Opinion
No. 3:19-cv-01016-HZ
03-04-2020
J. FRANK SCHMIDT & SON CO., Plaintiff, v. WALNUT CREEK NURSERY, INC. and PAUL HACKETT, Defendants.
Daniel L. Steinberg Jordan Ramis PC 2 Centerpointe Dr 6th Floor Lake Oswego, OR 97035 Attorney for Plaintiff
OPINION & ORDER Daniel L. Steinberg
Jordan Ramis PC
2 Centerpointe Dr 6th Floor
Lake Oswego, OR 97035
Attorney for Plaintiff HERNÁNDEZ, District Judge:
Plaintiff J. Frank Schmidt & Son Co. brings this action against Defendants Walnut Creek Nursery, Inc. and Paul Hackett, alleging breach of contract, "goods sold and delivered," unjust enrichment, and breach of guaranty. Compl. ¶¶ 10-22. Before the Court is Plaintiff's motion for default judgment [18]. For the reasons that follow, the Court grants the motion and awards judgment as set forth below.
BACKGROUND
In 2014, Plaintiff began selling plants, trees, and shrubbery to Defendant Walnut Creek. Compl. ¶ 6. In 2018, Walnut Creek became delinquent in its payments, and Plaintiff refused to deliver further goods. Id. ¶ 8. In August of 2018, the parties executed a new promissory note in which Walnut Creek promised to pay Plaintiff $128,972.96, and Defendant Hackett, the president and owner of Walnut Creek, guaranteed Walnut Creek's performance. Id. ¶ 9.
After executing the note, Defendant Walnut Creek again failed to perform on its promised obligations, and Defendant Hackett failed to pay the outstanding amount as guaranteed. Id. ¶ 11, 21. Plaintiff now alleges that, after applying all credits, payments, and offsets, Walnut Creek owes Plaintiff $80,825.49. Id. ¶ 12.
STANDARDS
Upon entry of default, all well-pleaded factual allegations of the complaint are taken as true, except those allegations relating to the amount of damages. See Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977) ("The general rule of law is that upon default the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true."); NewGen, LLC v. Safe Cig, LLC, 840 F.3d 606, 617 (9th Cir. 2016) (same).
Under Rule 55(b)(1), the district court clerk is authorized to enter a default judgment if the plaintiff's claim "is for a sum certain or a sum that can be made certain by computation . . . against a defendant who has been defaulted for not appearing." A sum is certain when "no doubt remains as to the amount to which a plaintiff is entitled as a result of the defendant's default." Franchise Holding II, LLC v. Huntington Rests. Grp., Inc., 375 F.3d 922, 928 (9th Cir. 2004). Under Rule 55(b)(2), the district court has discretion as to whether to enter a default judgment. DIRECTV, Inc. v. Hoa Huynh, 503 F.3d 847, 852 (9th Cir. 2007). In exercising its discretion, the court may consider
(1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiff's substantive claim, (3) the sufficiency of the complaint, (4) the sum of money at stake in the action; (5) the possibility of a dispute concerning material facts; (6) whether the default was due to excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). The "starting point" of the court's analysis, however, "is the general rule that default judgments are ordinarily disfavored." Id. at 1472.
DISCUSSION
This case was filed on June 27, 2019. ECF 1. Defendant Walnut Creek was served on July 2, 2019. ECF 4. Defendant Paul Hackett was served on November 16, 2019. ECF 11. Plaintiff moved for entry of default against both defendants on December 24, 2019. ECF 15. The Court granted the motion on December 27, 2019. ECF 17.
Before the Court is Plaintiff's motion for default judgment. Plaintiff requests $80,825.49, the unpaid balance on a promissory note. Plaintiff also requests its attorney's fees and costs.
The Court finds that Plaintiff's request for damages in the amount of $80,825.49 is a sum certain. The Court has reviewed the promissory note and declaration in support of the motion, considered the seven factors, and finds that entry of default judgment is warranted. The Court therefore orders that Plaintiff be awarded damages in the principal sum amount of $80,825.49.
CONCLUSION
Plaintiff's motion for default judgment [18] is GRANTED. Plaintiff is awarded (1) damages in the principal sum amount of $80,825.49 and (2) reasonable attorney's fees. The Court will enter a Supplemental Judgment after Plaintiff has submitted its fee application and the Court has determined the amount due for attorney's fees.
IT IS SO ORDERED.
Dated: March 4, 2020
/s/_________
MARCO A. HERNÁNDEZ
United States District Judge