WILLIAM S. DUFFEY, Jr., District Judge.
This matter is before the Court on Plaintiff Mevi Avocados, Inc.'s ("Plaintiff") Motion for Entry of Default Judgment Against Maya Foods, LLC [9] ("Motion for Default Judgment").
Between June 16, 2014, and October 14, 2014, Plaintiff sold to Defendant Maya Foods, LLC ("Defendant"), in interstate commerce, wholesale quantities of produce worth $115,808.00. (Compl. ¶ 7). Defendant accepted the produce from Plaintiff. (Compl. ¶ 8). At the time of Defendant's receipt of the produce, Plaintiff became a beneficiary in a statutory trust designed to assure payment to produce suppliers ("PACA Trust"). The PACA Trust consists of Defendant's produce or produce-related assets, including all funds commingled with funds from other sources and all assets procured by such funds, in the possession of control of Defendant since the creation of the trust. (Compl. ¶ 9). Plaintiff preserved its interest in the PACA Trust in the amount of $110,068.00 by sending invoices to Defendant containing the statutory language required to preserve trust benefits under 7 U.S.C. §499e(c)(4). (Compl. ¶ 10).
Defendant failed to pay Plaintiff $110,068.00 in PACA Trust funds. (
On October 26, 2016, Plaintiff filed this action against Defendant and its director Doris E. Martinez, pursuant to the trust provision of the Perishable Agricultural Commodities Act ("PACA"), Section 5(c), 7 U.S.C. § 499e(c).
On January 11, 2017, the Clerk of Court entered default with respect to Defendant. On January 14, 2017, Plaintiff filed its Motion for Default Judgment, requesting the Court to enter default judgment against Defendant pursuant to Federal Rules of Civil Procedure 55(b)(1) or 55(b)(2), and Section 5(c) of the PACA, 7 U.S.C. § 499e(c). Plaintiff seeks $156,315.63, which includes (1) the principal amount of $110,068.00, (2) interest through January 13, 2017, at the rate of 18% per annum, in the amount of $38,528.38, and (3) attorneys' fees and costs in the amount of $7,719.25.
Rule 55(b) of the Federal Rules of Civil Procedure provides that default judgment may be entered against defaulting defendants as follows:
Fed. R. Civ. P. 55(b).
"[T]here is a strong policy of determining cases on their merits. . . . [Courts] therefore view defaults with disfavor."
When considering a motion for default judgment, a court must investigate the legal sufficiency of the allegations and ensure that the complaint states a plausible claim for relief.
The PACA provides that it shall be unlawful in, or in connection with, any transaction in interstate or foreign commerce to, among other things, fail to maintain a PACA trust or fail to make full payment promptly to the trust beneficiary. 7 U.S.C. § 499b(4). The PACA requires produce suppliers to provide notice to the buyer of their intent to preserve trust benefits.
Here, Defendant failed to pay Plaintiff in full, and the principal amount of $110,068.00 remains due and owing. (
Plaintiff seeks $156,315.63, which includes (1) the principal amount of $110,068.00, (2) interest through January 13, 2017, at the rate of 18% per annum, in the amount of $38,528.38, and (3) attorneys' fees and costs in the amount of $7,719.25. The Court may grant default judgment and award damages without a hearing if "the amount claimed is a liquidated sum or one capable of mathematical calculation."
The Court finds Plaintiff's supporting affidavits and documents support its claimed principal damages amount, that the damages are capable of mathematical calculation, and that the damages are reasonable. Plaintiff provides invoices it sent to Defendant, its own account worksheets, and affidavits of its employees showing that Defendant owes Plaintiff $110,068.00. (
Turning to Plaintiff's request for attorneys' fees and interest, the PACA provides that a dealer receiving produce must hold the produce in trust "for the benefit of all unpaid suppliers or sellers of such commodities . . . until full payment of the sums owing in connection with such transaction has been received." 7 U.S.C. § 499e(c)(2). In
The parties' agreement also includes a provision for the payment of "any attorney's fees necessary to collect any balance due. . . ." ([9.5]). The Court has reviewed Plaintiff's attorneys' fees and costs claims. Plaintiff submitted detailed invoices and affidavits from two firms regarding their fees. Kevin A. Maxim, a Georgia attorney with the Maxim Law Firm, P.C., bills at a rate of $295.00. The Court finds this rate a reasonable, and likely below-market, rate in the Atlanta market for legal services. Having reviewed Mr. Maxim's detailed entries, it appears he spent approximately 6 hours working on this action, which the Court finds reasonable. He incurred $246.79 in costs in this matter. Three Washington, D.C. attorneys with the firm McCarron & Diess also submitted their detailed invoices. Two of these D.C.-based attorneys bill at an hourly rate of $400.00, and the third, an associate, bills at a rate of $300.00 per hour. The Court finds these rates reasonable in the Washington, D.C. market for legal services. Having reviewed the invoice submitted, the three McCarron & Diess attorneys billed a total of 10.65 hours of work in this action, which the Court finds reasonable given the status of this litigation. Plaintiff seeks a total of $7,719.25 in attorneys' fees and costs. The Court grants Plaintiff's request for attorneys' fees and costs.
For the foregoing reasons,