LEI Packaging, LLC v. Emery Silfurten Incorporated, 0:15-cv-02446

LEI Packaging contracted with Emery Silfurtun to design, build, and install a Rotary Quattro TO pulp molding Machine for $4,509,858; Emery subcontracted portions to Icelandic firms Samey ehf and Hedinn Ltd.
The Machine allegedly failed to meet specifications (including 7,200 cartons/hour), produced poor quality product, and had multiple component defects; LEI and Emery later executed a Modification Agreement to remedy defects.
Samey (project management, electrical/automation sourcing) ceased defending; clerk entered default and the court granted default judgment as to Samey on liability, reserving damages proof.
LEI moved for damages against defaulting Samey; Hedinn (still defending) opposed, arguing damages determination would be premature because LEI seeks joint-and-several liability against non-defaulting defendants.
The court considered risks of inconsistent liability and damages awards among jointly liable defendants and whether to award damages now or wait until claims against Hedinn are resolved.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether damages may be awarded now against a defaulting co-defendant when plaintiff reserves joint-and-several claims against non-defaulting co-defendants	LEI seeks damages against Samey now (except certain direct items) and reserves right to pursue joint-and-several recovery up to 100% from others	Hedinn argues awarding damages now risks inconsistent damage awards and is premature while Hedinn remains in the case	Denied: damages determination as to Samey is premature until claims against Hedinn are resolved

Frow v. De La Vega, 82 U.S. (15 Wall.) 552 (U.S. 1872) (default judgment against one of multiple defendants may be improper when it would produce inconsistent decrees)
Pfanenstiel Architects, Inc. v. Chouteau Petroleum Co., 978 F.2d 430 (8th Cir. 1992) (better practice to stay damages determination against defaulting co-defendants when others remain)
In re Uranium Antitrust Litigation, 617 F.2d 1248 (7th Cir. 1980) (Frow does not bar default judgments against some—but not all—defendants where inconsistent liability determinations are unlikely)
Hunt v. Inter-Globe Energy, Inc., 770 F.2d 145 (10th Cir. 1985) (consistent damage awards among joint tortfeasors are essential to avoid unfair execution on inconsistent verdicts)