McKesson Corporation v. BENZER KY 1, LLC

CourtDistrict Court, M.D. Florida
DecidedJanuary 10, 2025
Docket8:24-cv-01256
StatusUnknown

This text of McKesson Corporation v. BENZER KY 1, LLC (McKesson Corporation v. BENZER KY 1, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKesson Corporation v. BENZER KY 1, LLC, (M.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

MCKESSON CORPORATION,

Plaintiff,

v. Case No. 8:24-cv-1256-WFJ-SPF

BENZER KY 1 LLC, BENZER PHARMACY HOLDING LLC, ALPESH PATEL, MANISH PATEL, and HEMA PATEL,

Defendants.

___________________________________/

ORDER Before the Court is Plaintiff McKesson Corporation’s Motion for Default Judgment against Defendants Benzer KY 1 LLC, Alpesh Patel, Manish Patel, and Hema Patel, Dkt. 32. A Declaration of Plaintiff’s Senior Credit Manager, Richard Call, is filed in support of Plaintiff’s Motion, Dkt. 33. Upon careful consideration of the allegations in the Complaint and Plaintiff’s filings, Plaintiff’s Motion is granted in part and denied in part. Default judgment will be entered against Benzer KY 1 LLC, Alpesh Patel, and Manish Patel in the amount of $144,476.64 plus post- judgment interest. Default judgment will not be entered against Hema Patel. BACKGROUND Benzer Pharmacy Holding LLC (“Benzer Pharmacy”) is a related Defendant

in this action and the subject of a separate Motion for Default Judgment. See generally Dkt. 38. The Clerk entered default as to Benzer Pharmacy separately after proper service of process was confirmed. See generally Dkts. 36, 37. The Court thus

considers this Motion as to only the other Defendants, although Benzer Pharmacy is integral to the facts of the case. Benzer Pharmacy, together with its affiliates and subsidiaries that include Benzer KY 1, operated a pharmacy chain. Dkt. 32 at 3. Through this network, Benzer

Pharmacy sold prescription and over-the-counter drugs at physical and online locations. Id. Benzer Pharmacy arranged for the acquisition of prescription drugs from various distributors. Id. To obtain these prescription drugs, Benzer Pharmacy

and Benzer KY 1 entered into business arrangements with McKesson. Id. Benzer KY 1 completed McKesson’s customer application in June 2018. Id. at 4. In October 2018, Benzer KY 1 executed and delivered to McKesson a negotiable promissory note for $464,000. Id. The promissory note obligated Benzer

KY 1 to pay eighty-three consecutive monthly installments of $5,523.80 beginning November 1, 2018, with one final installment of $5,524.60 on October 1, 2025. Id. at 7. The other Defendants in this action are guarantors of Benzer KY 1’s obligation to McKesson. Pertinent to this Motion, in October 2018, Alpesh Patel

executed an individual guaranty guaranteeing to McKesson payment and performance of all liabilities and obligations of Benzer KY 1. Id. at 5. Manish Patel executed the same individual guaranty. Id. at 6. Finally, as part of Benzer KY 1’s

customer application to McKesson, both Hema Patel and Alpesh Patel executed provisions of the application guaranteeing Benzer KY 1’s obligation to McKesson. Id. at 5–6, 7. Benzer KY 1 defaulted on its obligation beginning October 1, 2023, by failing

to pay amounts due. Id. at 8. Pursuant to Benzer KY 1’s default, McKesson made a demand for payment in February 2024 that went unanswered by Benzer KY 1 and the guarantors. Id. In April 2024, McKesson accelerated all principal and interest to

be immediately due and payable. Id. Neither Benzer KY 1 nor the guarantors paid the balance. Id. at 8–9. Consequently, McKesson filed this action in May 2024. See generally Dkt. 1. Proper service of process was made on all Defendants, but none have ever appeared. See generally Dkts. 23, 36. Clerk’s default has been entered as

to each Defendant. See generally Dkts. 24, 25, 26, 27, 37. As of October 16, 2024, McKesson moved for entry of final judgment in the amount of $141,300.50. Dkt. 32 at 14. $126,732.37 of that amount is outstanding

principal on the note. Id. at 9. The remainder of that amount is interest at the Wall Street Journal prime rate plus two percent, pursuant to the terms of the note. Id.; Dkt. 33-1 at 16. Plaintiff is entitled to default judgment in the amount of $144,476.64, as

will be explained in the damages subsection below. LEGAL STANDARD “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.” Fed. R. Civ. P. 55(a). Then, the plaintiff may apply to the Clerk or the Court for a default judgment. Fed. R. Civ. P. 55(b).

Before granting a motion for default judgment, the Court must ensure that it has jurisdiction over the subject matter and the parties. Vigil v. Primaso, Inc., No. 8:18-cv-1710-T-60CPT, 2020 WL 1976979, at *1 (M.D. Fla. Mar. 12, 2020), report

and recommendation adopted, 2020 WL 1974232. Once jurisdiction is established, the Court considers whether the allegations in the complaint can establish liability. “The effect of the entry of a default is that all of the factual allegations in the Complaint are taken as true, save for the amount of

unspecified damages.” Whole Space Indus., Ltd. v. Gulfcoast Int’l Products, Inc., No. 2:09-cv-217-UA-SPC, 2009 WL 2151309, at *3 (M.D. Fla. July 13, 2009) (citation omitted). So, the entry of a default establishes liability if it is well-pleaded.

Id.; see Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987). Finally, “[a]lthough a defaulted defendant admits well-pleaded allegations of liability, allegations relating to the amount of damages are not admitted by virtue of

default[.]” Whole Space, 2009 WL 2151309, at *3. Instead, “the Court determines the amount and character of damages to be awarded.” Id. Damages can be awarded without an evidentiary hearing if the amount is a liquidated sum or capable of

mathematical calculation. See Fed. R. Civ. P. 55(b)(1); SEC v. Smyth, 420 F.3d 1225, 1231 (11th Cir. 2005). DISCUSSION Plaintiff’s filings have established the Court’s jurisdiction over Benzer KY 1,

Alpesh Patel, and Manish Patel. The Court lacks personal jurisdiction over Hema Patel. Plaintiff’s filings have also established Benzer KY 1, Alpesh Patel, and Manish Patel’s liability, and the amount of damages Plaintiff may recover.

I. Jurisdiction The Court has subject matter jurisdiction and personal jurisdiction over every Defendant except Hema Patel. a. Subject Matter Jurisdiction

The Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. § 1332(a), which provides for diversity jurisdiction when the matter in controversy exceeds $75,000 and exists between citizens of different states. A

corporation is a citizen of every state by which it has been incorporated and where it has its principal place of business. § 1332(c). “[A] limited liability company is a citizen of any state of which a member of the company is a citizen.” Rolling Greens

MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020, 1022 (11th Cir. 2004). In its Complaint, McKesson demanded inter alia $126,732.37 for outstanding principal on the note, exceeding the $75,000 threshold jurisdictional requirement.

Dkt. 1 at 13; 28 U.S.C. § 1332.

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McKesson Corporation v. BENZER KY 1, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckesson-corporation-v-benzer-ky-1-llc-flmd-2025.