007 /s/ Lawrence J. O'Neill 

b9ed48 UNITED STATES DISTRICT JUDGE

Case 1:06-cv-01861-LJO-DLB Document 41 Filed 08/21/07 Page 4 of 4