Hamilton Clark Sustainable Capital, Inc. v. American Biodiesel, Inc.
- William Orrick
- 3:22-cv-05274
- U.S. District Court · Northern District of California
- 2
In Hamilton Clark v. American Biodiesel, Judge Orrick granted default judgment for $600,000, plus attorney fees and costs, in a contract-payment dispute.
Hamilton Clark Sustainable Capital, Inc. received a default judgment against American Biodiesel, Inc., which does business as Community Fuels, for damages, attorney fees, and costs.
What happened
Hamilton Clark Sustainable Capital, Inc. sued American Biodiesel, Inc., which does business as Community Fuels, claiming the company failed to pay for work related to its sale. Hamilton Clark asked the court to enter judgment because the defendant had not defended the case.
The court granted default judgment. It found that jurisdiction and service requirements were satisfied, Hamilton Clark’s claims were adequately pleaded and had merit, and the defendant had not shown an excusable reason for failing to respond. Hamilton Clark proved that the company was sold for $20 million and was entitled to $600,000 in damages.
Judge William Orrick entered judgment for $600,000, plus $37,718.75 in attorney fees and $1,441.82 in costs. The court reduced the requested attorney fees by $715 because one time calculation in the supporting materials was incorrect.
The detailed version
- Hamilton Clark Sustainable Capital, Inc. v. American Biodiesel, Inc. · No. 3:22-cv-05274
- William Orrick
- Feb. 7, 2023
Background
Hamilton Clark Sustainable Capital, Inc. brought a breach-of-contract action against American Biodiesel, Inc., which does business as Community Fuels. Hamilton Clark alleged that Community Fuels failed to pay for services Hamilton Clark performed to secure the company’s sale. Hamilton Clark moved for default judgment.
Court’s analysis
The court granted the motion, as it had indicated at the January 4, 2023 hearing. The court found that the jurisdictional and service requirements were satisfied. Applying the factors used to evaluate default-judgment requests, the court found that Hamilton Clark risked prejudice without a judgment, had sufficiently pleaded claims with merit, and had shown no genuine dispute preventing judgment. The court also found no signs of excusable neglect by Community Fuels. The opinion states that, after default, well-pleaded facts are treated as true except facts concerning damages.
The remaining issue was the amount of damages, which Hamilton Clark had to prove through testimony or a written declaration. Hamilton Clark’s supplemental declaration showed that Community Fuels was sold for $20,000,000. Because that sale formed the basis for the requested damages, the court found Hamilton Clark entitled to $600,000.
The contract also contained an indemnification provision requiring Community Fuels to reimburse Hamilton Clark for fees and expenses, including reasonable attorney fees, incurred in connection with advice or services provided under the agreement. Hamilton Clark requested $38,433.75 in attorney fees and $1,441.82 in costs. The court found the requested amount generally reasonable but deducted $715 because the supplemental declaration sought $2,899 for 2.60 hours of work at an hourly rate of $840, which calculated to $2,184.
Disposition
Judge William Orrick entered default judgment against American Biodiesel, Inc. for $600,000, plus $37,718.75 in attorney fees and $1,441.82 in costs.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.