Sunnova Energy Corporation v. Vision Solar LLC

CourtDistrict Court, W.D. Texas
DecidedOctober 11, 2023
Docket1:23-cv-00435
StatusUnknown

This text of Sunnova Energy Corporation v. Vision Solar LLC (Sunnova Energy Corporation v. Vision Solar LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunnova Energy Corporation v. Vision Solar LLC, (W.D. Tex. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS AUSTIN DIVISION

SUNNOVA ENERGY § CORPORATION, § Plaintiff § § Case No. 1:23-CV-00435-ADA v. §

§ VISION SOLAR LLC, § Defendant

REPORT AND RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE

TO: THE HONORABLE ALAN D. ALBRIGHT UNITED STATES DISTRICT JUDGE Before the Court are Plaintiff’s Motion for Default Judgment and Motion for Attorneys’ Fees, filed June 28, 2023 (Dkt. 10); Plaintiff’s Opposed Motion for Hearing on Its Motion for Default Judgment and Motion for Attorneys’ Fees, filed July 6, 2023 (Dkt. 12); Defendant’s Opposed Motion to Vacate Entry of Default, filed July 14, 2023 (Dkt. 15); Plaintiff’s Alternative Motion for Summary Judgment, filed July 21, 2023 (Dkt. 17); Defendant’s Cross-Motion for Partial Summary Judgment, filed August 4, 2023 (Dkt. 21); and the associated response and reply briefs.1 I. Background Plaintiff Sunnova Energy Corporation, a Delaware corporation with its principal place of business in Houston, Texas, offers rooftop solar energy services. Plaintiff’s Original Complaint (Dkt. 1) ¶¶ 2, 9. Defendant Vision Solar LLC, a Pennsylvania limited liability company with its principal place of business in Blackwood, New Jersey, is a residential solar panel installation company “with offices in Texas and six other states.” Id. ¶ 10.

1 By Text Orders entered July 24, 2023 and August 8, 2023, the District Court referred the dispositive motions for a report and recommendation and Plaintiff’s Motion for Hearing for disposition by this Magistrate Judge, pursuant to 28 U.S.C. § 636(b)(1), Federal Rule of Civil Procedure 72, and Rule 1 of Appendix C of the Local Rules of the United States District Court for the Western District of Texas. Sunnova alleges that it sold $670,608.88 of solar panel installation equipment (“Goods”) to Vision Solar in April 2022 “and memorialized these transactions in ten different invoices.” Id. ¶¶ 11, 12. Each invoice describes the Goods to be shipped, where the Goods were to be shipped,2 where the invoice was mailed,3 the total amount due, the invoice date, and the invoice “Terms” of “Net 60 days.” Dkt. 17-1 at 6-15. Sunnova alleges, and Vision Solar does not dispute, that “Net 60 Days” means that “payment was due within 60 days of the invoice date.” Dkt. 1 ¶ 12.

Sunnova contends that the ten invoices “are valid and enforceable contracts.” Id. ¶ 16 (“Purported Contracts”). Sunnova alleges that it fully performed under the Purported Contracts by delivering to Vision Solar the Goods, which “Vision Solar accepted,” but that “Vision Solar has failed to pay the purchase price for the goods,” in violation of the Purported Contracts. Id. ¶¶ 13, 17. On April 19, 2023, Sunnova filed this suit against Vision Solar, alleging Texas state claims for breach of contract, suit on sworn account, and quantum meruit. Id. ¶¶ 15-35. Sunnova seeks $670,608.88 in monetary damages, pre-judgment and post-judgment interest, and attorneys’ fees and costs. Sunnova served Vision Solar with the lawsuit on April 21, 2023. Dkt. 6. Vision Solar did not file an answer or otherwise make a timely appearance. On June 28, 2023, Sunnova filed a Motion for Clerk’s Entry of Default, Motion for Default Judgment, and Motion for Attorneys’

Fees under Rules 54 and 55. Dkt. 10. The Clerk entered a default the same day. Dkt. 11.

2 The Goods were to be shipped to six states, including one shipment to Vision Solar in Austin, Texas. See Invoices, Dkt. 17-1 at 6-15 (showing Goods were to be shipped to Blackwood, New Jersey (two shipments); Orlando, Florida (one shipment); Tampa, Florida (one shipment); Pompano Beach, Florida (one shipment); Southington, Connecticut (two shipments); Hudson, Massachusetts (one shipment); Tempe, Arizona (one shipment); and Austin, Texas (one shipment)). 3 The invoices were “Bill[ed]” to “Vision Solar LLC, 511 Rte 168, Blackwood, New Jersey.” Dkt. 17-1 at 6-15. On July 14, 2023, Vision Solar made an appearance and moved to vacate the Clerk’s entry of default under Rule 55(c). Sunnova opposes the motion and alternatively moves for summary judgment. Vision Solar also moves for partial summary judgment on Sunnova’s Motion for Attorneys’ Fees. Sunnova requests a hearing on its Motion for Attorneys’ Fees under Rule 54. II. Motions for Default Judgment and to Vacate Entry of Default Sunnova asks the Court to enter default judgment against Vision Solar under Rule 55(b)(2) “because it has failed to answer or otherwise defendant against Sunnova’s claims in its Original

Complaint.” Dkt. 10 at 1. Vision Solar contends that it did not file a timely answer because it could not engage local counsel before the deadline and Sunnova “flatly refused” its request for a thirty- day extension. Dkt. 15 at 1. A. Legal Standards Under Rule 55, a default occurs when a defendant fails to plead or otherwise respond to a complaint within the time required. New York Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996). After the defendant’s default has been entered by the clerk of court, the plaintiff may apply for a judgment based on the default. FED. R. CIV. P. 55(b)(2). The entry of default judgment is committed to the discretion of the district judge. Mason v. Lister, 562 F.2d 343, 345 (5th Cir. 1977). Even when the defendant technically is in default, a

party is not entitled to a default judgment as a matter of right. Lewis v. Lynn, 236 F.3d 766, 767 (5th Cir. 2001). “Default judgments are a drastic remedy, not favored by the Federal Rules and resorted to by courts only in extreme situations.” Sun Bank of Ocala v. Pelican Homestead & Savs. Ass’n., 874 F.2d 274, 276 (5th Cir.1989) (footnotes omitted). The Fifth Circuit has adopted “a policy in favor of resolving cases on their merits and against the use of default judgments.” In re Chinese Mfg. Drywall Prods. Liab. Litig., 742 F.3d 576, 594 (5th Cir. 2014). Under Rule 55(c), a court may set aside an entry of default for good cause. The burden of showing good cause lies with the party challenging the default. Sindhi, 905 F.3d at 332. To determine whether good cause exists to set aside an entry of default, courts consider “(1) whether the failure to act was willful; (2) whether setting the default aside would prejudice the adversary; and (3) whether a meritorious claim has been presented.” Sindhi v. Raina, 905 F.3d 327, 332 (5th Cir. 2018). These factors are not “talismanic,” CJC Holdings, Inc. v. Wright & Lato, Inc., 979

F.2d 60, 64 (5th Cir. 1992), and courts will consider other factors, such as whether the defendant “acted expeditiously to correct the default.” Chinese Mfg., 742 F.3d at 576. “The ultimate inquiry remains whether the defendant shows ‘good cause’ to set aside the default.” CJC Holdings, 979 F.2d at 64. The decision to set aside a default “is committed to the sound discretion of the trial court.” In re Dierschke, 975 F.2d 181, 183 (5th Cir.1992). But “district courts generally should grant motions to set aside a default unless the default was willful, the plaintiff will be prejudiced, or the defendant has no meritorious defense. This is because courts universally favor trial on the merits.” Moreno v. LG Elecs., USA Inc., 800 F.3d 692, 698 (5th Cir. 2015) (citations omitted). B. Motion to Vacate

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Sunnova Energy Corporation v. Vision Solar LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunnova-energy-corporation-v-vision-solar-llc-txwd-2023.