2008 Rover Walck Saloon, LLC v. Beard, 3:15-cv-02095

Plaintiffs (2008 River Walck Saloon et al.) sued former manager William Beard under the CFAA, the Stored Communications Act, and related state tort claims for removing plaintiffs’ electronic equipment, accessing confidential files, and disparaging the employer.
Beard proceeded pro se but repeatedly failed to meaningfully participate: he filed an incomplete answer, ignored case management, refused service, would not provide a current address, and ignored court orders.
Plaintiffs moved for judgment on the pleadings; Beard did not respond, and the magistrate judge warned that Local Rule 7.6 could result in granting unopposed motions.
The district court adopted the recommendation to grant judgment on the pleadings; the matter was referred to the magistrate judge to liquidate damages.
Plaintiffs submitted an affidavit claiming $2,114.85 for the value of misappropriated equipment and $9,007.66 in costs and attorneys’ fees incurred responding to the CFAA violation; Beard did not contest these figures and could not be reached.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether default admits factual allegations and permits judgment	Default admits Beard took equipment and accessed files; judgment appropriate	Beard largely did not contest; offered no substantive defense	Court treated default as admission and entered judgment for plaintiffs
Whether damages must be proven despite default	Plaintiffs provided affidavit documenting equipment value and fees	No responsive proof from Beard	Court found record basis for damages without hearing and accepted plaintiffs’ figures
Whether CFAA permits recovery of investigation and attorney fees as "loss"	CFAA’s definition of "loss" covers costs to respond, investigate, and restore; fees are compensable	No opposition	Court held attorneys’ fees and costs recoverable under CFAA and awarded them
Whether defendant’s failure to maintain contact/comply with local rules affects proceedings	Plaintiffs sought liquidation despite Beard’s absence	Beard failed to maintain address and ignored orders	Court found Beard’s conduct violated Local Rule 83.18, deemed him to have abandoned litigation, and proceeded in his absence

Comdyne I, Inc. v. Corbin, 908 F.2d 1142 (3d Cir. 1990) (default treated as admission of well-pleaded facts but plaintiff must establish entitlement to damages)
DIRECTV, Inc. v. Pepe, 431 F.3d 162 (3d Cir. 2005) (addressing damages after default)
Transatlantic Marine Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105 (2d Cir. 1997) (court must ensure a basis for damages specified in default judgment)
Pope v. United States, 323 U.S. 1 (1944) (court may fix amount of recovery upon default by taking evidence or computation from facts of record)
Rainey v. Diamond State Port Corp., [citation="354 F. App'x 722"] (3d Cir. 2009) (reiterating that defaults admit factual allegations but damages must be proven)