Desserts On Us, Inc. v. Kamflex Conveyor Corporation

Background

Desserts On Us, Inc. renewed its motion for default judgment against Kamflex Conveyor Corporation and the other defendants named in the caption. The court evaluated the request under the factors identified in Eitel v. McCool and considered the materials in the record.

Court’s analysis

The court concluded that most of the relevant factors supported entering default judgment. It determined that Desserts had established liability, damages of $437,186.82, and costs of $603.05.

The court rejected an additional $630,398.96 damages request. That amount represented the price of equipment Desserts purchased in May 2017, before it entered into its contract with Kamflex in September 2017. Desserts argued that it could not use the equipment because Kamflex’s cookie-packaging system never worked. The court held that Desserts had not explained how Kamflex’s conduct rendered the equipment useless. The court therefore awarded only post-contract expenses, which it said should return Desserts to the position it occupied before contracting with Kamflex.

The court also excluded the $15,000 Desserts requested for attorney’s fees. The court explained that those fees had been required as a condition of setting aside the earlier motion for default judgment so the case could be decided on its merits. Because the renewed motion for default judgment was granted and the case would not proceed on the merits, Desserts was no longer entitled to those fees, except for any portion defendants had already paid.

Disposition

Judge Vince Chhabria granted the motion for default judgment as modified. The award consisted of $437,186.82 in damages and $603.05 in costs. The order did not award the additional $630,398.96 in claimed damages or the requested $15,000 in attorney’s fees, apart from any portion of those fees already paid by defendants.