ABC Loan Co. of Martinez, LLC v. Gruner Enterprises, LLC
1:23-cv-00097
| S.D. Ga. | Jun 4, 2024Background
- ABC Loan Co. of Martinez, LLC (Plaintiff) and Gruner Enterprises, Carisma Financial Corp., and Robert Gruner, III (Defendants) entered a $500,000 settlement agreement, to be paid in 36 equal installments.
- Defendants failed to make payments due in October and November 2022 and did not cure the default after receiving written notice.
- Plaintiff sued for breach of contract and sought the unpaid balance plus attorney's fees and costs, totaling $443,080.55.
- Defendants did not appear or defend the lawsuit; the court entered default against all Defendants.
- The court's jurisdiction rested on diversity of citizenship (Plaintiff is a Georgia citizen; Defendants are Texas citizens) and an amount in controversy exceeding $75,000.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction & Venue | Diversity and amount in controversy are met; venue proper. | No appearance | Court has subject matter, personal jurisdiction, and venue. |
| Breach of Contract | Defendants failed to make payments/cure default per agreement. | No appearance | Defendants breached; Plaintiff entitled to damages. |
| Attorney's Fees & Costs | Entitled under settlement and Georgia law after notice. | No appearance | Plaintiff entitled to 10-15% fees under O.C.G.A. § 13-1-11. |
| Default Judgment | Uncontested default/pleadings support claim and damages. | No appearance | Default judgment granted for sum certain plus fees/costs. |
Key Cases Cited
- Surtain v. Hamlin Terrace Found., 789 F.3d 1239 (11th Cir. 2015) (well-pleaded allegations deemed true on default)
- Eagle Hosp. Physicians, LLC v. SRG Consulting, Inc., 561 F.3d 1298 (11th Cir. 2009) (defaulted defendants admit well-pleaded facts)
- Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020 (11th Cir. 2004) (diversity jurisdiction for LLCs)
- Daimler AG v. Bauman, 571 U.S. 117 (2014) (general jurisdiction standards for nonresident defendants)
- Ford Motor Co. v. Montana Eighth Jud. Dist. Ct., 592 U.S. 351 (2021) (specific jurisdiction requires claim-related contacts)