Huntington National Bank v. Ultimate Outdoor Movies LLC

Background

Huntington National Bank sued Ultimate Outdoor Movies LLC dba Ultimate Outdoors Entertainment and Laura L. Landers. Huntington is the successor-by-merger to TCF National Bank. The court found that Huntington is a national bank association with its corporate citizenship in Ohio; Ultimate Outdoors is a Texas limited liability company whose sole member and owner is Landers, who is also a Texas resident. The amount in controversy exceeded $75,000, so the court found that federal diversity jurisdiction was proper.

According to Huntington, Ultimate Outdoors entered into an Installment Payment Agreement with TCF on July 23, 2020, to finance a $265,187.05 business-equipment purchase. TCF also purchased a separate finance agreement from Ascentium Capital on February 14, 2020; that agreement involved $10,536 for business equipment. Huntington sent notices of default on March 27, 2023, based on missed payments. The court found that the remaining amounts were $144,969.13 under the Installment Payment Agreement and $4,840.73 under the Ascentium Agreement.

Default and damages

The defendants were served with the summons and complaint on May 10, 2023, but did not answer or otherwise respond. The clerk entered default on September 20, 2023. Huntington then moved for default judgment. The defendants received the motion and supporting materials but did not respond or appear at the December 29, 2023 hearing.

A default judgment is a judgment entered when a properly served defendant fails to defend the case. Applying Federal Rule of Civil Procedure 55(b)(2), the court concluded that the defendants were in default and that Huntington was entitled to judgment. The court accepted the complaint’s factual allegations as true except for allegations about damages. Based on those allegations, it found that the defendants breached the Installment Payment Agreement and the Ascentium Agreement and were liable for the amounts owed.

The court found that Huntington’s evidence established actual damages of $154,944.52. It also found that evidence from declarations established $11,613.00 in attorney’s fees and expenses incurred through December 14, 2023. The court accepted Huntington’s allegation that both agreements allowed recovery of fees and expenses incurred in enforcing them.

Ruling

The court granted Huntington’s Motion for Default Judgment. It directed the clerk to enter judgment in favor of Huntington against Ultimate Outdoor Movies LLC and Laura L. Landers, jointly and severally, for $166,557.52, plus any post-judgment interest allowed by law. “Jointly and severally” means each defendant is responsible for the full judgment amount, subject to the court’s order.