International Construction Equipment, Inc. v. Laborde Construction Industries, LLC

Filing 25

SUPPLEMENTAL REASONS ON RULING as to [23 ] RULING on Motion for Default Judgment. Signed by Judge Shelly D. Dick on 6/1/2017. (LLH)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA

INTERNATIONAL CONSTRUCTION
EQUIPMENT, INC.

CIVIL ACTION

VERSUS
15-433-SDD-EWD
LABORDE CONSTRUCTION
INDUSTRIES, L.L.C.
SUPPLEMENTAL REASONS ON RULING
The above captioned matter is a suit on an open account. The Court entered a
Ruling and Order1 on August 24, 2016 confirming a default judgement in favor of Plaintiff,
International Construction Equipment, Inc. (“ICE”), and against Defendant Laborde
Construction Industries, LLC (“Laborde”). Upon further review of the record, the Court sua
sponte assigns supplemental reasons addressing the amount in controversy required for
subject matter jurisdiction.
I.

RELEVANT FACTUAL AND PROCEDURAL BACKGROUND
In July of 2014, ICE leased equipment to Laborde for the agreed upon rate of

$12,871.88 per month. The lease term was 90 days. Laborde paid the first month’s rental
but failed to pay two months rental or $25,743.76. International further claims that, when
Laborde returned the equipment, it was severely damaged and unusable and that
Laborde owes $36,692.40 in repair costs. In addition to the unpaid rental and the repair
costs, ICE prayed to recover damages for loss of use, diminution of value, prejudgment
and post judgment interest, costs, and reasonable attorney’s fees. After failing to appear

1

Rec. Doc. 23.

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and defend the claims and upon proof by ICE, the Court entered Default Judgment
against Laborde for “$25,743.76 for unpaid rental fees, $1,536.24 in repair costs for the
I-30 v2 Diesel Hammer, and $35,156.16 for the replacement value of the fixed extended
open style box leads, plus prejudgment and post judgment legal interest thereon.”2
Presently pending before the Court is an Affidavit3 in support of ICE’s prayer for attorney’s
fees.
Plaintiff originally filed in this Court asserting jurisdiction pursuant to 28 U.S.C. §
1332, alleging that the Parties are citizens of different states and the amount in
controversy exceeds $75,000.00, exclusive of interest and costs. In its Ruling4 granting a
Default Judgment, the Court made factual findings regarding the complete diversity of
citizenship as between the Parties. The Court assigns these supplemental reasons
regarding the amount in controversy required to support this Court’s jurisdiction.
II.

AMOUNT IN CONTROVERSY
The default judgment amount totals $62,436.76 plus prejudgment and post-

judgment interest and attorney’s fees. Although the ultimate judgment is below the
jurisdictional threshold needed for jurisdiction, the determination is not a question of
hindsight but, rather, whether Plaintiff pled factual allegations in the Complaint5 indicating
that its claim would more likely than not exceed $75,000.00, exclusive of interest and
costs.

2

Rec. Doc. 23.
Rec. Doc. 24.
4
Rec. Doc. 23.
5
Rec. Doc. 1.
3

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On the face of the Complaint,6 the Plaintiff specifically sets out losses totaling
$62,436.16.7 In addition to the specific loss amount, the Plaintiff also claims damages for
loss of use and diminution in value of the equipment, and reasonable attorney’s fees. The
Court finds that, based upon documented repair costs which exceeded the past due rental
amount, additional damages for the equipment’s diminution in value, plus an award of
reasonable attorney’s fees available under La. R.S. 9:2781, more probably than not
exceeded the jurisdictional amount.8
Signed in Baton Rouge, Louisiana on June 1, 2017.

S
JUDGE SHELLY D. DICK
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA

6

Id.
$25,743.76 in unpaid rent plus $36,692.40 in repair costs.
8
See, Edinburgh v American Security Ins. Co., 2010 WL 3923292 (E.D. La. 2010).
7

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