Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-00219/USCOURTS-caed-2_05-cv-00219-2/pdf.json

Parties Involved:
Pantheon Holdings, Inc.
Defendant
William Schappell
Plaintiff

Document Text:

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

WILLIAM SCHAPPELL,

Plaintiff,

v.

PANTHEON HOLDINGS, INC., 

and DOES 1 through 50,

Defendants.

CIV. S-05-0219 GEB PAN PS

ORDER

—NFN—

Plaintiff moves for default judgment against defendant

Pantheon Holdings, Inc., following the Clerk’s entry of default

May 20, 2005. Fed. R. Civ. P. 55(b)(2), 55(a). The hearing on

this matter, scheduled for August 3, 2005, was vacated, and

plaintiff is directed to file by August 26, 2005, a supplemental

brief setting forth the following additional information. 

Only “[w]ell-pleaded allegations are taken as admitted on a

default judgment.” Benny v. Pipes, 799 F.2d 489, 495 (9th Cir.

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1986), as amended, 807 F. 2d 1514 (citations omitted). “[I]t

follows from this that facts which are not established by the

pleadings of the prevailing party, or claims which are not wellpleaded, are not binding and cannot support the judgment.” 

Danning v. Lavine, 572 F.2d 1386, 1388 (9th Cir. 1978) (citation

omitted). “[N]ecessary facts not contained in the pleadings, and

claims which are legally insufficient, are not established by

default.” Cripps v. Life Ins. Co. of North America, 980 F.2d

1261, 1267 (9th Cir. 1992). 

Moreover, allegations of the complaint relating to the

amount of damages may not be deemed admitted but must be proven. 

Geddes v. United Financial Group, 559 F.2d 557, 560 (9th Cir.

1977). “Support for this general rule is found in Rule 8(d) of

the Federal Rules of Civil Procedure which reads: ‘Averments in

a pleading to which a responsive pleading is required, other than

those as to the amount of damage, are admitted when not denied in

the responsive pleading.’ Further support for the rule can be

found in Federal Rule of Civil Procedure 55(b) which expressly

authorizes the court to conduct a hearing on the issue of damages

before entering a judgment by default.” Id. 

The court requires supplemental briefing to identify the

factual allegations of the complaint that support plaintiff’s

legal claims. Further briefing is also required to prove

plaintiff’s damages. Accordingly, plaintiff shall file a

supplemental brief addressing the following:

/ / /

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1. How does defendant’s sale of “EZ Link terminals” and the

parties’ contract come within California law governing

“seller assisted marketing plans” as set forth at Cal. Civ.

Code § 1812.200 et seq?

2. How is the parties’ contract regulated by the Federal Trade

Commission?

3. The “California Contract/Agreement” attached to the Purchase

Order provides “mandatory contract provisions” required by

Cal. Civ. Code § 1812.209. Why is this inadequate?

4. The mandatory contract provisions required by Cal. Civ. Code

§ 1812.209(a) include identification of an escrow account

established pursuant to § 1812.210(b) and report of that

account to the Attorney General pursuant to § 1812.214(c)(2)

“[i]f the contract provides for the seller to receive more

than 20 percent of the initial payment before delivery.” 

Plaintiff’s declaration states, “I paid Defendant the total

sum of $77,400 as per the contract.” Explain how the

contract required plaintiff tender the entire purchase price

prior to delivery or whether plaintiff’s full payment was

voluntary.

5. The complaint states generally that “violations of this

title include the failure to deliver to plaintiff the

documentation and disclosures required by California Civil

Code Sections 1812.205 and 1812.206.” Explain.

6. The complaint states that “[p]laintiff is informed and

believes and thereon alleges that defendant has not filed

the requisite disclosure statements required by California

Civil Code Sections 1812.203 with the California Attorney

General.” Explain. 

7. Plaintiff asserts generally that defendants’ conduct

constitutes fraud under Cal. Civ. Code § 3294. Identify the

conduct that demonstrates defendant is guilty of oppression,

fraud or malice as set forth in the statute.

8. The complaint and plaintiff’s declaration state that the

purchase price for “five EZ Link terminals” was $77,400.00,

which plaintiff asserts is the measure of his actual

damages. However, the Purchase Order indicates plaintiff

was credited $6000.00, paid a deposit of $7000.00 and a

final payment of $64,400.00, for a total purchase price of

$71,400.00. Explain and attach all documents pertinent to

the court’s calculation of actual damages, including but not

limited to a copy of plaintiff’s cancelled check, money

order or credit card statement, and any additional relevant

communications between the parties.

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9. Provide the legal authority for awarding prejudgment and

postjudgment interest on any actual damages award. 

10. Pursuant to the parties’ contingency fee agreement,

plaintiff seeks attorney’s fees equal to one-third of the

court’s judgment on actual damages. The applicable statute

provides for “reasonable attorney’s fees.” Cal. Civ. Code §

1812.218. Justify the reasonableness of the requested fees,

including whether plaintiff’s counsel has agreed to pursue

satisfaction of judgment. 

Plaintiff shall file this supplemental brief with the court

on or before Friday, August 26, 2005. 

So ordered.

Dated: August 4, 2005. 

 /s/ Peter A. Nowinski 

 PETER A. NOWINSKI

 Magistrate Judge

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