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Renewable Energy Equipment Leasing, LLC v. Team Gemini, LLC
2:14-cv-02687
S.D. Ohio
Jan 24, 2018
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Background

  • REEL sued Team Gemini, TGPC, and Gemini Holdings for breach of contract, promissory estoppel, quantum meruit, and declaratory relief arising from advisory/financial services and work on the SWACO/COR3 project; Gemini Holdings was later dismissed.
  • Team Gemini and TGPC defaulted by failing to respond to orders; the court adopted a prior recommendation to enter default judgment as to liability and referred damages to the magistrate judge.
  • REEL moved for summary judgment on damages seeking $1,725,000 and submitted an affidavit and documentary support; defendants did not respond and some mailings to Team Gemini were returned undeliverable.
  • REEL’s evidence showed employee compensation, travel, and other project-related expenses; REEL claimed employee time charges and commissions tied to financings and contracts.
  • The magistrate independently reviewed the record, found REEL established liability, but reduced the damages award to $1,455,521 based on documentary support and rejected certain estimates and undocumented benefits.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Liability after default REEL: well-pleaded allegations establish breach/alternative restitution claims Defendants: no response (default) Court: liability accepted on default; damages to be determined
Amount of damages REEL: requests $1,725,000 based on employee time, travel, and contract-based fees Defendants: unopposed but court must verify evidentiary support Court: awarded $1,455,521 based on supported payroll/travel entries; excluded undocumented/estimated items
Risk of double recovery from multiple theories REEL: entitled to recover but not double recover Defendants: no response Court: cautioned against duplicative recovery and ensured award avoids double recovery
Piercing the corporate veil REEL: requests veil piercing to reach affiliates if Team Gemini lacks assets Defendants: not argued (no response); veil-piercing not pleaded Court: denied veil-piercing—REEL failed to plead or prove complete control plus fraud/illegal act and resulting unjust loss

Key Cases Cited

  • United States v. Conces, 507 F.3d 1028 (6th Cir. 2007) (defaulted defendant’s well-pleaded allegations on liability are taken as true)
  • Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (movant’s burden to show absence of genuine dispute on material facts at summary judgment)
  • Anderson v. Liberty Lobby, 477 U.S. 242 (U.S. 1986) (standard for genuine issue of material fact at summary judgment)
  • Joe Hand Promotions, Inc. v. Yakubets, 3 F. Supp. 3d 261 (E.D. Pa. 2014) (damages hearing not required where documentary evidence or affidavits establish amount)
  • Belvedere Condo. Unit Owners’ Assn. v. R.E. Roark Cos., Inc., 67 Ohio St.3d 274 (Ohio 1993) (elements required to pierce the corporate veil)
  • Dombroski v. WellPoint, Inc., 119 Ohio St.3d 506 (Ohio 2008) (veil-piercing requires proof of control and misconduct)
Read the full case

Case Details

Case Name: Renewable Energy Equipment Leasing, LLC v. Team Gemini, LLC
Court Name: District Court, S.D. Ohio
Date Published: Jan 24, 2018
Docket Number: 2:14-cv-02687
Court Abbreviation: S.D. Ohio