Yifan Shipping (Thailand) Co., Ltd. v. Inxeption Corporation
3:24-cv-00232
| W.D. Ky. | Feb 26, 2025Background
- Yifan Shipping (Thailand) Co., Ltd. and Inxeption Corporation entered into a logistics and shipping services agreement in 2022, with invoicing and payment obligations owed by Inxeption.
- Yifan alleges Inxeption breached the contract in 2023 by failing to pay $1.22 million in invoices, to timely pick up cargo, and return shipping containers, causing Yifan to incur further damages of $737,565.
- Yifan filed suit in April 2024, asserting claims for breach of contract, promissory estoppel, and unjust enrichment, after Inxeption allegedly failed to pay and respond to demands.
- Inxeption's counsel withdrew in September 2024, and despite court orders, Inxeption failed to obtain new counsel or participate, leading to orders permitting Yifan to seek default.
- Yifan moved for entry of default and default judgment, supported by documentary evidence of damages and a request for attorneys’ fees and costs.
- The court ruled on the motion, weighing default judgment as a sanction for Inxeption's willful failure to comply with court orders and to defend.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Default Judgment as Sanction | Inxeption's noncompliance justifies default | No response | Granted—default entered |
| Award of Liquidated Damages | $2,053,536.52 is a liquidated, computable amount | None | Granted—full amount awarded |
| Prejudgment and Postjudgment Interest Entitlement | Seeks 8% prejudgment and federal postjudgment | None | Granted—8% pre, 4.2% post |
| Award of Attorneys’ Fees and Costs | Seeks all fees and litigation expenses | None | Denied—no statutory or contractual basis |
Key Cases Cited
- Grange Mut. Cas. Co. v. Mack, 270 F. App’x 372 (6th Cir. 2008) (discusses default judgment as the harshest sanction for noncompliance)
- Poundstone v. Patriot Coal Co., 485 F.3d 891 (6th Cir. 2007) (prejudgment interest in diversity cases governed by state law)
- Nucor Corp. v. Gen. Elec. Co., 812 S.W.2d 136 (Ky. 1991) (liquidated damages defined under Kentucky law)
- Fields v. Fields, 58 S.W.3d 464 (Ky. 2001) (prejudgment interest rate under Kentucky law)
- Bricklayers’ Pension Tr. Fund v. Taiariol, 671 F.2d 988 (6th Cir. 1982) (postjudgment interest mandatory under federal law)