Javelin Global Commodities Ltd. v. Investment Mining Group LLC

Background

The Clerk of Court had entered a certificate of default against Investment Mining Group LLC. The district judge then issued an order entering a default in Javelin Global Commodities (UK) Ltd.’s favor and referred the case to Magistrate Judge Barbara Moses for an inquest and a report and recommendation concerning damages.

This order sets the procedures for that damages inquest. It does not determine the amount of damages or award other relief.

Required submissions

By March 28, 2022, Javelin must file proposed findings of fact and conclusions of law addressing all damages and other monetary relief sought in connection with the default. The filing must state the exact dollar amount requested and the precise terms of any non-monetary relief.

Javelin must support any request for actual damages with admissible evidence, such as declarations or affidavits and authenticated documents. Each proposed factual finding must cite the supporting declaration or document. The filing must explain how Javelin calculated its requested damages and connect those damages to its legal claims.

Any request for attorney’s fees must include authenticated contemporaneous time records showing each timekeeper’s date of service, hours, hourly rate when applicable, and work performed. Javelin must also provide evidence concerning each timekeeper’s identity and qualifications and documentation of costs and expenses.

Jurisdiction and liability

The order states that, even after a default, the court must be satisfied that it has personal jurisdiction over Investment Mining and subject-matter jurisdiction over the action. Javelin must adequately establish service on Investment Mining; the order warns that failure to do so may result in denial of the requested damages judgment.

The court must also determine whether the well-pleaded allegations in the complaint, which are treated as true after default, are legally sufficient to establish Investment Mining’s liability for each asserted claim. Javelin’s proposed legal conclusions, or a legal memorandum submitted instead, must explain why the complaint’s specific factual allegations establish liability.

Service, response, and possible hearing

Before filing its materials, Javelin must mail Investment Mining the proposed findings and conclusions, supporting materials, and a copy of the order at Investment Mining’s last known address. Javelin must file proof of mailing with the court.

Investment Mining’s responses, if any, were due to Javelin’s counsel and the court by April 18, 2022. The court may conduct the inquest based only on the parties’ written submissions. A party seeking an evidentiary hearing must explain why written submissions are insufficient, identify the proposed witnesses, and describe the evidence to be presented.

Disposition

Judge Barbara Moses entered a scheduling order for the damages inquest. The order required Javelin to provide proof concerning jurisdiction, liability, damages, and any fees before the court could recommend an award. It did not itself award damages or attorney’s fees.