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Jlg Enterprises, Inc., A California Corporation v. Excalibur Sires

October 11, 2011

JLG ENTERPRISES, INC., A CALIFORNIA CORPORATION, PLAINTIFF,
v.
EXCALIBUR SIRES, INC., A MINNESOTA CORPORATION, AND DOES 1 THROUGH 25, INCLUSIVE, DEFENDANT.
EXCALIBUR SIRES, INC., COUNTERCLAIMANT,
v.
JLG ENTERPRISES, INC., COUNTERDEFENDANT.



The opinion of the court was delivered by: Sheila K. Oberto United States Magistrate Judge

ORDER REQUIRING JLG TO SUBMIT ADDITIONAL INFORMATION REGARDING INTEREST AND AN INTEREST CALCULATION IN SUPPORT OF REQUEST FOR DEFAULT JUDGMENT

I. INTRODUCTION

On June 1, 2011, Plaintiff JLG Enterprises, Inc., ("JLG") filed a motion to compel based on Defendant Excalibur Sires, Inc's ("Excalibur") complete failure to provide responses to JLG's outstanding discovery requests consisting of Interrogatories, Requests for Admission, and Requests for Production of Documents. (Doc. 60.) Excalibur filed a statement of non-opposition to the motion and a declaration from counsel in opposition to JLG's request for sanctions. (Docs. 63, 63-1.)

On June 27, 2011, the Court issued an order requiring Excalibur to provide responses to JLG's Interrogatories and Requests for Production of Documents within 30 days from the date of the order. (Doc. 67.) On August 2, 2011, JLG filed a status report indicating that Excalibur failed to comply with the Court's June 27, 2011, order and that no responses to the outstanding discovery requests were served. (Doc. 69.) In its status report, JLG requested that it be awarded reasonable attorney's fees associated with the motion and that the Court impose a case-terminating sanction and enter default judgment against Excalibur. (Doc. 69, 2:6-12.)

On August 12, 2011, the Court issued an order to show cause in which Excalibur was ordered to file a statement within ten (10) days of the order as to why monetary sanctions or default judgment should not be imposed against it for failing to comply with the Court's June 27, 2011, discovery order. (Doc. 70.) The Court cautioned Excalibur that, beyond any monetary sanction that would be imposed, the Court would be inclined to recommend terminating sanctions pursuant to Federal Rule of Civil Procedure 37(b)(1) if Excalibur did not respond to the order to show cause. (Doc. 70, 3:1-6.) Excalibur failed to file a response.

On September 9, 2011, the Court issued another order to show cause in which Excalibur was ordered to submit in writing within twenty (20) days a statement as to why default judgment should not be entered against Excalibur and why Excalibur's claim should not be dismissed with prejudice. (Doc. 72.) Excalibur was warned that its failure to respond to the order to show cause would result in a recommendation that case-terminating sanctions be imposed, default judgment be entered against it, and monetary sanctions awarded due to Excalibur's failure to provide discovery responses. JLG was also ordered to submit proof of its damages within ten (10) days of the amount sought in default judgment.

On September 19, 2011, JLG filed proof of its damages. (Docs. 73-75.) Excalibur's response to the order to show cause was due by October 3, 2011.*fn1 Excalibur failed to file a response.

As such, the Court is currently considering JLG's request that terminating sanctions and default judgment be entered against Excalibur. Before the findings and recommendations can be issued, however, the Court requires JLG to provide additional information regarding the interest sought and an interest calculation.

II. DISCUSSION

A. Amount of Default Judgment Damages Requested by JLG

JLG's complaint indicates in its prayer for relief that JLG is seeking: (1) damages in the principle amount of $160,964.51; (2) pre- and post-judgment interest at the contractual rate of eighteen percent (18%) per annum; (3) costs and attorney's fees; (4) declaratory relief from the Court that it has a general Livestock Service Lien; (5) a Court order authorizing the sale of Excalibur's bulls that were in JLG's possession; and (6) other and further relief that the Court deems just. (Doc. 1-3, 12:5-20.)

On September 19, 2011, pursuant to the Court's September 9, 2011, order (Doc. 72), JLG submitted declarations from its president, accounts receivable clerk, and counsel in support of its application for default judgment. (Docs. 73-75.) JLG's president, Jack Lerch, declares that Excalibur is now seeking damages in the principal amount of $242,990.24, prejudgment interest at the contractual rate of 18% in the amount of $61,505.93, costs associated with the sale of the bulls in the amount of $3,814.06, and court costs in the amount of $657.15, for a total amount of $308,967.38. (Doc. 73, Lerch Decl., ¶ 13.)

1. JLG's Damages Limited to Amount Requested in the Complaint

Federal Rule of Civil Procedure 54(c) states in pertinent part that "[a] default judgment must not differ in kind from, or exceed in amount, what is demanded in the pleadings." Although JLG now seeks damages in the amount of $242,990.24, plus interest, JLG's ...


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