WESTLAKE FLOORING COMPANY, LLC v. VENTURE MOTOR CARS LLC
2:24-cv-08475
D.N.J.Jun 30, 2025Background
- Plaintiff, Westlake Flooring Company, LLC, entered into a promissory note and loan security agreement (PNLSA) with Venture Motor Cars LLC in September 2019, providing up to $200,000 for vehicle inventory.
- Venture granted Westlake a security interest in all its assets, including financed vehicles.
- Paul Gutierrez, the sole member of Venture, personally guaranteed the loan by executing an Individual and Personal Guaranty.
- Plaintiff alleged that Venture sold several vehicles out of trust (without repaying proceeds as required) and later stopped communicating with Westlake, leaving a loan balance of at least $158,313.23.
- Plaintiff filed suit for breach of contract and sought default judgment after Defendants failed to appear or respond.
- The district court reviewed service, jurisdiction, sufficiency of the claim, and the request for damages, ultimately granting default judgment as to liability and principal damages, but reserving on interest due to lack of sufficient detail from Plaintiff.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject Matter Jurisdiction | Court has diversity jurisdiction; parties are citizens of different states and amount exceeds $75,000 | None presented (default) | Court has jurisdiction |
| Personal Jurisdiction/Service | Defendants were properly served in New Jersey | None presented (default) | Service/jurisdiction proper |
| Breach of Contract | Defendants failed to meet contractual obligations under PNLSA/Guaranty | None presented (default) | Plaintiff stated a valid claim |
| Damages and Interest | Plaintiff entitled to $161,094.70 plus contractual interest | None presented (default) | Court grants principal amount; reserves on interest pending more details |
Key Cases Cited
- Hritz v. Woma Corp., 732 F.2d 1178 (3d Cir. 1984) (Default judgment is within court’s discretion)
- Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (2011) (Personal jurisdiction standards for individuals and corporations)
- Lampe v. Xouth, Inc., 952 F.2d 697 (3d Cir. 1991) (Personal jurisdiction vests upon proper service)
- DIRECTV, Inc. v. Pepe, 431 F.3d 162 (3d Cir. 2005) (Default admission of complaint allegations except as to damages)
- Coyle v. Englander’s, 488 A.2d 1083 (N.J. App. Div. 1985) (Elements of breach of contract claim)