GONZALO P. CURIEL, District Judge.
This is an action for recovery of sums owed on goods sold and delivered by Plaintiff to Defendant. The Court has subject-matter jurisdiction under 28 U.S.C. § 1332, as Plaintiff is Hong Kong corporation with its principal place of business in China, Defendant is a California corporation with its principal place of business in California, and the amount in controversy is over $300,000. And, because it is a California corporation, the Court has personal jurisdiction over Defendant.
The Court has considered Plaintiff's "Motion to Correct Typographical Error in Name of Plaintiff." (ECF No. 21.) Finding good cause therefor, the Court will grant the Motion to Correct.
After Defendant's counsel withdrew from representation, the Court directed Defendant to retain counsel as is required of a corporate parties. (ECF No. 16.) At the status hearing set for determining whether Defendant had retained counsel, Defendant failed to appear. (ECF No. 19.) The Court therefore directed Plaintiff to file and serve a motion for default judgment, which Plaintiff did on January 2, 2014. (ECF No. 20.) On April 1, 2014, the Court directed Plaintiff to submit evidence in support of its claimed damages. (ECF No. 22.) Plaintiff filed and served the evidence on April 2, 2014. (ECF Nos. 23, 24.)
Because Plaintiff claims a liquidated amount of damages, the Court finds a hearing on Plaintiff's Motion for Default Judgment is unnecessary.
The Clerk of the Court must enter default "when a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise." Fed. R. Civ. P. 55(a). Default has not yet been entered in this case. Given Defendant's failure to defend in accordance with applicable rules, the Court finds default should now be entered against Defendant.
Once default is entered, entry of default judgment may be appropriate.
"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."
Based on Defendant's failure to defend in this lawsuit, the Court now regards the facts alleged in Plaintiff's Complaint as true. "[Plaintiff, a Hong Kong corporation,] seeks damages from [Defendant, a California corporation,] for breach of contract, goods sold and delivered at agreed price, open book account, and account stated for non-payment of handbags purchased from [Plaintiff] by [Defendant]." (ECF No. 1, Compl. ¶ 1.) "In and after February 2011, [Plaintiff] manufactured and shipped the handbags to [Defendant] per orders received from [Defendant]. [Defendant] took possession of the shipment, resold and disposed of the shipment, and did not pay [Plaintiff]. This lawsuit is filed to collect on the unpaid invoices." (
The Court finds Plaintiff's allegations are, at a minimum, sufficient to recover the unpaid amounts under a breach-of-contract theory.
To prove damages, Plaintiff provides a declaration by its President, Wong Chong Chi, stating the total owed to Plaintiff under the unpaid invoices is $302,196.96. (ECF No. 20-1.) The Court has reviewed the invoices and finds that, along with the Wong Declaration, the invoices are sufficient evidence of Plaintiff's damages. The sum of the invoices, however, is $302,169.96—not $302,196.96. This is a significant sum that Plaintiff should be entitled to recover and that Plaintiff no doubt expected it would recover upon sending numerous shipments of handbags to Defendant. It may thus be said that Plaintiff would be highly prejudiced were it not permitted to recover what it is owed.
The Court further finds that, given Defendant's knowing failure to comply with the requirement that it be represented by counsel in federal court, Defendant's default cannot be explained by excusable neglect. Thus, while public policy favors resolution of cases on the merits, the Court finds the foregoing factors weigh in favor of granting Plaintiff's Motion for Default Judgment.
Plaintiff also seeks pre and post-judgment interest on the amount owed. For simplicity, Plaintiff seeks prejudgment interest only from the date of the last invoice, October 18, 2011, through the date of judgment. California Civil Code Section 3287(a) provides in relevant part:
Given the certainty of Plaintiff's damages, the Court finds Plaintiff is entitled to prejudgment interest under Section 3287(a). Where a contract does not provide a specific rate, the rate of interest chargeable after breach of contract is 10% per annum. Cal. Civ. Code § 3289. The formula for calculating prejudgment interest is: principal × interest rate × number of days interest accrued ÷ 360.
Plaintiff is also entitled to post-judgment interest. Unlike prejudgment interest, however, post-judgment interest is governed by federal, not California, law.
Based on the foregoing,