ELIASSEN GROUP LLC v. Artificial Inventions LLC

CourtDistrict Court, D. Massachusetts
DecidedMarch 27, 2024
Docket1:22-cv-11871
StatusUnknown

This text of ELIASSEN GROUP LLC v. Artificial Inventions LLC (ELIASSEN GROUP LLC v. Artificial Inventions LLC) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ELIASSEN GROUP LLC v. Artificial Inventions LLC, (D. Mass. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS ____________________________________ ) ELIASSEN GROUP LLC, ) ) Plaintiff, ) ) ) Civil Action No. 22-CV-11871-AK v. ) ) ARTIFICIAL INVENTIONS LLC, ) ) Defendant. ) )

MEMORANDUM AND ORDER ON MOTION FOR DEFAULT JUDGMENT ANGEL KELLEY, D.J. Plaintiff Eliassen Group LLC (“Eliassen”) is a recruiting firm with a principal place of business in Reading, Massachusetts. Eliassen alleges that Defendant Artificial Inventions LLC (“Artificial”) breached the agreement to provide Eliassen’s client, Nomura America Services, LLC (“the Client”) with its selected data engineer to perform services. This resulted in a breach of contract, security violations, and strained the professional relationship between Eliassen—who facilitated the arrangement—and the Client. Eliassen brings five counts including, Count I and II, Breach of Contract; Count III, Tortious Interference with Advantageous Contractual Relationship; Count IV, Unfair and Deceptive Trade Practices; and Count V, Respondeat Superior. [Dkt. 1]. On March 16, 2023, Eliassen moved for and was granted an entry of default after Artificial failed to respond to the Complaint. [Dkt. 12]. Eliassen now moves for default judgment. [See Dkts. 12-15; 18-20]. For the following reasons, the Motion for Default Judgment [Dkt. 18] is GRANTED. I. BACKGROUND Eliassen and the Client had a decade-long relationship through business contacts, and Eliassen had worked hard to acquire business from the Client. [Dkt. 1 at ¶ 6-7].1 Eliassen finally received an opportunity to recruit and provide the Client with workers to fill open positions for the first time in 2022.2 There was no prior history of a relationship where Eliassen

regularly supplied the Client with employees. On February 22, 2022, Eliassen and Artificial entered into a contract in which Artificial agreed to act as the “supplier” to help fill the open data engineer position for the Client. [Id. at ¶ at 11]. The supplier would employ the workers, however, the employee would provide services to the Client. [Id.]. Artificial put forth its worker, Kumar Syamala, as a candidate (“Employee”) who the Client interviewed and hired. [Id. at ¶ 19]. Pursuant to the contract in April 2022, Eliassen and Artificial executed a purchase order with a maximum compensation of $166,400.00, in which Artificial agreed to provide Syamala to perform services for the Client. [Id. at ¶¶ 15-17; Dkt. 1-1 at 8]. The Client then provided Syamala, with equipment, and system and network access to perform the duties

associated with his position. [Id. at ¶¶ 18, 20]. Weeks after Syamala was hired, during a virtual meeting, the Client’s employees discovered that the individual who portrayed himself as Syamala was in fact an imposter. [Id. at ¶ 24]. The imposter apparently had access to the system and was performing services in the weeks leading up to the virtual meeting. [Id. at ¶ 23]. Artificial was apparently aware that Syamala had no intention of performing the services he was hired for. [Id. at ¶ 26]. The Client immediately

1 Supplemented by witness testimony that clarified the business relationship between the Client and Eliassen. 2 The Complaint alleges that Eliassen would occasionally rely on a third-party supplier, such as Artificial, to provide the Client with workers for open positions. [Dkt. 1 at ¶ 10]. This allegation was contradicted by Eliassen’s witness’s testimony that Eliassen provided its first (and only) worker for the Client’s available position with Syamala. terminated Syamala’s position, and then hired a third party to conduct a forensic audit to determine if confidential information had been stolen, and whether the network systems were damaged. [Id. at ¶¶ 27-29]. Eliassen agreed to cover the cost of the audit, totaling $55,191.21. [Id. at ¶ 29]. The Client also threatened to suspend further business with Eliassen, which

resulted in the loss of nine (9) requisitions (with an estimated revenue loss of $240,000). [Dkts. 1 at ¶ 30; 18 at ¶ 5]. Eliassen made efforts to contact Artificial with a demand letter through various means, however, Artificial was unresponsive. [Dkt. 1 at ¶ 32-33]. In August 2022, Eliassen received emails from Artificial stating that the company had been recently acquired, and that Artificial was unable to reach the Employee or the previous owners of the business. [Id. at ¶ 34-35]. After a good-faith effort to continue to engage Artificial, to no avail, Eliassen filed suit November 4, 2022. [Id. at ¶ 36; at 11]. The Complaint seeks monetary relief and attorneys’ fees for breach of contract (Counts I and II), tortious interference with an advantageous contractual relationship (Count III), unfair and deceptive trade practices in violation of Massachusetts General Law

Chapter 93A, Section 11 (Count IV), and respondeat superior (Count V). [Id. at 7-10]. Eliassen alleges total damages (including costs, attorneys’ fees, and trebled amounts where appropriate) to be $1,893,496.89. [Dkt. 18 at 3]. After attempting, but failing to effectuate service, Eliassen (with the Court’s permission) attempted service through alternate means through email, in addition to USPS Certified Mail, Federal Express, and in-person. [Dkt. 7]. Proof of service was obtained on December 2, 2022 and December 22, 2022, however, Artificial has failed to respond to the Complaint. [Dkt. 8 at 2-4]. On August 18, 2022, Eliassen finally received a response from Artificial stating that the business recently had been acquired and that it requested more time to address the matter. [Dkt. 9-3]. To date, Artificial has failed to respond to the Complaint. In accordance with the Federal Rule of Civil Procedure 55(a), Eliassen moved for entry of default on March 16, 2023, which was entered on May 30, 2023, for Artificial’s failure to respond or otherwise defend itself in this matter. [Dkts. 12-14]. On June 29, 2023, Eliassen moved for default judgment [see Dkt. 18] in accordance with the Court’s standing order. [Dkt.

15]. II. LEGAL STANDARD The Federal Rules of Civil Procedure provide a two-step process for default judgment. See Fed. R. Civ. P. 55. First, the clerk must enter a notation of default “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that

failure is shown by affidavit or otherwise.” Fed. R. Civ. P. 55(a). Second, upon obtaining a notation of default, the plaintiff must apply to the court for default judgment where the amount of damages is not a “sum certain.” See Fed. R. Civ. P. 55(b)(2). The party that has defaulted “is deemed to have admitted all of the allegations in the complaint.” CNE Direct, Inc. v. Blackberry Corp., 55 F. Supp. 3d 233, 234 (D. Mass. 2014); see SEC v. Tropikgadget FZE, 146 F. Supp. 3d 270, 275 (D. Mass. 2015) (internal quotations and citation omitted) (noting that entry of default “constitutes an admission of all facts well-pleaded in the complaint”). However, the court independently “may examine a plaintiff’s complaint, taking all well-pleaded factual allegations as true, to determine whether it alleges a cause of action.” Ramos-Falcon v. Autoridad de Energia Electrica, 301 F.3d 1, 2 (1st Cir. 2002) (citation omitted). While the court may set a

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Labarre v. Shepard
84 F.3d 496 (First Circuit, 1996)
Arthur D. Little, Inc. v. Dooyang Corp.
147 F.3d 47 (First Circuit, 1998)
Gemini Investors Inc. v. AmeriPark, Inc.
643 F.3d 43 (First Circuit, 2011)
Arthur D. Little International, Inc. v. Dooyang Corp.
979 F. Supp. 919 (D. Massachusetts, 1997)
Sullivan v. O'CONNOR
296 N.E.2d 183 (Massachusetts Supreme Judicial Court, 1973)
Singarella v. City of Boston
173 N.E.2d 290 (Massachusetts Supreme Judicial Court, 1961)
Madan v. Royal Indemnity Co.
532 N.E.2d 1214 (Massachusetts Appeals Court, 1989)
Doering Equipment Company v. John Deere Company
815 N.E.2d 234 (Massachusetts Appeals Court, 2004)
Howard v. Town of Burlington
506 N.E.2d 102 (Massachusetts Supreme Judicial Court, 1987)
Aquino v. Pacesetter Adjustment Co.
416 F. Supp. 2d 181 (D. Massachusetts, 2005)
Psy-Ed Corporation v. KLEIN HIRSCH
947 N.E.2d 520 (Massachusetts Supreme Judicial Court, 2011)
Shaulis v. Nordstrom, Inc.
865 F.3d 1 (First Circuit, 2017)
Costa v. Brait Builders Corp.
972 N.E.2d 449 (Massachusetts Supreme Judicial Court, 2012)
Hunneman Real Estate Corp. v. Norwood Realty, Inc.
765 N.E.2d 800 (Massachusetts Appeals Court, 2002)
Tech Plus, Inc. v. Ansel
793 N.E.2d 1256 (Massachusetts Appeals Court, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
ELIASSEN GROUP LLC v. Artificial Inventions LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eliassen-group-llc-v-artificial-inventions-llc-mad-2024.