Omni Financial, LLC v. Global Petroleum, LLC

Background

On October 31, 2019, the court granted Omni Financial, LLC’s motion for default judgment against Edward Forte and Precise Construction & Dismantlement Systems, Inc. The court entered judgment for $1,375,000 plus reasonable attorneys’ fees and costs subject to proof, and directed Omni to submit supporting materials and a proposed amended judgment.

Omni submitted a supplemental brief, billing records, and a proposed amended judgment on November 13, 2019.

Fees and Costs

The court found that Omni established reasonable attorneys’ fees of $15,872.50 and reasonable costs of $825.24. It therefore awarded a total of $16,697.74 in attorneys’ fees and costs against Forte and Precise Construction.

Post-Judgment Interest

Omni’s proposed amended judgment requested post-judgment interest at a 10% annual rate, apparently based on California law. The court held that interest on this federal civil judgment was governed by 28 U.S.C. § 1961. That statute uses the weekly average one-year constant-maturity Treasury yield for the calendar week before the judgment date. The court also explained that the federal rate may be replaced by a contractually agreed interest rate, but Omni had not identified language in the guaranty contracts waiving the federal rate. The court therefore awarded interest at the federal statutory rate.

Disposition

Judge Beth Labson Freeman granted Omni’s motion for issuance of an amended default judgment against Forte and Precise Construction, as modified by the court. The amended judgment was to include the $16,697.74 fee-and-cost award and post-judgment interest at the rate required by 28 U.S.C. § 1961(a).