Ema Financial, LLC v. 5BARZ International Inc.

Background

Ema Financial, LLC brought a claim for breach of a settlement agreement against 5BARZ International, Inc.; 5BARZ AG; Cellynx Group, Inc.; 5BARZ India Private Limited; and 5BARZ International SA de CV. The court refers to the last four entities as the “Subsidiary Defendants.”

In an earlier order dated September 18, 2019, the court granted Ema Financial’s motion for summary judgment against 5BARZ International, Inc. on the breach-of-settlement-agreement claim. It denied Ema Financial’s motion for summary judgment against the Subsidiary Defendants and denied the defendants’ motion for permission to file an amended answer.

Response to the Court’s Order

The defendants opposed summary judgment but did not respond to Ema Financial’s argument that the Subsidiary Defendants were jointly and severally liable for 5BARZ International, Inc.’s breach. The court ordered Ema Financial to show why it should not grant summary judgment for the Subsidiary Defendants on that issue under Federal Rule of Civil Procedure 56(f)(1). Ema Financial filed the required brief on October 11, 2019.

The Subsidiary Defendants did not respond by the November 1 deadline. On November 6, the court gave them another opportunity to respond by November 13 and warned that it would grant Ema Financial summary judgment against them if they did not respond. They again did not respond. Because they were represented by counsel, the court concluded that they had abandoned any argument that they were not jointly and severally liable on Ema Financial’s breach-of-settlement-agreement claim.

Fees, Interest, and Disposition

The court had previously granted Ema Financial attorneys’ fees and expenses of $21,173.20 but had withheld payment while it considered Ema Financial’s request for additional fees and expenses of $11,100.00. After reviewing the time records, the court found the entries reasonable except for entries dated October 10, 2019, and November 4, 2019. The court also had previously granted prejudgment interest at the agreed default rate of 24 percent per year beginning September 2, 2016, through the date of final judgment.

Judge Valerie Caproni ordered that summary judgment on the breach-of-settlement-agreement claim was also granted for Ema Financial against the Subsidiary Defendants. The court awarded Ema Financial $95,756.14 in damages, $94,953.20 in prejudgment interest, and $30,960.70 in attorneys’ fees and expenses, to be entered against all defendants. The Clerk was directed to enter final judgment, close all open motions, and close the case.