Developers Surety and Indemnity Company v. Old Towne Station, LLC et al

Filing 54

OPINION. An appropriate judgment will be entered. Signed by Honorable Myron H. Thompson on 7/22/2010. (cb, )

IN THE DISTRICT COURT OF THE UNITED STATES FOR THE MIDDLE DISTRICT OF ALABAMA, NORTHERN DIVISION DEVELOPERS SURETY AND INDEMNITY COMPANY, Plaintiff, v. OLD TOWNE STATION, LLC, et al., Defendants. ) ) ) ) ) ) ) ) ) ) ) OPINION Plaintiff Developers Surety and Indemnity Company brings damages suit for against breach a of number of defendants, and other seeking law The

CIVIL ACTION NO. 2:09cv757-MHT (WO)

contract

state

claims, arising from a General Indemnity Agreement. defendants are Old Towne Station, LLC,

Sandbox

Properties, LLC, Lauren Carroll, Alison Green, Scott Brandt, and Irma Brandt. Jurisdiction is proper pursuant Green and Carroll have and summary judgment

to 28 U.S.C. § 1332 (diversity). been dismissed from the case,

entered against the Brandts; thus Old Towne and Sandbox Properties are the only remaining parties. This case is

now before the court on Developers Surety's motion for an entry of default judgment against Old Towne and Sandbox Properties. be granted. Developers Surety executed a subdivision completion bond, with defendant Old Towne as principal, in For the reasons that follow, the motion will

connection with the development of the "Old Towne Station project," to be built in the City of Auburn, Alabama. Developers Surety acted as a surety on the bond only after entering into a general indemnity agreement, signed by the defendants (including Sandbox Properties) and notarized. The agreement stated that Developers Surety

would be compensated and held harmless for all losses to the city, the obligee on the bond, incurred in the completion of the project. Thereafter, Old Towne failed to perform on its

obligations in the construction of the project, and the city brought claims against Developers Surety as the guarantor. Developers Surety seeks an award of

2

$ 184,150.60 in damages against Old Towne and Sandbox Properties, expenses. Developers Surety submitted a motion for an entry of default judgment against Old Towne and Sandbox Properties after they failed to answer or otherwise respond to the complaint within the time allowed by law. By order of as well as attorneys' fees, costs, and

this court, Old Towne and Sandbox Properties had until July 20, 2010, to show cause as to why the motion for entry of default judgment should not be granted. did not respond. They

Default judgment is therefore due to be An

entered against Old Towne and Sandbox Properties. appropriate judgment will be entered. DONE, this the 22nd day of July, 2010. /s/ Myron H. Thompson UNITED STATES DISTRICT JUDGE