Huntington National Bank v. DreamTeam Services Inc.
- Wilhelmina Wright
- 0:22-cv-01281
- U.S. District Court · District of Minnesota
- 10
In Huntington National Bank v. DreamTeam Services Inc., Judge Wright granted default judgment, dismissed four claims without prejudice, and entered a $154,912.57 judgment.
Huntington National Bank received a $154,912.57 judgment against DreamTeam Services Inc. and Jennifer Franklin, plus post-judgment interest. Counts III, IV, V, and VI were dismissed without prejudice.
What happened
Huntington National Bank sued DreamTeam Services Inc. and Jennifer Franklin after alleging that DreamTeam failed to make payments under a financing agreement and that Franklin failed to honor her guaranty. Neither defendant responded, so the clerk entered default.
The court found that Huntington’s allegations supported breach-of-contract claims against both defendants. It granted default judgment, awarded $147,169.47 in actual damages and $7,743.10 in attorneys’ fees and costs, and ordered post-judgment interest. The court also granted Huntington’s request to voluntarily dismiss Counts III, IV, V, and VI and dismissed those counts without prejudice.
Judge Wilhelmina M. Wright ordered judgment for Huntington against DreamTeam Services Inc. and Jennifer Franklin in the total amount of $154,912.57, plus interest calculated under federal law.
The detailed version
- Huntington National Bank v. DreamTeam Services Inc. · No. 0:22-cv-01281
- Wilhelmina Wright
- Mar. 10, 2023
Background
Huntington National Bank, successor by merger to TCF National Bank, alleged that TCF financed DreamTeam Services Inc.’s purchase of software and equipment through an Installation Payment Agreement. The agreement was secured in part by a guaranty signed by Jennifer Franklin. Huntington alleged that DreamTeam failed to make a required monthly payment, defaulted under the agreement, and owed money that Huntington was entitled to collect. Huntington also alleged that Franklin was liable under the guaranty.
Huntington asserted six counts: breach of contract against DreamTeam (Count I); breach of contract against Franklin (Count II); immediate possession of collateral (Count III); priority of Huntington’s security interest (Count IV); unjust enrichment in the alternative (Count V); and promissory or equitable estoppel in the alternative (Count VI). Franklin and DreamTeam were served but did not answer or otherwise respond. The clerk entered default against both defendants.
Default Judgment
A default judgment is a judgment entered after a defendant fails to respond. The court explained that default caused the complaint’s factual allegations—other than those concerning damages—to be treated as admitted, but the court still had to determine whether those facts established valid legal claims.
The court concluded that Huntington’s allegations established legitimate breach-of-contract claims against both DreamTeam and Franklin. The court therefore granted Huntington’s motion for default judgment.
Dismissal of Other Counts
Huntington had moved to voluntarily dismiss Counts III, IV, V, and VI. The court granted that motion and dismissed those counts without prejudice, meaning the order did not bar refiling those claims.
Damages and Judgment
The court awarded Huntington $147,169.47 in actual damages, consisting of $18,791.22 for six past-due monthly payments, $120,475.34 for the present value of 43 remaining installments, a $6,023.77 penalty fee, and $1,879.14 in late fees. The court also awarded $7,743.10 in attorneys’ fees and costs. Together, those amounts totaled $154,912.57.
The court ordered the clerk to enter judgment against DreamTeam Services Inc. and Jennifer Franklin in favor of Huntington for $154,912.57, plus post-judgment interest calculated under 28 U.S.C. § 1961(a).
Read the full 10-page opinion on CourtListener, the free public archive maintained by the Free Law Project.