Nuvasive, Inc. v. Absolute Medical, LLC

CourtDistrict Court, M.D. Florida
DecidedMay 17, 2024
Docket6:17-cv-02206
StatusUnknown

This text of Nuvasive, Inc. v. Absolute Medical, LLC (Nuvasive, Inc. v. Absolute Medical, 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
Nuvasive, Inc. v. Absolute Medical, LLC, (M.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION

NUVASIVE, INC.,

Plaintiff,

v. Case No: 6:17-cv-2206-CEM-LHP

ABSOLUTE MEDICAL, LLC, GREG SOUFLERIS, DAVE HAWLEY, ABSOLUTE MEDICAL SYSTEMS, LLC, RYAN MILLER and BRYAN E BUSCH,

Defendants

ORDER Before the Court are issues of quantification of Plaintiff Nuvasive, Inc.’s damages (Doc. Nos. 396–97), following the Court’s November 22, 2023 Order finding Plaintiff entitled to default judgment on all claims against all Defendants as a sanction for Defendants’ litigation misconduct, and finding Plaintiff entitled to fees and costs associated with the litigation of Defendants’ spoliation of email domains and accounts, with such fees and costs to be imposed jointly and severally against Defendants and their counsel, Bryan E. Busch. Doc. No. 395. The lengthy and tortured history of this case has been laid out in detail by prior Orders of the Court, with which the undersigned presumes the parties’ familiarity, see Doc. Nos. 290, 331, 334, 371, 395, see also Doc. No. 383. In sum, the Court has found Plaintiff

entitled to default judgment on the claims raised in the second amended complaint (Doc. No. 188) as follows: a. Counts I and II breach of contract against Absolute Medical, LLC (“AM”);

b. Count III breach of contract against Absolute Medical Systems, LLC (“AMS”); c. Count IV breach of contract against Dave Hawley and Ryan Miller; d. Count V conversion against Hawley and AMS;

e. Count VI statutory individual liability against Greg Soufleris; f. Count VII piercing the corporate veil against Soufleris, AM, and AMS;1 g. Count VIII Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”)

against all Defendants; and h. Count IX tortious interference with business relationships against Soufleris.

See Doc. No. 395, at 27–28. The Court ordered Plaintiff, on or before December 6, 2023, to file a brief as to damages related to the default judgment and an accounting of fees and costs

1 Although the second amended complaint brings Count VII against Soufleris, Doc. No. 188, at 21, as the Court noted, “Count VII pertains to piercing the corporate veil as to Soufleris for the actions of AM and AMS.” See Doc. No. 395, at 3, 28. associated with the litigation of the spoliation of email domains and accounts. Id. at 28. Plaintiff timely filed briefing on both counts, and before the Court are

Plaintiff’s Damages Memorandum (Doc. No. 396, “Damages Memorandum”) and Accounting of Fees and Costs Associated with the Litigation of Defendants’ Spoliation of Email Domains and Accounts (Doc. No. 397, “Spoliation

Memorandum”). The Court has referred the issue of quantification to the undersigned for issuance of a report and recommendation. Upon consideration, however, Plaintiff’s requests for quantification (Doc. Nos. 396, 397) will be DENIED without prejudice to re-briefing, as more fully set forth below.

As an initial matter, although default has been entered against Defendants as to all claims, Doc. No. 395, Plaintiff still bears the burden of proving its damages. Indeed, even in the default judgment context, “[a] court has an obligation to assure

that there is a legitimate basis for any damage award it enters.” Anheuser Busch, Inc. v. Philpot, 317 F.3d 1264, 1266 (11th Cir. 2003); see also Adolph Coors Co. v. Movement Against Racism & the Klan, 777 F.2d 1538, 1544 (11th Cir. 1985) (explaining

that damages may be awarded on default judgment only if the record adequately reflects the basis for award). In this regard, the undersigned finds Plaintiff’s briefing lacking in several respects. Specifically, as it relates to the Damages Memorandum (Doc. No. 396),

Plaintiff seeks four categories of relief, to include lost profits, constructive trust damages, attorneys’ fees and expenses, and prejudgment interest. First, as to lost profits, Plaintiff contends, in a conclusory fashion, that its lost profits are

recoverable on its contract claim against AM under Delaware law and points to an attached Declaration and Supplemented Report of Misty L. Decker. Doc. No. 396, at 3–5; Doc. No. 396-1. But besides stating that Ms. Decker used a “before-and-

after” methodology to calculate lost profits, Plaintiff provides no explanation for her calculations and appears to be asking the Court to just rubber-stamp her analysis. Doc. No. 396, at 5. Plaintiff provides no legal authority supporting such an approach, however, even if Defendants are in default. See id.2 Instead, the

undersigned will require Plaintiff to explain, by citation to appropriate evidence and legal authority, why use of the “before-and-after” methodology was

2 The undersigned has no quarrel with Plaintiff’s contentions that the AM breach of contract claim is governed by Delaware law, and that lost profits are an appropriate contract damages remedy under Delaware law. See, e.g., NuVasive, Inc. v. Day, No. 19-CV- 10800, 2022 WL 899244, at *10 (D. Mass. Mar. 28, 2022), aff’d, 77 F.4th 23 (1st Cir. 2023)). However, the case law Plaintiff cites in its briefing does not support the approach Plaintiff takes here, which appears to be asking the Court to accept the Decker report without inquiry. Indeed, several of the cases cited do not even apply Delaware law, see Tractebel Energy Mktg., Inc. v. AEP Power Mktg., Inc., 487 F.3d 89, 93, 109 (2d Cir. 2007) (New York law), Bonanza Rest. Co. v. Wink, No. CIV.A. S10C-10018RFS, 2012 WL 1415512, at *3 (Del. Super. Ct. Apr. 17, 2012) (Texas law), M & G Polymers USA, LLC v. Carestream Health, Inc., No. CIV.A.07C-11-242PLA, 2010 WL 1611042, at *28 (Del. Super. Ct. Apr. 21, 2010) (New York law), and the NuVasive case, 2022 WL 899244, addressed a different methodology and was decided following a contested evidentiary hearing after summary judgment. appropriate, how Ms. Decker appropriately applied it, and legal authority supporting the Court’s acceptance of Ms. Decker’s analysis.3

Likewise, Plaintiff relies solely on the Decker report for calculation of lost profit damages as to the FDUTPA claim, as well as prejudgment interest and constructive trust damages, Doc. No. 396, at 7–10, 12–13, and thus, renewed briefing

must address these categories of damages in the same fashion, as well. Further, Plaintiff says that the recovery sought on several of the remaining claims are duplicative of the requests for lost profits on the AM breach of contract claim, and therefore, Plaintiff must provide an explicit recitation as to how the damages are to

be apportioned among/between claims, and Plaintiff must explicitly state the amounts for which each Defendant is liable on each claim (individually or jointly and severally), with citation to the record and legal authority in support.

By its Damages Memorandum, Plaintiff also seeks an award of attorneys’ fees related both to its breach of contract claim against AM and under FDUTPA. Doc. No. 396, at 5–7, 15–16. Although the Court entered default judgment on these

claims, the Court has not determined Plaintiff’s entitlement to fees under either legal basis, and thus, Plaintiff must establish both entitlement and quantification.

3 Notably, the Court addressed a prior report from Ms. Decker on a contested Daubert motion and found the “before-and-after” methodology an appropriate measure for calculating lost profits. Doc. No. 334.

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