HOWARD JOHNSON TERNATIONAL, Civil Action No.: 1 1

cv

1346

INC..

Plaintiff, OPINION

V.

FINNIAN EBUEHI and

ELIZABETH EBUEHI,

Defendants.

CECCHI, District Judge.

This matter comes before the Court on Plaintiffs motion for default judgment against

Defendants (ECF No. 51). The Court decides this matter without oral argument pursuant to Rule

78 of the Federal Rules of Civil Procedure. For the reasons set forth below, the Court grants

Plaintiffs motion.

I. BACKGROUND

Although Defendants originally participated in this action by answering the complaint

(ECF No. 4). they became unresponsive and ceased to defend. As a result, Judge Dickson enteredan order striking their answer and directing the court to enter default under Rule 55(a). (ECF No.

49). Plaintiff then tiled the instant motion for Default judgment under Rule 55(b), which

Defendants have not opposed.

The following facts, taken from the complaint. are deemed admitted by Defendant due to

its default. DIRECTV Inc. v.Pee 431 F.3d 162, 165 n.6 (3d Cir. 2005) (citing Comdyne I, Inc.
perform its obligations. (Compi. ¶J 18-19, Ex. A - Schedule B. Ex. C). Viva Vista stopped

operating the facility as a Howard Johnson facility on April 1, 2009 and Plaintiff sent Viva Vista

a termination letter pursuant to Section 11.2(2) of the franchise agreement on April 15, 2009.(Compi. ¶J 21-22, Ex. D). This termination triggered certain obligations by Viva Vista, including

liquidated damages under both agreements, payment of any past due recurring fees, and attorney’s

fees. (Compl. ¶J23-35, Ex. A § 7, 12.1, 17.4, Ex. B § 12(c)).

Plaintiff seeks payment of these obligations from Defendants, due to the Guarantee.

(Compi. ¶ 35).

II. DISCUSSION

A. Plaintiff Is Entitled To Default

Rule 55 authorizes a district court to enter a default judgment against a defendant who has

been properly served and has failed to answer or respond to the pleadings. Obtaining a default

judgment is a two-step process. First, when a party has failed to plead or otherwise defend. the

clerk must enter that party’s default. Fed. R. Civ, P. 55(a). Once the clerk enters default, a plaintiffmay move for a default ludguient. Fed R. Civ. P. 55(b). Here. the clerk has entered default, and so

the Court will address Plaintiffs motion on the merits.

In order to award a default judgment. a district court must make explicit findings regarding

the following factors: (1) whether the plaintiffwould suffer prejudice ifthe default judgment were

denied, (2) whether the defendant has a meritorious defense, and (3) whether the defendants own

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damages. DIRECTV, Inc. v, Pepe, 431 F.3d 162, 165 n.6 (3d Cir. 2005) (citing Comdyne I, Inc.

v, Corbin, 908 F.3d 1142, 1149 (3d Cir. 1990)). “Default judgment is inappropriate, even wheredefendants have failed to appear, unless the plaintiff has provided well pleaded facts sufficient toestablish a claim.” Days Inns Worldwide, Inc. v. Mayu & Roshan, LLC, No. 06-cv- 1581, 2007WL 1674485, at *4 (D.N.J. June 8, 2007).

The Complaint clearly states a cause of action for breach of contract. In order to prove its

breach of contract claims, Plaintiff must prove (1) a valid contract; (2) defendant’s failure to

perform; and (3) damages. Sheet Metal Workers Intl Ass’n Local Union No. 27, AFL-CIO v. E.P.

Donnelly, Inc., 737 F.3d 879, 900 (3d Cir. 2013). The relevant contracts are before this Court, and

the uncontested facts in the Complaint demonstrate that neither Viva Vista nor Defendants have

performed the obligations required by the contracts.

With respect to the Emcasco factors, the Court finds that Plaintiff is harmed by not

receiving payment, and absent default Plaintiff will have no other means of vindicating its claims

against Defendants. Accordingly, Plaintiff will suffer prejudice without default. With respect to

the merits of any defenses, although Defendant’s stricken answer sets forth ten defenses, thesedefenses are barebones and provide no factual detail for the Court to determine their merit.

Finally, the record of this case indicates that the clerk’s default was entered against Defendants

over six months ago, yet Defendants have not sought to lift default or otherwise defend againstthis motion for default judgment. Accordingly, in light ofthese factors, the court finds the entry of

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not for a sum certain unless the amount the plaintiff seeks can be calculated without resorting to

extrinsic evidence. Trucking Emp. of N.J. Welfare Fund. Inc. v. Moskowitz N otor Transp.. Inc..

No. 05-cv-5605, 2007 WL 608436, *3 (D.N.J. Feb. 23, 2007) (quoting KPS, 318 F.3d at 21). Such

situations include “money judgments, negotiable instruments, or similar actions where thedamages sought can be determined without resort to extrinsic proof.” If the damages are not

for a sum certain, the Court must determine damages by conducting a factual inquiry through

evidentiary hearings, detailed affidavits, or documentary evidence. Fed. R. Civ. P. 55(b)(2); Bds.of Trs. of Operating Eng’rs Local 825 Welfare Fund v. Robert Silagy Landscaping Inc., 06-cv1795. 2006 WL 3308578, at *4 (D.N.J. Nov. 13, 2006) (citing KPS Assocs. Inc. v. Designs by

FMC, Inc., 318 F.3d 1, 20 (1st Cir. 2001)).

The Court proceeds under Fed. R. Civ. P. 55(b)(2), since Plaintiff relies upon extrinsic

evidence regarding its accounts. Having considered the assessment of reasonable costs and

attorney’s fees provided by Plaintiffs counsel, the Court concludes that Plaintiff should be

awarded $8,723.10 in attorney’s fees, and SL,772.08 in costs pursuant to the franchise agreementand the guarantee. (Couch Dccl. ¶, 13-15), Having considered the damage assessment and

calculations of Ms. Fenimore. the Court concludes (1) that Plaintiffshould be awarded $50.070.77

inclusive of interest under the franchise agreements and guarantee (Fenimore Dccl,, ¶ 19; Ex. E);

(2) that Plaintiff should be awarded S276.000 for the liquidated damages pursuant to § 12.1 of the

franchise agreement and guarantee (Fenimore Dccl. ¶ 26); (3) that Plaintiff should be awarded

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For the reasons stated above, Plaintiffs motion for default judgment is GRANTED and

default judgment will be entered against Defendants.

DATED:

CLAIRE C. CECCHI, U.S.D.J.