nFusion Capital Finance, LLC v. Walt USA, LLC

CourtDistrict Court, D. Utah
DecidedMarch 13, 2026
Docket1:24-cv-00018
StatusUnknown

This text of nFusion Capital Finance, LLC v. Walt USA, LLC (nFusion Capital Finance, LLC v. Walt USA, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
nFusion Capital Finance, LLC v. Walt USA, LLC, (D. Utah 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

NFUSION CAPITAL FINANCE, LLC,

Plaintiff, MEMORANDUM DECISION & ORDER DENYING WITHOUT v. PREJUDICE MOTIONS FOR SUMMARY JUDGMENT

Civil No. 1:24-cv-00018-AMA-CMR WALT USA, LLC, District Judge Ann Marie McIff Allen Defendant. Magistrate Judge Cecilia M. Romero

This matter comes before the Court on the Motion for Summary Judgment and, Alternatively, for Dismissal filed by Defendant Walt USA, LLC (“Walt”)1 and the Amended Motion for Summary Judgment filed by Plaintiff nFusion Capital Finance, LLC (“nFusion”).2 The Court did not hear oral argument. For the reasons below, the Court will deny both Motions without prejudice. Pursuant to Walt’s Rule 56(d) request, the Court will reopen fact discovery for both parties. BACKGROUND3 On September 22, 2022, Plaintiff nFusion and nonparty Pickett Hosiery Mills, Inc. (“Pickett”) entered into an Account Purchase and Security Agreement (“Factoring Agreement”)

1 ECF No. 25, filed August 29, 2025. 2 ECF No. 28, filed October 10, 2025. 3 This background is given for the purpose of contextualizing the instant Motions. The information herein is taken from nFusion’s Complaint, Walt’s Answer, and the briefing for the Motions at issue. See ECF Nos. 1, 18, 25–26. The Court makes no assumptions as to the truth of any allegations. under which nFusion agreed to purchase eligible Accounts from Pickett under an agreed-upon formula.4 Defendant Walt had entered into a separate agreement with Pickett pursuant to which Pickett would provide products to Walt in exchange for specified charges.5 nFusion sent to Walt a Notice of Assignment (“Notice”) specifying that Pickett had assigned all of its present and

future accounts to nFusion and instructing Walt to direct all payment on Pickett invoices to nFusion.6 Walt admits that it received this Notice “at some point in time.”7 nFusion alleges that under the terms of the Factoring Agreement, Pickett requested that nFusion purchase, and nFusion in fact purchased, numerous Pickett invoices reflecting amounts due from Walt for products that Pickett supplied to Walt from around August 4, 2023 to September 29, 2023.8 nFusion further alleges that the principal amount due from Walt for the Walt Accounts is $122, 943.03.9 Walt contends that it paid Pickett for what was owed.10 On January 31, 2024, Plaintiff initiated the instant action.11 On July 5, 2024, the Clerk of the Court entered a default certificate as to Walt.12 However, on October 15, 2024, the Court set aside the default certificate based on the parties’ stipulation.13 On February 10, 2025, the Court

entered a Scheduling Order setting forth the following relevant deadlines: February 5, 2025 for Rule 26(a)(1) Initial Disclosures and July 22, 2025 for the close of fact discovery.14

4 ECF No. 1 ¶ 8; see id. Ex. A. 5 Id. ¶ 13. 6 Id. ¶ 11; see id. Ex. B. 7 ECF No. 18 ¶ 11. 8 ECF No. 1 ¶ 15. 9 Id. ¶ 16. 10 ECF No. 18 at 6. 11 ECF No. 1. 12 ECF No. 9. 13 ECF No. 16. 14 ECF No. 24. It appears that neither party served initial disclosures.15 After fact discovery had closed, on August 29, 2025, Walt filed its Motion for Summary Judgment or, Alternatively, for Dismissal seeking exclusion of all of nFusion’s evidence.16 nFusion filed its response on September 26, 2025,17 to which Walt replied on October 10, 2025.18 Also on October 10, 2025, nFusion filed its Amended Motion for Summary Judgment.19 Walt filed its response on

November 14, 2025,20 and nFusion filed its reply on December 12, 2025.21 DISCUSSION A. Rule 37 Sanctions Federal Rule of Civil Procedure Rule 26(a) governs initial disclosures and mandates parties to, “[e]xcept as exempted by Rule 26(a)(1)(B) or as otherwise stipulated or ordered by the court” and “without awaiting a discovery request, provide to the other parties” information regarding witnesses and documents “that the disclosing party may use to support its claims or defenses,” as well as a computation of damages. Rule 37(c)(1) then provides that [i]f a party fails to provide information or identify a witness as required by Rule 26(a) or (e), the party is not allowed to use that information or witness to supply evidence on a motion, at a hearing, or at a trial, unless the failure was substantially justified or is harmless. In addition to or instead of this sanction, the court, on motion and after giving an opportunity to be heard: . . . (C) may impose other appropriate sanctions listed in Rule 37(b)(2)(A)(i)–(iv).

15 See ECF No. 25; ECF No. 26 at 10. 16 ECF No. 25. 17 ECF No. 26. 18 ECF No. 29. 19 ECF No. 28. nFusion’s Amended Motion for Summary Judgment appears to correct typographical errors in the Motion for Summary Judgment it filed that same day. See ECF No. 27. Otherwise, the Amended Motion appears identical to the initial Motion for Summary Judgment. The Court thus considers the Amended Motion here. 20 ECF No. 32. 21 ECF No. 38. “[E]videntiary sanctions available for nondisclosure under Rule 37(c) ‘are often described as self-executing or automatic.’”22 However, “[t]he determination of whether a Rule 26(a) violation is justified or harmless is entrusted to the broad discretion of the district court.”23 A court’s discretion should be guided by the following factors: “(1) the prejudice or surprise to the party

against whom the testimony is offered; (2) the ability of the party to cure the prejudice; (3) the extent to which introducing such testimony would disrupt the trial; and (4) the moving party’s bad faith or willfulness.”24 “Federal Rule of Civil Procedure 37(b)(2) becomes relevant ‘where the exclusion of evidence carries the force and effect of dismissal.’”25 While Rule 37(b)(2) allows district courts to “dismiss[] the action or proceeding in whole or in part[,]” a court should consider the Ehrenhaus factors before imposing the extreme sanction of dismissal.26 Those factors are as follows: (1) the degree of actual prejudice to the [other party]; (2) the amount of interference with the judicial process; . . . (3) the culpability of the litigant; (4) whether the court warned the party in advance that dismissal of the action would be a likely sanction for noncompliance; and (5) the efficacy of lesser sanctions.27

Dismissal under Rule 37(b)(2) should “be used as a weapon of last, rather than first, resort,”28 and “[o]nly when the aggravating factors outweigh the judicial system’s strong predisposition to

22 Garner v. Cincinnati Ins. Co., No. 2:24-cv-00378, 2025 WL 3088945, at *4 n.42 (D. Utah Nov. 5, 2025) (citation modified) (quoting O’Sullivan v. Geico Cas. Co., 233 F. Supp. 3d 917, 931 (D. Colo. 2017)). 23 Woodworker’s Supply, Inc. v. Principal Mut. Life Ins. Co., 170 F.3d 985, 993 (10th Cir. 1999). 24 HCG Platinum, LLC v. Preferred Prod. Placement Corp., 873 F.3d 1191, 1200 (10th Cir. 2017) (quoting Woodworker’s Supply, Inc., 170 F.3d at 993). 25 Burgi v. Fitness, No. 2:19-cv-00151-CMR, 2021 WL 734948, at *3 (D. Utah Feb. 25, 2021) (quoting HCG Platinum, LLC, 873 F.3d at 1203). 26 See HCG Platinum, LLC, 873 F.3d at 1203. 27 Id. (alterations in original) (citing Ehrenhaus v. Reynolds, 965 F.2d 916, 920–21 (10th Cir. 1992)). 28 Id. at 1204 (quoting Ehrenhaus, 965 F.2d at 920).

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nFusion Capital Finance, LLC v. Walt USA, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nfusion-capital-finance-llc-v-walt-usa-llc-utd-2026.