Baxter Construction Company, LLC v. SF Construction, Inc.

CourtDistrict Court, D. Colorado
DecidedApril 9, 2024
Docket1:22-cv-01117
StatusUnknown

This text of Baxter Construction Company, LLC v. SF Construction, Inc. (Baxter Construction Company, LLC v. SF Construction, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baxter Construction Company, LLC v. SF Construction, Inc., (D. Colo. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Nina Y. Wang

Civil Action No. 22-cv-01117-NYW

BAXTER CONSTRUCTION COMPANY, LLC,

Plaintiff,

v.

SF CONSTRUCTION, INC.,

Defendant.

ORDER GRANTING DEFAULT JUDGMENT

On September 8, 2023, this Court concluded that default judgment should enter against Defendant SF Construction, Inc. (“Defendant”) as a sanction for its dilatory conduct in this case. See [Doc. 46]. However, the Court concluded that it could not enter default judgment due to a number of uncertainties with respect to Plaintiff’s damages requests. [Id. at 10–14]. The Court permitted Plaintiff to file additional briefing in support of its requests, [id. at 14], and Plaintiff has since filed its Brief in Support of Damages (the “Brief in Support”), [Doc. 49].1 The Court assesses the appropriate judgment below.

1 The Brief in Support states that it incorporates Plaintiff’s Motion for Default Judgment by reference under Rule 10(c). See [Doc. 49 at 1]. However, Rule 10 states that “[a] statement in a pleading may be adopted by reference elsewhere in the same pleading or in any other pleading or motion.” Fed. R. Civ. P. 10(c) (emphasis added). Rule 7 lists the various forms of permissible pleadings, see Fed. R. Civ. P. 7(a), and a motion is not considered a pleading for these purposes. Nevertheless, for purposes of judicial economy, the Court will consider the contents of the Motion for Default Judgment where necessary to supplement the Brief in Support in entering default judgment in this case. Fed. R. Civ. P. 1. BACKGROUND This case arises out of a construction project and a related contract between Plaintiff Baxter Construction Company, LLC (“Plaintiff”) and Defendant. See generally [Doc. 1]. Plaintiff initiated this civil action on May 5, 2022, asserting one claim of breach

of contract and one claim of breach of the implied duty of good faith and fair dealing. [Id. at 5–6]. Defendant answered Plaintiff’s Complaint and asserted two counterclaims against Plaintiff: one for breach of contract and the other for unjust enrichment. [Doc. 12 at 7–8]. On March 13, 2023, Defendant moved to voluntarily dismiss its counterclaims, and the Honorable Kristen L. Mix2 granted that unopposed request. See [Doc. 32; Doc. 34]. Counsel for Defendant was also permitted to withdraw. See [Doc. 33; Doc. 36]. Judge Mix ordered Defendant to obtain new counsel within 30 days, [Doc. 36 at 2], but after Defendant failed to obtain new counsel, Judge Mix issued an Order to Show Cause directing Defendant to show cause, no later than May 18, 2023, why she should not

recommend that default and default judgment be entered against Defendant for failure to obtain counsel. [Doc. 37 at 3]. Defendant did not respond to the Order to Show Cause. As a result, Judge Mix entered an Order and Recommendation of United States Magistrate Judge recommending that default and default judgment be entered against Defendant as a sanction for failure to comply with a court order. [Doc. 38 at 2]. Judge Mix also ordered that this case be reassigned to a district judge pursuant to Local Rule 40.1(a) and 40.1(c)(3)(a), [id. at 3], and the case was reassigned to the undersigned,

2 This case was originally assigned and referred to Judge Mix pursuant to 28 U.S.C. § 636(c). See [Doc. 6; Doc. 23; Doc. 25]. [Doc. 39]. No Party objected to the Recommendation; however, while the Recommendation was still pending before this Court, Plaintiff filed a Motion for Entry of Default Judgment Against Defendant SF Construction, Inc. [Doc. 45]. On September 8, 2023, this Court adopted Judge Mix’s Recommendation in part3

and denied Plaintiff’s Motion for Default Judgment. First, the Court found that default judgment was an appropriate sanction against Defendant under Ehrenhaus v. Reynolds, 965 F.2d 916 (10th Cir. 1992). [Doc. 46 at 9]. The Court also explained that Plaintiff’s Motion for Default Judgment did not adequately demonstrate Plaintiff’s entitlement to the amount of damages it sought, [id. at 11–14], and in light of the Court’s adoption of Judge Mix’s recommendation to enter default judgment, the Court denied the Motion for Default Judgment, [id. at 11]. The Court permitted Plaintiff to file supplemental briefing setting forth its arguments and evidence in support of default judgment. [Id. at 15].4 The Court now addresses Plaintiff’s damages requests.

ANALYSIS The Court has subject matter jurisdiction over this case, [Doc. 1 at ¶¶ 1–3]; 28 U.S.C. § 1332(a)(1), and personal jurisdiction over Defendant, [Doc. 1 at ¶ 3; Doc. 12 at ¶ 3]; Daimler AG v. Bauman, 571 U.S. 117, 137 (2014) (“With respect to a corporation, the place of incorporation and principal place of business are paradigm bases for general jurisdiction.” (cleaned up)); cf. also Parra v. Accurate Precision, LLC, No. 22-cv-00085-

3 The Court adopted the Recommendation to the extent it recommended that default judgment be entered against Defendant but did not adopt Judge Mix’s recommendation that the Court enter default against Defendant, finding entry of default not necessary. See [Doc. 46 at 10]. 4 The Court also set an evidentiary hearing, see [Doc. 46 at 15], which the Court subsequently vacated upon motion from Plaintiff, see [Doc. 50; Doc. 51]. CMA-STV, 2022 WL 3280160, at *2 (D. Colo. Aug. 11, 2022) (“Before granting a motion for default judgment, the Court must ensure that it has subject matter jurisdiction over the action and personal jurisdiction over the defaulting defendant.”), and has concluded that default judgment should be entered against Defendant under Rule 37 and Ehrenhaus,

[Doc. 46 at 9]. But before default judgment may be entered, the Court must ascertain the amount of damages incurred. See Herzfeld v. Parker, 100 F.R.D. 770, 773 (D. Colo. 1984). “Actual proof must support any default judgment for money damages.” Signature Fin., LLC v. Denver Coach Charters LLC, No. 21-cv-03098-WJM-SKC, 2023 WL 2479950, at *4 (D. Colo. Mar. 13, 2023) (citing Klapprott v. United States, 335 U.S. 601, 611–12 (1949)). In making an independent determination of the amount of damages, “the court may rely on detailed affidavits or documentary evidence.” CamRanger, LLC v. Belser, No. 15-cv-00619-PAB-CBS, 2015 WL 7774222, at *1 (D. Colo. Dec. 2, 2015) (quotation omitted); see also Hermeris, Inc. v. McBrien, No. 2:10-cv-02483-JAR-GLR, 2012 WL

1091581, at *1 (D. Kan. Mar. 30, 2012) (“Damages may be awarded only if the record adequately reflects the basis for award via a hearing or a demonstration by detailed affidavits establishing the necessary facts.” (quotation omitted)). Plaintiff seeks default judgment in the amount of $656,087.65 in damages;5 $39,545.01 in prejudgment interest; post-judgment interest at a rate of 8% per annum;

5 The Brief in Support requests “default judgment . . . in the amount of $695,632.66,” [Doc. 49 at 9], while the Motion for Default Judgment sought $656,087.65 in damages, [Doc. 45 at 6]. The Court believes Plaintiff came to the higher number by adding the originally requested $39,545.01 in pre-judgment interest to the originally requested $656,087.65 in damages.

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Baxter Construction Company, LLC v. SF Construction, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/baxter-construction-company-llc-v-sf-construction-inc-cod-2024.