Wells Fargo Trust Co., N.A. v. Fast Colombia S.A.S.

Background

Wells Fargo Trust Co., N.A., acting as owner trustee of a Utah common law trust, sued Fast Colombia S.A.S., doing business as VivaColombia. The amended complaint alleged that the parties entered an aircraft lease agreement on December 26, 2014, under which VivaColombia agreed to lease an Airbus A320-200. After VivaColombia defaulted in 2019, the parties settled the resulting lawsuit through a June 3, 2021 Release and Settlement Agreement.

Under the settlement, VivaColombia agreed to pay an initial $250,000 and another $2.75 million in eleven equal installments. The amended complaint alleged that VivaColombia defaulted twice under the settlement agreement. Wells Fargo sought damages for breach of contract, attorneys’ fees, and costs.

Default and Recommended Award

Fast Colombia was served with the amended complaint but did not appear or respond. The Clerk issued a certificate of default, and the court directed Fast Colombia to show cause why default judgment should not be entered. Fast Colombia did not oppose the motion or appear at the hearing. On June 8, 2023, the court entered an order of default and referred the damages issue to Magistrate Judge Robert W. Lehrburger for an inquest, meaning a review to determine the amount of damages and related amounts.

Judge Lehrburger recommended an award of $1,565,312.50 in damages, with contractual interest at 5% beginning December 14, 2022. He also recommended $104,758 in attorneys’ fees and $2,884.62 in costs. He reduced the requested attorneys’ fees by 20%, citing the straightforward nature of the single breach-of-contract claim, the billing rates requested, the assignment of four partners to the matter, and the lack of information about the lawyers’ experience. The recommended costs consisted of filing fees, transcript fees, and service expenses.

Review and Ruling

The parties had fourteen days to object to the report and recommendation, and the report warned that failing to object would waive objections and prevent appellate review. Neither party filed an objection. The court therefore reviewed the report for clear error on the face of the record. It found the report thorough, well-reasoned, and free of clear error.

Judge Gardephe adopted the report and recommendation in its entirety. The court awarded Wells Fargo $1,565,312.50 in damages, with 5% contractual interest from December 14, 2022, through the date of judgment; $104,758 in attorneys’ fees; and $2,884.62 in costs. It also awarded post-judgment interest at the federal rate from the date the Clerk enters judgment until payment. The Clerk was directed to enter judgment and close the case.