Watchous Enterprises, L.L.C. v. Pacific National Capital et al

Filing 72

MEMORANDUM AND ORDER. The Amended Complaint (Dkt. 40, at 21-22) seeks damages of $187,600. In addition, both complaints request punitive damages, which typically may be rewarded on default judgment only after an evidentiary hearing. The court will schedule the hearing on plaintiff's damages by separate order. Signed by District Judge J. Thomas Marten on 10/6/2017. Mailed to pro se party William Mournes by regular mail.(sz)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF KANSAS

WATCHOUS ENTERPRISES, LLC,
Plaintiff,
vs.

Case No. 16-1432-JTM

PACIFIC NATIONAL CAPITAL, et al.,
Defendants.

MEMORANDUM AND ORDER

This action arises from a joint venture, and a subsequent settlement agreement,
between plaintiff Watchous Enterprises and Waterfall Mountain USA LLC, Waterfall
Mountain LLC, and Waterfall International Holdings Limited. Watchous has also named
several additional parties as defendants, including Pacific National Capital.
Although the other defendants have appeared and submitted defenses to
Watchous's claims, the Waterfall defendants have not. As a result, on July 6, 2017
Magistrate Judge O'Hara ordered the Waterfall defendants to show cause why default
judgment should not be issued against them. (Dkt. 39). Waterfall has made no response to
the order to show cause.
In addition to the July 6 order, Judge O'Hara, in the course of resolving a separate
Motion to Quash (Dkt. 60) relating to a discovery dispute, issued an additional warning to

the Waterfall defendants that default judgment would be a likely consequence of its failure
to defend the action. (Dkt. 68 at 4 n. 5). Again, Waterfall has offered no response to the
warning.
Accordingly, for good cause shown and in light of their failure to appear and defend
the action and their failure to respond to a specific directive of the court, the court hereby
directs the Clerk of the Court to enter the Waterfall defendants' default on the docket, and
determines that default judgment against defendants Waterfall Mountain USA LLC,
Waterfall Mountain LLC, and Waterfall International Holdings Limited be entered
pursuant to Fed.R.Civ.Pr. 55(b)(2).
However, “a default judgment also does not establish the amount of damages,” and
the party seeking judgment “must establish that the amount requested is reasonable under
the circumstances.” Mathiason v. Aquinas Home Health Care, Inc., 187 F. Supp. 3d 1269,
1274-75 (D. Kan. 2016) (citing DeMarsh v. Tornado Innovations, L.P., 2009 WL 3720180, at *2
(D.Kan. Nov. 4, 2009)). "'Damages may be awarded only if the record adequately reflects
the basis for [the] award via a hearing or a demonstration by detailed affidavits
establishing the necessary facts."' Adolph Coors Co. v. Movement Against Racism & The Klan,
777F.2d 1538, 1544 (11thCir.1985) (quoting United Artists Corp. v. Freeman, 605 F.2d854,857
(5th Cir.1979)).
The court notes that the original Complaint, in place at the time of the Order to
Show Cause, sought to recover damages from the Waterfall defendants, jointly and
severally, in the amount of $175,000, exclusive of interest, fees and costs; pre- and
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post-judgment interest as allowed by law. (Dkt. 1, at 11-12). The Amended Complaint (Dkt.
40, at 21-22) seeks damages of $187,600. In addition, both complaints request punitive
damages, which typically may be rewarded on default judgment only after an evidentiary
hearing. See In re Hess, 2015 WL 39411456, *1 (D. Kan. June 18, 2015).
The court will schedule the hearing on plaintiff's damages by separate order.
IT IS SO ORDERED this 6th day of October, 2017.

___s/ J. Thomas Marten______
J. THOMAS MARTEN, JUDGE

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