Evergreen Farms & Produce, LLC v. G & S Melons, LLC et al
Filing
19
ORDER: Plaintiff Evergreen Farms & Produce, LLC's Motion for Default Judgment against Defendants 18 is GRANTED consistent with the foregoing. The Clerk is directed to enter judgment in favor of Evergreen Farms & Produce, LLC and against G & S Melons, LLC and John Grizzaffe in the amount of $31,253.72. The Clerk shall thereafter CLOSE THIS CASE. Signed by Judge Virginia M. Hernandez Covington on 1/7/2016. (KAK)
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
EVERGREEN FARMS & PRODUCE, LLC,
Plaintiff,
v.
Case No. 8:15-cv-1921-T-33TGW
G & S MELONS, LLC and JOHN GLEN
GRIZZAFFE,
Defendants.
________________________________/
ORDER
This cause is before the Court pursuant to Plaintiff
Evergreen Farms & Produce, LLC’s Motion for Default Judgment
Against Defendants (Doc. # 18), which was filed on January 4,
2016.
I.
The Court grants the Motion as articulated below.
Background
On August 18, 2015, Evergreen Farms filed an action
against G & S Melons and Grizzaffe under Section 5 of the
Perishable Agricultural Commodities Act (“PACA”), 7 U.S.C. §§
499e(c) in the amount of $30,633.72. (Doc. # 1).
Evergreen
Farms alleges that it supplied the Defendants with wholesale
quantities of produce, which had been moved in interstate
commerce, that Defendants failed to pay for the produce and
have not otherwise disputed the debt. (Id. at ¶¶ 6-9).
On November 10, 2015, the Florida Department of State,
Division
of
Corporations,
accepted
service
on
behalf
of
Defendants, after being served with an alias summons and a
copy of the Complaint.
On December 2, 2015, Evergreen Farms
filed an Affidavit of Compliance under Florida Statute Section
48.161. (Doc. # 11). Defendants failed to file a responsive
pleading to the Complaint.
On December 9, 2015, Evergreen
Farms applied to the Clerk for entry of Default as to each
Defendant. (Doc. # 13).
each
Defendant
pursuant
The Clerk entered a default against
to
Rule
55(a),
Fed.R.Civ.P.,
on
December 15, 2015. (Doc. ## 14, 15). At this juncture,
Evergreen Farms seeks entry of a Final Default Judgment
encompassing
the
principal
amount
of
$30,633.72
plus
prejudgment interest as well as costs in the amount of
$620.00.
Evergreen Farms is not seeking the payment of
attorney’s fees.
II.
Default
Federal Rule of Civil Procedure 55(a) sets forth the
following regarding an entry of default:
(a) Entering a Default. When a party against
whom a judgment for affirmative relief is
sought has failed to plead or otherwise defend,
and that failure is shown by affidavit or
otherwise, the clerk must enter the party’s
default.
A district court may enter a default judgment against a
properly served defendant who fails to defend or otherwise
appear pursuant to Federal Rule of Civil Procedure 55(b)(2).
2
DirecTV, Inc. v. Griffin, 290 F. Supp. 2d 1340, 1343 (M.D.
Fla. 2003).
The mere entry of a default by the Clerk does not, in
itself, warrant the Court entering a default judgment.
See
Tyco Fire & Sec. LLC v. Alcocer, 218 F. App’x 860, 863 (11th
Cir. 2007)(citing Nishimatsu Constr. Co. v. Houston Nat’l
Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)).
Rather, a court
must ensure that there is a sufficient basis in the pleadings
for the judgment to be entered.
Id.
A default judgment has
the effect of establishing as fact the plaintiff’s well-pled
allegations of fact and bars the defendant from contesting
those facts on appeal.
Id.
III. The Perishable Agricultural Commodities Act
In Red’s Market v. Cape Canaveral Cruise Line, Inc., 181
F. Supp. 2d 1339, 1341-42 (M.D. Fla. 2002), a case finding the
individual principals of a cruise ship liable for non-payment
with respect to produce under PACA, the court explained:
Congress enacted PACA in 1930 to regulate trading
in perishable agricultural products with the intent
of preventing unfair business practices and
promoting financial responsibility in the fresh
fruit and produce industry.
To this end, PACA
requires that dealers make prompt and full payment
for their produce purchases. In 1984, troubled by
the practices of some dealers, Congress amended the
Act, adding section 499e(c)(2), which provides
additional protection for the sellers of fruits and
vegetables. Under this provision, the agricultural
3
commodities, products derived from the produce, and
proceeds from the sale of such items are subject to
a statutory trust for the benefit of the seller
until full payment is made to the seller by the
dealer.
Id. (internal citations omitted). The court also emphasized
that “by enacting section 499e(c)(2), Congress intended that
PACA trusts remain in effect until full payment is made by the
purchaser of agricultural commodities.” Id. at 1342.
As to the issue of individual liability for corporate
officers, such as Grizzaffe (the president and owner of G & S
Melons), the Red’s Market court noted that “those who are in
a position to control PACA trust assets, and who breach their
duty to preserve those assets, may be held personally liable
under the act.” Id. at 1344 (citing Sunkist Growers, Inc. v.
Fisher, 104 F.3d 280, 283 (9th Cir. 1997)).
The court also
explained that “it is appropriate to impose personal liability
on shareholders, officers, and directors of corporate buyers
who are in a position to control PACA trust assets and fail to
maintain the assets.” Id. (citing Golman-Hayden Co. v. Fresh
Source Produce, Inc., 217 F.3d 348, 350 (5th Cir. 2000)).
Additionally, “a shareholder who was in a position to protect
trust assets but failed to do so would be personally liable
for the unpaid debt for produce” regardless of whether the
failure was intentional or whether the individual was an
4
otherwise responsible corporate officer.
Id. (citing Morris
Okun,
814
Inc.
v.
Harry
Zimmerman,
Inc.,
F.
Supp.
346
(S.D.N.Y. 1993)).
IV.
Default Judgment Analysis
Evergreen Farms moves for the entry of default judgment
as to G & S Melons and Grizzaffe and indicates that Grizzaffe
is not an infant, an incompetent person, or in the military
service of the United States. (Doc. # 18 at 2).
Evergreen
Farms has supported the Motion for Default Judgment with the
declaration of its proprietor, Kenneth R. Davis, Sr., the
declaration of its counsel, Craig A. Stokes, Esq., numerous
invoices supporting its claim, as well as other relevant
documents.
Based upon the Clerk’s entry of default, the well-pleaded
factual
allegations
contained
in
the
Complaint,
the
declarations and the supporting documentation, the Court
determines that a default judgment is warranted.
Defendants
are liable for the balance of $30,633.72, plus costs in the
amount of $620.00.
However, Evergreen Farms has not supplied
the Court with a basis for awarding prejudgment interest.
In
Country Best v. Christopher Ranch, LLC, 361 F.3d 629, 632
(11th Cir. 2004), the court noted that PACA “unambiguously
encompasses not only the price of the commodities but also
5
additional related expenses, [which] include attorneys fees
and interest that buyers and sellers have bargained for in
their contracts.” (Emphasis added). Evergreen Farms has not
pointed to any language contained in an invoice or other
contract regarding an award of prejudgment interest.
In
addition, even if the Court were inclined to award prejudgment
interest,
the
Court
notes
that
Evergreen
Farms
requests
“[p]re-judgment interest to be assessed to the principal
amount of $30,633.72 from the date the load sheets became due
at a rate left to the sound discretion of the Court.” (Doc. #
18 at 3).
Counsel has not provided any analysis or helpful
information regarding “the date the load sheets became due”
and there are numerous load sheets, invoices, and other forms
in the Court file.
Because counsel has supplied insufficient
analysis and information with respect to prejudgment interest,
the request for prejudgment interest is denied.
The Court directs the Clerk to enter a final default
judgment against Defendants in the amount of $31,253.72.
After entry of the final judgment, the Clerk shall close this
case.
Accordingly, it is
ORDERED, ADJUDGED, and DECREED:
(1)
Plaintiff Evergreen Farms & Produce, LLC’s Motion for
6
Default
Judgment
against
Defendants
(Doc.
#
18)
is
GRANTED consistent with the foregoing.
(2)
The Clerk is directed to enter judgment in favor of
Evergreen Farms & Produce, LLC and against G & S Melons,
LLC and John Grizzaffe in the amount of $31,253.72.
(3)
The Clerk shall thereafter CLOSE THIS CASE.
DONE and ORDERED in Chambers in Tampa, Florida, this 7th
day of January, 2016.
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