Walden Solar PA Jefferson LLC v. Barbieri Land Management LLC

District Court, W.D. Pennsylvania·Decided April 14, 2025·No. 2:25-cv-00083·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA WALDEN SOLAR PA JEFFERSON LLC, ) ) ) Plaintiff, ) ) Civil Action No. 25-83 v. ) ) BARBIERI LAND MANAGEMENT LLC, ) )

Defendant.

MEMORANDUM ORDER Presently before the Court is Plaintiff Walden Solar PA Jefferson LLC’s (“Walden”) Motion for Default Judgment against Barbieri Land Management LLC (“Barbieri”) (Docket No. 18) which includes Walden’s requests for permanent injunctive and declaratory relief, Walden’s brief in support of its motion (Docket No. 19), and Walden’s Memorandum in Response to the Court’s February 28, 2025, Order (Docket No. 22). The Court provided the background of this case in its Memorandum and Order granting Walden’s Motion for Preliminary Injunction. (Docket No. 16). Therein, the Court explained that Walden and Barbieri entered an agreement in 2020 under which Barbieri agreed to lease real property in Jefferson County, Pennsylvania to Walden for development of solar photovoltaic generation equipment on the property. (Id. at 2). The initial term of the lease was three years, but the parties’ agreement gave Walden the option to renew up to three successive one-year periods. (Id.). Walden timely notified Barbieri in December 2024 that it would exercise a renewal option. (Id.). But Barbieri failed to execute the Lease and Memorandum of Lease within the time contemplated by the parties’ agreement, thus breaching the agreement. (Id. at 2-3). Based on Walden’s allegations and its motion for a preliminary injunction, the Court decided Walden was likely to succeed on its breach of contract claim and had shown it would suffer irreparable harm absent injunctive relief. (Id. at 4). The Court further determined Barbieri would suffer negligible harm, at best, from an injunction. (Id. at 5). Accordingly, the Court ordered Barbieri to comply with its obligations under the parties’ agreement and (in accordance therewith) to execute the Lease and Memorandum of Lease in compliance with Paragraph 4 of the parties’ Lease Option. (Id. at 6). Barbieri has since executed the Lease and

Memorandum of Lease pursuant to the Court’s preliminary injunction. (Docket No. 22 at n. 5). However, Barbieri has not responded to Walden’s allegations in this Court or sought to participate in this suit in any way. For that reason, Walden sought and obtained the Clerk’s entry of default, and now seeks default judgment. (Docket Nos. 15, 17, 18). For the reasons herein, the Court will grant Walden’s motion for default judgment.1 Rule 55 sets out two steps for default judgment when there is a failure to defend. City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 128 (2d Cir. 2011) (“Rule 55 provides a ‘two-step process’ for the entry of judgment against a party who fails to defend: first, the entry of a default, and second, the entry of a default judgment.”). The Clerk of Court has already entered default in this matter, satisfying step-one. (Docket No. 17). The Clerk’s entry of default

established Barbieri’s effective admission of liability. Kollmann v. Transtech Airport Sols., Inc., No. CIV.A. 08-797, 2011 WL 6020168, at *2 (W.D. Pa. Dec. 2, 2011). In the next step, this Court considers whether to exercise its discretion to enter default judgment pursuant to Rule 55(b)(2) and to thus “convert[] the defendant’s ‘admission of liability’ into a final judgment that terminates the litigation and awards the plaintiff any relief to which the court decides [plaintiff] is entitled.” Id. Default judgment is disfavored. Broad. Music, Inc. v.

1 In its prior Order, the Court acknowledged the possibility of scheduling a hearing on the motion. (Docket No. 20 at 2). The Court has discretion to conduct a hearing on a motion for default judgment pursuant to Fed. R. Civ. P. 55(b)(2) (“The court may conduct hearings … when, to enter or effectuate judgment, it needs to: conduct an accounting; determine the amount of damages; establish the truth of any allegation by evidence; or investigate any other matter.”). Considering Walden’s supplemental memorandum (Docket No. 22), the Court is satisfied that it need not conduct a hearing to rule on the motion. George Moore Enters., Inc., 184 F. Supp. 3d 166, 169 (W.D. Pa. 2016) (citing Petrucelli v. Bohringer & Ratzinger, 46 F.3d 1298, 1303 (3d Cir. 1995)). And, to enter default judgment under Rule 55(b)(2), the Court must “ascertain whether the unchallenged facts constitute a legitimate cause of action, since a party in default does not admit mere conclusions of law.” Harty v. Azad

Holdings LLC, No. CV 14-6566, 2016 WL 4045338, at *2 (E.D. Pa. July 27, 2016) (quoting Sowell v. RAV Investigative & Sec. Servs., No. 15-3657, 2016 WL 3014881 (E.D. Pa. May 26, 2016)). In ascertaining whether to grant default judgment, the Court also considers the Chamberlain factors—“(1) prejudice to the plaintiff if default is denied, (2) whether the defendant appears to have a litigable defense, and (3) whether defendant’s delay is due to culpable conduct,” Chamberlain v. Giampapa, 210 F.3d 154, 164 (3d Cir. 2000).2 As an initial matter, the Court is satisfied that Walden has stated a legitimate cause of action. In its Memorandum and Order on Walden’s preliminary injunction motion, the Court discussed the cause of action in question here, breach of contract, which is established by: “(1) the existence of a contract, including its essential terms, (2) a breach of a duty imposed by the contract

and (3) resultant damages.” (Docket No. 16 at 3 (quoting Pennsy Supply, Inc. v. Am. Ash Recycling Corp. of Pa., 895 A.2d 595, 600 (Pa. Super. Ct. 2006)). The facts alleged by Walden—which the Court accepts as true, Broad. Music, Inc., 184 F. Supp. 3d at 169—are that Walden’s notice of extension to Barbieri on December 20, 2024, triggered Barbieri’s obligation to execute the lease

2 In its default judgment determination, the Court must also assure itself that it has subject matter jurisdiction and personal jurisdiction. Mercedes-Benz Fin. Servs. USA LLC v. Synergistiks, Inc., No. 3:18- CV-184, 2019 WL 481753, at *2 (W.D. Pa. Feb. 7, 2019). The Court has jurisdiction in this matter pursuant to 28 U.S.C. § 1332 (diversity). (Docket No. 1, ¶¶ 20-25). And the Court has personal jurisdiction through Walden’s service of the Summons and Complaint on Barbieri through Barbieri’s authorized agent (Susan Hugh) at Barbieri’s business address, and through Joseph Barber (Barbieri’s principal) at his residence in January 2025 (Docket No. 15-1, ¶ 5). Lampe v. Xouth, Inc., 952 F.2d 697, 701 (3d Cir. 1991) (“A federal district court acquires personal jurisdiction over a defendant when the plaintiff serves the defendant with the complaint in a manner specified by Rule 4.”). within ten days, but Barbieri nevertheless failed to respond and therefore breached the parties’ agreement. (Docket No. 16 at 3-4). Based on the foregoing, there is a legitimate cause of action warranting default judgment in this matter. Turning to the Chamberlain factors, the Court finds that Walden will be prejudiced if

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Walden Solar PA Jefferson LLC v. Barbieri Land Management LLC, (W.D. Pa. 2025).

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