Green Mountain Electric Supply, Inc. v. Zero Distribution LLC

CourtDistrict Court, N.D. New York
DecidedJune 13, 2025
Docket1:24-cv-00874
StatusUnknown

This text of Green Mountain Electric Supply, Inc. v. Zero Distribution LLC (Green Mountain Electric Supply, Inc. v. Zero Distribution LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green Mountain Electric Supply, Inc. v. Zero Distribution LLC, (N.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK ____________________________________________

GREEN MOUNTAIN ELECTRIC SUPPLY INC.,

Plaintiff, vs. 1:24-CV-00874 (MAD/DJS) ZERO DISTRIBUTION LLC,

Defendant. ____________________________________________

APPEARANCES: OF COUNSEL:

HARRIS BEACH MURTHA CULLINA DEANA J. DIBENEDETTO, ESQ. PLLC MEAGHAN FEENAN, ESQ. 677 Broadway - Suite 1101 Albany, New York 12207 Attorneys for Plaintiff

Mae A. D'Agostino, U.S. District Judge:

MEMORANDUM-DECISION AND ORDER I. INTRODUCTION On July 12, 2024, Plaintiff Green Mountain Electric Supply, Inc. commenced this action against Defendant Zero Distribution LLC, bringing claims for breach of contract, unjust enrichment, account stated, quantum meruit, and promissory estoppel. See Dkt. No. 1. On August 28, 2024, Plaintiff requested that the Clerk of the Court enter a certificate of entry of default. See Dkt. No. 6. The Clerk of the Court entered the requested default against Defendant on August 29, 2024. See Dkt. No. 7. On September 4, 2024, Plaintiff filed a motion for default judgment, pursuant to Rule 55(b) of the Federal Rules of Civil Procedure and Local Rule 55.2(b). See Dkt. No. 9. Defendant has not appeared in this action and the pending motion for default judgment is unopposed. For the reasons set forth below, Plaintiff's motion is granted as to liability and denied without prejudice as to damages, prejudgment interest, and costs. II. BACKGROUND Plaintiff provides, among other things, "innovative and renewable energy solutions and serves as an electrical products wholesaler." Dkt. No. 1 at ¶ 6. Defendant sells energy related products. See id. at ¶ 7. On August 29, 2022, the parties entered into Purchase Order No. P1287079 and Defendant agreed to provide certain products to Plaintiff in exchange for $377,784 (hereinafter, the "Purchase Order"). See id. at ¶ 9. On September 9, 2022, Plaintiff entered into

an agreement with Yellowpay, Inc., a financial software company that provides payment platforms for businesses. See id. at ¶¶ 8, 10. Yellowpay agreed to facilitate payment from Plaintiff to Defendant pursuant to the Purchase Order. See id. at ¶ 11. As confirmed by Yellowpay, over three installments, Plaintiff made payment on the Purchase Order to Defendant in full, fulfilling its obligation to pay $377,784. See id. at ¶¶ 12-13. Plaintiff received only a portion of the Purchase Order from Defendant, for products with a total value of $154,548. See id. at ¶ 14. In February 2023, Defendant indicated that it no longer had the materials to complete the Purchase Order in a timely manner and the parties agreed to cancel the remainder. See id. at ¶¶ 15-16. Pursuant to a Return Goods Authorization invoice, Defendant agreed to refund the

remaining $223,236 balance paid by Plaintiff for products not received. See id. at ¶ 16; Dkt. No. 1-1. To date, Plaintiff has received $100,000 in refund payments, however, $123,236 remains due and owing from Defendant to Plaintiff. See Dkt. No. 1 at ¶ 17. Defendant has acknowledged the debt owed to Plaintiff, but did not respond to two demand letters sent by Plaintiff's counsel. See id. at ¶¶ 18-22. Plaintiff brings causes of action for breach of contract, unjust enrichment, account stated, quantum meruit, and promissory estoppel to recover the principal amount of $123,236, plus interest, costs, and disbursements. See id. at ¶¶ 26-60.1 III. DISCUSSION A. Subject Matter Jurisdiction Before reaching the merits of Plaintiff's claims, the Court has an obligation, "on its own motion, to inquire as to subject matter jurisdiction and satisfy itself that such jurisdiction exists." Da Silva v. Kinsho Int'l Corp., 229 F.3d 358, 361-62 (2d Cir. 2000) (citing Mt. Healthy City Sch.

Dist. Bd. of Educ. v. Doyle, 429 U.S. 274, 278 (1977)). "Prior to entering a default judgment, the Court must ascertain that subject matter jurisdiction exists over plaintiff's claims." Centra Dev. Ltd. v. Jewish Press Inc., No. 16 CV 6737, 2018 WL 1788148, *5 (E.D.N.Y. Feb. 20, 2018) (citing Rolls-Royce PLC v. Rolls-Royce USA, Inc., 688 F. Supp. 2d 150, 153 (E.D.N.Y. 2010); Wynn v. AC Rochester, 273 F.3d 153, 157 (2d Cir. 2001)). The complaint alleges that "Defendant was and is a limited liability company [("LLC")] organized and existing under the laws of the State of Florida, with its principal place of business at 180 State Street, Suite #225, Southlake, Texas, United States, 76092." Dkt. No. 1 at ¶ 3. Such allegations fail to allege the citizenship of the member or members of the Defendant LLC. See Dkt. No. 16 at 3 ("'A complaint premised upon diversity of citizenship must allege the citizenship

of natural persons who are members of [an LLC] and the place of incorporation and principal place of business of any corporate entities who are members of the [LLC]'") (quoting New

1 Although the complaint references a total of $123,326 due and owing, see Dkt. No. 1 at ¶¶ 21, 25, 30, the record indicates that a balance of $223,236 was due as of April 29, 2022, and, c rediting the alleged $100,000 in refunds, the correct calculation would result in a balance of $123,236 due and owing, see Dkt. No. 1-1 at 2; Dkt. No. 1 at ¶¶ 12-17. Millennium Cap. Partners, III, LLC v. Juniper Grp. Inc., No. 10-CV-00046, 2010 WL 1257325, *1 (S.D.N.Y. Mar. 26, 2010)). Thus, the Court ordered Plaintiff to show cause why this action should not be dismissed for lack of subject matter jurisdiction. See id. at 4. Plaintiff filed a declaration which states that Defendant is an LLC organized and existing under the laws of Florida, with its principal place of business in Texas, and that is two members are citizens of Indiana and Idaho. See Dkt. No. 17 at ¶¶ 19, 25-28, 32, 34, 35, 37. As alleged in the complaint, Plaintiff is a foreign business corporation licensed to do business in the State of New York with an office in Clifton Park, New York, and organized and existing under the laws of

the State of Vermont, with its principal place of business at 356 Rathe Road, Colchester, Vermont, 05446. See Dkt. No. 1 at ¶ 2. Accordingly, the Court is now satisfied that Plaintiff has met its burden of demonstrating complete diversity between the parties, and finds that the Court has subject matter jurisdiction. B. Standard of Review "Generally, 'Federal Rule of Civil Procedure 55 provides a two-step process that the Court must follow before it may enter a default judgment against a defendant.'" United States v. Simmons, No. 10-CV-1272, 2012 WL 685498, *2 (N.D.N.Y. Mar. 2, 2012) (quoting Robertson v. Doe, No. 05-CV-7046, 2008 WL 2519894, *3 (S.D.N.Y. June 19, 2008)). "First, under Rule 55(a), when a party fails to plead or otherwise defend . . . the clerk must enter the party's default."

Id. (quotation and internal quotation marks omitted); see Fed. R. Civ. P. 55(a).

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Green Mountain Electric Supply, Inc. v. Zero Distribution LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-mountain-electric-supply-inc-v-zero-distribution-llc-nynd-2025.