Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_09-cv-00082/USCOURTS-azd-2_09-cv-00082-1/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

GE Capital Franchise Finance

Corporation, a Delaware corporation, 

Plaintiff, 

vs.

Cow Tippers Aramingo, a Pennsylvania

limited liability company; Horn

Restaurants, a New Jersey limited

liability company; Sensational Sandwich

Company Aramingo, a Pennsylvania

limited liability company; Charles

Fletcher; Jeff Horn; and James Sweet,

Defendants.

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No. CV-09-82-PHX-DGC

ORDER AND DEFAULT JUDGMENT

On August 16, 2005, Cow Tippers Aramingo, LLC (“Cow Tippers”) entered into

certain loan agreements with GE Capital Franchise Finance Corporation (“GE”) in

connection with the construction of an Arby’s restaurant located in Philadelphia,

Pennsylvania. GE loaned Cow Tippers $921,000 pursuant to a construction loan agreement

and $229,000 pursuant to an equipment loan agreement. Payment under the loans was

guaranteed by James Sweet, Charles Fletcher, Jeff Horn, Horn Restaurants, LLC, and

Sensational Sandwich Company Aramingo, LLC (“Sensational Sandwich”). 

On January 13, 2009, GE filed a complaint against Cow Tippers and the loan

guarantors. Plaintiff alleges that Cow Tippers has defaulted on the loans and the guarantors

have failed to pay as required by the loan guaranty agreements they signed. The complaint

asserts breach of contract claims. Dkt. #1.

Case 2:09-cv-00082-DGC Document 22 Filed 09/01/09 Page 1 of 3
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Defendants were served with process shortly after the filing of the complaint.

Dkt. ##7-9. Defendants failed to answer or otherwise respond to the complaint. The Clerk

entered Defendants’ default on April 6, 2009. Dkt. #11. Thereafter, Defendants James

Sweet and Jeff Horn filed bankruptcy.

Plaintiff has filed, pursuant to Rule 55 of the Federal Rules of Civil Procedure, an

amended motion for default judgment against Defendants Cow Tippers, Horn Restaurants,

Sensational Sandwich, and Charles Fletcher. Dkt. #14. No response has been filed.

For reasons that follow, the Court will grant the motion.

Because Defendants’ default has been entered under Rule 55(a) (Dkt. ##7-11), the

Court has discretion to grant default judgment pursuant to Rule 55(b). See Aldabe v. Aldabe,

616 F.2d 1089, 1092 (9th Cir. 1980); Draper v. Coombs, 792 F.2d 915, 924 (9th Cir. 1986).

Factors the Court should consider in deciding whether to grant default judgment include

(1) the possibility of prejudice to Plaintiff, (2) the merits of the claims, (3) the sufficiency of

the complaint, (4) the amount of money at stake, (5) the possibility of a dispute concerning

material facts, (6) whether default was due to excusable neglect, and (7) the policy favoring

a decision on the merits. See Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986).

Having considered Plaintiff’s motion and supporting memorandum, which addresses

each of the Eitel factors (Dkt. #20), and having reviewed the well-pled factual allegations of

the complaint (Dkt. #1), the various loan and guaranty agreements (Dkt. ##1-1 through 1-9),

and the affidavit of sum certain (Dkt. #20-1) and affidavit for award of attorney fees

(Dkt. #20-2), the Court concludes that default judgment is appropriate. See Crosby v.

Opperman, No. CV 06-2012-PHX-MHM, 2008 WL 1776505 (D. Ariz. Apr. 15, 2008)

(granting default judgment on breach of contract claim); Webb v. Indigenous Global Dev.

Corp., No. C-04-3174 MJJ, 2005 WL 1200203 (N.D. Cal. May 16, 2005) (granting default

judgment against the defendant for failure to pay pursuant to a promissory note).

Plaintiff seeks an award of $1,642.30 in pre-judgment taxable costs. Dkt. #20, ¶ 5.

The Court will deny this request without prejudice. Plaintiff may file a bill of costs pursuant

to Rule 54 of the Federal Rules of Civil Procedure and Rule 54.1 of the Court’s Local Rules

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of Civil Procedure.

IT IS ORDERED:

1. Plaintiff’s request for an award of pre-judgment taxable costs is denied

without prejudice.

2. Plaintiff’s amended motion for default judgment (Dkt. #20) is granted.

3. Default Judgment is entered in favor of Plaintiff and against Defendant Cow

Tippers Aramingo, LLC on count one of the complaint and against Defendants

Charles Fletcher, Horn Restaurants, LLC, and Sensational Sandwich Company

Aramingo, LLC on count two, jointly and severally, in the total sum of

$1,281,826.27, plus pre-judgment and post-judgment interest at the rate of

14% per annum.

4. Plaintiff is awarded reasonable attorney fees in the amount of $10,662.80.

5. Plaintiff shall file a report regarding the status of the claims against Defendants

James Sweet and Jeff Horn by September 18, 2009.

DATED this 1st day of September, 2009.

Case 2:09-cv-00082-DGC Document 22 Filed 09/01/09 Page 3 of 3