PNC Bank, National Association v. Andy's Excavation LLC

CourtDistrict Court, W.D. Michigan
DecidedOctober 6, 2025
Docket1:24-cv-01154
StatusUnknown

This text of PNC Bank, National Association v. Andy's Excavation LLC (PNC Bank, National Association v. Andy's Excavation LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PNC Bank, National Association v. Andy's Excavation LLC, (W.D. Mich. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

PNC BANK, N.A.,

Plaintiff, Case No. 1:24-cv-1154 v. Hon. Hala Y. Jarbou ANDY’S EXCAVATION LLC, et al.,

Defendants. ___________________________________/ OPINION Plaintiff PNC Bank, N.A. (successor by merger to PNC Equipment Finance, LLC), sued Defendant Andy’s Excavation LLC for breach of contract, replevin, and turnover of collateral, and sued Defendants Andrew Lahaie and Charles Lahaie for breach of guaranty. (Compl., ECF No. 1.) Charles Lahaie filed an answer to PNC’s complaint (ECF No. 6) and has been dismissed from the case (ECF No. 33). But neither Andy’s Excavation nor Andrew Lahaie answered the complaint after being served with a copy. The clerk of the court entered default against Andy’s Excavation and Lahaie. (ECF No. 17.) PNC now moves for default judgment. (ECF No. 29.) Andy’s Excavation and Andrew Lahaie did not respond to the motion. The Court will grant the motion in part and deny it in part for the reasons set out below. I. BACKGROUND PNC is a national banking association with its principal place of business in Delaware. (Compl. ¶ 1.) Andy’s Excavation is a Michigan limited liability company with its principal place of business in Michigan. (Id. ¶ 2.) Andrew Lahaie is a citizen of Michigan. (Id. ¶ 3.) In September 2020, Andy’s Excavation and PNC entered into a loan and security agreement (Agreement, ECF No. 1-2) in which PNC agreed to finance Andy’s Excavation’s purchase of a 2022 Bobcat T76 compact track loader. (Compl. ¶ 9.) In return, Andy’s Excavation agreed to make seventy-two consecutive monthly payments of $1,563.48 plus applicable taxes. (Id. ¶ 10.) Andrew Lahaie signed the agreement as a guarantor. (Id. ¶ 13.) PNC perfected its priority security interest in the track loader by filing a UCC-1 financing statement. (Id. ¶¶ 11–12.)

On March 1, 2024, Andy’s Excavation defaulted on the agreement by failing to make the payment due in March and all subsequent payments. (Id. ¶ 15.) Seven months later, PNC sued Andy’s Excavation and the Lahaies to recover the outstanding principal, amounts due and payable, all remaining payments through the end of the agreement’s term at the discounted interest rate of 3 percent per annum, and interest and other amounts payable under the agreement. (Id. ¶¶ 16–21.) Additionally, PNC claimed it was entitled to $390.85 in late charges, $500.00 of site visit and repossession fees, and prejudgment interest at the rate of 18 percent per annum from the date of default until the date of judgment. (Id.) In addition, PNC sought attorneys’ fees, costs, and possession of the track loader. (Id.) PNC’s complaint claims at least $80,607.32 in damages under the agreement. (Id. ¶ 29.)

After the PNC filed its complaint, the track loader was returned to PNC and sold for $46,100.00, resulting in a $35,398.17 outstanding balance on the loan. (Br. in Supp. of Default J. ¶¶ 25–27, ECF No. 30.) PNC totals the prejudgment interest as $20,288.61 as of August 1, 2025, and the attorneys’ fees and costs at $7,370.49; thus, PNC seeks a default judgment in the amount of $63,057.27. (Id.) II. ANALYSIS A. Forum and Governing Law At the threshold, the Court must determine if PNC properly invokes this Court’s jurisdiction. Answers in Genesis of Ky., Inc. v. Creation Ministries Int’l, Ltd., 556 F.3d 459, 465 (6th Cir. 2009) (“[F]ederal courts have a duty to consider their subject matter jurisdiction in regard to every case.”); Citizens Bank v. Parnes, 376 F. App’x 496, 501 (6th Cir. 2010) (“Personal jurisdiction over a defendant is a threshold issue that must be present to support any subsequent order of the district court, including entry of [a] default judgment.”). This Court has jurisdiction under 28 U.S.C. § 1332 because PNC is diverse from both Defendants and the amount in

controversy exceeds $75,000.1 (See Compl. ¶¶ 1–4, 7.) The Court has personal jurisdiction over Defendants because Andy’s Excavation is a Michigan limited liability company with its principal place of business in Michigan and Andrew Lahaie is a citizen of Michigan. (See id.) And this Court is a proper venue under 28 U.S.C. § 1391(b) because a substantial part of the events giving rise to PNC’s claims occurred in this district. (Id. ¶ 9.) But that does not resolve the question of whether this Court is the proper venue for adjudicating this lawsuit, and, if it is, which law to apply: the agreement between PNC and Andy’s Excavating specifies that any disputes relating to the agreement will be litigated in a Pennsylvania state or federal court and that the agreement is to be interpreted and enforced according to Pennsylvania law. (Agreement, PageID.23.) Forum-selection clauses constitute a form of waiver

by the contracting parties of objections to the validity of the specified forum.2 These clauses are enforceable in federal courts “under the common-law doctrine of ‘forum non conveniens.’” VCST Int’l B.V. v. BorgWarner Noblesville, 142 F.4th 393, 400 (6th Cir. 2025).

1 PNC’s complaint alleges damages north of $75,000.00. (See Compl. ¶ 24.) But PNC now seeks judgment in the amount of $63,057.27. That PNC’s claimed damages fall below the amount-in-controversy minimum does not deprive this Court of diversity jurisdiction under section 1332. See Sellers v. O’Connell, 701 F.2d 575, 578 (6th Cir. 1983) (“The amount in controversy for federal diversity jurisdiction purposes is determined as of the time the action is commenced.” (cleaned up)). Subsequent events that change the amount in controversy “do not oust the district court’s jurisdiction once it has attached.” St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 293 (1938). Here, PNC pleaded $80,607.32 in damages in good faith; it was only the repossession of the truck loader after the complaint was filed that sent the amount in controversy below the jurisdictional threshold. 2 Sachs, The Forum Selection Defense, 10 Duke J. Const. L. & Pub. Pol’y 1, 7–8 (2014). In this circuit, a court confronted by a forum-selection clause must first determine whether it is “applicable to the claims at issue, mandatory, valid, and enforceable.” Lakeside Surfaces, Inc. v. Cambria Co., 16 F.4th 209, 216 (6th Cir. 2021). If it is, the “clause will have ‘controlling weight in all but the most exceptional cases.’” Firexo, Inc. v. Firexo Grp. Ltd., 99 F.4th 304, 310 (6th

Cir. 2024) (quoting Boling v. Prospect Funding Holdings, 771 F. App’x 562, 568 (6th Cir. 2019)). This “strong presumption in favor of enforceability” can be overcome only if (1) the clause was obtained by fraud, duress, or other unconscionable means; (2) the designated forum would ineffectively or unfairly handle the suit; (3) the designated forum would be so seriously inconvenient that requiring the plaintiff to bring suit there would be unjust; or (4) enforcing the forum selection clause would contravene a strong public policy of the forum state. Lakeside Surfaces, 16 F.4th at 219–20. If the clause is deemed enforceable, the forum agreed to by the parties should hear the case unless it is the “unusual” one in which public interests favor derogating from the forum-selection clause. Atl. Marine Const. Co. v. U.S. Dist. Ct. for the W. Dist. of Texas, 571 U.S. 49, 64 (2013).

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PNC Bank, National Association v. Andy's Excavation LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pnc-bank-national-association-v-andys-excavation-llc-miwd-2025.