Praxair Distribution, Inc. v. Irish Oxygen Company

Background

Praxair Distribution, Inc. sells industrial and medical gases. Irish Oxygen Company was Praxair’s customer. Praxair sued Irish Oxygen for failing to pay invoices for services that Praxair provided.

The court previously granted Praxair’s motion for default judgment and awarded $661,653.10 in damages. That award was subject to an increase based on a bill of costs addressing interest, attorneys’ fees, and costs.

Request for Additional Amounts

Praxair requested $288,867.75 in attorneys’ fees, $20,667.99 in non-taxable costs that were not included in its bill of costs, and $200,328.34 in interest on unpaid invoices through December 31, 2019.

Praxair relied on a Product Supply Agreement. According to Praxair, the agreement required Irish Oxygen to pay all reasonable legal fees and expenses incurred to collect a delinquent account or enforce the agreement. Praxair also asserted that the agreement required Irish Oxygen to pay interest at 18% per year. The operative agreement, however, was not included in the record.

Court’s Analysis

Because the case was brought under diversity jurisdiction—federal jurisdiction based on the parties’ citizenship and the amount in dispute—state law governed whether attorneys’ fees and prejudgment interest were available, unless a federal statute or federal court rule controlled.

The court could not determine from the record whether Minnesota or Illinois law governed the agreement. Without the agreement itself, the court also could not interpret or apply the provisions that Praxair relied on to support its request for fees and interest.

Ruling

Judge Wilhelmina M. Wright denied without prejudice Praxair’s request for attorneys’ fees, non-taxable costs, and interest. The court permitted Praxair to file a supplemental request containing supporting documentation within 30 days after the order’s date.