Praxair Distribution, Inc. v. Irish Oxygen Company

Background

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

In June 2019, Irish’s counsel moved to withdraw. United States Magistrate Judge Steven E. Rau granted that motion and required Irish to obtain new counsel and notify the court by October 1, 2019. Irish did not notify the court that it had obtained new counsel. Praxair then applied for entry of default, which the clerk granted. Praxair filed this second motion for default judgment.

Analysis

Federal Rule of Civil Procedure 55 establishes a two-step process for default judgment. First, the party seeking judgment must obtain an entry of default. Second, it must apply to the court for a default judgment.

The court explained that a corporation cannot appear in federal court without licensed counsel. Because Irish had no counsel after its prior lawyer withdrew and did not comply with the order to obtain new counsel, the court determined that Irish was in default. The court concluded 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 ample support for most of the requested award, but identified a $209.94 inconsistency between the totals in those two documents. Because Praxair had the burden of showing that it was entitled to the requested amount, the court resolved that inconsistency against Praxair.

Ruling

The court granted Praxair’s second motion for default judgment. It 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 required to submit within 30 days, detailing requested interest, attorneys’ fees, and costs. Judge Wilhelmina M. Wright directed that judgment be entered accordingly.