AKF, Inc. v. Arnold Brothers Forest Products, Inc.

Background

AKF, Inc. d/b/a Fundkite brought claims for breach of contract and breach of guaranty. On December 10, 2020, the court entered a default judgment for AKF against Arnold Brothers Forest Products, Inc., Belcher Family Farms LLC, and James Wyatt Belcher. The matter was then referred to Magistrate Judge Barbara C. Moses to determine damages, attorneys’ fees, and costs.

Report and Recommendation

On April 28, 2023, Magistrate Judge Moses recommended that the court award AKF $134,000 in compensatory damages, prejudgment interest at 9% per year from April 9, 2020, through the date of judgment, and $3,557.50 in attorneys’ fees and costs. She recommended that the judgment apply jointly and severally against all three defendants, meaning each defendant could be required to pay the full amount owed.

The parties did not object to the recommendation. Because there were no objections, Judge Daniels reviewed the report for clear error—an obvious mistake in the magistrate judge’s findings or analysis.

Ruling

Judge Daniels found no error, clear or otherwise, in Magistrate Judge Moses’s analysis. He adopted the recommended judgment in full.

The court ordered the defendants to pay AKF: (1) $134,000 in compensatory damages; (2) prejudgment interest on that amount at 9% per year from April 9, 2020, until the date of judgment; and (3) $3,557.50 in attorneys’ fees and costs. The court stated that the judgment would run jointly and severally against all three defendants. The Clerk of Court was directed to close the action.