Tradexim International Co. California v. Gavrilovic Holding Petrinja

CourtDistrict Court, District of Columbia
DecidedDecember 3, 2024
DocketCivil Action No. 2020-3596
StatusPublished

This text of Tradexim International Co. California v. Gavrilovic Holding Petrinja (Tradexim International Co. California v. Gavrilovic Holding Petrinja) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tradexim International Co. California v. Gavrilovic Holding Petrinja, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

) TRADEXIM INTERNATIONAL CO. ) CALIFORNIA, ) ) Plaintiff, ) Civil Action No. 20-3596 (RBW) v. ) ) GAVRILOVIC HOLDING PETRINJA, ) ) Defendant. ) )

MEMORANDUM OPINION

The plaintiff, Tradexim International Co. California, brought this civil action against

Gavrilovic Holding Petrinja, alleging fraud and seeking monetary damages. See Complaint

(“Compl.”) ¶ 27, ECF No. 1. Pending before the Court are the plaintiff’s (1) motion for a default

judgment, see Plaintiff’s Motion and Memorandum in Support of Default Judgment (“Pl.’s

Mot.”) at 1, ECF No. 9; (2) motion to treat the motion for a default judgment as conceded, see

Plaintiff’s Motion and Memorandum to Treat Motion for Default Judgment as Conceded at 1,

ECF No. 12; and (3) motion to schedule a hearing, see Plaintiff’s Motion to Set Hearing at 1,

ECF No. 14. After carefully considering all of the relevant evidence submitted by the plaintiff, 1

the Court concludes for the following reasons that it must grant the portion of the plaintiff’s

1 In addition to the filings already identified, the Court considered the following submissions in rendering its decision: (1) Compl., Exhibit (“Ex.”) 1 (Affidavit (“Malic Aff.”)), ECF No. 1-1; (2) Compl., Ex. 2 (Affidavit (“Trkulja Aff.”)), ECF No. 1-2; (3) Compl., Ex. 3 (Protocol (“Protocol Agreement”)), ECF No. 1-3; (4) Pl.’s Mot., Ex. B (Affidavit of David L. Earnest in Support of Motion for Default Judgment (“Earnest Aff.”)), ECF No. 9-2; and (5) Pl.’s Mot, Ex. C (Affidavit of Nikola Horvat in Support of Plantif[f]’s Motion for Judgment (“Horvat Aff.”)), ECF No. 9-3. motion requesting a default judgment as to liability. 2 The Court will issue a separate Order at a

later date addressing the damages to which the plaintiff is entitled. 3

I. BACKGROUND

The plaintiff brought this civil action against the defendant, alleging fraud and seeking

monetary damages arising out of a 1990 agreement between the parties, under which the

defendant “agreed to supply containers of canned ham to [the plaintiff] in exchange for [ ]

$1,006,000, paid in advance.” See Compl. ¶ 7. However, “[t]he canned ham [the defendant]

delivered to [the plaintiff] was defective because it was found to contain deadly bacteria[,]” and,

later that year, the parties “executed an agreement providing that [the defendant] would make a

$450,205.54 payment to [the plaintiff] [ ] as a result of the rejection of the canned ham (the

‘Protocol Agreement’).” Id. ¶ 8–9; see id., Exhibit (“Ex.”) 3 (Protocol (“Protocol Agreement”))

at 2, ECF No. 1-3. The defendant never made the payment, “ceased operations [in 2002,] and

entered into [ ] bankruptcy proceedings in the Republic of Croatia[,]” proceedings that were

subsequently “found . . . to be illegally performed” by an international arbitral tribunal. Id.

¶¶ 10–11.

On December 10, 2020, the plaintiff filed its Complaint in this case. See id. ¶ 1. On

January 14, 2021, the plaintiff successfully served the defendant with a copy of the Complaint

and a summons in accordance with the Federal Rules of Civil Procedure and The Hague

Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or

2 Because the Court will address the merits of the plaintiff’s motion for a default judgment, the Court will deny the plaintiff’s motion to treat the motion for a default judgment as conceded as moot. 3 The Court requires additional information to appropriately address the damages to which the plaintiff is entitled, as well as the prejudgment interest to be awarded. Thus, as indicated below, the Court will order the plaintiff to file supplemental briefing on these matters before the Court issues a separate Order regarding the plaintiff’s request for damages and prejudgment interest. However, the Court believes a hearing is unnecessary at this time and will therefore deny without prejudice the plaintiff’s motion for a hearing.

2 Commercial Matters (the “Hague Convention”), see Return of Service, at 1, ECF No. 4, to which

Croatia is a signatory, see Pl.’s Mot., Ex. B (Affidavit of David L. Earnest in Support of Motion

for Default Judgment (“Earnest Aff.”)) ¶ 5, ECF No. 9-2. After the defendant failed to appear or

otherwise respond to the Complaint, the plaintiff filed a motion for entry of default on March 15,

2021, see Affidavit in Support of Default at 1, ECF No. 5, and the Clerk of the Court entered a

default on March 17, 2021, see Default at 1, ECF No. 6. The plaintiff then filed a motion for a

default judgment on October 20, 2022. See Pl.’s Mot. at 1.

The plaintiff requests that the Court award it “damages in the total amount of

$2,227,994.71[.]” Id. at 5. 4 The $2,227,994.71 judgment requested is based on an award of the

principal amount of $450,205.54, and prejudgment interest of $1,777,789.17. Id.

Accompanying its October 2022 motion for a default judgment, the plaintiff submitted an

additional affidavit from Nikola Horvat, a Croatian attorney, stating that “[i]nterest payments

were calculated per [y]ear to the [p]rincipal amount of $450,205.54 according to the statutory

rate determined by the Statute of the Croatian Government on Default Interest Rates applicable

in the relevant time period . . . .” Pl.’s Mot, Ex. C (Affidavit of Nikola Horvat in Support of

Plantif[f]’s Motion for Judgment (“Horvat Aff.”)) at 2–3, ECF No. 9-3 (concluding that “the

interest to the [p]rincipal amount[] [was] $ 1,777[,]789[.]17” as of September 11, 2022).

II. STANDARD OF REVIEW

The Federal Rules of Civil Procedure provide for the entry of a default judgment “[w]hen

a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise

4 The plaintiff requested in its Complaint that it be awarded “exemplary and punitive damages in the amount of at least $3,000,000[,]” Compl. at 6, but the plaintiff has since rescinded this request, Pl.’s Mot. at 22 (“Despite the claims for relief in the Complaint, [the p]laintiff seeks judgment only for the principal amount of $450,205.54, and pre-judgment interest of $1,777,789.17, which in total constitutes a sum certain of $2,227,994.71.”).

3 defend” against an action. Fed. R. Civ. P. 55(a); see also Jackson v. Beech, 636 F.2d 831, 836

(D.C. Cir. 1980) (“The default judgment must normally be viewed as available only when the

adversary process has been halted because of an essentially unresponsive party.” (quoting H.F.

Livermore Corp. v. Aktiengesellschaft Gebruder Loepfe, 432 F.2d 689, 691 (D.C. Cir. 1970))).

Rule 55 sets forth a two-step process for a party seeking a default judgment: first, entry of a

default, followed by entry of a default judgment. Fed. R. Civ. P. 55; see also 10A Charles Alan

Wright & Arthur R. Miller, Federal Practice and Procedure § 2682 (4th ed. 2022) (stating that

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