PANDA AMERICAS, INC. v. FUTURE FUND INVESTMENTS CORPORATION

CourtDistrict Court, D. New Jersey
DecidedOctober 6, 2025
Docket2:25-cv-02641
StatusUnknown

This text of PANDA AMERICAS, INC. v. FUTURE FUND INVESTMENTS CORPORATION (PANDA AMERICAS, INC. v. FUTURE FUND INVESTMENTS CORPORATION) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PANDA AMERICAS, INC. v. FUTURE FUND INVESTMENTS CORPORATION, (D.N.J. 2025).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

PANDA AMERICAS, INC., Plaintiff, Case No. 2:25-cv-02641 (BRM) (JBC) v.

OPINION FUTURE FUND INVESTMENTS CORPORATION, Defendant. MARTINOTTI, DISTRICT JUDGE Before the Court is Plaintiff Panda Americas, Inc.’s (“Panda Americas”) Motion for Default Judgment against Defendant Future Fund Investments Corp. (“Future Fund Investments”) pursuant to Federal Rule of Civil Procedure 55(b)(2) (ECF No. 8) and Future Fund Investments’ Motion to Vacate Default and Default Judgment (ECF No. 9). On July 21, 2025, Panda Americas filed a Brief in Opposition to Future Fund Investments’ Motion to Vacate Default and Default Judgment. (ECF No. 10.) On July 24, 2025, Future Fund Investments filed a Response. (ECF No. 11.) Having reviewed and considered the submissions filed in connection with the motions and having declined to hold oral argument pursuant to Federal Rule of Civil Procedure 78(b), for the reasons set forth below and for good cause having been shown, Panda Americas’ Motion for Default Judgment is DENIED and Future Fund Investments’ Motion to Vacate Default is GRANTED. I. BACKGROUND On a motion to vacate default, the Court takes the defendant’s mere allegations as true. See Emcasco Ins. Co. v. Sambrick, 834 F.2d 71, 74 (3d Cir.1987) (“We need not decide the legal issue at this time; it is sufficient that [the] proffered defense is not ‘facially unmeritorious.’”). But on a motion for default judgment, the Court treats all pleadings and allegations of the plaintiff as true. See Comdyne I, Inc. v. Corbin, 908 F.2d 1142, 1149 (3d Cir. 1990). Panda Americas is a commercial seller of aluminum based and headquartered in New York,

New York. (ECF No. 1, ¶¶ 3, 7–8.) Future Fund Investments is a commercial purchaser of aluminum based and headquartered in Paterson, New Jersey. (Id. ¶¶ 1, 4.) Panda Americas and Future Fund Investments “entered into two agreements . . . for the delivery . . . of aluminum foil.” (Id. ¶ 7.) On May 23, 2023, Future Fund Investments initiated these agreements by placing two orders with Panda Americas. (Id. ¶ 8.) On May 31, 2023, Panda Americas issued commercial invoices for Future Fund Investments’ orders: Invoice No. 202300000083 “in the amount of $77,433.10” (“Order I”); and Invoice No. 202300000085 in “the amount of $74,933.10” (“Order II”). (Id.) Future Fund Investments “accepted the invoices without objection,” so Panda Americas shipped and delivered the goods, and Future Fund Investments accepted the delivery. (Id. ¶ 9.) To date, Future Fund Investments has failed to remit payment for any amount owed on Order I and

only paid half the amount owed on Order II. (Id. ¶ 10.) Both invoices include identical payment terms: “[d]elay interest of 1% will be applied per month” starting on July 30, 2023, i.e., “60 days after [the] invoice date.” (Id., Ex A; id., Ex. B; accord id. ¶ 15.) Panda Americas filed its Complaint against Future Fund Investments on April 11, 2025, and alleged the following claims: Breach of Contract (“Count One”) and Unjust Enrichment/Promissory Estoppel (“Count Two”). (Id. at 3) Panda Americas served Future Fund Investments on April 16, 2025. (ECF No. 4.) On May 23, 2025, Panda Americas moved for an entry of default against Future Fund Investments. (ECF No. 6.) The Clerk of Court entered a default against Future Fund Investments on May 27, 2025. (Clerk’s Entry Dated May 27, 2025.) Panda Americas then brought a Motion for Default Judgment on June 10, 2025. (ECF No. 8.) Future Fund Investments then filed a Motion to Vacate Default and Default Judgment on July 7, 2025.1 (ECF No. 9.) On July 21, 2025, Panda Americas filed a brief in opposition to Future Fund Investments’ Motion to Vacate (ECF No. 10),

and Future Fund Investments filed a reply on July 24, 2025 (ECF No. 11). II. LEGAL STANDARD A. Default Federal Rule of Civil Procedure 55(a) requires the Clerk’s Office to enter default against a party whom a judgment for affirmative relief is sought when the party “has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise.” Wahab v. New Jersey Dep’t of Env’t Prot., Civ. A. No. 12-6613, 2017 WL 4790387, at *2 (D.N.J. Oct. 24, 2017). However, Federal Rule of Civil Procedure 55(c) permits the Court to “set aside an entry of default for good cause” at its discretion. Fed. R. Civ. P. 55(c); see Bailey v. United Airlines, 279 F.3d 194, 204 (3d Cir. 2002).

Entries of default are not favored, and “doubtful cases are to be resolved in favor of the party moving to set aside the default ‘so that cases may be decided on the merits.’” United States v. $55,518.05 in U.S. Currency, 728 F.2d 192, 195 (3d Cir. 1984) (quoting Tozer v. Charles A. Krause Mill. Co., 189 F.2d 242, 245 (3d Cir. 1951)). Moreover, the grounds for setting aside a default are “less substantial” than would be required for vacating a default judgment. Feliciano v. Reliant Tooling Co., 691 F.2d 653, 656 (3d Cir. 1982) (“[A]ny of the reasons sufficient to justify the vacation of a default judgment under Rule 60(b) normally will justify relief from a default

1 Future Fund Investments failed to submit a memorandum of law accompanying its Motion to Vacate the Entry of Default. (ECF No. 9.) entry and in various situations a default entry may be set aside for reasons that would not be enough to open a default judgment.” (quoting 10 C. Wright & A. Miller, Federal Practice and Procedure § 2696, 334 (1973)). To determine whether good cause exists to vacate the entry of default, the Court looks at

the following four Poulis factors: (1) prejudice to the plaintiff; (2) whether the default was entered due to the culpable conduct of the defaulting party; (3) availability of a meritorious defense; and (4) the effectiveness of alternative sanctions.2 Emcasco Ins. Co, 834 F.2d 71 at 73 (citing Poulis v. State Farm Fire and Casualty Co., 747 F.2d 863, 868 (3d Cir. 1984)). “When parties file competing motions for default judgment and to vacate the entry of default, courts routinely consider the motion to vacate the entry of default first.” Mawalla v. Lakewood Bd. of Educ., Civ. A. No. 23- 02734, 2025 WL 1260900, at *2 (D.N.J. Apr. 30, 2025) (citing Gentile Concrete, Inc. v. L&L Redi- Mix, Inc., Civ. No. 21-20515, 2022 WL 2753460, at *2–5 (considering motion to vacate entry of default before competing motion for default judgment); Doe v. City of Jersey City Bd. of Ed., Civ. No. 21-20223, 2022 WL 1137301, at *2 (D.N.J. Apr. 18, 2022) (granting motion to vacate entry

of default and, as such, denying motion to enter default judgment as moot)). B.

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PANDA AMERICAS, INC. v. FUTURE FUND INVESTMENTS CORPORATION, Counsel Stack Legal Research, https://law.counselstack.com/opinion/panda-americas-inc-v-future-fund-investments-corporation-njd-2025.