Opinion

All Square Logistics, LLC v. Just Funky, LLC

Court
District Court, N.D. Ohio
Filed
Feb 10, 2025
Cited by
0 cases
Authority
More cited than 33.9%

The opinion

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF OHIO

EASTERN DIVISION

ALL SQUARE LOGISTICS, LLC, ) Case No. 5:24-cv-1721

)

Plaintiff, ) Judge J. Philip Calabrese

)

v. ) Magistrate Judge

) Jennifer Dowdell Armstrong

JUST FUNKY, LLC, )

)

Defendant. )

)

OPINION AND ORDER

Plaintiff All Square Logistics, LLC brought a breach of contract claim against

Defendant Just Funky, LLC. Plaintiff perfected service. When Defendant failed to

answer, appear, or otherwise defend, the Clerk entered default under Rule 55(a) on

November 25, 2024. Then, under Rule 55(b)(1), Plaintiff moved for a default

judgment in a sum certain. (ECF No. 8.) For the reasons that follow, the Court

GRANTS IN PART AND DENIES IN PART the motion and AWARDS Plaintiff

damages in the amount of Five Hundred Forty Thousand Three Hundred

Thirty-Eight Dollars and Eighty Cents ($540,338.80), plus contractual interest at the

rate of 3.5% per month on all past due amounts, plus post-judgment interest at the

applicable statutory rate from the date of this Order until the entire judgment is

satisfied.

STATEMENT OF FACTS

Because Defendant has failed to answer, move, or otherwise defend against

Plaintiffs’ complaint and the Clerk previously entered default, the Court accepts the

allegations of the complaint as admitted. Fed. R. Civ. P. 8(b)(6).

All Square Logistics is a logistics company and freight broker that arranges

and manages the importation of goods for its clients by intermodal freight transport

to the United States. (ECF No. 1, ¶ 1, PageID #1.) Just Funky is a manufacturer

and seller of retail goods and imports these goods from foreign countries to the United

States. (Id., ¶ 2, PageID #1.) Beginning in the summer of 2023, Just Funky

contracted with All Square to arrange and manage the importation of shipments of

Just Funky’s goods from foreign countries to the United States. (Id., ¶ 6, PageID #2.)

Under the parties’ contract, the shipments were subject to All Square’s bill of lading,

as well as its terms and conditions. (Id., ¶¶ 7–10, PageID #2–3.)

Over the contractual term, All Square paid freight charges, storage charges,

customs brokerage charges, customs duties, certain import taxes, drayage and

trucking charges, and other charges to third parties on behalf of Just Funky. (Id.,

¶ 11, PageID #3.) The bill of lading and terms and conditions specify that Just Funky

is liable to All Square for these accrued charges. (Id.)

All Square delivered Just Funky’s shipments. (Id., ¶ 12, PageID #3.) After

delivery of each shipment, All Square issued an invoice to Just Funky covering the

charges incurred in connection with the shipment. (Id., ¶¶ 11–12, PageID #3.) Just

Funky repeatedly failed to forward payment to cover the invoices. (Id., ¶ 12, PageID

#3.) On September 4, 2024, All Square sent Just Funky a demand letter for

immediate payment of the invoices in the amount of not less than $540,338.80. (Id.,

¶ 15, PageID #3.) Despite All Square’s demand, Just Funky still has not paid the

invoices. (Id., ¶ 16, PageID #4.)

STATEMENT OF THE CASE

On October 3, 2024, All Square sued Just Funky for breach of contract and, in

the alternative, quantum meruit. (Id., ¶¶ 17–29, PageID #4–5.) On October 24, 2024,

Plaintiff perfected service. (ECF No. 4; ECF No. 5.) On November 25, 2024, Plaintiff

filed a request for entry of default against Defendant, and the Court ordered the Clerk

to enter default of Defendant on the same day. (ECF No. 6; ECF No. 7.) In addition

to seeking the amount due and owing under the contract, Plaintiff seeks its attorneys’

fees under the terms of the bill of lading. (ECF No. 8, PageID #180.)

ANALYSIS

Rule 55 of the Federal Rules of Civil Procedure governs the entry of default

and default judgment. “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, the clerk must enter the party’s default.” Fed. R. Civ. P. 55(a). On

November 25, 2024, the Clerk entered default against Defendant, who never

answered or appeared. (ECF No. 7.)

After entry of default under Rule 55(a), the party seeking relief may apply for

a default judgment under Rule 55(b). Plaintiff seeks default judgment under Rule

55(b)(1) for a sum certain in the amount of Five Hundred Forty Thousand Three

Hundred Thirty-Eight Dollars and Eighty Cents ($540,338.80), plus contractual

interest at the rate of 3.5% per month on all past due amounts, plus attorneys’ fees

as provided under the applicable bill of lading, plus post-judgment interest. (ECF

No. 8. ¶ 7, PageID #180.) Under Rule 55(b)(1), the Clerk may enter a default

judgment “for a sum certain or a sum that can be made certain by

computation . . . with an affidavit showing the amount due.” Fed. R. Civ. P. 55(b)(1).

“The Clerk of Court may enter a default judgment under Rule 55(b)(1) only if

the plaintiff's entire complaint and all of the plaintiff's claims are for a sum certain

or a sum that can be made certain by computation.” National Auto Grp., Inc. v. Van

Devere, Inc., No. 5:20-cv-2543, 2021 WL 1857143, at *3 (N.D. Ohio May 10, 2021)

(quoting Van Zeeland Oil Co. v. Lawrence Agency, Inc., No. 2:09-cv-150, 2009 WL

10678619, at *2 (W.D. Mich. Sept. 28, 2009)). “A claim for damages under Rule

55(b)(1) ‘is not a sum certain unless there is no doubt as to the amount to which a

plaintiff is entitled as a result of the defendant's default.’” Id. at *2 (quoting Highway

Com. Servs., Inc. v. Zitis, No. 2:07-cv-1252, 2008 WL 4115512, at *2 (S.D. Ohio Aug.

28, 2008)).

An award for attorney fees must be reasonable and not excessive, as

determined by the Court’s lodestar calculation. BMO Harris Bank, N.A. v. Stacy,

No. 5:22-cv-613, 2024 WL 4591288, at *5 (N.D. Ohio Oct. 28, 2024). Therefore,

Plaintiff’s default judgment claim necessarily fails under Rule 55(b)(1) “because what

constitutes a reasonable fee must be determined by the Court and is ‘not a claim for

a sum certain or a sum that can be made certain by computation that falls under Rule

55(b)(1) for purposes of the Clerk of Court entering a default judgment.’” National

Auto Grp., 2021 WL 1857143, at *2 (quoting Van Zeeland Oil, 2009 WL 10678619, at

*1).

Because all of Plaintiff’s claims cannot be resolved under Rule 55(b)(1), the

Court decides Plaintiff’s motion for default judgment under Rule 55(b)(2). National

Auto Grp., 2021 WL 1857143, at *3 (citations omitted). Under Rule 55(b)(2), the entry

of default establishes only a defendant’s liability for the well-pleaded allegations of

the complaint; a plaintiff must still prove the extent of damages. Antoine v. Atlas

Turner, Inc., 66 F.3d 105, 110 (6th Cir. 1995) (citing Fehlhaber v. Fehlhaber, 681 F.2d

1015, 1026 (5th Cir. 1982) (en banc); Kelley v. Carr, 567 F. Supp. 831, 841 (W.D. Mich.

1983)).

“An allegation—other than one relating to the amount of damages—is

admitted if a responsive pleading is required and the allegation is not denied.” Fed.

R. Civ. P. 8(b)(6). To establish a claim for breach of contract, a plaintiff must prove:

“(1) the existence of a contract, (2) performance by the plaintiff, (3) breach by the

defendant, and (4) damages or loss resulting from the breach.” In re Fifth Third Early

Access Cash Advance Litig., 925 F.3d 265, 276 (6th Cir. 2019) (quoting Claris, Ltd. v.

Hotel Dev. Servs., LLC, 2018-Ohio-2602, 104 N.E.3d 1076, ¶ 28 (Ohio Ct. App. 2018)).

Plaintiff’s factual allegations, taken as admitted, establish the necessary elements to

prove Defendant’s liability for breach of contract. Plaintiff’s complaint establishes

that (1) the parties had a valid and enforceable contract, (2) Plaintiff performed its

obligations “by timely arranging for the transportation and delivery of the Shipments

at Defendant’s request,” (3) Defendant breached the contract “by failing to pay the

Invoices when due,” and (4) Defendant’s breach “caused damage to Plaintiff.” (ECF

No. 1, ¶¶ 17–22, PageID #4.) Therefore, the Court has no occasion to consider

Plaintiff’s alternative claim of quantum meruit.

Plaintiff still bears the burden of establishing the extent of damages. Antoine,

66 F.3d at 110 (citing Fehlhaber, 681 F.2d at 1026; Kelley, 567 F. Supp. at 841). First,

Plaintiff requests damages in the amount of Five Hundred Forty Thousand Three

Hundred Thirty-Eight Dollars and Eighty Cents ($540,338.80) in overdue invoices,

plus contractual interest at the rate of 3.5% per month on all past due amounts.

Based on the affidavit of Sunil Chopra (ECF No. 8-1), the bill of lading (ECF No. 8-2),

the invoices that Plaintiff sent to Defendant (ECF No. 8-3), and the demand letter

(ECF No. 8-4), Plaintiff has established that it is entitled to damages in the amount

of Five Hundred Forty Thousand Three Hundred Thirty-Eight Dollars and Eighty

Cents ($540,338.80), plus contractual interest at the rate of 3.5% per month on all

past due amounts.

Next, Plaintiff requests an award of attorneys’ fees for which the applicable

bill of lading provides. Pursuant to Section 14 of the Court’s Standing Order on Civil

Procedures, “[i]f requesting attorneys’ fees or costs in connection with a motion for

default judgment,” counsel must provide “proper support for such a request, including

sufficient lodestar information. Failure to do so will result in denial of any such

request.” Counsel for Plaintiff provided no such support. The affidavit of Sunil

Chopra, the Chief Executive Officer of All Square, provides that Section 23 of

Plaintiff’s bill of lading entitles it to the recovery of attorneys’ fees. (ECF No. 8-1, ¶ 9,

PageID #184.) But that section does not establish support for a specific amount of

attorneys’ fees. Nor does Plaintiff otherwise supply any lodestar or other information

from which the Court could make and support an award for attorneys’ fees. For these

reasons, the Court DENIES Plaintiff’s request for attorneys’ fees.

Finally, Plaintiff requests an award of post-judgment interest. 28 U.SC.

§ 1961(a) provides that “[i]nterest shall be allowed on any money judgment in a civil

case recovered in a district court.” “The district court has no discretion to deny post-

judgment interest, as it is mandatory.” CAPSA Sols., LLC v. Concord Healthcare

Grp., LLC, No. 2:18-cv-594, 2019 WL 4894038, at *3 (S.D. Ohio Oct. 4, 2019) (citing

Caffey v. UNUM Life Ins. Co., 302 F.3d 576, 586 (6th Cir. 2002)). Section 1961(a)

specifies that “such interest shall be calculated from the date of the entry of the

judgment, at a rate equal to the weekly average 1-year constant maturity Treasury

yield, as published by the Board of Governors of the Federal Reserve System, for the

calendar week preceding the date of the judgment.” 28 U.S.C. § 1961(a). Therefore,

Plaintiff is entitled to post-judgment interest at the applicable statutory rate from

the date of this Order until the entire judgment is satisfied.

CONCLUSION

For the foregoing reasons, the Court GRANTS IN PART AND DENIES IN

PART Plaintiffs’ motion for default judgment. (ECF No. 8.) Accordingly, the Court

AWARDS Plaintiff damages in the amount of Five Hundred Forty Thousand Three

Hundred Thirty-Eight Dollars and Eighty Cents ($540,338.80), plus contractual

interest at the rate of 3.5% per month on all past due amounts, plus post-judgment

interest at the applicable statutory rate from the date of this Order until the entire

judgment is satisfied.

SO ORDERED.

Dated: February 10, 2025

J. Philip Calabrese

United States District Judge

Northern District of Ohio

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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