Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_11-cv-00988/USCOURTS-azd-2_11-cv-00988-2/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

Luis Virata, an individual, 

Plaintiff, 

vs. 

Eric Zemke, an individual, et al., 

Defendants.

No. CV11-0988 PHX DGC

ORDER AND JUDGMENT 

 On May 24, 2012, the Court entered default judgment against ACLS Pegasus, 

LLC in the total amount of $349,590.14: $127,500 in the actual amount that Mr. Virata 

provided to the defendants; $82,290 in attorney's fees; $12,300.14 in legal costs; and 

$127,500 in punitive damages. Doc. 97. At the time, the case was stayed against 

defendant Steven Wallace, the sole owner and employee of ACLS Pegasus, who had filed 

a personal bankruptcy action. See Doc. 92. Subsequently, the personal bankruptcy 

action was dismissed. See Doc. 100. On June 15, 2012, this Court lifted the stay against 

Mr. Wallace and ordered that Mr. Wallace respond to the amended complaint by July 3, 

2012, or have a “default judgment entered against him if he fails to respond to the 

amended complaint.” Doc. 100. Despite the Court's clear instruction, Mr. Wallace has 

failed to respond to the complaint. On July 23, 2012, Plaintiff filed a motion for default 

judgment. Doc. 103. Mr. Wallace has not filed a response. The Court will grant the 

motion. 

 On July 12, 2012, Plaintiff filed a Declaration in Support of Order Entering 

Default Judgment and Damages against Steven Wallace. Doc. 101-1 at 1-6. This sworn 

Case 2:11-cv-00988-DGC Document 104 Filed 08/28/12 Page 1 of 2
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declaration – as well as deposition testimony and other evidence attached to it – provides 

evidentiary support for Plaintiffs claim that he suffered damages in the amount of amount 

of $127,500, attorneys’ fees in the amount of $82,290, and costs in the amount of 

$12,300. Accordingly, the Court will order Mr. Wallace to compensate Plaintiff for the 

claimed damages, attorneys' fees, and costs totaling $222,090. The Court also finds that 

Plaintiffs request for $127,500 in punitive damages is appropriate in this case.1

 The 

Court therefore orders Mr. Wallace to pay punitive damages to Plaintiff in the amount of 

$127,500, for a total award of $349,590. Judgment shall bear interest as provided in 28 

U.S.C § 1961. 

IT IS ORDERED THAT: 

 1. Default judgment is entered in favor of Plaintiff Luis Virata and against 

Steven Wallace as to Counts 2, 3, 5, 6, and 7. 

 2. Plaintiff Luis Virata shall recover from Defendant Wallace all damages, 

attorneys’ fees and costs set forth in this order in the total amount of $349,590.14: 

$127,500 in the actual amount that Mr. Virata provided to Defendant Wallace; $82,290 in 

attorney's fees; $12,300.14 in legal costs; and $127,500 in punitive damages. Interest 

shall accrue at the rate provided in 28 U.S.C § 1961 per month from the date of entry of 

this order. 

 Dated this 28th day of August, 2012. 

 

1

 The Court discussed Plaintiff’s request for punitive damages in its prior order of default judgment against ACLS Pegasus and determined that a 1:1 ratio between actual 

and punitive damages was appropriate. Doc. 97 at 2. 

Case 2:11-cv-00988-DGC Document 104 Filed 08/28/12 Page 2 of 2