L&W Supply Corporation v. Driven Construction, Inc.

CourtDistrict Court, E.D. Virginia
DecidedApril 12, 2023
Docket2:22-cv-00437
StatusUnknown

This text of L&W Supply Corporation v. Driven Construction, Inc. (L&W Supply Corporation v. Driven Construction, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L&W Supply Corporation v. Driven Construction, Inc., (E.D. Va. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Norfolk Division L&W SUPPLY CORPORATION, Plaintiff, " Case No. 2:22-cv-437 DRIVEN CONSTRUCTION, INC. and JEFFREY S. LUNSFORD a/k/a JEFF LUNSFORD Defendants.

MEMORANDUM OPINION AND ORDER Before the Court is L&W Supply Corporation’s (““L&W” or “Plaintiff’) Motion for Default Judgment (“Motion” or “Motion for Default Judgment”), pursuant to Rule 55(b) of the Federal Rules of Civil Procedure. Mot. Default J., ECF No. 12 (“Mot.”). The Court FINDS that Plaintiff has provided sufficient evidence to support a finding of default judgment against Driven Construction, Inc. (“Driven” or “Defendant”). Accordingly, Plaintiff's Motion is GRANTED. I. FACTS AND PROCEDURAL HISTORY L&W Supply is a Delaware corporation that maintains its principal place of business in Chicago, Illinois and is authorized to conduct business in the Commonwealth of Virginia. Complaint (“Compl.”) 4 1, ECF No. 1. As a building supply company, L&W furnishes building materials to contractor customers to use on various public and private commercial and residential projects. Mot. at Ex. 1 9 4 (Decl. Thomas Moran). Driven is a Virginia corporation that maintains its principal place of business in Williamsburg, Virginia. Compl. § 2. Defendant Jeff Lunsford is a resident of Virginia and the President of Driven. /d. at 3. On July 7, 2014, Driven, as a corporate applicant, and Defendant Jeff Lunsford, as personal guarantor, executed a Credit Application and Guaranty with L&W (the “Agreement”). Jd. at 6;

Compl. at Ex. 1 (“Credit Application”), ECF No. 1-1. Pursuant to the Agreement, L&W provided construction materials to Driven on credit and Driven agreed to “pay to L&W Supply all costs of collection, including, without limitation, reasonable attorneys’ fees, paralegals’ fees, court costs, arbitration fees, sheriff's fees, bond costs and lien costs, incurred by L&W Supply in collecting any money due from [Driven.]” Jd. at 7-9; see Compl. at Ex. 1, § 6. Under the Guaranty provisions of the Agreement, Defendant Lunsford, in his personal capacity, agreed to “absolutely, irrevocably and unconditionally guarantee[] to L&W Supply...the timely payment and performance of all liabilities and obligations of [Driven] to L&W Supply.” Jd. Driven utilized and incorporated the building materials furnished by L&W to fulfill its various contracts for construction projects, including but not limited to: (1) Bruton High School in Williamsburg, Virginia; (2) Columbia Care in Williamsburg, Virginia and Virginia Beach Virginia; (3) Target in Simpsonville, South Carolina and Garner, North Carolina; (4) Rite Aid in Williamsburg, Virginia and Chesapeake, Virginia; (5) Burlington in Virginia Beach, Virginia; and (6) Davita Dialysis in Charlotte, North Carolina (collectively, the “Projects”). Jd. at J 1. L&W issued forty-eight (48) invoices (the “Invoices”) for the materials it furnished to Driven for the various Virginia Projects. Jd. at { 10; see id. at Ex. 2 (“Driven Invoices”), ECF No. 1-2. Each invoice states: “All accounts past due will be subject to a monthly late payment charge, not to exceed the maximum allowable by state or federal law.” Jd. Driven breached its contractual obligations to L&W by failing to make timely and proper payments on the Invoices as required by the Credit Application Agreement and invoice terms and conditions. Jd. at 9 11.; see id. at Ex. 3 (“Decl. of Account”), ECF No. 1-3. To date, Driven owes L&W the collective, principal balance amount of $136,207.96 for the materials used on the Projects described above, which is exclusive of service charges, attorneys’ fees, costs, expenses and interest. Jd. On October 20, 2022, Plaintiff filed the instant Complaint, bringing a breach of contract claim against Driven and Defendant Jeff Lunsford. Compl. On November 3, 2022, Driven’s registered agent,

Bennett L. Stein, was served with a summons and copy of the Complaint. Mot. { 2; see Summons, ECF No. 6. On November 29, 2022, Plaintiff filed a Request for Entry of Default against Driven, see Req. Entry Default, ECF No. 8. The Clerk entered default against Driven on November 30, 2022. Entry Default, ECF No. 9. Driven has not appeared or made any filings in this matter.' On December 28, 2022, Plaintiff filed the instant Motion for Default Judgment against Driven. See Mot. Plaintiff seeks to recover a total judgment amount of $152,150.22, which includes damages in the principal amount of $136,207.96, plus $9,276.59 in pre-judgment monthly service charges through December 28, 2022, $6,665.67 in attorney’s fees, costs and expenses, and post-judgment interest at the rate of six percent per annum. Jd. at { 12. On February 22, 2023, the Court held a hearing on the matter—at which representatives for Driven did not appear—and conducted an inquiry of Plaintiff's counsel regarding the Motion for Default Judgment. Mot. Hr’g, ECF No. 17. II. LEGAL STANDARD A. Default Judgment Rule 55 of the Federal Rules of Civil Procedure governs entries of default and default judgments. Pursuant to Rule 55(a), the Clerk must enter default against a party that “has failed to plead or otherwise defend” against an action. After the Clerk has entered default, a plaintiff may seek a default judgment against a defendant pursuant to Rule 55(b). The United States Court of Appeals for the Fourth Circuit has expressed “a strong preference that, as a general matter, defaults be avoided, and that claims and defenses be disposed of on their merits.” Colleton Preparatory Acad., Inc. v. Hoover Universal, Inc., 616 F.3d 413, 417 (4th Cir. 2010). Default judgment may be appropriate, however, “when the adversary process has been halted because of an essentially unresponsive party.” S.E.C. v. Lawbaugh, 359 F. Supp. 2d 418, 421 (D. Md. 2005).

' On January 20, 2023, L&W provided notice of its dismissal of all counts of the Complaint as against Defendant Jeff Lunsford. ECF No. 13.

A court must “exercise sound judicial discretion” when considering whether to enter default judgment, “and the moving party is not entitled to default judgment as a matter of right.” EMI Apr. Music, Inc. v. White, 618 F. Supp. 2d 497, 505 (E.D. Va. 2009) (citing Sentry Select Ins. Co. v. LBL Skysystems (U.S.A.) Inc., 486 F. Supp. 2d 496, 502 (E.D. Pa. 2007)). When determining whether to grant a motion for default judgment, courts may consider: (1) the amount of money potentially involved; (2) whether material issues of fact or issues of substantial public importance are at issue; (3) whether the default is largely technical; (4) whether plaintiff has been substantially prejudiced by the delay involved; (5) whether the grounds for default are clearly established or are in doubt; (6) how harsh an effect a default judgment might have; and (7) whether the default was caused by a good-faith mistake or by excusable or inexcusable neglect on the part of the defendant. Id. at 506 (quoting 10A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice & Procedure § 2685 (3d ed. 1998)) (internal quotations omitted).

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L&W Supply Corporation v. Driven Construction, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lw-supply-corporation-v-driven-construction-inc-vaed-2023.