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