Ekuantia PTE, LTD v. Chang

Background

Ekuantia PTE, Ltd. asserted breach-of-contract and fraud claims against GIVE Corp and its president, Jack Chang, concerning two written agreements for white-label services. After both defendants failed to respond, the Clerk entered their defaults.

The parties later entered into a settlement agreement on May 16, 2022. The court approved their stipulation to set aside the defaults, dismiss the action without prejudice, and retain jurisdiction to enforce the settlement agreement for 180 days. The stipulation also provided for entry of judgment if the defendants defaulted on their payment obligations.

The settlement agreement required payment of $142,000 before August 1, 2022. Ekuantia notified Chang of the alleged default on August 1, 2022, but the defendants did not cure it. Ekuantia then moved to set aside the dismissal and enter the stipulated judgment. The defendants did not oppose the motion.

Court’s analysis

The court applied Federal Rule of Civil Procedure 60(b)(6), which allows relief from a final order for a reason that justifies changing its effect. The court concluded that Ekuantia had shown the defendants failed to comply with the settlement agreement and did not cure the default after receiving notice as required by that agreement.

Except for the interest calculation, the court found that the amounts requested were consistent with the settlement agreement. It also found the requested $1,050 in attorney’s fees reasonable. The court reduced the requested daily interest from $49.02 to $46.68 because the agreement appeared to provide for interest only on the unpaid $142,000 settlement amount, not on the $7,100 late-payment penalty. The court awarded $980.28 in interest.

Disposition

Judge Joseph C. Spero granted the motion, set aside the dismissal without prejudice, and directed the Clerk to enter judgment against GIVE Corp and Jack Chang for $151,130.28. The opinion does not state that the judgment was entered with or without prejudice.