First Priority, Inc. v. MCC Solutions, LLC

CourtDistrict Court, D. South Carolina
DecidedMarch 27, 2024
Docket3:21-cv-02801
StatusUnknown

This text of First Priority, Inc. v. MCC Solutions, LLC (First Priority, Inc. v. MCC Solutions, LLC) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Priority, Inc. v. MCC Solutions, LLC, (D.S.C. 2024).

Opinion

ApOES DIST g es SY sy a f hy am nee ae pS OH alllllle. □□ ey : a is Psa” IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA COLUMBIA DIVISION FIRST PRIORITY, INC., § Plaintiff, § § VS. § § Civil Action No. 3:21-02801-MGL MCC SOLUTIONS, LLC, and CONNECTINC § GLOBAL MANAGMEENT, LLC, § Defendants. § MEMORANDUM OPINION AND ORDER GRANTING PLAINTIFF’S REQUEST FOR ENTRY OF DEFAULT JUDGMENT I. INTRODUCTION Pending before the Court is Plaintiff First Priority Inc.’s request for entry of default judgment against Defendants MCC Solutions, LLC (“MCC Solutions”) and Connectine Global Management, LLC (““Connectine Global”). For the reasons stated below, First Priority’s request is granted.

Il. FACTUAL AND PROCEDURAL HISTORY First Priority “provides ambulance and medical transport services.” ECF No. 1, Compl., □ 10. In 2021 Connectine Global contracted with the United States Department of Veterans Affairs (“VA”) to provide medical transport services, but “did not have the capacity to perform under the VA contract” and therefore subcontracted with First Priority. /d. 9 14-16. Later, MCC Solutions obtained a controlling interest in Connectine Global and assumed its obligations under the contract with the VA. /d. 9§ 17-18 However, MCC Solutions “likewise did not... have the capacity to

perform under the VA contract.” Id. And MCC Solutions “entered into a new sub-contract agreement with Plaintiff.” Id. ¶ 19. This agreement “recited that MCC was the exclusive manager for” Connectinc Global and that MCC Solutions was “responsible for all sub-contractor selection, management, payment and administration of contracts.” ECF No. 1, ¶ 20; ECF No. 1-1. MCC

Solutions served “as the agent” for Connectinc Global “as it related to the payment for services provided by the Plaintiff.” ECF No. 1, ¶ 21. The contract between MCC Solutions and First Priority “provided for, among other things, pricing for transport services provided by First Priority and for payment to” First Priority “within one day of receipt” by MCC Solutions or Connectinc Global. ECF No. 1, ¶ 22, No. ECF 1-1. Plaintiff “dutifully provided transport services to disabled veterans under its Sub-contract with” MCC Solutions. ECF No. 1, ¶ 23. Connectinc Global “received payment from the VA for the services provided by the Plaintiff,” id. at ¶ 23, and these payments were “controlled by” MCC Solutions. Id. at ¶ 24. Still, Defendants MCC Solutions and Connectinc Global “refused and failed to remit payment to” First

Priority for the services it provided under the sub-contract. Id. at ¶ 25. On August 30, 2021, First Priority filed its Complaint asserting that it was “entitled to collect all amounts due and to judgment against the Defendants, jointly and severally, for the total amount due under the sub-contract, plus prejudgment interest at the appropriate rate.” Id. at 28. Initially, MCC Solutions and Connectinc Global participated in this suit. They filed their Answer and Counterclaims on September 22, 2021. ECF No. 9. Still, on February 9, 2022, sparked by the withdrawal of their first counsel, this action was “stayed until February 23, 2022, to allow Defendants to retain new counsel.” ECF No. 32. On February 23, 2022, new counsel appeared on behalf of MCC Solutions and Connectinc Global. ECF No. 33. On December 2, 2022, after

granting this second counsel’s motion to withdraw, the Court ordered that new counsel for Connectinc Global and MCC Solutions enter notices of appearances no later than December 22, 2022. ECF No. 57. On January 6, 2023, when “no party ha[d] filed a notice of appearance or otherwise replied” to this order, the Court directed that:

No later than January 18, 2023, Defendants shall show cause cause why the Court should not: . . . (2) dismiss Defendants’ counterclaims with prejudice; (3) vacate Defendants' answers and enter default against them . . .

ECF No. 61. On January 31, 2023, having again received no responsive filings to this order from MCC Solutions or Connectinc Global, the Court ordered that “[n]o later than March 2, 2023, Defendants MCC Solutions, LLC, and Connectinc Global Management, LLC, shall obtain counsel in this matter and such counsel shall file a notice of appearance.” ECF No. 69. On March 8, 2023, observing that MCC Solutions and Connectinc Global “have failed to secure counsel despite repeated admonitions by the Court” the Court dismissed their “counterclaims . . . with prejudice for failure to prosecute.” And because they had “failed to defend against” First Priority’s Complaint and “fail[ed] to comply with the Court’s orders,” the Court struck their Answer and “direct[ed] the clerk to file an entry of default” against MCC Solutions and Connectinc Management. ECF No. 75. That same day, this default was entered by the Clerk of Court. ECF No. 76. On October 25, 2023, First Priority moved for an entry of default judgment against MCC Solutions and Connectinc Global, ECF No. 152, incorporating by reference the prior Declaration of Christopher Holden, Chief Executive Officer for First Priority. ECF No. 146.1

1 The alternative relief sought by First Priority in its Request asking for the Clerk of Court to enter default under Rule 55(b)(1) of the Federal Rules of Civil Procedure is denied as moot. III. STANDARD OF REVIEW Federal Rule of Civil Procedure 55 governs the process for obtaining a default judgment, creating a two-step process. “The first step is the entry of default, which must be made by the clerk

‘[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.’” Fidrych v. Marriott Int'l, Inc., 952 F.3d 124, 130 (4th Cir. 2020) (quoting Fed. R. Civ. P. Rule 55(a)). Upon entry of default, a defendant “admits the plaintiff’s well-pleaded allegations of fact, is concluded on those facts by the judgment, and is barred from contesting on appeal the facts thus established.” Ryan v. Homecomings Fin. Network, 253 F.3d 778, 780 (4th Cir. 2001) (citation omitted). But “a default is not treated as an absolute confession by defendant of his liability and of the plaintiff's right to recover.” Id. “The second step is the subsequent entry of default judgement,” which may be done in one of two ways. Fidrych, 952 F.3d at 130. “If the plaintiff's claim is for a sum certain or a sum that

can be made certain by computation,” then the clerk may enter judgment on the defendant’s default. Fed. R. Civ. P. 55(b)(1). If the plaintiff's claim is not for a sum certain, however, then it must be done by the Court. See Fed. R. Civ. P. 55(b)(2) (“In all other cases, the party must apply to the court for a default judgment. . . .”). Because “a default is not treated as an absolute confession by defendant of his liability and of the plaintiff’s right to recover,” the Court must, upon request for judgment on the entry of default, “determine whether the well-pleaded allegations in [the plaintiff’s] complaint support the relief sought in this action.” Ryan, 253 F.3d at 780 (citations omitted). In other words, if this Court concludes the well-pleaded allegations of First Priority’s Complaint support the relief it seeks against MCC Solutions and Connectinc Global, then, by reason of default, liability has been established.

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Bluebook (online)
First Priority, Inc. v. MCC Solutions, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-priority-inc-v-mcc-solutions-llc-scd-2024.