Virata v. Zemke et al
ORDER AND JUDGMENT that Default judgment is entered in favor of Plaintiff Luis Virata and against Steven Wallace as to Counts 2, 3, 5, 6, and 7. Plaintiff Luis Virata shall recover from Defendant Wallace all damages, attorneys' fees and costs s et forth in this order in the total amount of $349,590.14: $127,500 in the actual amount that Mr. Virata provided to Defendant Wallace; $82,290 in attorney's fees; $12,300.14 in legal costs; and $127,500 in punitive damages. Interest shall accrue at the rate provided in 28 U.S.C § 1961 per month from the date of entry of this order. Signed by Judge David G Campbell on 8/28/12. (LSP)
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ARIZONA
Luis Virata, an individual,
No. CV11-0988 PHX DGC
ORDER AND JUDGMENT
Eric Zemke, an individual, et al.,
On May 24, 2012, the Court entered default judgment against ACLS Pegasus,
LLC in the total amount of $349,590.14: $127,500 in the actual amount that Mr. Virata
provided to the defendants; $82,290 in attorney's fees; $12,300.14 in legal costs; and
$127,500 in punitive damages. Doc. 97.
defendant Steven Wallace, the sole owner and employee of ACLS Pegasus, who had filed
a personal bankruptcy action. See Doc. 92. Subsequently, the personal bankruptcy
action was dismissed. See Doc. 100. On June 15, 2012, this Court lifted the stay against
Mr. Wallace and ordered that Mr. Wallace respond to the amended complaint by July 3,
2012, or have a “default judgment entered against him if he fails to respond to the
amended complaint.” Doc. 100. Despite the Court's clear instruction, Mr. Wallace has
failed to respond to the complaint. On July 23, 2012, Plaintiff filed a motion for default
judgment. Doc. 103. Mr. Wallace has not filed a response. The Court will grant the
At the time, the case was stayed against
On July 12, 2012, Plaintiff filed a Declaration in Support of Order Entering
Default Judgment and Damages against Steven Wallace. Doc. 101-1 at 1-6. This sworn
declaration – as well as deposition testimony and other evidence attached to it – provides
evidentiary support for Plaintiffs claim that he suffered damages in the amount of amount
of $127,500, attorneys’ fees in the amount of $82,290, and costs in the amount of
$12,300. Accordingly, the Court will order Mr. Wallace to compensate Plaintiff for the
claimed damages, attorneys' fees, and costs totaling $222,090. The Court also finds that
Plaintiffs request for $127,500 in punitive damages is appropriate in this case.1 The
Court therefore orders Mr. Wallace to pay punitive damages to Plaintiff in the amount of
$127,500, for a total award of $349,590. Judgment shall bear interest as provided in 28
U.S.C § 1961.
IT IS ORDERED THAT:
Default judgment is entered in favor of Plaintiff Luis Virata and against
Steven Wallace as to Counts 2, 3, 5, 6, and 7.
Plaintiff Luis Virata shall recover from Defendant Wallace all damages,
attorneys’ fees and costs set forth in this order in the total amount of $349,590.14:
$127,500 in the actual amount that Mr. Virata provided to Defendant Wallace; $82,290 in
attorney's fees; $12,300.14 in legal costs; and $127,500 in punitive damages. Interest
shall accrue at the rate provided in 28 U.S.C § 1961 per month from the date of entry of
Dated this 28th day of August, 2012.
The Court discussed Plaintiff’s request for punitive damages in its prior order of
default judgment against ACLS Pegasus and determined that a 1:1 ratio between actual
and punitive damages was appropriate. Doc. 97 at 2.
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