Business Loan Center, LLC v. Roland Garros, Inc. et al

Filing 22

ORDER that Plaintiff's 20 Motion for Default Judgment is denied without prejudice. To the extent that Plaintiff can sufficiently establish jurisdiction by properly presenting Defendants' citizenship, Plaintiff may submit such evidence and/or arguments in a second motion for default judgment. Signed by Judge J. Randal Hall on 12/2/2015. (jah)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF GEORGIA
AUGUSTA DIVISION

BUSINESS LOAN CENTER,

LLC,

*

Plaintiff,

*
*

v.

*

ROLAND GARROS, INC.;
CUTLER LAW GROUP, a

and

CV

114-213

*
*

Professional Law Corporation;

*
*

*

Defendants.

*

ORDER

Now

before

judgment.

the

(Doc.

Plaintiff's motion

Court

20.)

For

November

2014,

a

the

motion

reasons

for

discussed

default

below,

professional

Background

Plaintiff

Defendants Roland Garros,

Group,

Plaintiff's

is DENIED WITHOUT PREJUDICE.

I.

In

is

Inc.

law

collectively "Defendants")

filed

a

complaint

("Roland Garros")

corporation

Richard Cutler for breach of a guaranty.

and Cutler Law

("Cutler

for breach of a note,

against

Law

Group,"

and against M.

(Doc. 1, "Compl.")

In

May 2015, because Plaintiff had not shown that it had perfected
service,

the

Court

ordered

Plaintiff

action should not be dismissed.

to

(Doc. 12.)

show

cause

why

the

Plaintiff responded

by filing waivers of service.

(Doc. 13.)

Also, in April 2015,

Mr. Cutler informed the Court that he had filed for Bankruptcy
protection and requested that the Court stay the matter,
the Court did.

(Docs.

11,

14.)

Subsequently,

permission from the bankruptcy court,
to

dismiss

Roland

Mr.

Garros

granted

that

lifted

the

Roland

Garros

Plaintiff

Cutler
and

Cutler

motion,

stay.

this

Law

Cutler

for

remaining Defendants,

17.)

Law

entry

matter

and

(Doc.

Mr.

Cutler

Accordingly,

Group

of

after receiving

Plaintiff moved the Court

Group.

terminated

(Doc.

and

moved

from

which

remain.

default

proceed
16.)
as

(doc.

The

a

Court

party,

only

In

against

Defendants

August

18)

and

2015,

against

the

which the Clerk granted (doc. 19), and now

moves for default judgment (doc. 20).

The relevant portions of the complaint in this
based

on

Defendants

Roland

Garros's

and

Cutler

action are
Law

failure to satisfy a note made payable to Plaintiff.

to the complaint,

Defendants

things,
written

have

(IcL_ SI 8.)

defaulted

on

the

not making timely payments,
demands

Accordingly,

According

Cutler Law Group and Roland Garros borrowed

$1,315,000 from Plaintiff.
that

for

the

amount

The complaint alleges
note

by,

among

time

other

even after Plaintiff made

owed.

11

(Compl.

15-17.)

the complaint seeks to hold Defendants liable for

the amount owed on the note plus interest and fees.
the

Group's

Plaintiff

$1,178,765.07

on

the

filed

the

principal

complaint,

And as of

Defendants

and $273,981.27

in

fees

owed

and

interest.

1

(Id.

10-11.)

Additionally,

§ 13-1-11, the complaint seeks attorneys'

II.

pursuant

to O.C.G.A.

(Id. 1 18.)

fees.

Discussion

Federal Rule of Civil Procedure 55 governs the Court's ability
to grant a default judgment,
determine

whether

judgment

Pitts v.

Seneca Sports,

2004).

"[T]hree

any

default

Id.

Court must

have personal

Here,

321

entered.

F. Supp.

matters

(1)

damages."

defendant."

should be

Inc.,

distinct

judgment:

and vests the Court with discretion to

[are]

See

2d 1353,

1356

essential

jurisdiction;

(2)

in

ex

rel.

(S.D.

Ga.

considering

liability;

and

With respect to the jurisdictional element,

(3)

"[t]he

and subject-matter jurisdiction over the

Id.

the

Court

is

not

satisfied

that

adequately pleaded subject-matter jurisdiction.
this case is based on 28 U.S.C.

of citizenship.
limited

Pitts

corporation.

has

Jurisdiction in

which requires diversity

The complaint represents that Plaintiff is a

liability

professional

§ 1332,

Plaintiff

company,

corporation,

Defendant

and

Cutler

Defendant

Law

Roland

Group

is

a

Garros

is

a

For diversity of citizenship purposes,

"a limited

liability company is a citizen of any state of which a member of
the company is a citizen."
SCH Holdings,

corporation

LLC,

is

a

Rolling Greens MHP,

374 F.3d 1020, 1022

citizen

of

any

LP v.

(11th Cir. 2004).

state

in

which

Comcast
And a

it

is

incorporated and the state where it has its principal place of

business.

28 U.S.C.

§ 1332(c).

Plaintiff's

complaint

that Plaintiff is a Delaware limited liability company,
sole

member

Capital,

LLC,

liability

is

Ciena

Capital,

LLC.

according to the complaint,

company.

(Id.)

Its

1

(Compl.

only

states
and its

1.)

Ciena

is a Delaware limited

member

is

Ares

Capital

Corporation,

a Maryland corporation with its principal place of

business

New

in

York.

Plaintiff

has

adequately

pleaded

its

citizenship.

Plaintiff's complaint,

however,

the citizenship of Defendants.

is

a

California

It states that Cutler Law Group

corporation

office address" in Augusta,

does not sufficiently plead

with

"its

registered

(Id. 1 2.)

Georgia.

And it states

that Roland Garros is a Nevada corporation with its

principal office address" in Augusta,

Georgia.

complaint is problematic for two reasons.

principal

"registered

(Id.

First,

SI 3.)

The

although it

pleads Defendants' states of incorporation, it does not directly
address their principal places of business.

only to their "registered principal" offices.
matters when addressing jurisdiction.

Am.,

Inc., No.

Ga.

March

13,

1:14-cv-01086-WSD,

(alteration
business'

is

in
a

original)).
term

of

jurisdictional purposes."

See Wylie v.

Office

with

IdL

Red Bull N.

at *2

Address'

(N.D.

is

not

"principal place of business'")
Indeed,

art

But terminology

2015 WL 1137687,

2015)("*[P]incipal

synonymous with a defendant's

Instead, it refers

a

"MpJrincipal

defined

legal

place

of

meaning

for

Plaintiff's use of "registered

principal office" is especially curious in this case considering
that

Plaintiff,

in

the

preceding

paragraph,

pleads

its

own

citizenship using the words "principal place of business."
SI

1.)

Additionally,

complaint

indicates

corporation.

But

with

that

the

regard

Cutler

complaint

to

Law

does

of the members of Cutler Law Group.

any

Eleventh

Circuit

pleading

requirements

same

for

as

unresolved
Federal

Court

other

in

most

Practice

is

not

and

a

Procedure

is

a

Group,

the

professional

plead the

citizenship

establishes

professional

In

jurisdictions.

that

not

that

corporations.

satisfied

Group

Law

And the Court cannot locate

precedent

for

Cutler

(Id.

that

corporation

fact,

See

13

§ 3623.

the

are

issue

Wright

&

the

the

seems

Miller,

Consequently,

Plaintiff's

complaint

the

adequately

pleads jurisdiction in this case.

Accordingly,
20)

Plaintiff's motion

is DENIED WITHOUT PREJUDICE.

can sufficiently establish
Defendants'

citizenship,

for default judgment

(doc.

To the extent that Plaintiff

jurisdiction by properly presenting
Plaintiff

may

submit

such

evidence

and/or arguments in a second motion for default judgment.^
ORDER

ENTERED

December, 2015.

at

Augusta,

Georgia

y^L

this

<£?C

day

of

^L^7sJi

HONdF&HLE/J• RANDAL HALL

UNITBB^fATES DISTRICT JUDGE
SOUTHERN DISTRICT OF GEORGIA