Xerox Financial Services, LLC v. JP1 Enterprises, Inc. d/b/a JP Enterprises, also d/b/a Select Printing and Copying, et al.

District Court, D. Maryland·Decided August 4, 2026·No. 1:23-cv-03493·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

XEROX FINANCIAL SERVICES, LLC, * * Plaintiff, * * vs. * Civil Action No. DRM-23-3493 * JP1 ENTERPRISES, INC. d/b/a * JP ENTERPRISES, also d/b/a SELECT * PRINTING AND COPYING, et al., * * Defendants. *

MEMORANDUM OPINION Before the Court are the parties’ cross-motions for summary judgment, ECF Nos. 85 & 86, and Defendants’ Motion to Dismiss Second Amended Complaint or Alternatively Motion for Summary Judgment, ECF No. 94. For the reasons explained herein, the Court will grant Plaintiff’s motion for summary judgment as to liability on Count One (breach of contract), but will deny it as to the amount of damages. The Court will deny Defendant’s motion for summary judgment. The Court will treat ECF No. 94 as a Motion for Summary Judgment on Count Three (fraudulent conveyance), and will deny it. The Court will also dismiss Count Two (quantum meruit / unjust enrichment), in light of Plaintiff’s agreement thereto. I. Factual and Procedural Background On December 22, 2023, the original Plaintiff, Xerox Corporation (“Xerox”), initiated this action for breach of contract to recover unpaid lease payments arising from a November 27, 2018 agreement for the rental of commercial printing equipment (“the lease”). ECF No. 1 at 3. Under the terms of the lease, Defendant JP1 Enterprises, Inc. (“JP1”) agreed to pay lessor Nauticon Office Solutions (“Nauticon”) a monthly base of $7,895, plus applicable taxes, for a period of sixty months. Id. at 4. The lease further provided that upon default, Nauticon could accelerate the balance of payments due and recover attorneys’ fees and interest at a rate of eighteen percent per annum. Id. Nauticon assigned its interest in the lease to Xerox subsidiary Xerox Financial Services, LLC (“XFS”). XFS substituted itself as Plaintiff and filed the Amended Complaint on February 15, 2024. ECF No. 20 at 1. In the Amended Complaint, XFS alleged that after JP1’s corporate charter was

revoked, Defendant Frank Friedlieb (“Friedlieb”) continued operating what amounted to the same printing business under the names “Select Printing and Copying” and “Select Printing, LLC” (the latter being the name of a Maryland entity he also owned), while also using the leased equipment without making payments. ECF No. 20 at 3–5. An April 1, 2021 invoice reflected forty-six months remaining on the lease term and an overdue balance of $79,186.85. ECF No. 20-5 at 1–2. XFS claimed that Defendants defaulted on the lease despite continued use of the equipment and sought $436,330 in unpaid lease balance, as well as $170,168.70 in interest, attorneys’ fees, and costs. ECF No. 20 at 5–6. In the alternative to this breach of contract theory (Count One), XFS plead quantum meruit / unjust enrichment (Count Two). Id.

Defendants filed a Motion to Dismiss on February 28, 2024, which the Court granted in part and denied in part on September 2, 2024. ECF Nos. 24, 28. Specifically, both claims were dismissed without prejudice against Defendants Friedlieb and Select Printing LLC (“Select Printing”)1, but remained active against Defendant JP1. Plaintiff’s Motion for Reconsideration was denied on July 8, 2025. ECF Nos. 62, 70. On July 24, 2025, XFS moved for leave to file a Second Amended Complaint to add a claim (Count Three) for fraudulent conveyance under the Maryland Uniform Fraudulent

1 Select Printing was named as a defendant “as successor in interest” in both the Complaint and Amended Complaint. Conveyance Act, Md. Code Ann., Com. Law § 15-201, et seq. (“MUFCA”), against JP1 and Select Printing, thus reviving Select Printing as a defendant. ECF No. 74 at 1. The Court granted the motion for leave to file, over Defendant’s objection, on September 22, 2025. ECF No. 87. This new count asserted that JP1 transferred assets, including equipment, trade names, and goodwill, to Select Printing for little or no consideration with intent to hinder, delay, or defraud

creditors, at a time when JP1 was insolvent or rendered insolvent by the transfer, in bad faith. ECF No. 88 at 5-6. XFS now moves for summary judgment on Count One (breach of contract). ECF No. 85. JP1 moves for summary judgment on Counts One and Two. ECF No. 86. In its response, XFS agrees that Count Two, its alternative claim for quantum meruit / unjust enrichment, can be dismissed. ECF No. 89; ECF No. 89-1.2 Select Printing and JP1 bring a Joint Motion to Dismiss the Second Amended Complaint, or Alternatively Motion for Summary Judgment, ECF No. 94, seeking dismissal or summary judgment on Count Three, XFS’s claim for fraudulent conveyance. II. Legal Standard

A. Cross-Motions for Summary Judgment

Rule 56 of the Federal Rules of Civil Procedure provides that a court “shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A material fact is one that “might affect the outcome of the suit under the governing law.” Anderson v. Liberty Lobby, Inc.,

2 Although the parties filed their cross-motions for summary judgment before the Court granted the motion for leave to file the Second Amended Complaint, Counts One and Two of the Second Amended Complaint bear only minor clarifications to their counterparts in the First Amended Complaint, and the differences are immaterial for purposes of the instant motions. The parties were offered an opportunity to supplement their summary judgment briefing as to these counts and declined to do so. See ECF No. 87 at 9. Accordingly, the Court treats the pending cross-motions as applying to the Second Amended Complaint. 477 U.S. 242 (1986). A genuine issue over a material fact exists “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. In considering a motion for summary judgment, a court’s function is limited to determining whether sufficient evidence exists on a claimed factual dispute to warrant submission of the matter to a jury for resolution at trial. Id. at 249.

When both parties file motions for summary judgment, as here, a court applies the same standards of review. Taft Broad. Co. v. United States, 929 F.2d 240, 248 (6th Cir. 1991); ITCO Corp. v. Michelin Tire Corp., 722 F.2d 42, 45 n. 3 (4th Cir. 1983). The role of the court is to “rule on each party’s motion on an individual and separate basis, determining, in each case, whether a judgment may be entered in accordance with the Rule 56 standard.” Towne Mgmt. Corp. v. Hartford Acc. & Indem. Co., 627 F. Supp. 170, 172 (D. Md. 1985). “[B]y the filing of a motion [for summary judgment] a party concedes that no issue of fact exists under the theory he is advancing, but he does not thereby so concede that no issues remain in the event his adversary’s theory is adopted.” Nafco Oil & Gas, Inc. v. Appleman, 380 F.2d 323, 325 (10th Cir. 1967); see

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Xerox Financial Services, LLC v. JP1 Enterprises, Inc. d/b/a JP Enterprises, also d/b/a Select Printing and Copying, et al., (D. Md. 2026).

Xerox Financial Services, LLC v. JP1 Enterprises, Inc. d/b/a JP Enterprises, also d/b/a Select Printing and Copying, et al. (Xerox Financial Services, LLC v. JP1 Enterprises, Inc. d/b/a JP Enterprises, also d/b/a Select Printing and Copying, et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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