Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-4_12-cv-00109/USCOURTS-azd-4_12-cv-00109-2/pdf.json

Parties Involved:
AG-Wise Incorporated
Defendant
Big Chuy Distributors & Sons Incorporated
Plaintiff

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 The instant application is treated by the court as a Motion for Entry of Default filed pursuant to

Federal Rule of Civil Procedure 55(b)(2).

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Big Chuy Distributors & Sons

Incorporated, an Arizona corporation, 

Plaintiff, 

vs.

AG-Wise Incorporated, a California

corporation, 

Defendant. 

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No. CIV 12-109 TUC-RCC-LAB

REPORT AND RECOMMENDATION

Pending before the court is an application1

 for default judgment filed by Plaintiff on

May 22, 2013. (Doc. 16)

Plaintiff, Big Chuy Distributors & Sons, is a middleman in the produce business.

Defendant, Ag-Wise Incorporated, is a grower. Pursuant to a Distribution Agreement,

Plaintiff advanced money to Defendant to grow and harvest a crop, which was delivered to

Plaintiff for sale to third parties. Plaintiff sold the produce but apparently did not make

enough to cover its costs. Plaintiff seeks damages in the following amounts: (1) $106,414.28

still owed by Defendant to Plaintiff under the Distribution Agreement; (2) $15,221.13 in

interest on the outstanding debt; (3) $6,207.50 in attorneys’ fees; (4) $648.40 in costs; and

Case 4:12-cv-00109-LAB Document 17 Filed 08/08/13 Page 1 of 5
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(5) 0.11% interest per annum on attorneys’ fees and costs. In the instant motion, Plaintiff

moves that the court enter default judgment in its favor pursuant to Federal Rule of Civil

Procedure 55(b)(2).

Magistrate Judge Bowman currently presides over this case pursuant to 28 U.S.C.

§636(c)(1) having received the plaintiff’s written consent. Because the defendant has not yet

appeared, this court has prepared a report and recommendation, which will be directed to

District Judge Raner C. Collins.

The Magistrate Judge recommends that the District Court GRANT the motion.

Plaintiff has proven that it is entitled to damages in the amount of $106,414.28 plus interest

in the amount of $15,221.13. Likewise, Plaintiff has proven that it is entitled to attorneys’

fees in the amount of $6,207.50 as well as costs in the amount of $648.40. Finally, Plaintiff

is entitled to 0.11% interest on the sum total of the judgment pursuant to 28 U.S.C. §1961.

Discussion

Plaintiff filed its complaint on February 17, 2012. (Doc. 1) Service on Defendant was

accomplished on March 22, 2012. (Doc. 8) Defendant failed to file a timely answer, and the

Clerk entered default on June 7, 2012. (Doc. 10)

On August 22, 2012, Plaintiff filed a motion for default judgment against Defendant

pursuant to Federal Rule of Civil Procedure 55(b)(1). (Doc. 12) The motion was denied

without prejudice because Plaintiff did not prove that its damages were a “sum certain,” as

required by the Rule. (Doc. 14) On May 22, 2013, Plaintiff filed the instant motion for

default judgment against Defendant pursuant to Federal Rule of Civil Procedure 55(b)(2).

(Doc. 16-3)

The District Court has “wide latitude” and discretion in deciding damage awards after

granting default judgment. HTS, Inc. v. Boley, CV-12-835-PHX-SMM, 2013 WL 3187362 (D.

Ariz. June 21, 2013) (citing James v. Frame, 6 F.3d 307, 310 (5th Cir. 1993)). Courts need not

conduct a hearing for a default judgment for money; however, it is necessary that the award

be for a liquidated sum or one capable of mathematical calculation. Davis v. Fendler, 650

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F.2d 1154, 1161 (9th Cir. 1981). Here, the claim is for liquidated and other mathematically

calculable damages; thus, the court should award them without conducting a hearing.

First, Plaintiff seeks $106,414.28 that it claims is owed by Defendant under the

Distribution Agreement. Plaintiff corporation has provided an affidavit from its President

declaring damages in that amount (Doc. 16-2, Ex. B), which is supported by a Grower

Balance Detail spreadsheet. (Doc. 16-2 Ex. 6) The balance enumerated in the Grower

Balance Detail spreadsheet is $106,651.98; however, as the affidavit declares, that balance

reflects an erroneous charge of $237.70, the precise difference between the balance

enumerated in the Balance Detail Spreadsheet and the amount sought. Plaintiff is therefore

entitled to recover these damages.

Second, Plaintiff seeks interest on the $106,414.28 balance in the amount of ten (10)

percent per annum from the time the contract was liquidated. Plaintiff has provided the

Exclusive Distribution Agreement (hereafter “contract”) between it and Defendant. (Doc.

16-2, Ex. 1) The contract, in relevant part, reads:

Any sums due hereunder shall be paid in U.S. Dollars and if not timely paid after such

final liquidation shall bear interest at the rate set forth at Section 7.3B of the related

Schedule.

(Doc. 16-2, Ex. 1, p. 5, §7.3) Section 7.3B of both Schedules explicitly states that interest in

the amount of ten (10) percent per annum will accrue on all outstanding balances beginning

at the time of final liquidation. (Doc. 16-2, Ex. 2, p. 4, §7.3B; Doc. 16-2, Ex. 3, p. 4, §7.3B)

Plaintiff is therefore entitled to recover interest on the unpaid balance accruing upon final

liquidation of the contract and in the amount of $15,221.13.

Third, Plaintiff seeks attorneys’ fees in the amount of $6,207.50. The contract, in

relevant part, reads:

In any legal proceeding arising out of this Agreement, including with respect to any

instrument, document or agreement made under or in connection with this Agreement,

the prevailing party shall be entitled to recover its costs and actual attorneys’

fees.

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2

 The week preceding the judgment is the week ending on July 26, 2013, whose average rate was

0.11%. See <http://www.federalreserve.gov/releases/H15/current/>.

3

 Pursuant to 28 U.S.C. §1961(b), interest shall be computed daily to the date of payment and shall

be compounded annually. 

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(Doc. 16-2, Ex. 1, p. 16, §27.8) (emphasis added) Plaintiff is therefore entitled to recover

actual attorneys’ fees.

Fourth, Plaintiff seeks to recover costs in the amount of $648.40. As stated above, the

contract provides recovery of costs in litigation arising therefrom. (Doc. 16-2, Ex. 1, p. 16,

§27.8) Plaintiff is therefore entitled to recover costs. 

Finally, Plaintiff seeks 0.11% interest per annum on the award of attorneys’ fees and

costs. Not only is Plaintiff entitled to interest on those awards, but also it is entitled to 0.11%

interest on the sum total of the remaining balance claimed and the agreed-upon ten (10)

percent interest per annum on that balance. 28 U.S.C. §1961, in relevant part, reads:

Interest shall be allowed on any money judgment in a civil case recovered in a

district court. [....] Such interest shall be calculated from the date of the entry of

judgment, at a rate equal to the weekly average 1-year constant maturity Treasury

yield, as published by the Board of Governors of the Federal Reserve System, for the

calender week preceding. [sic] the date of the judgment. [....]

28 U.S.C. §1961(a) (punctuation modified) (emphasis added). The weekly average 1-year

constant maturity Treasury yield for the calendar week preceding the judgment is 0.11%.2

Thus, Plaintiff is entitled to an award of $128,491.31 plus 0.11% interest.3

RECOMMENDATION

The Magistrate Judge recommends the District Court, after its independent review of

the record, enter an order 

GRANTING the motion for default judgment filed by Plaintiff on May 22, 2013

(Doc. 16) and awarding Plaintiff $128,491.31 plus 0.11% interest.

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Pursuant to 28 U.S.C. §636 (b), any party may serve and file written objections within

14 days of being served with a copy of this report and recommendation. If objections are not

timely filed, they may be deemed waived. 

DATED this 8th day of August, 2013.

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