Boustead Securities, LLC v. Leaping Group Co., Ltd. & ATIF Holdings Ltd.

Background

Boustead Securities, LLC sued Leaping Group Co., Ltd. and ATIF Holdings Ltd. for breach of contract. The Court had previously awarded a default judgment against Leaping. A default judgment is entered when a party does not defend the case; the opinion does not describe a separate liability ruling against ATIF.

The Court referred the case to Magistrate Judge Henry J. Ricardo to determine damages. Judge Ricardo recommended that Boustead receive $794,062 plus prejudgment interest. The recommendation stated that the parties had fourteen days to submit written objections and warned that failing to object would waive objections and prevent appellate review.

Court’s Review

No party objected to the recommendation. Because there were no objections, the Court reviewed the recommendation for clear error on the record rather than conducting a fresh review. The Court found no clear error.

Ruling

Judge Valerie Caproni adopted the Report and Recommendation in full and awarded damages of $794,062 plus prejudgment interest. The interest is to be calculated using $794,062 as the principal amount, beginning April 22, 2020, at a rate of 9% per year under New York law. The Clerk was directed to enter judgment for Boustead in that amount plus interest and close the case. The order also states that the failure to object precludes appellate review of this decision.