EW Polymer Group, LLC v. GSX International Group, Inc.

CourtDistrict Court, M.D. Louisiana
DecidedAugust 17, 2022
Docket3:21-cv-00285
StatusUnknown

This text of EW Polymer Group, LLC v. GSX International Group, Inc. (EW Polymer Group, LLC v. GSX International Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EW Polymer Group, LLC v. GSX International Group, Inc., (M.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF LOUISIANA

EW POLYMER GROUP, LLC CIVIL ACTION VERSUS GSX INTERNATIONAL GROUP, INC. NO. 21-00285-BAJ-EWD RULING AND ORDER Before the Court is Plaintiff EW Polymer Group, LLC’s Motion For Confirmation Of Default Judgment (Doe. 19) against Defendant GSX International Group, Inc. The Motion is unopposed. For the reasons stated herein, Plaintiffs Motion is GRANTED, and Plaintiff is awarded damages as set forth herein. I, RELEVANT BACKGROUND A. Alleged Facts This suit arises out of Defendant’s alleged failure to pay Plaintiff for the masks it purchased and received. (Doc. 6). Plaintiff alleges the following. In December 2020, Plaintiffsold and shipped 2,777,200 disposable 3 ply non-woven non-sterile respirator face masks (“masks”) to Defendant at Defendant’s request. (Id. at § 6). Each mask cost $0.10, for a total of $277,200. Ud. at J 7). The relevant Purchase Order is signed by F. Greg Stewart, executive officer for Defendant, and reflects a payment term of “[clash upon delivery” to Plaintiff. (Id. at {4 7, 14); Doc. 1-2). After receiving Defendant’s signed Purchase Order, Plaintiff issued Defendant an invoice in the amount of $277,200. Ud. at J 8). The invoice required payment on

delivery via “electronic transfer ACH or wire per the instructions on the invoice.”

On December 28, 2020, carrier Reed and Son Trucking, LLC accepted delivery of 28 pallets containing approximately one-half of the 2,777,200 masks from Wilson Warehouse in Baton Rouge, Louisiana. (/d. at {[ 9). Reed and Son delivered the masks to Defendant’s designated consignee in Stockbridge, Georgia. (U/d.). On December 29, 2020, Globaltranz, on behalf of motor carrier Reed and Son, issued Plaintiff with a freight invoice in the amount of $1,400 for carriage of the masks. (/d. at 4] 10). Plaintiff paid the invoice in full. Ud.). On December 28, 2020, carrier Alpha Express, LLC accepted delivery of 28 pallets containing approximately the remaining one-half of the 2,777,200 masks from Wilson Warehouse in Baton Rouge, Louisiana. (/d. at 4] 11). Alpha fies then delivered the masks to Defendant’s designated consignee in Stockbridge, Georgia. Qn December 29, 2020, Globaitranz, on behalf of Alpha Express, LLC, issued Plaintiff with an invoice in the amount of $1,500 for carriage of the masks. Ud. at § 12). Plaintiff paid the invoice in full. (/d.). Defendant confirmed receipt of all 2,777,200 masks subject of the parties’ sales agreement. Ud. at | 13). To date, Defendant has failed and refused to pay the amount due and owing of $277,200. (d.). Plaintiff issued a formal demand for payment per the contract. Ud. at § 14). To date, Defendant has not responded to the demand letter. Ud.). Accordingly, Plaintiff contends that as of January 1, 2021, Defendant owes Plaintiff $277,200. Ud. at § 15).

Plaintiff retained counsel to assist in the collection of its debt. Ud. at 16). On March 4, 2021, Plaintiffs Counsel sent a second demand letter to Defense Counsel, Christopher F. Klink. Gd.). On March 8, 2021, Plaintiff, through its CEO, Greg Nelson, transmitted a second demand letter to Defendant, through Stewart. (id. at { 17). On March 22, 2021, Plaintiffs Counsel transmitted another copy of the demand letter to Defense Counsel. (/d. at 9 18-19). Plaintiff alleges that it has satisfied all conditions for recovery under Louisiana’s Open Account Statute, Louisiana Revised Statutes § 9:2781. Ud. at 20). Accordingly, Plaintiff contends that it is entitled to recover the entire balance owed and all costs of collection incurred by Plaintiff in prosecuting this suit, including expenses and reasonable attorneys’ fees. Ud.). B. Procedural History Plaintiff filed suit on May 17, 2021. (Doc. 1). Thereafter, Plaintiff filed an Amended Complaint on June 1, 2021. (Doc. 6). Plaintiff alleges that the Court has jurisdiction pursuant to 28 U.S.C. § 1332. Ud. at | 3). Where jurisdiction is founded on diversity, federal courts must apply the substantive law of the forum state. Meadors v. D'Agostino, No. CV 18-01007-BAJ-EWD, 2020 WL 1529367, at *3 (MLD. La. Mar. 30, 2020) (citing Erie RA. v. Tompkins, 304 US. 64, 78 (1988). Despite being personally served on August 10, 2021, Defendant has not appeared in this case. (Doc. 12). On October 8, 2021, Plaintiff filed a Request for Entry of Default. (Doc. 17). On October 12, 2021, the Clerk of Court entered a Clerk’s Entry of Default. (Doc. 18). Plaintiff now moves for a Default Judgment against

Defendant. (Doc. 19). Ik. STANDARD OF REVIEW The United States Court of Appeals for the Fifth Circuit has adopted a three-step process to obtain a default judgment. See New York Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996). First, a default occurs when a party “has failed to plead or otherwise defend” against an action. Fed. R. Civ. P. 55(a). Next, an entry of default must be entered by the clerk when the default is shown “by affidavit ox otherwise.” See id.; New York Life Ins. Co., 84 F.3d at 141. Third, a party may apply to the court for a default judgment after an entry of default. Fed. R. Civ. P. 55(b); New York Life Ins. Co,, 84 F.3d at 141. After a party files for a default judgment, courts must apply a two-part process to determine whether a default judgment should be entered. First, a court must consider whether the entry of default judgment is appropriate under the circumstances. Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998). Several factors are relevant to this inquiry, including the following: (1) whether there are material issues of fact; (2) whether there has been substantial prejudice; (3) whether the grounds for default have been clearly established; (4) whether the default was caused by excusable neglect or good faith mistake; (5) the harshness of the default judgment; and (6) whether the court would think itself obliged to set aside the default on a motion by Defendant. Id. Default judgments are disfavored due to a strong policy in favor of decisions on the merits and against resolution of cases through default judgments. Id. Default judgments are “available only when the adversary process has

been halted because of an essentially unresponsive party.” Sun Bank of Ocala v. Pelican Homestead & Sav. Ass'n, 874 F.2d 274, 276

(th Cir. 1989) (citation omitted). Second, the Court must assess the merits of Plaintiff's claims and determine whether Plaintiff has a claim for relief. Nishtmatsu Constr. Co. v. Houston Natl Bank, 515 F.2d 1200, 1206 (5th Cir. 1975); Hamdan ov. Tiger Bros. Food Mart, Inc., No. CV 15-00412, 2016 WL 1192679, at *2 (M.D. La. Mar. 22, 2016). WI. ANALYSIS A, Whether Default Judgment Is Appropriate The Court must determine whether default judgment is appropriate under the circumstances by considering the Lindsey factors. Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998). Here, Defendant failed to file an Answer or Rule 12 Motion in response to Plaintiff's Complaint. (Doc. 1; Doc. 6). Consequently, there are no material issues of fact. See id.; Nishimatsu Constr. Co. v. Houston Nat'l Bank, 515 F.2d 1200, 1206 (6th Cir. 1975).

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Bluebook (online)
EW Polymer Group, LLC v. GSX International Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ew-polymer-group-llc-v-gsx-international-group-inc-lamd-2022.