3:24-cv-00558
N.D. Tex.Mar 19, 2025Background
- DK Trading & Supply, LLC is a Texas-based company that supplied petroleum products on credit to JA Dakis Capital, LLC and Petros Kalamaras (Defendants).
- Defendants accrued a debt of over $6.1 million for petroleum products purchased but not paid for between November 2022 and early 2023.
- Defendants entered into a Payment Agreement with DK Trading to repay the debt via scheduled payments, but stopped making payments after partially repaying $1.43 million.
- DK Trading repeatedly notified Defendants of the outstanding balance, but Defendants failed to pay or respond.
- DK Trading filed suit for breach of contract and on a sworn account; Defendants were properly served but did not appear or defend the suit.
- DK Trading moved for default judgment after the Clerk entered default, seeking principal, interest, attorneys’ fees, costs, and both pre- and post-judgment interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject Matter Jurisdiction | Diversity jurisdiction proper; parties are completely diverse and amount in controversy exceeds $75,000 | No response | Court agrees, finding jurisdiction established |
| Personal Jurisdiction | Defendants have minimum contacts with Texas via business dealings and explicit contract terms | No response | Court finds specific personal jurisdiction exists |
| Default Judgment Pre-requisites | All service and procedural requirements for default met | No response | Pre-requisites fully satisfied |
| Breach of Contract & Suit on Sworn Account | Defendants breached Payment Agreement and failed to pay for goods received; damages are liquidated and well-supported | No response | Default judgment granted for DK Trading; damages awarded |
Key Cases Cited
- New York Life Ins. Co. v. Brown, 84 F.3d 137 (5th Cir. 1996) (three-step process for obtaining default judgment in the Fifth Circuit)
- Lindsey v. Prive Corp., 161 F.3d 886 (5th Cir. 1998) (factors to consider in determining appropriateness of default judgment)
- Nishimatsu Constr. Co. v. Houston Nat’l Bank, 515 F.2d 1200 (5th Cir. 1975) (sufficiency of pleadings for default judgment; well-pleaded facts are taken as true)
- Conn Credit I, L.P. v. TF LoanCo III, LLC, 903 F.3d 493 (5th Cir. 2018) (Texas law elements of a breach of contract claim)
- Frame v. S—H Inc., 967 F.2d 194 (5th Cir. 1992) (effect of default on admission of well-pleaded facts)