Happy CP Company Limited v. Eight3Five Inc.
1:24-cv-23056
S.D. Fla.Dec 13, 2024Background
- Happy CP Company Limited obtained an arbitration award in Hong Kong against Eight3Five, Inc., and guarantors Mary Spencer and Aldi Muka, under a contract with an arbitration clause.
- The arbitration resulted in an award of compensatory damages, interest, late fees, costs, and attorney’s fees against all Respondents, all held jointly and severally liable.
- Respondents did not participate in the Hong Kong arbitration and later failed to respond, appear, or plead in the subsequent action to confirm the award in the Southern District of Florida.
- Happy CP moved for default judgment and confirmation of the arbitral award under the New York Convention and the Federal Arbitration Act within three years of the award.
- The Court reviewed the submissions, confirmed jurisdiction and venue, and found no evidence or arguments put forth by the Respondents to challenge the arbitral award or its enforcement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Default Judgment | Allegations in complaint and award support entry of default judgment. | No appearance or argument. | Granted default judgment. |
| Confirmation of Arbitration Award | Award meets requirements of NY Convention; no valid defense applies. | No appearance or evidence to vacate or refuse enforcement. | Award confirmed. |
| Jurisdiction and Venue | Provided contract, arbitration award, and acted timely; proper parties and locale. | Not contested. | Jurisdiction and venue proper. |
| Damages Calculation | Awarded amounts are liquidated and proven. | Not contested. | No evidentiary hearing needed; liquidated sums awarded. |
Key Cases Cited
- DirecTV, Inc. v. Huynh, 318 F. Supp. 2d 1122 (M.D. Ala. 2004) (discusses standards for entry of default judgment)
- Tyco Fire & Sec., LLC v. Alcocer, 218 Fed. App’x 860 (11th Cir. 2007) (detailing requirement that complaint must state a claim for default judgment)
- Brown v. Rauscher Pierce Refsnes, Inc., 994 F.2d 775 (11th Cir. 1993) (review of arbitration awards is very limited)
- Cat Charter, LLC v. Schurtenberger, 646 F.3d 836 (11th Cir. 2011) (heavy presumption in favor of confirming arbitration awards)
- Gianelli Money Purchase Plan & Trust v. ADM Investor Servs., Inc., 146 F.3d 1309 (11th Cir. 1998) (arbitration awards are presumed confirmed; judicial review is narrowly limited)