Artnet Worldwide Corp. Inc. v. Gruber

Background

Artnet Worldwide Corp. Inc. brought a breach-of-contract action against Gabriel Gruber. Artnet alleged that Gruber entered a successful bid to purchase a painting through Artnet but then refused to pay in violation of Artnet’s terms and conditions.

The complaint was filed on December 7, 2021. The opinion states that Gruber resides in Argentina. Artnet sent Spanish-language translations of the summons and complaint to Argentina’s central authority under the Hague Convention on service abroad. The court later permitted Artnet to seek a default judgment under the Convention’s requirements. A clerk’s certificate of default was entered on December 5, 2022, and Artnet moved for default judgment on December 20, 2022.

On September 30, 2023, the court entered a default judgment for Artnet and referred the case to Magistrate Judge Katharine H. Parker to determine damages. Judge Parker issued a Report and Recommendation on July 22, 2024, recommending $100,000 in actual damages, $22,449.24 in attorneys’ fees and costs, prejudgment interest, and post-judgment interest.

Review of the Recommendation

The parties were given time to file written objections, and the recommendation warned that failing to object would waive further judicial review for purposes of appeal. No objections or requests for additional time were filed. Because there were no timely objections, Judge Rearden reviewed the recommendation for clear error, meaning an obvious mistake in the record. The court stated that it independently reviewed the recommendation and found no clear error.

Ruling

Judge Rearden adopted the Report and Recommendation in its entirety. The court awarded Artnet $100,000 in damages and $22,449.24 for attorneys’ fees and costs. It also awarded prejudgment interest on the $100,000 at $24.65 per day from June 2, 2021, through the date judgment was entered, and post-judgment interest under 28 U.S.C. § 1961.

The court directed Artnet to serve the order on Gruber by June 10, 2025, and file an affidavit confirming service. The clerk was directed to terminate all pending motions and close the case.