U.S. Bank National Association v. Hayden Equipment, LLC et al

Filing 12

MEMORANDUM AND ORDER IT IS HEREBY ORDERED that Plaintiffs motion for default judgment is GRANTED. (Doc. No. 11.) IT IS FURTHER ORDERED that Plaintiffs are entitled to a judgment in the full amount of $599,409.29, including the remaining balance on the account of $368,084.18, prejudgment interest in the amount of $225,084.80, and attorneys fees in the amount of $6,240.31.IT IS FURTHER ORDERED that the Clerk of Court shall send a copy of thisOrder via regular and certified mail to Defendants at the following addresses: Hayden Equipment, LLC, 4358 W. Livery Lane, Springfield, MO 65802 and Russell Hayden, 5 Barbary Lane, St. Louis, Missouri, 63146. A separate Judgment shall accompany this Memorandum and Order. Signed by District Judge Audrey G. Fleissig on 11/20/12. (JWJ)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION

U.S. BANK NATIONAL ASSOCIATION, )
d/b/a U.S. BANCORP EQUIPMENT
)
FINANCE, INC.
)
)
Plaintiff,
)
)
vs.
)
)
HAYDEN EQUIPMENT, LLC and
)
RUSSELL HAYDEN, individually,
)
)
Defendants.
)

Case No. 4:12CV01183 AGF

MEMORANDUM AND ORDER
This matter is before the Court on Plaintiff U.S. Bank National Association d/b/a
U.S. Bancorp Equipment Finance, Inc.’s (“U.S. Bank”) motion for default judgment
against Defendants Hayden Equipment, LLC (“Hayden Equipment”) and Russell Hayden
(“R. Hayden”) (collectively referred to as the “Defendants”). For the following reasons,
the motion for default judgment will be granted.
BACKGROUND
Plaintiff filed this action on July 2, 2012 for breach of agreement against Hayden
Equipment and breach of personal guaranty against R. Hayden. Hayden Equipment is a
limited liability company and its members are R. Hayden and Justin Hayden.
The complaint alleges that Hayden Equipment breached its Distribution Finance
Dealer Security Agreement (the “Agreement”) with Plaintiff on May 31, 2009 by failing to
make timely payments thereunder. Plaintiff further asserts that R. Hayden personally
guaranteed Hayden Equipment’s obligations under the Agreement and has failed to pay

the balance due. Plaintiff seeks actual damages in the amount of $392,334.18, plus
interest, and attorneys’ fees and costs from each Defendant.
The record reflects service of summons and the complaint on Hayden Equipment
on July 26, 2012, and on R. Hayden on August 22, 2012. Defendants failed to file
answers or other responsive pleadings within the time required by Federal Rule of Civil
Procedure 12 and, on November 5, 2012, the Clerk of Court entered default against them.
In its motion for default judgment, Plaintiff requests a total award against Hayden
Equipment and R. Hayden, jointly and severally, including the remaining account balance
of $368,084.18; prejudgment interest in the amount of $225,084.80, accrued at the rate of
18% per annum from May 31, 2009 until October 22, 2012; and $6,240.31 in attorneys’
fees and costs. In support of its motion, Plaintiff filed the affidavit of Sarah Vatterott
Minton, one of Plaintiff’s attorneys at Jenkins & Kling, P.C., stating that it is her belief,
after review of various public records, that R. Hayden is not a minor or an incompetent
person. (Ex. B.) Plaintiff also filed the affidavit of Brenda O’Toole, a Litigation
Specialist at U.S. Bank, in support of its damages calculation stating that she reviewed
U.S. Bank’s file in this matter and determined it to be accurate. (Ex. C.) Attached to her
affidavit, Plaintiff includes a copy of the Agreement and the personal guarantee. (Exs. C1 & C-2.) In support of its request for attorneys’ fees, Plaintiff filed the affidavits of both
Jennifer S. Burt, an attorney at Askounis & Darcy, PC, and Michael P. Stephens, an
attorney at Jenkins & Kling, P.C., together with time sheets detailing the attorney time.
(Group Ex. D.)
DISCUSSION
Entry of default by the Clerk of Court pursuant to Federal Rule of Civil Procedure
55(a) is a prerequisite to the grant of a default judgment under Rule 55(b), but whether to

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grant default judgment is a separate question within the discretion of the Court. Johnson
v. Dayton Elec. Mfg. Co., 140 F.3d 781, 783 (8th Cir. 1998). After default has been
entered, the defendant is deemed to have admitted all well-pleaded factual allegations in
the complaint. Marshall v. Baggett, 616 F.3d 849, 852 (8th Cir. 2010); see also Fed. R.
Civ. P. 8(b)(6) (“An allegation - other than one relating to the amount of damages - is
admitted if a responsive pleading is required and the allegation is not denied.”). However,
while factual allegations in the complaint are generally taken as true, those allegations
relating to the amount of damages must be proven. Stephenson v. El-Batrawi, 524 F.3d
907, 916-17 (8th Cir. 2008); Everyday Learning Corp. v. Larson, 242 F.3d 815, 818 (8th
Cir. 2001).
The record shows that in the event of default, U.S. Bank is entitled to payment of
the entire remaining balance, interest in the amount of 18% per annum, from May 31,
2009 until October 22, 2012, and legal expenses and reasonable attorneys’ fees. (Ex. C-1
¶¶ 4.1 & 4.2.) Hayden Equipment defaulted on the Agreement on May 31, 2009, at which
time the account balance was $392,334.18. The record further reflects payments in the
amount of $24,250.00, reducing the judgment balance to $368,084.18. In addition to this
judgment balance, Plaintiff is entitled to interest in the amount of 18% per annum, and
legal expenses and reasonable attorneys’ fees. Defendant is therefore also liable for these
amounts. (Ex. C ¶ 12.) Further, the personal guarantee provides that R. Hayden “jointly
and severally guarantees the full, prompt, complete and final payment” of Hayden
Equipments obligations under the Agreement as well as U.S. Bank’s reasonable attorneys
fees and costs. (Ex. C-2 ¶¶ 1 &13.)
The Court concludes that Plaintiff has provided appropriate records and affidavits
in support of an award for the actual damages sought, including prejudgement interest,

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(Ex. C) and for attorney’s fees. (Group Ex. D). The Court also concludes that the
attorneys’ fees requested should be awarded in full, as the billing rates of the firms do not
exceed $250 per hour, a reasonable rate for the work performed, and the hours expended
appear appropriate for the complexity of the case.
CONCLUSION
Accordingly,
IT IS HEREBY ORDERED that Plaintiff’s motion for default judgment is
GRANTED. (Doc. No. 11.)
IT IS FURTHER ORDERED that Plaintiffs are entitled to a judgment in the full
amount of $599,409.29, including the remaining balance on the account of $368,084.18,
prejudgment interest in the amount of $225,084.80, and attorneys’ fees in the amount of
$6,240.31.
IT IS FURTHER ORDERED that the Clerk of Court shall send a copy of this
Order via regular and certified mail to Defendants at the following addresses: Hayden
Equipment, LLC, 4358 W. Livery Lane, Springfield, MO 65802 and Russell Hayden, 5
Barbary Lane, St. Louis, Missouri, 63146.
A separate Judgment shall accompany this Memorandum and Order.

AUDREY G. FLEISSIG
UNITED STATES DISTRICT JUDGE

Dated this 20th day of November, 2012.

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