Praxair Distribution, Inc. v. Irish Oxygen Company

Background

Praxair Distribution, Inc. sued Irish Oxygen Company for nonpayment of invoices. Praxair sells industrial and medical gases, and Irish Oxygen had been a Praxair customer since at least November 2014.

Irish Oxygen’s counsel moved to withdraw in June 2019. United States Magistrate Judge Steven E. Rau granted that request and required Irish Oxygen to obtain new counsel and notify the court by October 1, 2019. Irish Oxygen did not notify the court that it had obtained counsel. On October 3, 2019, the clerk entered default after Praxair applied for it.

Legal Standard and Analysis

Federal Rule of Civil Procedure 55 establishes a two-step process for default judgment. First, the clerk enters default when a party fails to defend. Second, the party seeking judgment applies to the court for a default judgment.

The court explained that a corporation may appear in federal court only through licensed counsel. Because Irish Oxygen had no counsel after its previous lawyer withdrew and did not meet the deadline to obtain new counsel, the court concluded that Irish Oxygen was in default and that default judgment was appropriate.

Praxair requested $661,863.04 based on a sworn declaration from a Praxair employee and an itemized statement. The court found adequate support for most of the requested amount but identified a $209.94 inconsistency between the two documents. Because Praxair had to support the amount it requested, the court resolved that inconsistency against Praxair.

Ruling

Judge Wilhelmina M. Wright granted Praxair’s second motion for default judgment. The court awarded Praxair $661,653.10 in damages against Irish Oxygen Company. The award was subject to increase based on a bill of costs that Praxair was ordered to submit within 30 days, detailing the interest, attorneys’ fees, and costs sought.