Ameris Bank, through its division, Balboa Capital Corporation v. Geaux Express Incorporated

CourtDistrict Court, S.D. Alabama
DecidedAugust 18, 2025
Docket1:24-cv-00394
StatusUnknown

This text of Ameris Bank, through its division, Balboa Capital Corporation v. Geaux Express Incorporated (Ameris Bank, through its division, Balboa Capital Corporation v. Geaux Express Incorporated) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ameris Bank, through its division, Balboa Capital Corporation v. Geaux Express Incorporated, (S.D. Ala. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

AMERIS BANK, ) ) Plaintiff, ) ) v. ) CIVIL ACTION NO. 1:24-cv-394-TFM-N ) GEAUX EXPRESS INCORPORATED, ) et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER Pending before the Court is the Motion for Entry of Default Judgment Against Defendants (Doc. 13, filed on April 25, 2025) in which Plaintiff Ameris Bank motions the Court enter default judgment against Defendant Geaux Express Incorporated and Defendant Harry Nicholas Palles. Having considered the motion and the relevant law, the Court finds the motion for default judgment is due to be GRANTED in part and DENIED in part. I. JURISDICTION AND VENUE The Court has subject matter jurisdiction over the claims in this action pursuant to 28 U.S.C. § 1332 (diversity). There are adequate allegations to support personal jurisdiction and venue. The district court has personal jurisdiction over the claims in this action because the events that gave rise to this action are alleged to have occurred within this judicial district. See Consol. Dev. Corp. v. Sherritt, Inc., 216 F.3d 1286, 1291-92 (11th Cir. 2000) (“Specific jurisdiction arises out of a party’s activities in the forum that are related to the cause of action alleged in the complaint. . . . General personal jurisdiction, on the other hand, arises from a defendant’s contacts with the forum that are unrelated to the cause of action being litigated. The due process requirements for general personal jurisdiction are more stringent than for specific personal jurisdiction, and require a showing of continuous and systematic general business contacts between the defendant and the forum state.”). Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b)(2) because a substantial part of the events or omissions that gave rise to this litigation occurred in this judicial district. II. BACKGROUND

A. Factual Background 1. Vehicle Financing Agreement 7-000 On or about September 28, 2020, Defendant Geaux Express (“Geaux Express”) entered into and executed a certain Vehicle Financing Agreement (“VFA 7-000”) in favor of Balboa Capital Corporation (“Balboa”) for the purpose of Plaintiff Ameris Bank (“Ameris”) providing Geaux Express financing for the purchase of a 2020 Chevrolet Express 3500 Truck, Vehicle Identification Number 1HA3GTCG2LN009630 (“Vehicle 1”). Doc. 10 at 3, 17-19; Doc. 13 at 9-10. Contemporaneously with the execution of VFA 7-000, Defendant Harry Nicholas Palles (“Palles”) entered into and executed a certain Personal Guaranty Vehicle Financing Agreement #338037-000 (“Guaranty 7-000”) in favor of Balboa, guarantying the payment and performance of all obligations of Geaux Express due to Balboa under VFA 7-000 and all other obligations existing or thereafter arising. Doc. 10 at 3-4, 21; Doc. 13 at 9-10. To secure the amounts due

Balboa pursuant to VFA 7-000 and to secure all other obligations due Balboa, Geaux Express granted Balboa a first priority security interest in Vehicle 1. Doc. 10 at 3. Balboa perfected its security interest in Vehicle 1 by filing the proper forms with the Alabama Department of Revenue. Id. The Alabama Department of Revenue issued a Certificate of Title for Vehicle 1, denoting Balboa as the first priority lienholder on Vehicle 1. Id. Effective as of December 10, 2021, Balboa entered into and executed an Assignment of Agreements (“Assignment”) in favor of Ameris, assigning to Ameris its interest in the VFA 7-000, Guaranty 7-000, and the Certificate of Title issued for Vehicle 1. Id. at 5-6, 39-55. Pursuant to VFA 7-000, Geaux Express agreed to repay Balboa in seventy-two (72) equal monthly payments of $857.00 each, beginning on December 7, 2020. Id. at 3, 18-19. Pursuant to Section 16 of VFA 7-000, Geaux Express defaulted in the terms of the VFA 7-000 and Palles defaulted upon the term of Guaranty 7-000 by failing to make any payment which became due on

or after January 7, 2024. Id. at 6, 9, 18-19, 21. Section 17(a) of VFA 7-000 states: [u]pon the occurrence of an event of default, Creditor may: (a) sue for and recover from Debtor the sum of: (1) all unpaid Monthly Installment Payments and other payments, including late charges and interest, due under this Agreement then accrued, all accelerated future payments due through the last day of the term of this Agreement; (2) any and all cost or expenses paid or incurred by Creditor in connection with the repossession, holding, repair, reconditioning and subsequent sale, lease or disposition of the Collateral, including without but not limited to attorney’s fees and costs, whether or not litigation is commenced; (3) the residual value of the Collateral which Debtor fails to return to Creditor (or which Debtor converts or destroys, or which Creditor does not or is unable to repossess); (4) all other costs or expenses paid or incurred by creditor at any time in connection with the execution, delivery, administration, amendment and enforcement or exercise of any of the creditors rights and remedies under this agreement, including, but not limited to, attorney’s fees and costs, whether or not litigation is commenced, and taxes imposed by any governmental agency; (5) any actual or anticipated loss of federal or state tax benefits to Creditor (as determined by Creditor) resulting from Debtors default or Creditors repossession or disposition of the Collateral; and (6) any and all other damages proximately caused by Debtor’s default. Id. at 6-7, 18-19.

On February 2, 2024, Ameris exercised its right to accelerate the maturity date and declared all obligations arising pursuant to the VFA 7-000 immediately due and payable as provided in paragraph 17 of the VFA 7-000. Id. at 7, 18-19. As of February 2, 2024, Geaux Express was past due in the payments due Ameris pursuant to VFA 7-000 in an amount totaling $857.00 and late charges of $308.52 were due pursuant to VFA 7-001. Id. at 7. On February 2, 2024, the present value of the remaining thirty-four (34) future payments discounted at five and eighty-five one- hundredths percent (5.85%) yields an amount equal to $26,791.26. Id. at 7. As of February 2, 2024, the outstanding balance of the sum of past due payments, late charges, and the present value of the remaining outstanding payments totaled an amount equal to $27,956.78. Id. Beginning on February 2, 2024, and continuing thereafter, interest began accruing on the outstanding balance at the rate of 18% per annum or $13.79 per diem. Id. at 8. On or about March 27, 2024, Ameris provided Geaux Express and Palles a Notice of

Disposition of Collateral (“the Vehicle 1 Auction Notice”), notifying Geaux Express and Palles that Ameris would sell Vehicle 1 by auction. Id. at 8, 57. Ritchie Bros. (“the Auctioneer”) advertised Vehicle 1 for sale on its website www.ironplanet.com (“the Auction Website”). Id. at 8. On or about April 4, 2024, the Auctioneer closed the sale of Vehicle 1 for $7,500.00. Id. On or about April 18, 2024, after paying sales commissions and other costs of the sale, Ameris received net proceeds of $3,253.75 from the sale of Vehicle 1. Id. As of April 18, 2024, interest had accrued on VFA 7-000 in the total amount of $1,047.80. Id. After applying the net proceeds of $3,253.75 to the outstanding balance, Geaux Express owed Ameris the principal balance of $25,750.84 as of April 18, 2024. Id. Between April 18, 2024, and October 23, 2024, interest

continued to accrue on the outstanding balance at the rate of 18% per annum or $12.70 per diem. Id. at 9.

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Ameris Bank, through its division, Balboa Capital Corporation v. Geaux Express Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ameris-bank-through-its-division-balboa-capital-corporation-v-geaux-alsd-2025.