Victory Insurance and Financial Services LLC v. Ben Oberg Enterprises LLC

CourtDistrict Court, D. Arizona
DecidedFebruary 28, 2025
Docket3:23-cv-08015
StatusUnknown

This text of Victory Insurance and Financial Services LLC v. Ben Oberg Enterprises LLC (Victory Insurance and Financial Services LLC v. Ben Oberg Enterprises LLC) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Victory Insurance and Financial Services LLC v. Ben Oberg Enterprises LLC, (D. Ariz. 2025).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Victory Insurance and Financial Services No. CV-23-08015-PCT-DJH LLC, 10 ORDER Plaintiff, 11 v. 12 Ben Oberg Enterprises LLC, et al., 13 Defendants. 14 15 Defendant Ben Oberg Enterprises, LLC (“Defendant”) has moved for summary 16 judgment on Plaintiff Victory Insurance and Financial Services, LLC’s (“Plaintiff”) claims 17 for promissory estoppel, unjust enrichment and consequential damages. (Doc. 55 at 1–2). 18 The matter is fully briefed. (Docs. 58–59). For the following reasons, the Court will grant 19 summary judgment in favor of Defendant on Plaintiff’s claim for consequential damages 20 but not its claims for promissory estoppel or unjust enrichment. 21 I. Background 22 This is a case about a contract dispute. The parties entered into a contract for 23 Defendant to provide advertising services to Plaintiff. (Doc. 55 at 2; Doc. 58 at 4). The 24 objective of this contract was “Full Digital Marketing Infrastructure For [Plaintiff]; market 25 analysis, script writing, media production, sales funnel/web process, qualification process, 26 full branding/value/call-to-action marketing and retargeting process.” (Doc. 55 at 14). The 27 estimated timeline for this objective was eight weeks, with the first phase consisting of “set 28 up funnel/web process, set up active campaign for email marketing, create email marketing 1 segmentations/retargeting sequences, create offers to drive qualified prospects into 2 funnel/sales system, set up ad account pixels, work with [Plaintiff] to create all digital 3 assets, record all ads/funnel content/branding content, and prep for launch.” (Id.) In phase- 4 two, Defendant would “Launch Ads/funnels, test audiences, optimize, & scale. This 5 process [would] start[] immediately as soon as the funnel is 100%. This [would] also 6 include email marketing, retargeting sequences (via email and ads), continued consulting, 7 funnel optimization, etc. Phase II is the management outlined under the “financial 8 agreement” section.” (Id.) 9 Each party bore some responsibility, with Plaintiff being required to show up for all 10 pre-planned calls, answer any needed questions that will enhance performance of funnels, 11 sales copy, ads, and/or anything contributing to the success of the project, and provide 12 materials requested so the project can be completed on time and with complete accuracy. 13 (See id. at 14). Defendant’s responsibility required it to communicate with Plaintiff as 14 often as needed, optimize ads/marketing, create high converting sales process and digital 15 marketing infrastructure that provides Plaintiff with qualified financial prospects and 16 buyers (AUM & Annuity prospects & buyers), create scale in the digital aspect of 17 Plaintiff’s business, scale ad spend as efficiently as possible, and optimize and increase 18 ROAS (return on ad spend) as efficiently as possible. (See id. at 16). The parties agreed 19 to an initial fee of $65,000 as well as $4,000 per month plus twenty-percent commission 20 through the length of engagement. (Id.) The parties entered into this contract on July 30, 21 2021. (Id. at 17). Plaintiff states that it paid Defendant an additional $12,841.32 in 22 additional social media platform costs, as well as $21,600 in upfront management fees for 23 a grand total of $99,441.32.1 (Doc. 58 at 5). 24 Plaintiff states that over the first year it had engaged Defendant, it produced 25 “approximately 19 low-end leads, many of whom did not meet minimum qualification 26 1 Defendant notes that in “In Section III of its Initial Disclosures dated April 3, 2023, 27 Plaintiff provided a damages calculation of $86,600 (comprised of $65,000 for the Phase I payment and $21,600 for payment of Phase II management fees) for fees paid to BOE 28 along with consequential damages for which no estimate or calculation was provided.” (Doc. 55 at 3). Plaintiff later estimated its consequential damages at $1,500,000. (Id.) 1 requirements, and none of which resulted in a single customer or a single dollar of revenue 2 for [Plaintiff].” (Doc. 58 at 5). It also states that on August 1, 2022, it determined that 3 Defendant had not met its obligations to Plaintiff and, consequently, Plaintiff discontinued 4 its on-going relationship with Defendant. (Id.) Plaintiff states that its losses are, at a 5 minimum, $1,500,000 as Defendant promised Plaintiff’s $100,000 investment would be 6 returned to it by a factor of ten. (Id.) 7 Due to the above alleged conduct, Plaintiff brought claims for (1) Breach of 8 Contract; (2) Breach of the Implied Covenant of Good Faith and Fair Dealing; (3) 9 Promissory Estoppel; and (4) Unjust Enrichment against Defendant. (Doc. 1-3 at ¶¶ 33– 10 66). Plaintiff seeks damages of $86,600 plus “Facebook ad expenses, quantum meruit in 11 the amount to which Defendant was unjustly enriched, and attorney’s fees and costs/ 12 interest.” (Id. at ¶ 66). Plaintiff specifically seeks consequential damages in its Complaint 13 under its breach of contract claim specifically related to “expenses for Facebook 14 advertising, lost profits, incidental damages and expenses incurred for which Victory has 15 not been fully reimbursed.” (Id. at ¶ 39). Plaintiff did not provide a valuation for these 16 consequential damages, however. (Id.) Defendant notes that Plaintiff estimated in its 17 Second Supplemental Disclosure, for the first time, that it suffered consequential damages 18 of $1,500,000. (Doc. 55 at 3). This estimate was made in response to one of Defendant’s 19 interrogatories, which requested “a complete calculation of all damages including 20 consequential damages.” (Id. at 3; 46–47). 21 II. Legal Standard 22 A court will grant summary judgment if the movant shows there is no genuine 23 dispute of material fact and the movant is entitled to judgment as a matter of law. Fed. R. 24 Civ. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322–23 (1986). A fact is “material” 25 if it might affect the outcome of a suit, as determined by the governing substantive law. 26 Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A factual dispute is “genuine” 27 when a reasonable jury could return a verdict for the nonmoving party. Id. Courts do not 28 weigh evidence to discern the truth of the matter; they only determine whether there is a 1 genuine issue for trial. Jesinger v. Nevada Fed. Credit Union, 24 F.3d 1127, 1131 (9th 2 Cir. 1994). This standard “mirrors the standard for a directed verdict under Federal Rule 3 of Civil Procedure 50(a), which is that the trial judge must direct a verdict if, under the 4 governing law, there can be but one reasonable conclusion as to the verdict.” Anderson, 5 477 U.S. at 250. “If reasonable minds could differ as to the import of the evidence, 6 however, a verdict should not be directed.” Id. at 250–51 (citing Wilkerson v. McCarthy, 7 336 U.S. 53, 62 (1949)). 8 The moving party bears the initial burden of identifying portions of the record, 9 including pleadings, depositions, answers to interrogatories, admissions, and affidavits, 10 that show there is no genuine factual dispute. Celotex, 477 U.S. at 323. Once shown, the 11 burden shifts to the non-moving party, which must sufficiently establish the existence of a 12 genuine dispute as to any material fact. See Matsushita Elec. Indus. Co. v. Zenith Radio 13 Corp., 475 U.S. 574, 585–86 (1986).

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Victory Insurance and Financial Services LLC v. Ben Oberg Enterprises LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/victory-insurance-and-financial-services-llc-v-ben-oberg-enterprises-llc-azd-2025.