Law Office G.A. Lambert and Associates v. Davidoff

306 F.R.D. 12, 2014 WL 4056518, 2014 U.S. Dist. LEXIS 113619
CourtDistrict Court, District of Columbia
DecidedAugust 15, 2014
DocketCivil Action No. 2013-1734
StatusPublished
Cited by7 cases

This text of 306 F.R.D. 12 (Law Office G.A. Lambert and Associates v. Davidoff) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Law Office G.A. Lambert and Associates v. Davidoff, 306 F.R.D. 12, 2014 WL 4056518, 2014 U.S. Dist. LEXIS 113619 (D.D.C. 2014).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, United States District Judge

Plaintiff, the Law Office G.A Lambert and Associates (“Plaintiff’), has filed an action against its former clients, Defendants Tofik Davidoff, Kalimantano GmbH, and First Royal Services GmbH (“Defendants”), alleging that Defendants defrauded Plaintiff and failed to pay legal fees and costs owed to Plaintiff. Presently before this court is Plaintiffs [19] Request for Default Judgment, or, in the Alternative, Motion for Default Judgment. Upon consideration of the parties’ submissions 1 , the relevant legal authorities, and the record as a whole, the Court concludes, for the reasons stated below, that (1) it would not be appropriate to vacate the entry of default against Defendants at this time, and (2) Plaintiffs [19] Request for Default Judgment, or, in the Alternative, Motion for Default Judgment is DENIED WITHOUT PREJUDICE.

I. BACKGROUND

A. Factual Background

Plaintiffs Complaint sets out the following allegations, which the Court takes as true for purposes of Plaintiffs motion for default judgment. See Int'l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., 239 F.Supp.2d 26, 30 (D.D.C.2002). Plaintiff is a District of Columbia law office headed by Attorney George A Lambert (“Lambert”). Compl. ¶ 1. Defendant Tofik Davidoff (“Davidoff’) is a German national, who is closely allied with two German companies: Defendants Kalimantano GmbH (“Kalimantano”) and First Royal Services GmbH (“First Royal”). Id. ¶¶2-4. On September 3, 2012, Davidoff executed a retainer contract with Plaintiff. Id. ¶ 8. Under the terms of the retainer contract, Plaintiff represented Davidoff and, as needed, the entities, in which Davidoff was the principal. Id. ¶¶ 2, 9. Plaintiff also represented Kalimantano’s employee, Konstantin Felde, and *14 First Royal’s Manager, Johannes Schwegler. Id. ¶ 10. Defendant First Royal is connected to this suit because it “was proposed to be a third-party payer and guarantor on the invoices to Davidoff and Kalimantano.” Id. ¶4. Plaintiff represented Defendants Davidoff and Kalimantano in several suits brought in the United States District Court for the Southern District of New York and the United States District Court for the District of Columbia. See id. ¶ 7, 11-17. The parties conducted business together for approximately nine months before payment issues began to arise. Id. ¶ 18. After receiving a May 6, 2013 invoice from Plaintiff, Davidoff made numerous excuses for why payment was not forthcoming. Id. ¶ 18-32.

Several months after the May 6, 2013 invoice, Plaintiff had still not received payment from Defendants. On October 21, 2013, Da-vidoff sent the law office a copy of a transaction showing that 15,000 Euros were deducted from one of First Royal’s accounts on that date. Id. However, this money never reached Plaintiff. Id. ¶¶ 35-38. On October 30, 2013, Davidoff unexpectedly told Plaintiff that a settlement agreement had been reached in the only remaining lawsuit for which Plaintiff represented Defendants Davi-doff and Kalimantano—a pending matter in the United States District Court for the Southern District of New York. Id. ¶ 40. Davidoff denied that he owed anything to Plaintiff, and also denied that any purported attempts to pay or wire funds took place. Id. ¶¶ 44-45. Nevertheless, on November 1, 2013, Attorney Lambert made a motion to withdraw from the pending matter in the United States District Court for the Southern District of New York. Id. ¶ 47. Upon being served with the motion, Davidoff claimed he did not know where to wire the payments to the Plaintiff. Id. ¶ 48.

B. Procedural History

Plaintiff filed its Complaint in this Court on November 4, 2013, alleging five counts: (1) “Breach of Contract”, (2) “Quantum Me-ruit, Promissory Estoppel”, (3) “Misrepresentation and Fraud”, (4) “Fraud; False Wire Transfer Banking Document”, and (5) “Fraud; False Wire Transfer Banking Document; Forgery.” Compl. ¶¶ 52-92. Defendants were purportedly served with the Complaint and Summons on December 17, 2013, and were therefore required to respond by January 7, 2014. See Pl.’s Proof of Service Affidavits, ECF Nos. [10]—[12]. Defendants failed to file an answer or otherwise respond to the Complaint in this Court by this deadline, and therefore on February 7, 2014, Plaintiff moved for entry of default against all three Defendants. See Pl.’s Aff. in Support of Default, ECF No. [16]. The Clerk of the Court subsequently entered default against all three Defendants on February 10, 2014. See Clerk’s Entry of Default, ECF No. [18]. The following day, Plaintiff filed the present [19] Request for Default Judgment, or, in the Alternative, Motion for Default Judgment. The present motion, mirroring the Complaint, seeks default judgment against Defendants Davidoff and Kalimanta-no GmbH, jointly and severally for damages and costs totaling $166,158.19, and against Defendant First Royal Services GmbH for damages totaling $20,508.45.

On February 27, 2014, the Clerk of the Court received a [20] letter from Defendants in response to the Entry of Default. Defendants state in this letter, dated February 20, 2014, that they received Plaintiffs complaint on December 13, 2013. Defs.’ Letter (Feb. 20, 2014), ECF No. [20] at 1. Defendants state that their German attorney e-mailed a response to this action to Plaintiffs counsel on January 2, 2014. Id. Apparently not understanding that a responsive filing needed to be made with the Court, Defendants state that “[o]ur attorney and we ourselves responded to Mr. Lambert’s action in a timely manner and did not miss any deadlines .... ” Id. Defendants also attach (in both English and German) the letter they sent Plaintiffs counsel which states that “[w]e oppose against [sic] your action against the three defendants and request to dismiss the actions. Furthermore, we herewith submit the objection against having the United States as place of jurisdiction.” Id. at 8. This letter also includes factual objections to Plaintiffs claims. Id. (“As reported by my clients there are no more fee claims to be settled, your attorney fee has already been paid in full.”).

*15 In light of this filing, the Court ordered Plaintiff to file a supplemental brief explaining why it would not be appropriate to deny Plaintiffs motion for default judgment and vacate the entry of default. See Order, ECF No. [21] at 3. The Court invited Defendants to respond to this briefing, and further advised Defendants that if they planned to contest this lawsuit going forward, they or their counsel should enter an appearance on the docket. Id. at 3-4. The Court instructed Defendants to enter such an appearance by no later than April 24, 2014. Id. at 4.

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306 F.R.D. 12, 2014 WL 4056518, 2014 U.S. Dist. LEXIS 113619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/law-office-ga-lambert-and-associates-v-davidoff-dcd-2014.