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

72 F. Supp. 3d 110, 2014 U.S. Dist. LEXIS 154095, 2014 WL 5475182
District Court, District of Columbia·Decided October 30, 2014·No. Civil Action No. 2013-1734·Published·Cited by 5 cases

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 [30] Renewed Motion for Default Judgment. Upon consideration of the parties’ submissions, 1 the *112 relevant legal authorities, and the record as a whole, and for the reasons stated below, the Court GRANTS Plaintiffs [30] Renewed Motion for Default Judgment as MODIFIED here and enters JUDGMENT against Defendants Davidoff and Kalimantano, jointly and severally, for $84,925 with respect to Plaintiffs claims for unpaid legal fees and for $16,575.03 with respect to Plaintiffs claims for unpaid costs, as well as for costs in this action of $1,275. No prejudgment interest is awarded. Accordingly, a total judgment of $102,775.03 is entered against Defendants Davidoff and Kalimantano, jointly and severally'.

Plaintiff does not pursue his claims against the third defendant, First Royal Services GmbH, in this motion, and the Court dismisses the claims against First Royal without prejudice based on the reasons described below. The Court also dismisses without prejudice Counts 3, 4, and 5 of the Complaint, all pertaining to allegations of fraud committed by the Defendants. Given that Plaintiff has chosen not to seek a default judgment with respect to damages arising out of these counts, as well as for the reasons described below, the Court dismisses those claims without prejudice against all Defendants. Accordingly, the Court DISMISSES this action in its entirety.

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. Compl. ¶ 1. Defendant Tofik Davidoff is a German national, who is closely allied with two German companies: Defendants Kalimantano GmbH and First Royal Services GmbH. /&¶¶ 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, Kon-stantin Felde, and 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, Davidoff 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 Davidoff and Kali- *113 mantano — a pending matter in the United State's 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, 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 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 Meruit, 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 a [19] Request for Default Judgment, or, in the Alternative, Motion for Default Judgment. "That motion, mirroring the Complaint, sought default judgments against Defendants Davidoff and Kaliman-tano 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 stated 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 stated 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 stated 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 attached (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 included factual objections to Plaintiffs claims. Id.

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Law Office G.A. Lambert and Associates v. Davidoff, 72 F. Supp. 3d 110, 2014 U.S. Dist. LEXIS 154095, 2014 WL 5475182 (D.D.C. 2014).

72 F. Supp. 3d 110 (Law Office G.A. Lambert and Associates v. Davidoff) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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