Fonz, Inc. v. City Bakery Brands, LLC

Background

On January 21, 2021, Judge Lewis J. Liman entered a default judgment against The City Bakery, LLC, City Bakery Brands, LLC, and Maurybakes, LLC. On July 7, 2021, Judge Liman referred the matter to Magistrate Judge Robert W. Lehrburger to conduct a damages review. The opinion also states that Maury Rubin had been voluntarily dismissed.

Required submission

The order directed Fonz to serve the defendants and file proposed findings of fact and legal conclusions concerning all damages and other monetary relief allowed by the default judgment by August 2, 2021. Fonz had to state the exact dollar amount or other monetary relief sought in a concluding paragraph.

The proposed findings had to connect the requested damages to the legal claims for which liability had been established and explain how Fonz calculated the amount. The submission had to include one or more affidavits and supporting documents. Each factual finding had to identify the supporting affidavit paragraphs or document pages. Fonz also had to submit an affidavit from a person with personal knowledge addressing the court’s personal jurisdiction over the defendants and subject-matter jurisdiction.

Attorney fees and legal memorandum

Any request for attorney fees had to include contemporaneous time records listing each attorney’s service date, hours, and work performed. Counsel also had to provide information about each attorney’s years of bar admission, hourly rate, and the reasonableness of that rate, along with the legal basis for the requested fee award. Instead of separate legal conclusions, Fonz could file a memorandum explaining the legal principles supporting its damages request, interest claim, or attorney-fee request.

Defendants’ response and possible hearing

The defendants had to send their response, if any, to Fonz’s counsel and file it with the court by August 16, 2021. Magistrate Judge Robert W. Lehrburger stated that the damages review could be conducted entirely through written submissions. A party seeking an evidence hearing had to explain why written submissions were insufficient and identify the witnesses and evidence it would present.

Service and effect of the order

The order required Fonz to serve the documents at the defendants’ corporate address and through the New York Department of State. It stated that this service would be sufficient. The order set the procedures and deadlines for determining damages; it did not state a damages amount in the opinion.