Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_05-cv-03207/USCOURTS-cand-4_05-cv-03207-2/pdf.json

Parties Involved:
General Steamship Agencies, Inc.
Plaintiff
Sea Bridge Marine, Inc.
Defendant
Sea Bridge Projects, Inc.
Defendant

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1 Plaintiff included Sea Bridge Marine, Inc. (“SB

Marine”) as a defendant in its complaint, and the Clerk of this

court entered default as to SB Marine, but plaintiff has since

dismissed SB Marine. Mot. 3:3-10.

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

GENERAL STEAMSHIP AGENCIES,

INC.,

Plaintiff(s),

v.

SEA BRIDGE PROJECTS, INC.,

Defendant(s).

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No. C05-3207 SBA (BZ)

REPORT AND RECOMMENDATION TO

GRANT PLAINTIFF’S MOTION FOR

DEFAULT JUDGMENT

By order dated May 2, 2006, the Honorable Saundra Brown

Armstrong referred to me this motion for default judgment for

a report and recommendation. Pursuant to Rule 55(b)(2) of the

Federal Rules of Civil Procedure, I set a hearing and ordered

plaintiff General Steamship Agencies, Inc. (“GSA”) to serve a

copy of the scheduling order on defendant Sea Bridge Projects,

Inc.,1 which plaintiff did on May 16, 2006 [docket # 28]. 

Defendant has not responded to the motion for default

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judgment. After a hearing on June 7, 2006, plaintiff

requested a continuance to allow its president Scott Jones to

testify and offer additional evidence. A further hearing was

held on August 16, 2006. 

Plaintiff requests a default judgment in its favor of

$161,295.94, and for the reasons below, I recommend that its

request be granted. 

On August 8, 2005, plaintiff, a vessel husbanding agent

which provides services to ocean vessels, filed its complaint

against defendant, alleging breach of contract and other

related causes of action. On August 10, 2005, plaintiff

served defendant by serving defendant’s corporate secretary,

leaving copies of the complaint, summons and relevant

documents with the administrative manager and subsequently

mailing copies [docket # 8]. Defendant failed to answer the

complaint or otherwise defend the action, and on October 19,

2005, upon plaintiff’s request, the Clerk of this court

entered defendant’s default under Rule 55(a). By its default,

defendant is deemed to have admitted the well-pleaded

averments of the complaint except those as to the amount of

damages. See Fed. R. Civ. P. 8(d); TeleVideo Systems, Inc. v.

Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987)(stating that

upon default, the factual allegations of the complaint will be

taken as true); Geddes v. United Financial Group, 559 F.2d

557, 560 (9th Cir. 1977). 

Defendant engaged plaintiff to provide vessel husbanding

services and to act as its agent to engage the services of

third parties pursuant to the terms and conditions of the

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Schedule of Fees for Vessel Husbandry (the “Schedule”)

attached as Exhibit A to the complaint. Compl. ¶¶ 7-9, Exh.

A. The Schedule lists fees for various services, including

crew charges, processing fines or charges and supervisory and

husbanding services. Defendant also agreed to “remit funds

requested to cover estimated disbursements prior to vessel

arrival” and reimburse plaintiff for actual expenses incurred

in relation to the vessels’ call. Compl., Exh. A ¶ 1. In the

Schedule, defendant also authorized plaintiff to agree to

customary terms and provisions on its behalf. Id. at ¶ 3. 

The complaint alleges that defendant breached the contract by

failing to pay the amounts due to plaintiff for services

rendered and funds advanced to third parties on behalf of

defendant and amounts due to third parties whom plaintiff

retained on behalf of defendant. Compl. ¶ 10. The complaint

does not include any specific amounts of damages or losses

suffered by plaintiff, instead praying for judgment according

to proof, together with prejudgment interest, costs of suit

and other expenses incurred. Compl., Prayer. 

Pursuant to Rule 55(b)(2), the court, in its discretion,

may enter a default judgment against a party against whom

default has been entered. Eitel v. McCool, 782 F.2d 1470,

1471 (9th Cir. 1986). Liability having been established on

default, the remaining issue on default judgment is the relief

available to plaintiff. 

Plaintiff has the burden of proving damages through

testimony or written affidavit. To prove damages, plaintiff

has submitted a declaration from its president, Scott Jones,

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with an attached spreadsheet, showing figures as of October

17, 2005, which Mr. Jones avers has been prepared by GSA in

the ordinary course of business and accurately reflects the

total amount defendant owes GSA. Jones Decl. ¶ 7. Mr. Jones

further avers that the requested amount includes plaintiff’s

fees for agency services, plaintiff’s out of pocket charges to

third parties and third party invoices on hold, which

plaintiff is being requested to pay. Id. A total amount of

$144,853.26 is out of pocket, and a total amount of $16,442.68

is the subject of invoices on hold. Plaintiff claims that all

services were customary and necessary to the operation of the

vessel. 

At the hearing on August 16, 2006, Mr. Jones confirmed

that the amounts are still outstanding, and that defendant has

not contacted or paid plaintiff since receiving the

spreadsheet of outstanding charges. Mr. Jones directed the

creation of the spreadsheet, and he testified as to its

accuracy. Plaintiff also submitted supplemental evidence in

the form of invoices and bills detailing charges such as

customs and user fees; crew lodging, meals and bonuses; and

copying, postage and phone costs. Suppl. Evidence, Exhs. D,

H, J, N. Mr. Jones testified that these are true and accurate

records and are maintained in the ordinary course of business. 

These invoices document plaintiff’s damages and support an

entry of default judgment in its favor. See Oy Saimaa Lines

Logistics Ltd. v. Mozaica-New York, Inc., 193 F.R.D. 87, 89

(E.D. N.Y. 2000)(deeming declaration with accompanying

detailed list of services, copies of actual invoices and a

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signed and itemized Bill of Costs as sufficient documentary

proof regarding damages); Envirosure Management Corp. v.

Hydrocarbon Refining Corp., 1989 WL 98773, at * 1 (W.D. N.Y.

Aug. 23, 1989)(plaintiff submitted an affidavit and copies of

three invoices which together totaled the requested unpaid

amount). Finally, Mr. Jones testified that all of the charges

represented on the spreadsheet and in the invoices were by

defendant Sea Bridge Projects, Inc. and not Sea Bridge Marine,

Inc.

Plaintiff has provided sufficient proof as to its

damages, and I recommend that plaintiff’s motion for default

judgment in the requested amount of $161,295.94 be granted. 

Dated: August 16, 2006

 Bernard Zimmerman 

 United States Magistrate Judge

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