Aegis Spine, Inc. v. Aegis Spine Canada, Ltd.
1:16-cv-02445
D. Colo.May 23, 2017Background
- Aegis Spine, Inc. (Colorado corporation) contracted with Aegis Spine Canada, Ltd. (Canadian corporation) under a December 1, 2015 Distribution Agreement for U.S. spinal implant products to be marketed in Canada.
- The Agreement contained a six-part payment schedule with payments due between July 31, 2016 and December 31, 2016; Plaintiff shipped products and loaned instruments to Defendant.
- Defendant failed to make any of the scheduled payments and remained in possession of loaned instruments.
- Defendant did not appear or defend; Clerk entered default on March 2, 2017 and Plaintiff moved for default judgment.
- The Court found subject-matter jurisdiction (diversity > $75,000) and personal jurisdiction (contract governed by Colorado law, performance directed at Colorado); it deemed Plaintiff’s pleaded facts admitted by default.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction & venue | Contract governed by Colorado law; contacts sufficient | No appearance/argument | Court has personal jurisdiction and proper venue |
| Breach of contract elements | Valid signed contract; Plaintiff performed; Defendant failed to pay; damages $682,030.09 | No appearance/argument | Complaint’s well‑pleaded facts satisfy Colorado breach elements; default judgment warranted |
| Damages — principal amount | Seeks $682,030.09 as value of shipped products/instruments (supported by CFO declaration) | No appearance/argument | Awarded $682,030.09 principal |
| Prejudgment interest | Seeks 8% per annum on principal | No appearance/argument | Awarded prejudgment interest at Colorado rate (8%) from Jan 1, 2017 to date of order: $21,376.50 |
| Postjudgment interest & costs | Requests postjudgment interest and collection costs | No appearance/argument | Postjudgment interest awarded per 28 U.S.C. §1961; taxable costs awarded upon proper bill of costs |
Key Cases Cited
- In re Rains, 946 F.2d 731 (10th Cir. 1991) (default judgment appropriate when adversary process halted by unresponsive party)
- Williams v. Life Sav. & Loan, 802 F.2d 1200 (10th Cir. 1986) (court must ensure personal jurisdiction before entering default judgment)
- Dundee Cement Co. v. Howard Pipe & Concrete Prods., Inc., 722 F.2d 1319 (7th Cir. 1983) (well‑pleaded facts are deemed true for default judgment purposes)
- W. Distrib. Co. v. Diodosio, 841 P.2d 1053 (Colo. 1992) (elements required to recover on breach of contract under Colorado law)
- Klapprott v. United States, 335 U.S. 601 (1949) (actual proof required to support money damages in default judgments)
- Hunt v. Inter‑Globe Energy, Inc., 770 F.2d 145 (10th Cir. 1985) (court may enter default judgment without hearing where damages are liquidated or mathematically calculable)
- AE, Inc. v. Goodyear Tire & Rubber Co., 576 F.3d 1050 (10th Cir. 2009) (federal courts sitting in diversity apply state law for prejudgment interest)