UNITED PARCEL SERVICE, INC. v. EFASHION SOLUTIONS, LLC
2:12-cv-07515
| D.N.J. | Nov 19, 2013Background
- UPS contracts to provide shipping services; Defendant agrees to pay at specified rates under a Shipping Contract including the Carrier Agreement, Rate/Service Guide, Tariff/Terms and Addendum.
- Defendant shipped ~1,000 packages per week and paid for some period, but payments fell past due beginning September 2011.
- Plaintiff attempted repayment plans in 2011–2012; Defendant never committed to a weekly payment plan.
- By January 23, 2013, nine accounts totaled $379,811.49 owed; after credits, net outstanding balance was $13,662.78 for 2013 invoices, with a total demand of $370,096.13.
- Defendant was served December 17, 2012; default was entered January 23, 2013; Defendant failed to plead or respond.
- Court granted default judgment for the full amount sought: $370,096.13.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate for breach of contract | UPS shows contract and breach; damages tied to unpaid invoices | Defendant has no litigable defense and did not respond | Default judgment appropriate |
| Whether the damages amount is correct | Damages reflect the outstanding balance as of filing | No counter-argument presented | Damages amount $370,096.13 properly determined |
Key Cases Cited
- Hritz v. Woma Corp., 732 F.2d 1178 (3d Cir. 1984) (default judgment authority and court’s supervisory role)
- United States v. $55,518.05 in U.S. Currency, 728 F.2d 192 (3d Cir. 1984) (default judgment standard and de-emphasis of merits)
- Chamberlain v. Giampapa, 210 F.3d 154 (3d Cir. 2000) (Chamberlain factors for default judgments)
- DIRECTV, Inc. v. Pepe, 431 F.3d 162 (3d Cir. 2005) (uncontested facts treated as admitted; need independent inquiry on damages)