Fling Enterprise Prevost LLC v. Premium Coach Group LLC
2:24-cv-01289
D. Ariz.Apr 24, 2025Background
- Fling Enterprise Prevost, LLC (plaintiff), a Montana LLC, owned a Prevost RV it wished to sell and engaged Premium Coach Group, LLC (PCG) as a broker.
- The parties entered into a Dealer Consignment Agreement; a buyer was found, and the RV sold for $285,000.
- Proceeds of the sale were received by PCG, but before remitting them to the plaintiff, PCG's creditors seized the funds.
- PCG did not disclose its financial difficulties or the existence of such creditors to the plaintiff before or during the transaction.
- Plaintiff sued to recover the sale proceeds, asserting, among other claims, breach of contract; PCG failed to appear, and the clerk entered default.
- Plaintiff moved for default judgment; this opinion addresses that motion as to the breach of contract claim only.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Default judgment on breach of contract | PCG had a contract to remit sale proceeds and failed to do so, causing damages. | No appearance or argument. | Motion for default judgment on breach of contract granted. |
| Potential prejudice to plaintiff | Without judgment, plaintiff has no recourse for recovery. | Plaintiff would be prejudiced absent default judgment. | |
| Amount at stake and sufficiency | Damages are specific, fully substantiated by documents/testimony. | Sums sought are appropriate, documented, and tailored. | |
| Excusable neglect | PCG was served and aware of the proceedings/debt, not excusable. | Default not due to excusable neglect. |
Key Cases Cited
- Aldabe v. Aldabe, 616 F.2d 1089 (9th Cir. 1980) (court’s discretion to enter default judgment)
- Fair Housing of Marin v. Combs, 285 F.3d 899 (9th Cir. 2002) (no requirement for detailed factual findings in default judgment)
- Geddes v. United Fin. Group, 559 F.2d 557 (9th Cir. 1977) (damages must be established on default)
- Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986) (articulates factors for granting default judgment)
