Greater Houseware Inc. v. Zohar Investment Ventures LLC

CourtDistrict Court, E.D. New York
DecidedAugust 30, 2024
Docket1:23-cv-08029
StatusUnknown

This text of Greater Houseware Inc. v. Zohar Investment Ventures LLC (Greater Houseware Inc. v. Zohar Investment Ventures LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greater Houseware Inc. v. Zohar Investment Ventures LLC, (E.D.N.Y. 2024).

Opinion

UEANSITTEEDR NS TDAISTTERS IDCITS TORFI NCETW CO YUORRTK ------------------------------------------------------------------- x GREATER HOUSEWARE INC., : : Plaintiff, : REPORT AND : RECOMMENDATION -against- : : No. 23-CV-08029-DG-JRC ZOHAR INVESTMENT VENTURES LLC, : : Defendant. : : ------------------------------------------------------------------- x JAMES R. CHO, United States Magistrate Judge: Plaintiff Greater Houseware Inc. (“Greater Houseware” or “plaintiff”) brings this diversity action for breach of contract against defendant Zohar Investment Ventures LLC (“Zohar” or “defendant”) for failing to deliver more than $100,000 worth of goods, which Greater Houseware purchased from Zohar in June 2023. See Dkt. 1 (“Compl.”). Currently before this Court, on referral from the Honorable Diane Gujarati, is plaintiff’s motion for default judgment against defendant Zohar. See Order Referring Mot. dated Feb. 29, 2024. For the reasons set forth below, this Court respectfully recommends granting plaintiff’s motion and awarding plaintiff: (1) $107,238.76 in damages; (2) pre-judgment interest on the foregoing amount, accruing at a rate of 9 percent per annum from the date of each of the alleged breaches through the date judgment is entered; and (3) post-judgment interest at the rate set forth in 28 U.S.C. § 1961. Background The following facts are taken from the Complaint (Dkt. 1) and assumed to be true for purposes of this motion. Plaintiff Greater Houseware is a New York business corporation domiciled in and residing in New York, with a principal place of business in Kings County, New York. See Compl. ¶ 2, Dkt. 1 at ECF page1 1. Defendant Zohar is a Florida limited liability

1 Cites to “ECF page” refer to the page number assigned by the Electronic Case Filing (“ECF”) company, with a principal place of business at 19901 E. Country Club Drive, Building 2, Unit 102, Miami, Florida. See Compl. ¶ 3, Dkt. 1 at ECF page 1. Karen (a/k/a Keren) Zohar, the sole member of Zohar, is domiciled and resides in Florida. Id. In June 2023, Greater Houseware ordered more than $100,000 worth of goods from Zohar that Zohar subsequently failed to deliver. See Compl. ¶ 1, Dkt. 1 at ECF page 1. On June 22, 2023, Greater Houseware ordered $37,844.66 worth of personal care products from Zohar (the “June 22 Purchase”). See Compl. ¶¶ 4, 7. Greater Houseware placed similar orders on June 26, 2023 (the “June 26 Purchase”) and June 28, 2023 (the “June 28 Purchase,” and collectively with the June 22 Purchase and June 26 Purchase the “June Purchases”), in the amounts of $33,181.60 and

$36,212.50, respectively. See id. ¶¶ 10, 16. Greater Houseware paid the invoices for the June Purchases in full2 and in each instance was assured that the products would be delivered within one week. See id. ¶¶ 5–6, 11–12, 17–18. Zohar failed to deliver any of the June Purchases. See Compl. ¶¶ 7, 13, 19. Greater Houseware has repeatedly demanded that Zohar either deliver the products ordered in June 2023 or return the money that Greater Houseware paid for these orders ($107,238.76 in total). See Compl. ¶¶ 8, 14, 20, 25. Zohar has done neither, despite making assurances that it would return the money. See Compl. ¶ 22. On October 27, 2023, plaintiff filed a Complaint against Zohar. See Compl., Dkt. 1. Zohar was served through its registered agent on November 1, 2023, and its response to the Complaint was due November 22, 2023. See Dkt. 5; see also New York State Civil Practice Law and Rules

(“N.Y. C.P.L.R.”) § 311(1) (corporations may be served by delivering the summons “to an officer, director, managing or general agent . . . or to any agent authorized by appointment or by law to receive service”). Zohar failed to appear in this action and failed to respond to the Complaint.

2 Plaintiff paid for the June 22 Purchase on June 23, 2023 (Compl. ¶ 6); plaintiff paid for the June 26 Purchase on June 27, 2023 (id. ¶ 12); and plaintiff paid for the June 28 Purchase on June 28, Upon plaintiff’s application and Zohar’s failure to appear or otherwise defend this action, the Clerk of the Court noted the default of Zohar on December 5, 2023. See Clerk’s Entry of Default, Dkt. 7. On February 28, 2024, plaintiff moved for default judgment. See Mot. for Default J., Dkt. 8. Discussion I. Personal and Subject Matter Jurisdiction As an initial matter, this Court notes that it has both personal and subject matter jurisdiction over the present action. Specifically, this Court has personal jurisdiction over defendant Zohar under New York’s long-arm statute because this cause of action arises from Zohar’s contractual

promise to “supply goods or services in the state” of New York. See N.Y. C.P.L.R. § 302(a)(1) (New York’s long-arm statute provides that a court “may exercise personal jurisdiction over any non-domiciliary . . . who in person or through an agent . . . transacts any business within the state or contracts anywhere to supply goods or services in the state.”); see also Spiegel v. Schulmann, 604 F.3d 72, 76 (2d Cir. 2010) (“A district court’s personal jurisdiction is determined by the law of the state in which the court is located.”). Under New York law, a single transaction is sufficient to establish specific personal jurisdiction “provided the relevant claims arise from that transaction.” See Miler v. Arab Bank, PLC, 372 F. Supp. 3d 33, 42 (E.D.N.Y. 2019) (citing Bank Brussels Lambert v. Fiddler Gonzalez & Rodriguez, 171 F.3d 779, 787 (2d Cir. 1999)). Further, this Court has diversity jurisdiction over this action pursuant to 28 U.S.C.

§ 1332(a)(1) because plaintiff Greater Houseware is a citizen of New York and defendant Zohar is a citizen of Florida, Compl. ¶¶ 2–3, Dkt. 1 at ECF page 1, and the amount in controversy exceeds $75,000, exclusive of interest and costs. II. Default Judgment Legal Standard Rule 55 of the Federal Rules of Civil Procedure governs motions for default judgment. The Rule sets forth a two-step process for entry of a default judgment. See Enron Oil Corp. v. Diakuhara, 10 F.3d 90, 95–96 (2d Cir. 1993). First, the Clerk of the Court enters the default pursuant to Rule 55(a) by notation of the party’s default on the Clerk’s record of the case. See id.; see also Fed R. Civ. P. 55(a) (“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.”). This first step is non-discretionary. See United States v. Conolly, 694 F. App’x 10, 12 (2d Cir. 2017). Second, after the Clerk of the Court enters a default against a party, if that party fails to appear or otherwise move to set aside the default pursuant to Rule 55(c), the plaintiff may apply to the court for a default judgment. See Fed. R. Civ. P. 55(a),

(b)(2). Here, on December 5, 2023, the Clerk of the Court entered default against defendant Zohar after it failed to appear or otherwise respond to the pleadings in this action. See Dkt. 7. To date, defendant has not appeared or moved to vacate the entry of default.

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Bluebook (online)
Greater Houseware Inc. v. Zohar Investment Ventures LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greater-houseware-inc-v-zohar-investment-ventures-llc-nyed-2024.