Abrams et al v. Tuberville et al
MEMORANDUM OPINION. Signed by Honorable Judge Myron H. Thompson on 5/7/2013. (jg, )
IN THE DISTRICT COURT OF THE UNITED STATES FOR THE
MIDDLE DISTRICT OF ALABAMA, EASTERN DIVISION
JOHN A. ABRAMS, et al.,
THOMAS H. TUBERVILLE,
CIVIL ACTION NO.
Plaintiffs John A. Abrams, Priscilla W. Abrams, Debra
Clark, Baron J. Lowe, Melanie D. Lowe, Fredrick Glen
Williams, Kristy A. Williams, and Flynn R. DuBose, Jr.,
all investors, brought this action naming as defendants
several investment companies (TS Capital Partners, TS
Capital Partners, LLC, TS Capital Management, LLC, TS
Capital Fund, LP, and TS Capital GP, LLC) and the two
companies, Thomas H. Tuberville and John David Stroud,
claiming violations of federal and state securities and
commodities exchange laws, breaches of fiduciary duties,
unjust enrichment, negligence and wantonness, fraud, and
Subject-matter jurisdiction is proper under
28 U.S.C. § 1331 (federal question), 7 U.S.C. § 25(c)
The case is now before this court on the
plaintiffs’ motion for entry of default judgment against
Stroud and the company defendants.
For the reasons that
follow, the motion will be granted.
The allegations in this case are as follows. The
plaintiffs, all of whom sought to grow their savings for
investing their money; they came to regret that decision.
Savvy investors (which the plaintiffs allegedly were not)
For example, the plaintiffs allege that,
while Tuberville and Stroud purportedly did business as
entities was nonexistent (it was never actually organized
under the laws of any State); that the plaintiffs were
solicited through various documents that were purported
plaintiffs were assured that everything was in order with
their accounts, the books were regularly audited by a
certified public-accounting firm, all the necessary legal
matters were handled by a law firm, and the funds were
plaintiffs now believe that was all untrue.
The plaintiffs further contend that, in fact, less
Tuberville and Stroud used the majority of their cash for
personal purposes; that, when the plaintiffs’ accounts
dried up under Tuberville and Stroud’s mismanagement, the
two sought to conceal that fact, sending the plaintiffs
doctored bank statements and making misrepresentations
over the telephone; and that, as of today, the plaintiffs
cannot say where their funds have gone, although they
believe that they has been misappropriated, converted,
and otherwise squandered for the benefit of Tuberville
Tuberville has generally denied all of the
Stroud and the company defendants have not filed an
answer with the court and have not otherwise provided any
indication of whether they contests the claims brought
Upon the plaintiffs’ request, the clerk of
the court has issued entries of default against Stroud
and the companies.
The entries of default having not
spurred Stroud and the companies to participate in this
litigation, the plaintiffs now move for default judgment.
“When a party against whom a judgment for affirmative
relief is sought has failed to plead or otherwise defend
... the clerk must enter the party’s default.”
Civ. P. 55(a).
Once that has occurred, as it has here,
the plaintiffs must then “apply to the court for a
Fed. R. Civ. P. 55(b)(2).
clerk’s entry of default causes all allegations of facts
to be deemed admitted by the parties in default.
Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987).
Here, when the facts alleged are accepted as true, the
plaintiffs’ complaint states claims upon which relief can
be granted against Stroud and the companies.
The court now turns to the issue of damages.
Chudasama v. Mazda Motor Corp., 123 F.3d 1353, 1364 n.27
(11th Cir. 1997).
“The court may conduct hearings ...
when, to enter or effectuate judgment, it needs to ...
determine the amount of damages.”
Fed. R. Civ. P.
In this case, evidence must be presented to
In the interest of judicial economy,
that evidence should be presented at the time of trial
for the remaining claims in this case.
judgment will be granted, and an appropriate judgment
will be entered against defendants Stroud, TS Capital
Management, LLC, TS Capital Fund, LP, and TS Capital GP,
The issue of damages will be determined at the time
of trial for the remaining claims in this case.
DONE, this the 7th day of May, 2013.
/s/ Myron H. Thompson
UNITED STATES DISTRICT JUDGE
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