Ullico Casualty Company v. Abba Shipping Lines, Inc.

891 F. Supp. 2d 4, 2012 U.S. Dist. LEXIS 131820
CourtDistrict Court, District of Columbia
DecidedSeptember 16, 2012
DocketCivil Action No. 2011-1817
StatusPublished
Cited by14 cases

This text of 891 F. Supp. 2d 4 (Ullico Casualty Company v. Abba Shipping Lines, Inc.) 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
Ullico Casualty Company v. Abba Shipping Lines, Inc., 891 F. Supp. 2d 4, 2012 U.S. Dist. LEXIS 131820 (D.D.C. 2012).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, District Judge.

Plaintiff Ullico Casualty Company filed suit against Defendants Abba Shipping Lines, Inc. and Donna Travano, alleging breach of a General Indemnity Agreement, and seeking damages in the amount of $75,000, in addition to a request for attorney’s fees as required by the agreement. Defendant Donna Travano filed for bankruptcy before being served in this matter. Status Report, ECF No. [10]. The Clerk of Court entered a default as to Abba Shipping Lines on December 27, 2011. Presently before the Court is Plaintiffs [11] Motion for Default Judgment as to Abba Shipping Lines. For the reasons stated below, Plaintiffs motion is GRANTED IN PART and DENIED IN PART. Plaintiffs motion is GRANTED as to $75,000 for collateral security and attorney’s fees in the amount of $39,148.58. Plaintiffs motion is DENIED as to its request for attorney’s fees in the amount of $3,788.

I. BACKGROUND

Plaintiff Ullico Casualty Company (“Ullico”) is a corporation based in Washington, D.C. that engages in the sale and issuance of surety bonds, including Ocean Transportation Intermediary (“OTI”) bonds. Compl., ECF No. [1], ¶ 5. Defendant Abba Shipping Lines, Inc. (“Defendant”) is a Florida corporation that operated as an ocean transportation intermediary. Id. at ¶ 8. Plaintiff issued an OTI bond to the Defendant on October 27, 2009, effective December 14, 2009, in the amount of $75,000. Id. at ¶¶ 11-12. Donna Travano signed the bond in her capacity as the President of Abba Shipping Lines. Id. at ¶ 11. The value of the OTI bond was available as payment for damages on claims against Defendant resulting from Defendant’s transportation-related activities. Pl.’s Ex. A (OTI Bond Agreement) at 1-2. Plaintiff, as surety, and Abba Shipping Lines, as principal, signed a Gen *6 eral Indemnity Agreement (“GIA”), dated October 27, 2009, in favor of the Plaintiff. Compl. ¶ 14; Pl.’s Ex. B (GIA) at 1. Donna Travano and Victor Del Castillo signed the GIA as indemnitors. Pl.’s Ex. B at 10. In the agreement, Defendant agreed to “exonerate Surety on any Bond and reimburse Surety in full for any Loss.” Id. at 2. Defendant further agreed that, at Plaintiffs request, Defendant would deposit collateral with Plaintiff as security against possible loss or liability. Id. at 3.

In June, 2010, Defendant contracted with Shipco, Inc. to transport cathode ray tube televisions from Nashville, Tennessee to Tin Can Island in Nigeria. Compl. ¶ 18. Despite failing to obtain the necessary permits to import the televisions into Nigeria, Abba Shipping Lines transported the cargo to Nigeria. Id. at ¶ 24. The cargo was rejected by the Nigerian port authorities, returned to the United States, and destroyed. Id. at ¶ 26. On June 7, 2011, Shipco commenced an action against Plaintiff, as the surety of the OTI bond, and the Defendant in the District Court for the Southern District of Florida (“Florida lawsuit”). Shipco Transport, Inc. v. Abba Shipping Lines, Inc., No. 11-22055, 2011 WL 9201482 (S.D.Fla. filed June 7, 2011); Compl. ¶¶ 1, 28. The Defendant did not answer the Florida lawsuit. Compl. ¶ 29. On June 17, 2011, Plaintiff sent a demand letter to Defendant, requesting that Defendant post collateral in the amount of $75,000, pursuant to the terms of the GIA. Id. at ¶ 30; Pl.’s Ex. C (Demand Letters) at 7, 11. Defendant failed to respond to Plaintiffs demand for collateral, and Plaintiff commenced the present action on October 14, 2011. Compl. ¶ 6. Defendant failed to answer the complaint, and the Clerk entered a default on December 27, 2011. Entry of Default, ECF No. [8]. Plaintiff filed the present motion on February 10, 2012, seeking (1) damages in the amount of $75,000; and (2) attorney’s fees in the amount of $42,936.58, plus interest and costs. Pl.’s Mot. at 24. Defendant failed to file a response to the motion.

II. LEGAL STANDARD

Federal Rule of Civil Procedure 55(a) provides that the Clerk of the Court must enter a party’s request for a default “[wjhen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise.” After a default has been entered by the Clerk, a party may move the court for a default judgment. Fed.R.Civ.P. 55(b)(2). “The determination of whether default judgment is appropriate is committed to the discretion of the trial court.” Int’l Painters & Allied Trades Indus. Pension Fund v. Auxier Drywall, LLC, 531 F.Supp.2d 56, 57 (D.D.C.2008) (citing Jackson v. Beech, 636 F.2d 831, 836 (D.C.Cir.1980)).

Where, as here, there is a complete “absence of any request to set aside the default or suggestion by the defendant that it has a meritorious defense, it is clear that the standard for default judgment has been satisfied.” Auxier Drywall, 531 F.Supp.2d at 57 (internal quotation marks omitted). The Clerk of the Court entered a default as to Abba Shipping Line’s, therefore the factual allegations in the Complaint are taken as true. Int’l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., Inc., 239 F.Supp.2d 26, 30 (D.D.C.2002). The Court finds that Plaintiffs Complaint sufficiently alleges facts to support their claims. The Plaintiff is thus entitled to default judgment as to Defendant’s liability for its failure to post collateral as required by the General Indemnity Agreement and Defendants’ liability for a portion of Plaintiffs attorneys fees.

*7 While the entry of default establishes the Defendant’s liability, the Court is required to make an independent determination of the amount of damages to be awarded, unless the amount of damages is certain. Int’l Painters & Allied Trades Indus. Pension Fund v. Davanc Contracting, Inc., 808 F.Supp.2d 89, 94 (D.D.C.2011). In instances where the amount of damages is not certain, the court may hold a hearing, but is not required to do so as long as there is a basis for determining damages for purposes of the default judgment. Flynn v. Extreme Granite, Inc., 671 F.Supp.2d 157, 160 (D.D.C.2009). In making an independent determination, “the court may rely on detailed affidavits or documentary evidence.” Breaking the Chain Found., Inc. v. Capitol Educ. Supp., Inc., 589 F.Supp.2d 25, 28 (D.D.C.2008) (quoting Adkins v. Teseo, 180 F.Supp.2d 15, 17 (D.D.C.2001)).

III. DISCUSSION

In support of its motion for default judgment, the Plaintiff submitted the OTI bond, the GIA, the Demand Letters sent to the Defendant, and an affidavit from Plaintiffs attorney Mr. James Gorman. Pl.’s Exs. A-D; Gorman Aff. In light of these exhibits and the factual allegations in the Complaint, the Court finds Defendants are entitled to a judgment in the amount of $75,000 for breach of the GIA and $39,148.58 in attorney’s fees.

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891 F. Supp. 2d 4, 2012 U.S. Dist. LEXIS 131820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ullico-casualty-company-v-abba-shipping-lines-inc-dcd-2012.