The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA
ALL CRANE RENTAL OF CIVIL ACTION
LOUISIANA, L.L.C.
VERSUS
T.L. HAWK, L.L.C., ET AL. NO. 24-00147-BAJ-SDJ
RULING AND ORDER
Before the Court is Plaintiff ALL Crane Rental of Louisiana, L.L.C.’s Motion
For Default Judgment Against Defendant T.L. Hawk, L.L.C., Pursuant To
Fed. R. Civ. P. 55(b)(2) (Doc. 23). The Motion is unopposed. For the following
reasons, Plaintiffs Motion will be GRANTED.
I. BACKGROUND
This case arises out of Defendant T.L. Hawk, L.L.C.’s (“T.L. Hawk” or
“Defendant”) failure to pay amounts owed to Plaintiff under a rental agreement.
Despite demand letters, the initiation of this lawsuit, the issuance of a Clerk’s Entry
of Default Judgment, and Plaintiffs filing of the current Motion for Default
Judgment, Defendant has failed to appear or respond to this lawsuit in any manner
and has yet to pay Plaintiff under the Agreement. Accordingly, and for the reasons
described below, the Court finds that default judgment is warranted in Plaintiffs
favor.
Plaintiff is in the business of leasing crane equipment to general contractors,
subcontractors, construction companies, and other individuals and_ entities.
(Doc. lat § 8). On May 28, 2018, Plaintiff and Defendant executed a rental
agreement governing the lease of certain crane equipment. (Doc. 1-4). The parties
later executed multiple addenda to the Agreement. (Doc. 1 at § 9; Doc. 1-5; Doc. 1-7;
Doc. 1-10; Doc. 1-18; Doc. 1-16). The rental agreement and addenda thereto shall be
collectively referred to as “the Agreement.” (Doc. 1-4; Doc. 1-5; Doc. 1-7; Doc. 1-10;
Doc. 1-18; Doc. 1-16).
Under the Agreement, Plaintiff delivered cranes to Defendant to conduct work
on five projects. (Doc. 1 at § 12). Plaintiff also provided assembly and disassembly
services on the equipment. (/d.). Defendant, however, failed to pay Plaintiff under the
Agreement. (d.). Specifically, Defendant failed to pay Plaintiff the principal amount
of:
A. $518,648.05 for Project 1;
B. $232,428.50 for Project 2;
C. $98,610.29 for Project 3;
D. $82,200.51 for Project 4; and
$75,828.20 for Project 5.
Ud. at | 12, 16, 20, 24, 28). Plaintiff filed invoices and calculations related to each
project into the record showing that Defendant owes Plaintiff these amounts.
(Doc. 1-6; Doc. 1-8; Doc. 1-11; Doc. 1-14; Doc. 1-17).
Additionally, Plaintiff asserts that after Defendant rented Plaintiffs
equipment, the equipment was either damaged or required services in the amount of:
A. $80,037.23 for Project 1;
B. $38,227.91 for Project 2; and
C. $1,280.44 for Project 8.
(Doc. 28-1 at 4). Plaintiff similarly filed invoices into the record showing that
Defendant owes Plaintiff these amounts for the damaged equipment. (Doc. 1-19;
Doc. 1-20; Doe. 1-21).
On October 4, 2028, Plaintiff sent demand letters to Defendant demanding
payment. (Doc. 1 at { 33). On February 238, 2024, Plaintiff filed this lawsuit
demanding payment under two theories: (1) breach of contract (Count I); and
(2) open account (Count IT). (Doc. 1 at 830-48). (Doc. 1). Defendant was served with
process on February 26, 2024, and its Answer was due on March 18, 2024.2? (Doc. 4).
Defendant failed to respond to Plaintiffs Complaint in any manner.
On April 4, 2024, Plaintiff moved for a Clerk’s Entry of Default. (Doc. 13). The
Clerk entered default against Defendant. (Doc. 15). Plaintiff then filed the instant
motion, seeking default judgment in its favor in the amount of $1,092,261.13, plus
contractual interest at the rate of 1.5% per month from the due date until paid, plus
attorneys’ fees and costs. (Doc. 23). For the following reasons, Plaintiffs Motion will
be granted.
Plaintiff also filed this suit against Defendant United States Fire Insurance Company
CUSFIC” or “Surety”). On Plaintiff and USFIC’s Joint Motion for Partial Dismissal With
Prejudice, the Court dismissed Plaintiffs claims against USFIC with prejudice. (Doc. 22;
Doc. 24). Thus, the only claims remaining are Plaintiffs claims against Defendant T.L. Hawk.
2 According to the Proof of Service in the record, a process server personally served the
summons on Defendant’s registered agent. (Doc. 5).
II. LEGAL STANDARD
The United States Court of Appeals for the Fifth Circuit has adopted a three-
step process to obtain a default judgment. See New York Life Ins. Co. v. Brown,
84 F.3d 137, 141 (5th Cir. 1996). First, a default occurs when a party “has failed to
plead or otherwise defend” against an action. Fed. R. Civ. P. 55(a). Next, an entry of
default must be entered by the clerk when the default is shown “by affidavit or
otherwise.” See id.; New York Life, 84 F.3d at 141. Third, a party may apply to the
court for a default judgment after an entry of default. Fed. R. Civ. P. 55(b); New York
Life, 84 F.3d at 141.
After a party files for a default judgment, courts must apply a two-part process
to determine whether a default judgment should be entered. First, a court must
consider whether the entry of default judgment is appropriate under the
circumstances. Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998). Several
factors are relevant to this inquiry, including: (1) whether there are material issues
of fact at issue, (2) whether there has been substantial prejudice, (3) whether the
grounds for default have been clearly established, (4) whether the default was caused
by excusable neglect or good faith mistake, (5) the harshness of the default judgment,
and (6) whether the court would think itself obliged to set aside the default on a
motion by Defendant. Id.
Second, the court must assess the merits of the plaintiffs claims and determine
whether the plaintiff has a claim for relief. Nishimatsu Constr. Co. v. Houston Nat'l
Bank, 515 F. 2d 1200, 1206 (5th Cir. 1975); Hamdan v. Tiger Bros. Food Mart, Inc.,
No. CV 15-00412, 2016 WL 1192679, at *2 (M.D. La. Mar. 22, 2016).
WI. DISCUSSION
Plaintiff requests that the Court enter judgment in its favor and against
Defendant T.L. Hawk in the principal amount of $1,092,261.13 plus contractual
interest at the rate of 1.5% per month from the due date until paid. (Doc. 23 at 1).
Plaintiff also requests that the Court award it reasonable attorneys’ fees and costs.
For the following reasons, the Court finds that default judgment is warranted.
A. Default Judgment is Appropriate under the Lindsey Factors.
The Court must first decide whether the entry of default judgment is
appropriate under the circumstances by considering the Lindsey factors. First, there
are no material facts in dispute because Defendant failed to file an Answer or motion
under Rule 12. Second, it is undisputed that Defendant has not responded to any of
Plaintiffs attempts to contact it. Third, the grounds for granting a default judgment
against Defendant are clearly established, as evidenced by the procedural history of
this case and the Clerk’s entry of default. Fourth, the Court has no basis to find that
Defendant’s failure to respond was the result of a good faith mistake or excusable
neglect because they have failed to respond to Plaintiff or to the Court. Fifth,
Defendant’s failure to file any responsive pleading or motion mitigates the harshness
of a default judgment. Finally, the Court is not aware of any facts that would lead it
to set aside the default judgment if challenged by Defendant. The Court therefore
finds that the six Lindsey factors weigh in favor of entry of default against Defendant.
B. The Sufficiency of the Pleadings.
Next, the Court must determine whether Plaintiffs pleadings provide a
sufficient basis for a default judgement. Here, Plaintiff sued Defendant for breach of
contract (Count I) and open account (Count I). (Doc. 1 at 9] 30-43). Where, like here,
jurisdiction is founded on diversity, federal courts must apply the substantive law of
the forum state.? Erie R.R. v. Tompkins, 304 U.S. 64, 78 (1988)).
Under Louisiana law, “[a] contract is an agreement by two or more parties
whereby obligations are created, modified, or extinguished.” JMF Med., LLC □□□
Team Health, LLC, 490 F. Supp. 3d 947, 973 (M.D. La. 2020) (citing La. Civ. Code
art. 1906). “The central elements of a breach of contract action are the existence of a
contract, a partys breach thereof, and damages.” JMF Med., LLC,
490 F. Supp. 3d at 973 (citing Favrot v. Favrot, 2010-0986 (La. App. 4th Cir. 2/9/11),
68 So. 3d 1099, 1108-09 (quoting Hercules Machinery Corp. v. McElwee Bros., Inc.,
2002 WL 31015598, at *9 (E.D. La. Sept. 2, 2002)). Stated differently, the elements
of a cause of action for breach of contract are: “(1) the obligor’s undertaking of an
obligation to perform (the contract), (2) the obligor failed to perform the obligation
(the breach), and (8) the failure to perform resulted in damages to the obligee.”
JMF Med., LLC, 490 F.Supp. 3d at 973 (citing Denham Homes, L.L.C. v.
Teche Federal Bank, 14-1576 (La. App. 1st Cir. 9/18/15), 182 So. 3d 108, 118.
Here, the parties executed a valid and binding contract—the Agreement.
(Doc. 1-4; Doc. 1-5; Doc. 1-7; Doc. 1-10; Doc. 1-13; Doc. 1-16). Defendant breached the
5 Plaintiff alleges that the Court has jurisdiction pursuant to 28 U.S.C. § 13832. (Doe. 1 at □ 4).
Agreement by failing to pay Plaintiff under the terms of the Agreement. Plaintiff
suffered damages due to Defendant’s failure to pay. Thus, Plaintiff has demonstrated
a sufficient basis for default on Plaintiffs Complaint.
C. Damages.
A defaulting defendant “concedes the truth of the allegations of the Complaint
concerning defendant’s liability, but not damages.” Ins. Co. of the W. v.
H & G Contractors, Inc., 2011 WL 4738197, *4 (S.D. Tex., Oct. 5, 2011). A court’s
award of damages in a default judgment must be determined after a hearing, unless
the amount claimed can be demonstrated “by detailed affidavits establishing the
necessary facts.” United Artists Corp. v. Freeman, 605 F.2d 854, 857 (5th Cir. 1979).
If a court can mathematically calculate the amount of damages based on the
pleadings and supporting documents, a hearing is
unnecessary. Joe Hand Promotions, Inc. v. Alima, No. 8:13-CV-0889-B,
2014 WL 1632158, at *3 (N.D. Tex. Apr. 22, 2014) (citing James v. Frame, 6 F.3d 307,
310 (5th Cir. 1993)).
A review of the record reflects that the elements of damages are
mathematically calculable based on the supporting documentation and affidavits
submitted; thus, a hearing is not necessary. (Doc. 1-6; Doc. 1-8; Doc. 1-11; Doc. 1-14;
Doc. 1-17; Doc. 1-19; Doc. 1-20; Doc. 1-21; Doc. 23-4; Doc. 23-5). The invoices reflect
that Defendant owes Plaintiff the following amounts for the rental equipment:
(1) $518,648.05 for Project 1; (2) $232,428.50 for Project 2; (3) $98,610.29 for Project
3; (4) $82,200.51 for Project 4; and (5) $75,828.20 for Project 5. (Id.). The record
further reflects that Defendant owes Plaintiff for damages to the equipment in the
following amounts: (1) $80,037.23 for Project 1; (2) $3,227.91 for Project 2; and
(3) $1,280.44 for Project 3. Uid.). Accordingly, judgment is warranted in Plaintiffs
favor and against Defendant in the principal amount of $1,092,261.13.
D. Interest.
Plaintiff also seeks interest at the rate of 1.5% per month from the date
payment was due until paid in full as agreed upon in Paragraph 3 of the Agreement.
(Doc. 23-1 at 5). Paragraph 3 of the Agreement provides that “late payments shall
accrue interest at the rate of one and one half percent per month (eighteen percent
per annum), or the maximum rate permitted by law, if less.” (Doc. 1-4 at J 3). Thus,
under the plain terms of the Agreement, Defendant must pay Plaintiff interest at the
rate of 1.5% per month.
E. Attorneys’ Fees and Costs.
Plaintiff also seeks attorneys’ fees and costs as agreed upon in Paragraph 15
of the Agreement. (Doc. 23-1 at 5). Paragraph 15 of the Agreement provides that
Defendant shall be in default if it “fails to fully and timely pay any rent or other
amounts when due.” (Doc. 1-4 at { 15). The Agreement further provides:
In addition to the payment of any amounts due [Plaintiff] hereunder,
[Defendant] shall be responsible for and shall reimburse [Plaintiff] for
all costs and expenses incurred by [Plaintiff] in connection with the
exercise of any rights and remedies hereunder . . . including costs of
collection and reasonable attorney’s fees...
Under the plain terms of the Agreement, Plaintiff is entitled to recover
attorneys’ fees and costs under the Agreement. 4
IV. CONCLUSION
Accordingly,
IT IS ORDERED that Plaintiff ALL Crane Rental of Louisiana, L.L.C.’s
Motion For Default Judgment Against Defendant T.L. Hawk, L.L.C.,
Pursuant To Fed. R. Civ. P. 55(b)(2) (Doe. 23) is GRANTED.
IT IS FURTHER ORDERED that default judgment is hereby entered in
favor of Plaintiff ALL Crane Rental of Louisiana, L.L.C. and against Defendant
T.L. Hawk, L.L.C.
IT IS FURTHER ORDERED that Defendant T.L. Hawk, L.L.C. shall pay
Plaintiff the principal sum of $1,092,261.13, plus interest at a contractual rate of 1.5%
per month, plus attorneys’ fees and costs.
4 Because Plaintiff establishes a sufficient basis for default judgment under a theory of breach
of contract entitling it to damages, interest, attorneys’ fees, and costs, the Court need not
consider Plaintiffs claim for open account.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the
above-captioned matter be and is hereby DISMISSED WITH PREJUDICE.
Judgment shall be issued separately.
Baton Rouge, Louisiana, this lO of June, 2025
JUDGE BRIAN A. □
UNITED STATES D RICT COURT
MIDDLE DISTRICT OF LOUISIANA
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