Centennial Bank v. Sokol

CourtDistrict Court, S.D. Florida
DecidedJuly 30, 2025
Docket1:24-cv-22927
StatusUnknown

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

Bluebook
Centennial Bank v. Sokol, (S.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 1:24-cv-22927-ALTMAN

CENTENNIAL BANK,

Plaintiff,

v.

JULIA SOKOL AND YOSSI SOKOL,

Defendants. ___________________________/

ORDER This matter comes before this Court on the Plaintiff Centennial Bank (“Centennial”)’s Motion for Default Final Judgment (“the Motion”) [ECF No. 46] against the Defendants Julia Sokol and Yossi Sokol (the “Sokols” or the “Defendants”). This Court has carefully reviewed the Motion, the record, and the applicable law. For the reasons set forth below, the Motion is GRANTED. I. Factual and Procedural History Centennial filed this action on August 1, 2024, asserting two claims for breach of guaranty, one against each Defendant. See Compl. [ECF No. 1] at 6–8. The Complaint alleges that the Sokols breached two identical commercial guaranties. See ibid.; Julia Sokol’s Commercial Guaranty [ECF No. 46–3]; Yossi Sokol’s Commercial Guaranty [ECF No. 46-4] (together, the “Guaranties”). Yossi Sokol was personally served on August 16, 2024, and Julia Sokol was served on October 29, 2024. See Certificates of Service [ECF Nos. 5-1, 10-1]. Yossi Sokol failed to appear, and the Clerk entered default against him on November 15, 2024. See Clerk’s Entry of Default for Yossi Sokol [ECF No. 22]. Julia Sokol initially answered on November 4, 2024. See Answer [ECF No. 18]. But then, she ceased all contact with the Court, in violation of several of our orders. See generally Docket. On April 10, 2025, for example, we ordered her “to file certificates of interested parties and corporate disclosure statements that contain a complete list of persons, associated persons, firms, partnerships, or corporations, that have a financial interest in the outcome of this case, including subsidiaries, conglomerates, affiliates, parent corporations, and other identifiable legal entities related to a party by April 16, 2025.” Paperless Order for Certificates of Interested Parties and Corporate Disclosure Statement [ECF No. 33]. Though we warned that “[f]ailure to comply with this Order will result in

sanctions, including dismissal without further notice,” ibid., she didn’t respond, see generally Docket. We then ordered her once again to comply—this time, by May 9, 2025. See Paperless Order to Show Cause [ECF No. 37]. We informed her that if she didn’t, we’d order Centennial to “move for entry of clerk’s default against her.” Ibid. She again failed to respond. See generally Docket. And that’s not all. She also ignored our order to appear at a settlement conference before U.S. Magistrate Judge Enjolique A. Lett. See Paperless Order for Settlement Conference [ECF No. 34]. That order, too, warned that noncompliance could result in sanctions “including dismissal without prejudice and without further notice.” Ibid. Even so, Julia Sokol was a no-show for the conference. See May 14, 2025, Settlement Conference Minutes [ECF No. 39] (“Defendant Julia Sokol, non appearance.”). We then directed Centennial to “to move for clerk’s entry of default” against her. Paperless Order Directing Centennial to Move for Clerk’s Entry of Default [ECF No. 40]. The Clerk entered default against her on May 21, 2025. See Clerk’s Entry of Default for Julia Sokol [ECF No. 42].

II. The Law “When a defendant has failed to plead or defend, a district court may enter judgment by default.” Surtain v. Hamlin Terrace Found., 789 F.3d 1239, 1244 (11th Cir. 2015) (per curiam) (citing FED. R. CIV. P. 55(b)(2)). A “defendant, by his default, admits the plaintiff’s well–pleaded allegations of fact,” as set forth in the operative complaint. Eagle Hosp. Physicians, LLC v. SRG Consulting, Inc., 561 F.3d 1298, 1307 (11th Cir. 2009) (Kravitch, J.). But “a defendant’s default does not in itself warrant the court entering a default judgment. There must be a sufficient basis in the pleadings for the judgment entered.” Nishimatsu Constr. Co., Ltd. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975) (Wisdom, J.); see also Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987) (“[L]iability is well– pled in the complaint and is therefore established by the entry of default.”) (Allgood, J.). “[A] default final judgment cannot stand on a complaint that fails to state a claim.” Chudasama v. Mazda Motor Corp., 123 F.3d 1353, 1370 n.41 (11th Cir. 1997) (Tjoflat, J.). “Conceptually, then, a motion for default

judgment is like a reverse motion to dismiss for failure to state a claim.” Surtain, 789 F.3d at 1245. In issuing a default judgment, a court may award damages “without a hearing [if the] amount claimed is a liquidated sum or one capable of mathematical calculation,” so long as “all essential evidence is already of record.” S.E.C. v. Smyth, 420 F.3d 1225, 1231, 1232 n.13 (11th Cir. 2005) (Tjoflat, J.) (quoting Adolph Coors Co. v. Movement Against Racism & the Klan, 777 F.2d 1538, 1543 (11th Cir. 1985) (Johnson, J.)). III. The Guaranties and Prior Judgment The two counts in the Complaint each allege a single breach of guaranty, one against each Defendant. See Compl. at 6–8. Count I is brought against Julia Sokol for breach of her Commercial Guaranty; Count II is against Yossi Sokol for his. See Compl. at 6–8. “A guaranty is a collateral promise to answer for the debt or obligation of another.” Fed. Deposit Ins. Corp. v. Univ. Anclote, Inc., 764 F.2d 804, 806 (11th Cir. 1985). “A breach of guaranty claim is akin to a breach of contract claim under

which the guarantor is alleged to have breached its promise by failing to pay the debt of another on the default of the person primarily liable for payment.” Ecp Station I LLC v. Chandy, 2016 WL 3883028, at *3 (M.D. Fla. June 29, 2016) (Sneed, Mag J.), report and recommendation adopted, 2016 WL 3856174 (M.D. Fla. July 15, 2016) (Lazzara, J.) (cleaned up). To establish a claim for breach of contract, Centennial must prove “(1) the existence of a contract; (2) a material breach of that contract; and (3) damages resulting from the breach.” Vega v. T-Mobile USA, Inc., 564 F. 3d 1256, 1272 (11th Cir. 2009) (citing Friedman v. N.Y. Life Ins. Co., 985 So. 2d 56, 58 (Fla. 4th DCA 2008)). “To prove the existence of a contract, a plaintiff must plead: (1) offer; (2) acceptance; (3) consideration; and (4) sufficient specification of the essential terms.” Ibid. Under Florida law, “a party’s nonperformance must go to the essence of the contract” to constitute a material breach. MDS (Canada) Inc. v. Rad Source Techs., Inc., 720 F.3d 833, 849 (11th Cir. 2013) (per curiam). Generally, whether a breach is material is a “question of fact.” Lakatos v. Fla. IPS, 2025 WL 1234010, at *6 (S.D. Fla. Apr. 29, 2025) (Bloom, J.) (cleaned

up). The Sokols guaranteed the debts of borrower Why Not I, LLC (“Why Not”) under a commercial marine loan for a ship. See Promissory Note [ECF No. 46-1]; Preferred Ship Mortgage [ECF No. 46–2]; the Guaranties.

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