Sterne Kessler Goldstein & Fox, PLLC v. Phyto Tech Corp.

District Court, D. Maryland·Decided September 4, 2026·No. 8:25-cv-00943·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

) STERNE KESSLER GOLDSTEIN & ) FOX, PLLC, ) ) Plaintiff, ) Civil Action No. 25-cv-00943-LKG ) v. ) Dated: September 4, 2026 ) PHYTO TECH CORP., ) ) Defendant. ) )

MEMORANDUM OPINION I. INTRODUCTION In this civil action, the Plaintiff, Sterne Kessler Goldstein & Fox, PLLC, brings a breach of contract claim against the Defendant, Phyto Tech Corp., arising from promissory note that the parties entered to pay for certain legal services provided by the Plaintiff. On January 29, 2026, the Plaintiff filed a motion for default judgment. ECF No. 16. Phyto Tech Corp. has not responded to the motion. See Dkt. No hearing is necessary to resolve the motion. See L.R. 105.6 (D. Md. 2025). For the reasons that follow, the Court: (1) GRANTS-in-PART and DENIES-in-PART WITHOUT PREJUDICE the Plaintiff’s motion for default judgment (ECF No. 16); (2) ENTERS judgment in favor of the Plaintiff and against Phyto Tech Corp. in the amount of $600,921.39, plus pre-judgment interest at the contractual rate of 6% per annum accruing from August 8, 2023, until the date of judgment, plus post-judgment interest at the legal rate. II. FACTUAL AND PROCEDURAL BACKGROUND1 A. Factual Background In this civil action, the Plaintiff brings a breach of contract claim against Phyto Tech Corp., arising from a promissory note that the parties entered into to pay outstanding fees owed to the Plaintiff for certain legal services provided to Phyto Tech Corp. ECF No. 1. Specifically, the Plaintiff alleges in the complaint that it entered into a promissory note, in the amount of $600,921.39 (the “Promissory Note”), with Phyto Tech Corp., for past due legal services, and that Phyto Tech Corp. breached the Promissory Note by failing to make the payments required under that agreement. See generally id. And so, the Plaintiff seeks to recover $600,921.39, plus interest in the amount of $89,397.35, attorneys’ fees in the amount of $20,955.20, and costs in the amount of $1,581.36, from Phyto Tech Corp. Id. at Prayer for Relief; see also ECF Nos. 17-1 at 1 and 18-1 at 3. The Parties Plaintiff Sterne Kessler Goldstein & Fox, PLLC is a Washington, DC professional limited liability company, that has its principal place of business located in Washington, DC. ECF No. 1 at ¶ 1. Defendant Phyo Tech Corp. is a California corporation, that has its principal place of business in Santa Margarita, California. Id. at ¶ 2. The Plaintiff’s Work For Phyo Tech Corp. As background, the Plaintiff alleges in the complaint that, or about November 2, 2020, Phyto Tech Corp. engaged it to perform patent legal services. ECF No. 1 at ¶ 5; see also ECF No.1-1 (copy of the Engagement Agreement for professional services). In connection with this work, the Plaintiff, among other things, prepared, filed and prosecuted domestic and international patent applications for Phyo Tech Corp.’s businesses. Id. at ¶ 6. And so, the Plaintiff alleges that it “regularly performed its work for [Phyto Tech Corp.] with the requisite required skill and without incident or complaint during the time it was engaged by Defendant.” Id. at ¶ 7. The Plaintiff also alleges that, at some point, Phyo Tech Corp. ceased making timely payments to it for these legal services. Id. at ¶ 8. And so, on August 8, 2023, the Plaintiff and Phyo Tech Corp. entered into the Promissory Note, in the amount of $600,921.39, for past services due. Id. at ¶ 9; see also ECF No. 1-2 (copy of the Promissory Note.) The Promissory Note The Promissory Note, which is attached as an exhibit to the complaint, is dated August 8, 2023, and signed by Min Wang Chen on behalf of Phyo Tech Corp.2 Paragraph 1 of the Promissory Note provides that Phyo Tech Corp. “shall pay to [the Plaintiff] . . . ($600,921.39), plus interest thereon at the rate of 6%, in accordance with the schedule attached hereto as Exhibit A.” ECF No. 1-2 at 1. In this regard, Exhibit A to the Promissory Note provides that Phyo Tech Corp. would make four monthly payments to the Plaintiff, in the amount of $152,000.00, beginning on September 30, 2023, and a final payment of $152,455.04 on December 31, 2023. Id. at 3. In addition, Paragraph 2 of the Promissory Note addresses “default,” and provides that “there is no grace period associated with the payment obligations hereunder, and it is [Phyo Tech Corp.’s] responsibility to ensure timely delivery of payments required by this Promissory Note. Id. Lastly, Paragraph 3 of the Promissory Note addresses “remedies” and provides, in relevant part, that: Upon Default, at the option of [the Plaintiff], the Principal Sum due and owing at the time of Default and all amounts payable by [ Phyo Tech Corp.] under the terms this Note 9including accrued and unpaid interest at the time of Default) shall immediately become due and payable by [the Plaintiff]. . . In addition, in the event of Default, [Phyo Tech Corp.] agrees to pay all cost and reasonable attorney’s fees incurred by [the Plaintiff] in connection with the enforcement of this Note, to include reasonable attorney’s fees and costs incurred in post judgment collection proceedings. Id. The Plaintiff alleges that the Promissory Note allowed the parties to continue working together and resulted in its forbearance in the collection of the outstanding legal fees at issue in this case. ECF No. 1 at ¶10. But the Plaintiff also alleges that Phyo Tech Corp. “failed and refused to pay all amounts due” under the Promissory Note. Id. at ¶14. And so, the Plaintiff declared Phyo Tech Corp. in default of the Promissory Note and terminated its services with the Defendant. Id. Given this, the Plaintiff alleges that Phyto Tech Corp. defaulted under the terms of the Promissory Note, by failing to the make payments required by that agreement. Id. at ¶ 15. The Plaintiff also alleges that, to date, no payments have been made on the $600,921.39 due under the Promissory Note. Id. at ¶ 16. And so, the Plaintiff contends that the amount due under the Promissory Note is $600,921.39, for work performed prior to July 31, 2023. Id. at ¶ 19. The Evidence Before The Court to the Court that the Plaintiff performed legal work for Phyo Tech Corp., and as a result of Phyto Tech Corp. not making the requisite payments for these legal services, the Plaintiff and Phyo Tech Corp. entered into the Promissory Note to satisfy the outstanding payments. Id. at ¶¶ 3–4. Mr. Rynberk also represents to the Court that Phyto Tech Corp. did not make any payment under the Promissory Note. Id. at ¶ 11. In addition, Mr. Rynberk attaches the following documents to his affidavit: (1) the letter of engagement between the Plaintiff and Phyto Tech Corp. (ECF No. 1-1); (2) the Promissory Note (ECF No.1-2); (3) the Plaintiff’s statement of accounts regarding Phyto Tech Corp. (ECF No. 1-3); and (4) an interest calculation worksheet (ECF No. 17-1). The letter of engagement is signed by Patricia Hoyle, Esq., Vice President and Director of Intellectual property for Phyto Tech Corp. and this letter provides, in relevant part, that: This letter confirms our understanding of the services that [the Plaintiff] will provide for [the Defendant]. . . . [The Plaintiff’s] representation will involve representing [the Defendant] in intellectual property matters . . . [and u]nless otherwise agreed to in writing, [the Plaintiff’s] fees for this service will be based on the actual time spent at [the Plaintiff’s] standard hourly rates . . . . ECF No. 1-1 at 1–2. Id. at 1 and 5. In addition, the interest worksheet shows that $89,397.35 in interest has accrued, as of January 29, 2026, based on the principal amount of $600,021.39 with a 6% interest. ECF No. 17-1 at 1. Attorney’s Fees And Costs Lastly, the Plaintiff seeks to recover attorney’s fees in the amount of $20,955.20, and costs in the amount of $1,581.36, in connection with this litigation. ECF No. 1 at Prayer for Relief; ECF No. 18-1 at 3. In this regard, the Plaintiff alleges tha

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Sterne Kessler Goldstein & Fox, PLLC v. Phyto Tech Corp., (D. Md. 2026).

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