Pitt-Ohio Express, LLC v. Omega International Corporation

Filing 10

REPORT AND RECOMMENDATION re 8 MOTION for Default Judgment as to Omega International filed by Pitt-Ohio Express, LLC Signed by: Judge Magistrate Judge Beth P. Gesner Objections to R&R due by 3/4/2013 Responses due by 3/4/2013. Signed by Magistrate Judge Beth P. Gesner on 2/15/13. (c/m 2/15/13 jnls, Deputy Clerk)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
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PITT-OHIO EXPRESS, LLC

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Plaintiff,
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v.

Case No. WDQ-12-2050
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OMEGA INTERNATIONAL CORP.,
T/A OMEGA INTERNATIONAL INC.
T/A OMEGA INTERNATIONAL

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Defendant.
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REPORT AND RECOMMENDATION
The above-referenced case was referred to the undersigned for review of plaintiff’s
motion for default judgment and to make recommendations concerning damages, pursuant to 28
U.S.C. § 301 and Local Rule 301.6. (ECF No. 9.) Currently pending is plaintiff’s Motion for
Judgment by Default (“Motion”). (ECF No. 8.) No hearing is deemed necessary. See Fed. R.
Civ. P. 55(b)(2); Loc. R. 105.6. For the reasons discussed herein, I respectfully recommend that
plaintiff’s Motion (ECF No. 8) be GRANTED and that relief be awarded as set forth herein.
I.

STANDARD FOR ENTRY OF DEFAULT JUDGMENT
In reviewing a motion for default judgment, the court accepts as true the well-pleaded

factual allegations in the complaint as to liability. Ryan v. Homecomings Fin. Network, 253
F.3d 778, 780-81 (4th Cir. 2001). It remains for the court, however, to determine whether these
unchallenged factual allegations constitute a legitimate cause of action. Id. If the court
determines that liability is established, the court must then determine the appropriate amount of

damages. Id. The court does not accept factual allegations regarding damages as true, but rather
must make an independent determination regarding such allegations. See, e.g., Credit Lyonnais
Secs. (USA), Inc. v. Alcantara, 183 F.3d 151, 154 (2d Cir. 1999). The court may make a
determination of damages without a hearing, so long as there is adequate evidence in the record,
such as detailed affidavits or documentary evidence, for the award. See, e.g., Adkins v. Teseo,
180 F. Supp. 2d 15, 17 (D.D.C. 2001).
II.

DISCUSSION
A. Defendant’s Liability
I have reviewed plaintiff’s Complaint (ECF No. 1), and find that plaintiff has stated a

cause of action based on defendant’s failure to pay freight charges as incurred. Plaintiff is an
interstate motor carrier of commodities. Plaintiff and defendant entered a series of contracts for
the transportation of goods between May 2011 and August 2011. (ECF No. 1-4.) Taking
plaintiff’s factual allegations as true, plaintiff performed its obligations under the contracts at
issue, but defendant failed to pay the freight charges incurred. Accordingly, defendant is liable
for the unpaid amounts, pursuant to Bills of Lading incorporating the rules, rates, and charges
governing the services that plaintiff provided (ECF No. 1-5), and 49 U.S.C. § 13706.
After defendant failed to answer or otherwise defend within twenty-one days, plaintiff
properly moved, pursuant to Federal Rule of Civil Procedure 55(a), for an entry of default. (ECF
No. 6.) The Clerk of this court entered defendant’s default on November 15, 2012. (ECF No. 7.)
On January 3, 2013, plaintiff filed the pending Motion (ECF No. 8), to which defendant has not
responded. In sum, plaintiff has demonstrated that it is entitled to a default judgment against
defendant.

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B. Damages
Having determined that plaintiff has proven liability, the undersigned now undertakes an
independent determination of the damages to which plaintiff is entitled. I have reviewed the
documents attached to plaintiff’s Complaint, as well as plaintiff’s Motion and the attached
affidavit of Diana Early, plaintiff’s Vice President of Administration (ECF No. 8-2.) Based on
these documents, including the calculations reflected in Ms. Early’s affidavit, I find that plaintiff
is entitled to recover defendant’s outstanding balance for freight charges in the amount of
$12,781.34. In addition, the contract between the parties imposes penalties for non-payment of
freight charges, including interest at 10% per annum, and collection fees of 25% of the total
outstanding balance. (ECF No. 1-5 at 22-23.) I find that plaintiff is entitled to pre-judgment
interest in the amount of $1060.50 and collection fees in the amount of $3,195.34, as detailed in
Ms. Early’s affidavit. (ECF No. 8-2.) Finally, plaintiff’s claim for costs of suit in the amount of
$440.00 is justified. Accordingly, I conclude that plaintiff’s request for damages, pre- and postjudgment interest, collection fees, and costs is reasonable and documented in the record and
recommend granting these requests.
IV.

CONCLUSION
In sum, I recommend that:

1. The court grant plaintiff’s Motion for Judgment by Default (ECF No. 8); and
2. The court enter judgment in favor of plaintiff in the amount of $17,477.18 consisting of an
award for unpaid freight charges in the amount of $12,781.34, pre-judgment interest in the
amount of $1,060.50, collection fees of $3,195.34, $440.00 in costs of suit, and postjudgment interest from the date of judgment; and
I also direct the Clerk to mail a copy of this Report and Recommendation to defendant at

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the address listed on plaintiff’s Complaint. (ECF No. 1.)
Any objections to this Report and Recommendation must be served and filed within
fourteen (14) days, pursuant to Fed. R. Civ. P. 72(b) and Local Rule 301.5.b.

Date:

February 15, 2013

/s/
Beth P. Gesner
United States Magistrate Judge

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