First Green Industries a.s. v. Solar Dairy LLC

CourtDistrict Court, S.D. Florida
DecidedSeptember 24, 2024
Docket1:23-cv-22433
StatusUnknown

This text of First Green Industries a.s. v. Solar Dairy LLC (First Green Industries a.s. v. Solar Dairy LLC) 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
First Green Industries a.s. v. Solar Dairy LLC, (S.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 23-CIV-22433-MARTINEZ/SANCHEZ FIRST GREEN INDUSTRIES a.s., Petitioner, v. SOLAR DAIRY, LLC, Respondent. _____________________________/ REPORT AND RECOMMENDATION ON PETITIONER’S MOTION FOR FINAL DEFAULT JUDGMENT This matter is before the Court on the Motion for Final Default Judgment filed by Petitioner First Green Industries a.s. (“Petitioner” or “First Green”) against Respondent Solar Dairy, LLC (“Solar Dairy”). ECF No. 21.1 Solar Diary did not file a response to the Petitioner’s motion, and the deadline to do so has passed. After careful consideration of the Petitioner’s filings, the record, and the relevant authority, and being otherwise duly advised on the matter, the undersigned RESPECTFULLY RECOMMENDS that Petitioner’s Motion for Final Default Judgment, ECF No. 21, be GRANTED. I. PROCEDURAL AND FACTUAL BACKGROUND2 First Green commenced this action against the Respondent seeking enforcement of an international arbitration award (“the Final Award”). ECF No. 1. The Petitioner is a Czech

1 The Honorable Jose E. Martinez, United States District Judge, referred the Petitioner’s motion for default judgment to the undersigned. ECF No. 24. 2 The following facts are admitted as a result of the Defendant’s default. See, e.g., Amguard Ins. Co. v. Super Winn Nail Spa, Inc., No. 23-61304, 2024 WL 996444, at *1 (S.D. Fla. Mar. 5, 2024); Section II infra. engineering company specializing in the manufacture of electric powered skid steer loaders. Id. at ¶ 6. First Green entered into a Distribution Agreement with Solar Dairy on December 4, 2020, wherein Solar Dairy agreed to sell Petitioner’s products within the State of Florida. Id. at ¶ 7; ECF No. 1-4. Article 19.3 of the Distribution Agreement contains an arbitration clause stating, “[a]ll

disputes arising out of or in connection with this Agreement will be finally settled with the Arbitration Court attached to the Czech Chamber of Commerce and the Agricultural Chamber of the Czech Republic according to its Rules by three arbitrators in accordance with the Rules of the Arbitration Court.” ECF No. 1 at ¶ 9; see also ECF No. 1-4 at 15. Pursuant to the arbitration clause, the Petitioner initiated arbitration proceedings before the above-specified arbitration court (“Arbitration Court”) on May 20, 2022. ECF No. 1 at ¶ 11. Notice of the arbitration proceedings was served on the Respondent by the Arbitration Court at “its last known address in accordance with Section 10 of the Rules of Arbitration Court,” documents were sent by mail to the Respondent’s mailing address as entered in the Division of Corporations of the State of Florida, and by email to the following address: info@solardiary.com.

Id. at ¶ 12. On August 23, 2022, the Arbitration Court issued a notice alerting the parties to the composition of the arbitration tribunal. Id. at ¶ 13. Over the course of the arbitration proceedings, Petitioner presented the arbitral tribunal with evidence to support its claim. Id. at ¶ 14. The Respondent’s only response during the proceedings was an e-mail sent to the Arbitration Court on September 29, 2022, acknowledging receipt of notice and stating that the Respondent intended to submit a statement in reply. Id. Despite its stated intentions and having been duly notified, the Respondent failed to file any pleading during the proceedings, contact the Arbitration Court further, or attend the oral hearing. Id. On February 10, 2023, the arbitral tribunal rendered its Final Award in favor of the Petitioner, requiring Solar Dairy to • Pay USD 208,054.00 to the Claimant [i.e., Petitioner First Green] within three days of the entry into force of the Arbitral Award; • Pay default interest of USD 17,047.85 to the Claimant within three days of the entry into force of the Arbitral Award; • Pay damages of USD 16,956.40 to the Claimant within three days of the entry into force of the Arbitral Award; • Reimburse Claimant for the costs of arbitration proceedings amounting to CZK 668,764.00 within three days of the entry into force of the Arbitral Award; and • Reimburse Claimant for the costs of CZK 6,636.48 associated with enforcement of the receivable within three days of the entry into force of the Arbitral Award. Id. at ¶ 15; see ECF No. 1-3 at 12-13. The Final Award became judicially enforceable on March 31, 2023. ECF No. 1 at ¶ 16; see ECF No. 1-3 at 12. First Green thereafter filed a Petition to Enforce International Arbitration Award with this Court on June 29, 2023. ECF No. 1. First Green requests that this Court enter an Order and Judgment “(a) confirming, recognizing and enforcing the Award; (b) entering judgment in favor of Petitioner and against Respondent in the amount of US $273,329.69, plus pre-judgment interest from March 31, 2023 to the date of judgment, with post-judgment interest as provided by law; [and] (c) directing Respondent to complete a debtor information form as specified in Fla. R. Civ. P. 1.560(c) and Form 1.977.” ECF No. 1 at 6. On July 28, 2023, Solar Dairy, in a filing made without the representation of counsel, asked the Court to extend its deadline to respond to the Petition, claiming that it was only made aware the day before that “documents were served to a UPS store mailbox” and that it required an extension to secure counsel. ECF No. 9. The Court granted that motion, extending the Respondent’s deadline to August 31, 2023. ECF No. 10. Then, on August 22, 2023, Solar Dairy filed a Motion to Stay claiming that it was “appealing the arbitration results in the country of origin” because it was “never giving [sic] proper notice and [its] grievances were never considered.” ECF No. 12. The Court did not grant Solar Dairy’s Motion to Stay. Instead, Judge Martinez entered an

Order to Show Cause and Administratively Closing the Case stating that “[t]o date, Defendant has failed to answer or otherwise respond to the Complaint” and has “failed to retain counsel.” ECF No. 15. The Court further explained: “A corporation must be represented by counsel and cannot proceed pro se.” Id. (citing Palazzo v. Gulf Oil Corp., 764 F.2d 1381, 1385 (11th Cir. 1985)). Accordingly, the Court ordered Solar Dairy to show cause by September 25, 2023, why default should not be entered against it for failure to respond to the Complaint and for failure to obtain counsel. Id. at ¶ 1. The Court warned Solar Dairy: “Failure to show good cause will result in the entry of default against Defendant and without further notice.” Id. at ¶ 2 (emphasis in original). When Solar Dairy thereafter failed to respond to the Order to Show Cause by the required

deadline, the Court entered an Order Directing the Clerk to Enter Default, ECF No. 17, which the Clerk entered on October 2, 2023. ECF No. 18. First Green then filed the instant Motion for Final Default Judgment on October 20, 2023, and attached a Declaration of Jan Šturm, the attorney that represented First Green in the arbitration proceedings. ECF Nos. 21, 21-1. II. LEGAL STANDARD A. Default Judgment Standard “When 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, the clerk must enter the party’s default.” Fed. R. Civ. P. 55(a); Mitchell v. Brown & Williamson Tobacco Corp., 294 F.3d 1309, 1316 (11th Cir. 2002). The effect of a clerk’s default is that all of the plaintiff’s well-pled allegations are deemed admitted. See Amguard Ins. Co. v. Super Winn Nail Spa, Inc., No. 23- 61304, 2024 WL 996444, at *1 (S.D. Fla. Mar. 5, 2024) (citing Buchanan v.

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First Green Industries a.s. v. Solar Dairy LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-green-industries-as-v-solar-dairy-llc-flsd-2024.