Buzz Seating, Inc. v. DCI, Inc.

CourtDistrict Court, S.D. Ohio
DecidedApril 24, 2025
Docket1:24-cv-00555
StatusUnknown

This text of Buzz Seating, Inc. v. DCI, Inc. (Buzz Seating, Inc. v. DCI, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buzz Seating, Inc. v. DCI, Inc., (S.D. Ohio 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO WESTERN DIVISION

BUZZ SEATING, INC., : : Plaintiff, : Case No. 1:24-cv-00555-JPH : vs. : Judge Jeffery P. Hopkins : DCI, INC., : : Defendant. :

OPINION & ORDER

This matter is before the Court on Plaintiff Buzz Seating, Inc.’s (hereinafter, “Buzz Seating” or “Plaintiff”) Motion for Default Judgment (the “Motion”). Doc. 11. For the reasons set forth below, Plaintiff’s Motion is GRANTED IN PART, DENIED IN PART. I. BACKGROUND Since October 8, 2012, Buzz Seating has engaged in various business transactions with DCI, Inc. (hereinafter, “DCI” or “Defendant”). Compl., Doc. 1, ¶ 12. The parties entered into numerous contracts whereby Buzz Seating provided DCI with office furniture, chairs, and a sundry of other products predicated on purchase orders generated by DCI. Id. ¶¶ 12, 13. Since the working relationship between the two companies began, DCI purchased products from Buzz Seating in amounts totaling more than $1,900,000.00. Id. ¶ 16. Under the terms and conditions of each purchase order, DCI was required to pay the outstanding invoices Buzz Seating submitted on all products produced within 30 days of purchase. Id. ¶ 17. For over ten years, Buzz Seating filled multiple purchase orders for products it produced, and DCI timely paid all outstanding invoices on those orders without incident. Id. ¶ 19. Buzz Seating alleges, however, that beginning in March 2023, DCI began to place product orders, accept and retain shipments, but fail to pay invoices within the contracted 30-day window. Id. ¶¶ 20–21. Currently, DCI owes Buzz Seating on eight overdue and outstanding invoices for products delivered in the total amount of $230,927.21. Id. ¶ 21. On October 3, 2024, Buzz Seating sued DCI, asserting claims for breach of contract,

an accounting, unjust enrichment, and promissory estoppel. See generally Doc. 1. To date, Defendant has failed to appear or otherwise defend against this action.1 An entry of default was entered in this case on February 12, 2025. See Doc. 10. II. LAW & ANALYSIS There is a two-step sequential process for obtaining default judgment. See Allied Consol. Enters. v. Aladwan, No. 2:20-cv-4561, 2021 WL 1572291, *2 (S.D. Ohio April 22, 2021). First, a party must apply for an entry of default from the clerk. See Fed. R. Civ. P. 55(a) (“When a party against whom a judgment is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.”). Then,

after a party obtains an entry of default, that party may request that default judgment be entered. Fed. R. Civ. P. 55(b). This can happen two ways: by the clerk or by the court. If the party’s claim is for a sum certain or a sum that may be ascertained by computation, the clerk may enter default judgment. Fed. R. Civ. P. 55(b). In any other case, the party must seek default judgment from the court. Id. When considering an application for default judgment, the court will accept the complaint’s factual allegations as true but must assess whether the factual allegations are legally sufficient to state the alleged cause of action. The moving party may prove the existence of damages through detailed affidavits or

1 A summons issued to the Defendant was returned executed on December 26, 2025. See Doc. 7. documentary evidence, or at an evidentiary hearing. Arthur v. Robert James Assocs. Asset Mgmt., No. 3:11-cv-460, 2012 WL 1122892, at *3 (S.D. Ohio Apr. 3, 2012). For default judgment to be entered by a district court, the court must be satisfied that it possesses both subject matter and personal jurisdiction over the nonresponsive party.

Answers in Genesis of Ky., Inc. v. Creation Ministries Int’l, Ltd., 556 F.3d 459, 465 (6th Cir. 2009) (“[F]ederal courts have a duty to consider their subject matter jurisdiction in regard to every case.”); Citizens Bank v. Parnes, 376 F. App’x 496, 501 (6th Cir. 2010) (“Personal jurisdiction over a defendant is a threshold issue that must be present to support any subsequent order of the district court, including entry of the default judgment.”); Kuhlman v. McDonnell, No. 1:20- cv-510, 2022 WL 407240, at *2 (S.D. Ohio Feb. 10, 2022). If the jurisdictional prerequisite is met, then the court must weigh the factors articulated by the Sixth Circuit in Russell v. City of Farmington Hills, 34 F. App’x 196, 198 (6th Cir. 2002). Those factors are: (1) possible prejudice to the plaintiff; (2) the merits of the claims; (3) the sufficiency of the complaint; (4) the amount of money at stake; (5) possible disputed material facts; (6) whether the default was due to excusable neglect; and (7) the preference for decisions on the merits.

See also Eitel v. McCool, 782 F.2d 1470, 1472 (9th Cir. 1986). A. Plaintiff is entitled to default judgment. As a threshold matter, Plaintiff’s Complaint properly invokes this Court’s jurisdiction. This Court has jurisdiction over this case pursuant to 28 U.S.C. § 1332 because complete diversity of citizenship exists between Plaintiff and Defendant and because the amount in controversy exceeds $75,000.00, exclusive of interest and costs. Compl., Doc. 1, ¶ 8. Furthermore, personal jurisdiction is proper here because DCI engaged in business with Buzz Seating, a citizen of the state of Ohio, and has sufficient business contacts in Ohio. Id. ¶ 9. DCI negotiated various contracts with Buzz Seating in Ohio, and Buzz Seating supplied products to DCI for over a decade in amounts totaling nearly two million dollars. Id. DCI has also allegedly failed to remit payment for numerous outstanding invoices to Buzz Seating, thereby causing harm to Buzz Seating in Ohio. Id. Finally, venue is proper in this Court pursuant to 28 U.S.C. §§ 1391(b)–(c) because a substantial part of the events and omissions

giving rise to Buzz Seating’s claims herein occurred in this District. Id. ¶ 11. Having established that this Court has both subject matter jurisdiction and personal jurisdiction over the parties, the Court will now weigh the factors set forth in Russell—starting first with the second and third Russell factors regarding whether Plaintiff has asserted sufficient and meritorious claims—and saving for later discussion the possible prejudice to Plaintiff. 1. Sufficient and Meritorious Claims The second and third factors in Russell relate to the merits of Plaintiff’s claims and the sufficiency of Plaintiff’s Complaint. Like other courts, this Court will consider these factors together. Plaintiff alleges four claims in the Complaint: (1) breach of contract; (2) unjust

enrichment; (3) promissory estoppel; and (4) action on account. See Doc. 1. Plaintiff seeks compensatory damages in excess of $230,927.21—DCI’s outstanding account balance—as well as prejudgment interest, post-judgment interest, attorney’s fees and expenses, and costs. Id. at PageID 8. Taking the factual allegations as true, this Court finds that Plaintiff’s Complaint states sufficient and meritorious claims against Defendant. However, as explained below, certain of Plaintiff’s claims—those for unjust enrichment and promissory estoppel— would fail as a matter of law. i.

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Bluebook (online)
Buzz Seating, Inc. v. DCI, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/buzz-seating-inc-v-dci-inc-ohsd-2025.