427 F.Supp.3d 528
D.N.J.2019Background
- Plaintiff (a common carrier by water) sued two New Jersey LLCs, TJM International LLC and Marsh and Associates Signing Services, LLC ("Entity Defendants"), for unpaid ocean carriage charges for shipments from 2012–2015.
- Plaintiff alleged written contracts of carriage, provided bills of lading, invoices and related records, and sought $62,437.50 in unpaid principal plus $489.99 in costs (total judgment sought: $62,926.49; opinion cites final judgment $62,927.49).
- Entity Defendants were served in July 2018, failed to appear or respond, and the Clerk entered default on September 6, 2018.
- Plaintiff moved for default judgment; the Court denied the initial motion without prejudice for inadequate proof, then considered an amended motion supported by contracts, invoices, and declarations.
- The Court found it had subject-matter and personal jurisdiction (general jurisdiction over New Jersey LLCs), deemed well-pled factual allegations admitted, and analyzed statutory and common-law claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Violation of the Shipping Act (46 U.S.C. § 41102) | Entity Defendants knowingly and willfully obtained transportation and refused to pay billed tariffs/invoices | No responsive pleading; no defense presented | Court found Shipping Act claim sufficiently pleaded and meritorious; default judgment granted on this claim |
| 2. Breach of maritime contract | Plaintiff performed under written contracts and demanded payment of freight/detention; unpaid balance $62,437.50 | No responsive pleading | Court found breach elements pleaded and available as alternative recovery but declined duplicate recovery where Shipping Act covers amount |
| 3. Equitable remedies (unjust enrichment / quantum meruit / account stated) | Pleaded in the alternative if contract is not enforced; invoices and partial payments show acceptance and indebtedness | No responsive pleading | Court deemed these alternate claims adequately pleaded but unnecessary to award in addition to Shipping Act recovery to avoid double recovery |
| 4. Entitlement to default judgment and damages | Default entry, prejudice absent judgment, no meritorious defense apparent, defendants acted culpably; damages established by invoices and records | No responsive pleading | Court exercised discretion to enter default judgment; awarded principal $62,437.50 and costs $489.99 (total ~$62,927); reserved attorney’s fees motion for post-judgment submission |
Key Cases Cited
- Sea-Land Serv., Inc. v. Murrey & Son’s Co. Inc., 824 F.2d 740 (9th Cir. 1987) (recognizing implied private cause of action under the Shipping Act for tariff violations)
- Comdyne I, Inc. v. Corbin, 908 F.2d 1142 (3d Cir. 1990) (well-pled allegations deemed admitted on default except damages)
- Hritz v. Woma Corp., 732 F.2d 1178 (3d Cir. 1984) (district court discretion in entering default judgment)
- Chamberlain v. Giampapa, 210 F.3d 154 (3d Cir. 2000) (three-factor test for default judgment: prejudice, meritorious defense, culpability)
- Gross v. Stereo Component Sys., Inc., 700 F.2d 120 (3d Cir. 1983) (definition of culpable conduct for defaults)
- Van Orman v. American Ins. Co., 680 F.2d 301 (3d Cir. 1982) (express contract bars recovery in quantum meruit)
- Globe Motor Co. v. Igdalev, 139 A.3d 57 (N.J. 2016) (New Jersey elements for breach of contract align with federal maritime contract elements)