Aquatech Corporation v. Dutch Barn LLC
2:24-cv-01897
| D. Nev. | Aug 6, 2025Background
- Aquatech Corporation (doing business as United Aqua Group) entered a Membership Agreement with Dutch Barn LLC (an Illinois LLC, d/b/a Dutch Barn Landscaping); Courtney Schild and Theresa Schild personally guaranteed Dutch Barn’s obligations.
- Disputes arose over unpaid amounts, leading to litigation in federal court (the “First Lawsuit”) which was resolved by a Settlement Agreement signed in June 2024.
- The Settlement Agreement required Dutch Barn and the Schilds to pay specified amounts, guaranteed by the individual defendants, with provision for attorney’s fees upon breach and joint/several liability.
- Defendants failed to make required payments, only making partial unscheduled payments, and subsequently defaulted on their obligations again.
- Aquatech filed a breach of contract complaint and sought default judgment after defendants failed to appear, answer, or otherwise respond despite proper service.
- The court granted Aquatech’s motion for default judgment after applying the Eitel factors and found defendants jointly and severally liable for $1,000,776.52 plus post-judgment interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of Settlement Agreement | Defendants failed to pay as agreed, breaching contract | None (Default) | Defendants breached; plaintiff entitled to judgment |
| Sufficiency of Complaint & Service | All parties properly served; complaint states valid claim | None (Default) | Service sufficient, complaint supports relief |
| Entitlement to Damages & Fees | Damages, fees, and interest due per Settlement Agreement | None (Default) | Damages, fees, and interest awarded as sought |
| Appropriateness of Default Judgment | Eitel factors all satisfied, warranting judgment | None (Default) | Default judgment proper and granted |
Key Cases Cited
- Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986) (sets out factors for granting default judgment)
- Geddes v. United Fin. Grp., 559 F.2d 557 (9th Cir. 1977) (well-pled allegations deemed admitted on default except damages)
- Aldabe v. Aldabe, 616 F.2d 1089 (9th Cir. 1980) (discusses court discretion in granting default judgment)
- Danning v. Lavine, 572 F.2d 1386 (9th Cir. 1978) (complaint allegations considered true for default judgment)
- May v. Anderson, 119 P.3d 1254 (Nev. 2005) (settlement agreement formed when material terms agreed)
- Richardson v. Jones, 1 Nev. 405 (1865) (elements of breach of contract in Nevada)