Investopedia, LLC v. OTA Franchise Corporation d/b/a Online Trading Academy

Background

Investopedia, LLC sued OTA Franchise Corporation d/b/a Online Trading Academy for breach of contract. The complaint alleged that the parties entered into an enforceable agreement under which Investopedia would advertise OTA’s business on Investopedia’s website in exchange for payment. Investopedia alleged that it performed its obligations, while OTA failed to make the required payments.

Investopedia served OTA with the summons and complaint. OTA did not answer, appear, or otherwise defend within the time allowed. The Clerk noted OTA’s default on September 14, 2023. The contract also included OTA’s consent to personal jurisdiction in the court.

Court’s Analysis

A default judgment is a judgment entered when a defendant fails to defend. The court explained that a default admits the complaint’s well-pleaded factual allegations, but the court must still determine whether those allegations establish legal liability.

The court concluded that the complaint adequately alleged a valid and enforceable contract, Investopedia’s performance, OTA’s failure to pay, and damages caused by OTA’s breach. The court therefore granted default judgment.

Disposition

The court entered judgment in favor of Investopedia and against OTA for $556,572.99. The judgment included amounts due under the insertion orders and invoices, accumulated prejudgment interest, and costs incurred in the action. The Clerk of Court was directed to enter judgment accordingly and close the case.

Judge Lorna G. Schofield signed the order on November 16, 2023.