CCUR Aviation Finance, LLC v. Machado, 0:21-cv-60462

Plaintiffs CCUR Aviation Finance, LLC (CCURA) and CCUR Holdings, Inc. (CCURH) sued South Aviation, Inc. and its principal Federico A. Machado for fraud and breach of letter agreements concerning fully refundable escrow deposits for aircraft purchases; Machado personally guaranteed the obligations.
Defendants were served but failed to respond; the Clerk entered defaults and Defendants did not move to set them aside.
The Court previously appointed a temporary receiver over South Aviation but preserved this action; Plaintiffs moved for default final judgment.
The Court found the Verified Complaint well‑pled and, because Defendants defaulted, treated the factual allegations as admitted for purposes of liability on fraud and breach of contract.
The Court awarded contract expectancy damages totaling $14,000,000 ($9,000,000 to CCURA; $5,000,000 to CCURH), with Machado jointly and severally liable; pre‑ and post‑judgment interest was ordered at the maximum lawful rate.
The Court awarded attorneys’ fees and costs under the contract: fees of $333,932.27 (5% reduction from requested $351,507.65 for billing inefficiencies) and costs of $1,560.64; it retained jurisdiction and left open recovery of fees/costs incurred after April 16, 2021, from the receivership estate.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Appropriateness of default judgment/liability for fraud & breach	Complaint alleges fraud and breaches; defaults admit well‑pleaded facts	No response or defense (default)	Default judgment on liability granted for fraud and breach against South Aviation and Machado
Damages entitlement and amount	Contract expectancy: full refund of deposits + deposit fees = $14,000,000	No opposition (default)	Awarded $14,000,000 ($9M to CCURA; $5M to CCURH) with pre‑judgment interest
Attorneys’ fees under contractual fee‑shifting provisions	Request $351,507.65 (K&L Gates billing) as recoverable under agreements	No opposition (default)	Fees awarded but reduced 5% for block billing; $333,932.27 awarded
Recoverable costs and future fee recovery from receivership	Seek $1,560.64 in costs and leave to recover post‑April 16 fees from receivership	No opposition (default)	$1,560.64 awarded; right to seek post‑April 16 fees from receivership preserved; court retains jurisdiction to enforce receivership order

In re Worldwide Web Sys., Inc., 328 F.3d 1291 (11th Cir. 2003) (defaults disfavored; merits preferred)
Nishimatsu Constr. Co. v. Hous. Nat'l Bank, 515 F.2d 1200 (5th Cir. 1975) (default admits well‑pleaded facts but not legal conclusions)
Eagle Hosp. Physicians, LLC v. SRG Consulting, Inc., 561 F.3d 1298 (11th Cir. 2009) (default admissions and effect on pleaded facts)
Chudasama v. Mazda Motor Corp., 123 F.3d 1353 (11th Cir. 1997) (default judgment cannot rest on a complaint that fails to state a claim)
Norman v. Housing Auth. of City of Montgomery, 836 F.2d 1292 (11th Cir. 1988) (lodestar framework for attorney’s fees)
Hensley v. Eckerhart, 461 U.S. 424 (U.S. 1983) (most useful starting point for reasonable attorney fee is hours × rate)