QLS Logistic Services, LLC v. JAWS Associates, LLC

CourtDistrict Court, D. Massachusetts
DecidedNovember 6, 2018
Docket1:17-cv-11891
StatusUnknown

This text of QLS Logistic Services, LLC v. JAWS Associates, LLC (QLS Logistic Services, LLC v. JAWS Associates, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
QLS Logistic Services, LLC v. JAWS Associates, LLC, (D. Mass. 2018).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS QLS LOGISTIC SERVICES, LLC,d/b/a * AMERICAN INTERMODALOGISTICS, * * Plaintiff, * * v. * * Civil ActionNo. 17-cv-11891-ADB JAWS ASSOCIATES, LLC,SONIA * CARSON, STEPHANIE WILLIAMS, and * MICHELLE MOORE, * * Defendants, * * MEMORANDUM AND ORDER ON SECOND RENEWEDMOTION FOR DEFAULT JUDGMENT BURROUGHS, D.J. On October 3, 2017, PlaintiffQLS Logistic Services, LLC d/b/a American IntermodaLogistics filed aComplaint against Defendants JAWS Associates, LLC (“JAWS”), Stephanie Williams, Sonia Carson, and Michelle Moore (collectively, “Defendants”) alleging a violation of M.G.L. c. 93A (Count IV) and claims for breach of contract (Counts Iand V)and breach of good faith and fair dealing (Count III), and seeking injunctive relief (Count VII), an accounting (Count II), and attorney’s fees and costs (Count VI). [ECF No. 1]. After Defendants failedto appear or otherwise defendthis action, a default was entered on November 14, 2017. [ECF Nos.11–14]. Currently pending before the Court is Plaintiff’s second renewed motion for a default judgment against Defendants. [ECF No. 22]. For the following reasons,the motion is GRANTED. 1. BACKGROUND AND PROCEDURAL HISTORY Following the entry of a default, “the facts alleged in the complaint are taken as true.” Plasterers’ and Cement Masons’ Local 40 Pension Fund v. D & M Concrete Finishing, No. 12- 256, 2013 WL 2432420, at *1 (D.R.I. June 4, 2013) (quoting Queally v. Estate of Hoviss, No. 10-002, 2011 WL 6026593, at *1 (D.R.I. Dec. 2, 2011)); see Franco v. Selective Ins. Co., 184 F.3d 4, 9 n.3 (1st Cir. 1999) (defaulted party is “taken to have conceded the truth of the factual allegations in the complaint as establishing the grounds for liability as to which damages will be calculated”). Accordingly, the following summary of facts is drawn from the Plaintiff’ s complaint, with certain details sourced from the supplemental documentation submitted in support of the motion for entry of default judgment [ECF No. 16], the renewed motion for entry of default judgment [ECF No. 18], and the second renewed motion for entry of default judgment [ECF No. 22]. Plaintiff provides intermodal logistics services, including port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing, and distribution services, to customers throughout North America. [ECF No. 1 § 9]. On March 10, 2016, Plaintiff entered into an Independent Agent Agreement with JAWS Enterprises. [ECF No. 1-1 (hereinafter, the “Agreement”)]. Defendants Moore, Carson, and Williams executed a Personal Guarantee in which they agreed to be personally bound by Sections 7 and 9 of the Agreement [ECF No. 1-1 at 25] and also formed the limited liability company JAWS Associates, LLC to be the counterparty to the Agreement [ECF No. | at § 10].!

' Although “JAWS Enterprises” is the name of the entity with whom Plaintiff entered the Agreement, taking all facts in the Complaint as true, the Court finds that JAWS Enterprises is the trade name for JAWS Associates, LLC, which is the true party that performed under the contract and the real party in interest under Federal Rule of Civil Procedure 17(a). [ECF No. 1 JJ 10, 18, 20].

Pursuant to the Agreement, Defendants agreed to support Plaintiff’s transportation business by establishing and operating a terminal facility within an assigned territory, soliciting customers for Plaintiff’s transportation services, and recruiting “Owner-Operators” to lease tractors and provide drivers for the purpose of transporting goods to Plaintiff’s customers. [Id. ¶11]. The Agreement provided that Defendants would provide Plaintiff with all documentation

required toinvoice customers for services provided under the Agreement, and that Plaintiff would then issue all customer invoices, which would be payable to Plaintiff. [Id.¶12–13]. At some point, Defendants breached Sections 2.8(e) and 5.1of the Agreement by withholding the documentation necessary for Plaintiff to bill and collect payments from its customers for various charges. [Id.¶¶ 12,21]. In addition, Defendants breachedSection 7 ofthe Agreement by surreptitiouslyceasing all business with Plaintiff and commencingoperations with one of Plaintiff’s competitors. [Id. ¶¶20, 22]. On September 15, 2017, Plaintiff notified Defendants by letter that theyhadbreached the Agreement and sought to mitigate damages as a result of the breach. [Id.¶23]. Defendants did not respond to Plaintiff’s September 15, 2017 letter or other

communication attempts. [Id.]. Ultimately,on October 3, 2017, Plaintiffs filed theinstant Complaint. [ECF No. 1]. On October 19, 2017,Plaintiff filed affidavits of service showing that JAWS had been served by its registered agent in Chesapeake, Virginia on October 12, 2017,andthat Defendants Williams and Carson had each been personally served in Chesapeake, Virginia on October 12, 2017. [ECF Nos. 6–8]. On October 24, 2017, Plaintiff filed an affidavit showing that Defendant Moore had been personally served in Portsmouth, Virginia on October 13, 2017. [ECF No. 9]. The deadline for Defendants JAWS,Williams, andCarson to respondto the Complaint was November 2, 2017, and the deadline for Defendant Moore to respond to the Complaint was November 3, 2017. After theyfailed to answer or otherwise respond to the Complaint, Plaintiff filed a motion for the entry of adefault against Defendants pursuant to Federal Ruleof Civil Procedure55(a), and the clerk entered defaults as to each Defendant onNovember 14, 2017. [ECF Nos. 11–14]. On February 8, 2018, Plaintiffmovedfor the entry of a default judgment pursuant toFed.

R. Civ. P.55(b). [ECF No. 16]. On May 10, 2018, the Court denied Plaintiff’s motion with leave to renew, and explained, inter alia, that Plaintiff’s motion failed to provide any documentation concerning how it determined actual damages or attorney’s fees. [ECF No. 17]. On July 13, 2017, Plaintiff filed a renewed motion for default judgment [ECF No. 18], which the Court again deniedwith leave to renew due to insufficient documentation of attorney hours billed [ECF No. 21]. On September 7, 2018, Plaintiff filed its second renewed motion for default judgment. [ECF No. 22]. Defendants havenot filed aresponse to any of Plaintiff’s default judgment motions. II. DISCUSSION

A. Jurisdiction As an initial matter, theCourt “has an affirmative duty to assure itself that it has jurisdiction over both thesubject matter and the parties”before entering a default judgment. Plasterers’ and Cement Masons’ Local 40 Pension Fund v. Capital Curbing Corp.,No. 09-236, 2010 WL 1424722, at *2 (D.R.I. Mar. 12, 2010), aff’d and adopted, 2010 WL 1376293 (D.R.I. Apr. 6, 2010). The Court has subject matter jurisdiction pursuant to 28 U.S.C. §1332 because the amount in controversy exceeds $75,000 and there is complete diversity. [ECF No. 1 ¶¶1–

3,7]. As to personal jurisdiction, “[a] party to a contract may waive its right tochallenge personal jurisdiction by consenting to personal jurisdiction in a forum selection clause.” Inso Corp. v. Dekotec Handelsges, mbH, 999 F. Supp. 165, 166 (D. Mass. 1998) (citing M/S Bremen v. Zapata Off–Shore Co., 407 U.S. 1, 11, (1972) (“[P]arties to a contract may agree in advance to submit to the jurisdiction of a given court.”); Jacobson v. Mailboxes, Etc. U.S.A., 646 N.E.2d 741, 743–44(Mass. 1995)). “Massachusetts also recognizes forum selection clauses as a valid basis for finding jurisdiction over a non-resident.” Inso Corp., 999 F. Supp.

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Bluebook (online)
QLS Logistic Services, LLC v. JAWS Associates, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/qls-logistic-services-llc-v-jaws-associates-llc-mad-2018.