Midstate Advertising, LLC, et al. v. Midstate Signs, LLC, et al.

District Court, M.D. Alabama·Decided June 15, 2026·No. 2:25-cv-00487·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA NORTHERN DIVISION

MIDSTATE ADVERTISING, LLC, et al., ) ) Plaintiffs, ) ) v. ) CIVIL CASE NO. 2:25-cv-487-ECM ) [WO] ) MIDSTATE SIGNS, LLC, et al., ) ) Defendants. )

MEMORANDUM OPINION and ORDER

I. INTRODUCTION

On July 2, 2025, Midstate Advertising, LLC and Potter Enterprises, LLC (collectively, the “Plaintiffs”) sued Defendants Midstate Signs, LLC (“Midstate Signs”), CLL Properties, LLC (“CLL”), and Archibald M. Lee Sr. (“Lee”) (collectively, the “Defendants”) for breach of contract (against Midstate Signs and CLL) and breach of guaranty (against Lee). (Doc. 1 at 4, paras. 16–21).1 One month later, on August 2, 2025, each Defendant was served with a copy of the summons and complaint. (Docs. 7, 8, 9). The Defendants have failed to plead or otherwise defend. Consequently, the Plaintiffs sought and obtained an entry of default against the Defendants. (Docs. 11, 12, 14). On February 23, 2026, the Plaintiffs filed two motions for default judgment against: (1) Defendant Lee (doc 16); and (2) Defendants Midstate Signs and CLL (doc. 17). The Plaintiffs also filed a motion for scheduling conference to discuss the pending motions for

1 For clarity, the Court refers to the document and page numbers generated by CM/ECF. default judgment. (Doc. 18). After careful review, and for the reasons that follow, the Plaintiffs’ motions (docs. 16, 17, 18) are due to be denied without prejudice.

II. JURISDICTION AND VENUE The Court has subject matter jurisdiction over this matter pursuant to 28 U.S.C. § 1332. Personal jurisdiction and venue are uncontested, and the Court concludes that venue properly lies in the Middle District of Alabama. See 28 U.S.C. § 1391. III. LEGAL STANDARDS

A. Motions for Default Judgment Default may be entered when a defendant “has failed to plead or otherwise defend.” FED. R. CIV. P. 55(a). While the Eleventh Circuit has a “strong policy of determining cases on their merits” and “therefore view[s] defaults with disfavor,” In re Worldwide Web Sys., Inc., 328 F.3d 1291, 1295 (11th Cir. 2003), it is well-settled that a “district court has the authority to enter default judgment for failure to prosecute with reasonable diligence or to

comply with its orders or rules of procedure.” Wahl v. McIver, 773 F.2d 1169, 1174 (11th Cir. 1985) (per curiam). “When a defendant defaults, he ‘admits the plaintiff’s well-pleaded allegations of fact.’” Giovanno v. Fabec, 804 F.3d 1361, 1366 (11th Cir. 2015) (per curiam) (quoting Lary v. Trinity Physician Fin. & Ins. Servs., 780 F.3d 1101, 1106 (11th Cir. 2015)).

Therefore, “the allegations must be well-pleaded in order to provide a sufficient basis for the judgment entered.” De Lotta v. Dezenzo’s Italian Rest., Inc., 2009 WL 4349806, at *1 (M.D. Fla. Nov. 24, 2009)2 (citing Eagle Hosp. Physicians, LLC v. SRG Consulting, Inc., 561 F.3d 1298, 1307 (11th Cir. 2009)). A complaint is “well-pleaded” when it satisfies the

requirements set out in Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007). Specifically, a plaintiff’s “[f]actual allegations must be enough to raise a right to relief above the speculative level.” Id. at 555. “[A] formulaic recitation of the elements of a cause of action will not do.” Id. A “[p]laintiff’s motion for default judgment is deficient [when] it neither sets forth the elements of [the] [p]laintiff’s claims with citations to legal authority, nor shows how

the allegations plead in the [c]omplaint establish the elements of each claim.” Senator- Rudat v. Southard, 2021 WL 9721150, at *2 (N.D. Ga. Dec. 13, 2021); see Accident Ins. Co. v. DWF Installations, Inc., 2024 WL 3470354, at *1 (M.D. Fla. July 19, 2024); Rigby v. Direct Gen. Ins. Co., 2023 WL 2894365, at *1 (M.D. Fla. Apr. 11, 2023); Gonopolsky v. Korchak, 2007 WL 1549429, at *2 (M.D. Fla. May 25, 2007). “Entry of default

judgment is only warranted when there is ‘a sufficient basis in the pleadings for the judgment entered.’” Surtain v. Hamlin Terrace Found., 789 F.3d 1239, 1245 (11th Cir. 2015) (per curiam) (quoting Nishimatsu Constr. Co. v. Hou. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)).3

2 The Court here, and elsewhere in this Memorandum Order and Opinion, cites to nonbinding authority. While the Court recognizes that these cases are not precedential, the Court finds them persuasive.

3 In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (en banc), the Eleventh Circuit adopted as binding precedent all Fifth Circuit decisions before October 1, 1981. B. Motion for Scheduling Conference “[D]istrict courts enjoy broad discretion in deciding how best to manage the cases

before them.” Chudasama v. Mazda Motor Corp., 123 F.3d 1353, 1366 (11th Cir. 1997). This broad discretion extends “over the management of pre-trial activities, including discovery and scheduling.” Johnson v. Bd. of Regents of Univ. of Ga., 263 F.3d 1234, 1269 (11th Cir. 2001). “This discretion is not wholly unfettered, . . . but it is and must be broad.” Chrysler Int’l Corp. v. Chemaly, 280 F.3d 1358, 1360 (11th Cir. 2002).

IV. DISCUSSION A. Motions for Default Judgment In support of their motions for default judgment, the Plaintiffs cursorily state: (1) the Defendants were properly served; (2) the Clerk of the Court entered default against the Defendants; (3) the Defendants are not protected from default judgment; and (4) the Plaintiffs’ claims are for sums certain.4 (Doc. 16 at 1–3; doc. 17 at 1–3). The Plaintiffs ask

the Court to enter a default judgment against the Defendants “in the amount of $573,875.43 . . . plus future interest, as well as attorney[] fees and costs incurred to be determined by the Court.” (Doc. 16 at 3; doc. 17 at 3). In the motions for default judgment, the Plaintiffs fail to cite or discuss the complaint’s factual allegations or elements of their causes of action. (See docs. 16, 17).

Nor do the Plaintiffs explain how their factual allegations establish breach of contract or breach of guaranty. (See doc. 1 at 4, paras. 16–21). And “[i]t is [the] Plaintiff[s’] burden

4 Although the Plaintiffs filed two separate motions for default judgment, their requested relief and supporting documents are essentially identical. (Compare docs. 16, 16-1, 16-2, with docs. 17, 17-1, 17-2). to address the elements of the causes of action and the specific, well-pled facts in the operative complaint that satisfy each of those elements.” See Schatz v.

Free access — add to your briefcase to read the full text and ask questions with AI

Midstate Advertising, LLC, et al. v. Midstate Signs, LLC, et al., (M.D. Ala. 2026).

Midstate Advertising, LLC, et al. v. Midstate Signs, LLC, et al. (Midstate Advertising, LLC, et al. v. Midstate Signs, LLC, et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Chudasama v. Mazda Motor Corp.
123 F.3d 1353 (Eleventh Circuit, 1997)
Johnson v. Board of Regents of the University of Georgia
263 F.3d 1234 (Eleventh Circuit, 2001)
Chrysler International Corp. v. John Chemaly
280 F.3d 1358 (Eleventh Circuit, 2002)
James P. Cotton, Jr. v. Massachusetts Mutual Life
402 F.3d 1267 (Eleventh Circuit, 2005)
Eagle Hospital Physicians, LLC v. SRG Consulting, Inc.
561 F.3d 1298 (Eleventh Circuit, 2009)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Larry Bonner v. City of Prichard, Alabama
661 F.2d 1206 (Eleventh Circuit, 1981)
Peter Gerard Wahl v. William McIver
773 F.2d 1169 (Eleventh Circuit, 1985)
Atlantic Recording Corp. v. Carter
508 F. Supp. 2d 1019 (S.D. Alabama, 2007)
Pitts Ex Rel. Pitts v. Seneca Sports, Inc.
321 F. Supp. 2d 1353 (S.D. Georgia, 2004)
Portia Surtain v. Hamlin Terrace Foundation
789 F.3d 1239 (Eleventh Circuit, 2015)
Irina Giovanno v. Louis Fabec
804 F.3d 1361 (Eleventh Circuit, 2015)