Lu v. Weinberger

Filing 54

OPINION. Signed by Judge Madeline C. Arleo on 8/10/2015. (anr)

UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY

GAN SHI LU,
Plaintiff,

Civil Action No. 13-1837

v.

OPINION

ANDREW WEINBERGER,
Defendant.

ARLEO, UNITED STATES DISTRICT JUDGE
This matter comes before the Court on the motion for default judgment pursuant to Federal
Rule of Civil Procedure 55(b)(2) by Plaintiff Gan Shi Lu against Defendant Andrew Weinberger.
For the reasons stated below, the motion is GRANTED.
I.

BACKGROUND
Gan Shi Lu (“Plaintiff”) sues Andrew Weinberger (“Defendant”) for conversion of

property, namely, Plaintiff’s Magic: The Gathering (“Magic”) card collection. Compl., Dkt. No.
1. Plaintiff has collected Magic cards since he was a child. Id. ¶ 7. The value of these cards
grew over time, until Plaintiff amassed a collection which he values at $280,000. Id. ¶ 32.
Plaintiff met Defendant for the purpose of trading Magic cards. Id. ¶ 8. The first five
meetings, in New York City, went smoothly and led to exchanges worth between $7,000 and
$20,000 each time. Id. ¶¶ 9-13. Subsequently, Defendant arranged a sixth meeting in Newark,
New Jersey, and Plaintiff met Defendant there on May 9, 2012. Id. ¶¶ 14-15. After Plaintiff
estimated the total value of his Magic cards for Defendant, they went to a nearby restaurant. Id.
1

¶¶ 15-6. After an hour at the restaurant, Defendant took all of Plaintiff’s Magic cards, told
Plaintiff he needed to call his girlfriend, and stepped outside. Id. ¶ 17. Defendant never returned.
Id. ¶ 18.
That same day, Defendant flew to Tokyo with Plaintiff’s Magic cards and sold a large
portion of them for about $100,000 without Plaintiff’s authorization. Id. ¶¶ 19-20. Plaintiff
subsequently filed a police report for theft. Id. ¶ 21. Defendant has not returned the cards or
paid Plaintiff for them. Id. ¶ 22. Plaintiff now seeks damages of $280,000 for theft of his Magic
cards, as well as punitive damages, interest, and costs and attorneys’ fees.
Plaintiff and Defendant both proceed pro se. Defendant filed two motions to dismiss and
an answer and appeared in court on various occasions.

Once discovery began, however,

Defendant failed to reply to either discovery communications or court orders. Magistrate Judge
Clark, after detailing Defendant’s non-responsiveness in discovery, recommended that
Defendant’s answer be stricken and default be entered against Defendant. See Dkt. No. 37 at 13. Defendant’s answer was stricken. See Dkt. No. 38. Following the Clerk’s entry of default
on May 21, 2014, Plaintiff brought his first motion for default judgment. Dkt. No. 45. This
motion was terminated without prejudice by the Court for inclusion of various claims not alleged
in the Complaint. Dkt. No. 50. Plaintiff then refiled the instant motion for default judgment
without the additional claims. Dkt. No. 52. The motion is unopposed.
II.

STANDARD OF REVIEW
“The district court has the discretion to enter default judgment, although entry of default

judgments is disfavored as decisions on the merits are preferred.” Animal Sci. Prods., Inc. v.
China Nat’l Metals & Minerals Imp. & Exp. Corp., 596 F. Supp. 2d 842, 847 (D.N.J. 2008).
2

Before entering default judgment the court must: (1) determine it has jurisdiction both over the
subject matter and parties; (2) determine whether defendants have been properly served; (3)
analyze the Complaint to determine whether it sufficiently pleads a cause of action; and (4)
determine whether the plaintiff has proved damages. See Chanel, Inc. v. Gordashevsky, 558 F.
Supp. 2d 532, 535-36 (D.N.J. 2008); Wilmington Savings Fund Soc., FSB v. Left Field Props.,
LLC, No. 10-4061, 2011 WL 2470672, at *1 (D.N.J. June 20, 2011). Although the facts pled in
the Complaint are accepted as true for the purpose of determining liability, the plaintiff must prove
damages. See Comdyne I, Inc. v. Corbin, 908 F.2d 1142, 1149 (3d Cir. 1990).
Additionally, prior to granting default judgment, the Court must make explicit factual
findings as to: (1) whether the party subject to the default has a meritorious defense; (2) the
prejudice suffered by the party seeking default judgment; and (3) the culpability of the party
subject to default. Doug Brady, Inc. v. N.J. Bldg. Laborers Statewide Funds, 250 F.R.D. 171, 177
(D.N.J. 2008).
III.

ANALYSIS
A. Jurisdiction & Service
The Court has both subject matter jurisdiction over this dispute and personal jurisdiction

over Defendant. Subject matter jurisdiction here is present pursuant to diversity under 28 U.S.C.
§ 1332. The Court also has personal jurisdiction over Defendant based upon his domicile within
New Jersey. Plaintiff provided the Court with proof of service of Defendant at Defendant’s home
address in Livingston, New Jersey. See Aff. of Service, Dkt. No. 5. Thus, the Court is satisfied
that it has jurisdiction to enter default judgment.
B. Liability
3

“A consequence of the entry of a default judgment is that the factual allegations of the
complaint, except those relating to the amount of damages, will be taken as true.” Comdyne I,
Inc. v. Corbin, 908 F.2d 1142, 1149 (3d Cir. 1990). The Complaint pleads facts which, taken as
true, establish Defendant’s liability for conversion. 1
To plead conversion, Plaintiff must show “some repudiation by the defendant of the
owner’s right, or some exercise of dominion over [the property] by [Defendant] inconsistent with
such right, or some act done which has the effect of destroying or changing the quality of the
chattel.” Potash Stores, Inc. v. Bay Dev. Corp., 118 N.J.L. 242, 244 (N.J. 1937); Arcand v.
Brother Int'l Corp., 673 F. Supp. 2d 282, 311 (D.N.J. 2009). Plaintiff here pleads that Defendant
took Plaintiff’s Magic cards, sold them in Japan, and refuses to repay Plaintiff or give him back
his cards. Compl. ¶¶ 14-22. This effectively destroyed Plaintiff’s right to possession of his
property and constitutes conversion.
C. Appropriateness of Default Judgment
Next, the Court must consider: (1) whether the party subject to the default has a meritorious
defense; (2) the prejudice suffered by the party seeking default judgment; and (3) the culpability
of the party subject to default. Doug Brady, 250 F.R.D. at 177. The Court concludes that in the
absence of any responsive pleading and based upon the facts alleged in the Complaint, Defendant
does not have a meritorious defense. Second, the Court finds that Plaintiff will suffer prejudice
absent entry of default judgment as he would have no other means of obtaining relief. Finally,
the Court finds the Defendant acted culpably as he has been served with the Complaint, is not an

1

Plaintiff’s other causes of action—including fraud and unjust enrichment—would not alter the
damages in this case, so the Court does not analyze the sufficiency of those pleadings.
4

infant or otherwise incompetent, and is not presently engaged in military service. See Nationwide
Mut. Ins. Co. v. Starlight Ballroom Dance Club, Inc., 175 F. App’x 519, 523 (3d Cir. 2006)
(holding that a defendant’s failure to respond to communications from the plaintiff and the court
can constitute culpability).
D. Monetary Damages
Although the facts pled in the Complaint are accepted as true for the purpose of determining
liability, the plaintiff must prove damages. See Comdyne I, Inc. v. Corbin, 908 F.2d 1142, 1149
(3d Cir. 1990). Throughout this litigation, Plaintiff has submitted various exhibits to prove
damages. See Pls.’ Request to Proceed with Case, Dkt. No. 16; Pls.’ Opp. to Mot. to Dismiss,
Dkt. No. 20; Pls.’ Mot. for Default J., Dkt. No. 45, Ex. 1; Pls. Disclosure Statement, Dkt. No. 48;
Pls.’ Mot. for Default J., Dkt. No. 52, Exs. 2-6. These exhibits include: 1) a list of the 958 cards
stolen, 2) screenshots of email and website offers for various Magic cards, 3) screenshots of
completed sales for various Magic cards, and 4) Apathy House’s Experimental Price LookerUpper’s price tracking for various Magic cards.
After reviewing the exhibits to determine which cards have evidence of their value, the
Court determines that there is evidence proving that at least $186,269.12 of cards were stolen.
See Appendix 1. This evidence includes actual sales and offers for sale on various websites, as
well as price tracking data. Because Plaintiff is entitled to be made whole, he is entitled to the
cost of replacement of his card collection. Both the actual sales and offers for sale and the price
tracking data provide adequate proof of the cost of replacement for the cards identified as “Proof
Available” in Appendix 1.
Plaintiff is entitled to prejudgment interest at the statutorily-provided rate under New
5

Jersey Court Rule 4:42-11(b); see In re Exxon Valdez, 484 F.3d 1098 (9th Cir. 2007) (federal
courts sitting in diversity should apply state law regarding prejudgment interest unless federal law
preempts it). Because this judgment exceeds the monetary limit of New Jersey’s Special Civil
Part, currently at $15,000, the relevant interest rates are 2.5% for 2012 and 2.25% for 2013, 2014,
and 2015. New Jersey law strongly disfavors compounding of interest. See N.J. Ct. R. 4:4211(a) (“Except as otherwise ordered by the court or provided by law, judgments, awards and orders
for the payment of money, taxed costs and counsel fees shall bear simple interest . . . .”); see also
Fendi Adele S.R.L. v. Burlington Coat Factory Warehouse Corp., 867 F. Supp. 2d 427, 437
(S.D.N.Y. 2012). The Court applied the relevant interest rate each year, beginning on May 9,
2012, and ending on August 10, 2015. After applying the resultant simple interest rates for each
year to the $186,269.12 of proven lost value, the Court determines that Plaintiff is entitled to
$15,156.69 of interest.
Plaintiff has thus provided adequate support pursuant to Federal Rule of Civil Procedure
55(b)(2) for damages of $201,425.81, including $186,269.12 of Magic cards and $15,156.69 of
prejudgment interest. 2 Judgment by default will be entered against Defendant in the amount of
$201,425.81.
IV.

CONCLUSION
For the foregoing reasons, Plaintiff’s motion for default judgment is GRANTED. An

appropriate order accompanies this opinion.
Dated: August 10, 2015

2

/s Madeline Cox Arleo
United States District Judge

Though Plaintiff alleges that he paid attorney fees of $5,000 in this case before proceeding pro
se, he provides no proof of these fees. The Court thus cannot enter judgment on Plaintiff’s
attorney’s fees.
6

Appendix 1: Card Value and Proof
Name

Amount Each ($)

Quantity

Total ($)

Proof

Beta Volcanic Island

1507.00

12

18084.00

Proof Available

Beta Underground Sea

1625.75

8

13006.00

Proof Available

11500.00

1

11500.00

Proof Available

Beta Tropical Island

1211.00

8

9688.00

Proof Available

Beta Tundra

1200.26

8

9602.08

Proof Available

Japanese Foil Misty Rainforest

190.00

46

8740.00

Proof Available

Beta Taiga

900.00

8

7200.00

Proof Available

Beta Savannah

800.00

8

6400.00

Proof Available

Beta Bayou

700.99

8

5607.92

Proof Available

Beta Scrublands

700.00

8

5600.00

Proof Available

Beta Plateau

700.00

8

5600.00

Proof Available

Beta Badlands

600.00

8

4800.00

Proof Available

Japanese Foil Tarmogoyf

900.00

4

3600.00

Proof Available

Japanese Foil Dark Confidant

750.00

4

3000.00

Proof Available

Japanese Foil Flooded Strand

670.00

4

2680.00

Proof Available

Japanese Tarmogoyf

136.48

18

2456.64

Proof Available

Japanese Foil Jace The Mindsculptor

575.00

4

2300.00

Proof Available

Japanese Foil Wooded Foothills

500.00

4

2000.00

Proof Available

Tropical Island Revised

132.00

14

1848.00

Proof Available

Volcanic Island Revised

132.00

14

1848.00

Proof Available

Japanese Foil Tezzeret Agent of Bolas

110.00

16

1760.00

Proof Available

Japanese Foil Brainstorm

190.00

8

1520.00

Proof Available

FBB Tundra

365.11

4

1460.44

Proof Available

90.00

16

1440.00

Proof Available

Japanese Foil Snapcaster Mage

200.00

7

1400.00

Proof Available

Japanese Foil Bloodstained Mire

325.00

4

1300.00

Proof Available

1275.00

1

1275.00

Proof Available

Japanese Foil Rishadan Port

250.00

5

1250.00

Proof Available

FBB Volcanic Island

305.00

4

1220.00

Proof Available

FBB Tropical Island

300.00

4

1200.00

Proof Available

Japanese Foil Sensei's Divining Top

550.00

2

1100.00

Proof Available

Russian Foil Liliana of the Veil

270.00

4

1080.00

Proof Available

85.00

12

1020.00

Proof Available

Japanese Foil Tombstalker

200.00

5

1000.00

Proof Available

FBB Savannah

230.00

4

920.00

Proof Available

Japanese Foil Progenitus

230.00

4

920.00

Proof Available

BGS 9.0 Beta Black Lotus

Japanese Foil Marsh Flat

Unlimited Black Lotus

Japanese Foil Arid Mesa

7

Japanese Foil City Of Brass

170.00

5

850.00

Proof Available

Japanese Foil Goblin Welder

280.00

3

840.00

Proof Available

FBB Scrubland

202.50

4

810.00

Proof Available

FBB Taiga

200.00

4

800.00

Proof Available

90.00

8

720.00

Proof Available

Korean Foil Snapcaster Mage

700.00

1

700.00

Proof Available

Japanese Foil Daze

130.00

5

650.00

Proof Available

FBB Bayou

160.00

4

640.00

Proof Available

80.00

8

640.00

Proof Available

Japanese Sword of Feast and Famine

160.00

4

640.00

Proof Available

FBB Badlands

150.00

4

600.00

Proof Available

Japanese Foil Grim Monolith

300.00

2

600.00

Proof Available

50.00

12

600.00

Proof Available

150.00

4

600.00

Proof Available

Japanese Foil Batterskull

70.00

8

560.00

Proof Available

Japanese Foil Mutavault

180.00

3

540.00

Proof Available

FBB Plateau

130.00

4

520.00

Proof Available

Russian Foil Snapcaster Mage

500.00

1

500.00

Proof Available

Japanese Foil Tangle Wire

125.00

4

500.00

Proof Available

Japanese Foil Stoneforge Mystic

125.00

4

500.00

Proof Available

Japanese Foil Ilawan Cephalid Empress

120.00

4

480.00

Proof Available

Japanese Foil Phyrexian Metamorph

60.00

8

480.00

Proof Available

Chinese Foil Arid Mesa

60.00

8

480.00

Proof Available

Japanese Foil Gifts Ungiven

120.00

4

480.00

Proof Available

Japanese Foil Mental Misstep

60.00

8

480.00

Proof Available

Japanese Foil Entomb

120.00

4

480.00

Proof Available

Japanese Foil Orim’s Chant

105.00

4

420.00

Proof Available

Guru Island

200.00

2

400.00

Proof Available

Force of Will German

100.00

4

400.00

Proof Available

Karakas

50.00

8

400.00

Proof Available

Chinese Foil Verdant Catacomb

50.00

8

400.00

Proof Available

Chinese Foil Marsh Flat

50.00

8

400.00

Proof Available

Japanese Foil Meddling Mage

50.00

8

400.00

Proof Available

Japanese Foil Pernicious Deed

100.00

4

400.00

Proof Available

Japanese Foil Standstill

100.00

4

400.00

Proof Available

Japanese Foil Damnation

100.00

4

400.00

Proof Available

Japanese Foil Unearth

50.00

8

400.00

Proof Available

Japanese Foil Green Suns Zenith

49.00

8

392.00

Proof Available

Japanese Foil Emrakul

90.00

4

360.00

Proof Available

Japanese Foil Sword of War and Peace

Chinese Foil Scalding Tarn

Japanese Foil Venser the Sojourner
Japanese Foil Bribery

8

Japanese Foil Verdant Catacombs

90.00

4

360.00

Proof Available

Japanese Foil Magnus of the Moon

90.00

4

360.00

Proof Available

120.00

3

360.00

Proof Available

Japanese Foil Golgari Grave Toll

88.00

4

352.00

Proof Available

Japanese Foil Extriparte

85.00

4

340.00

Proof Available

Japanese Foil Spell Snare

85.00

4

340.00

Proof Available

Japanese Foil Dark Ritual

85.00

4

340.00

Proof Available

170.00

2

340.00

Proof Available

Japanese Foil Kam Liberated

80.00

4

320.00

Proof Available

Japanese Foil Flagstones of Trokair

75.00

4

300.00

Proof Available

Japanese Foil Tryon Predator

150.00

2

300.00

Proof Available

Japanese Tolarian Academy

35.00

8

280.00

Proof Available

Japanese Foil Ensnaring Bridge

70.00

4

280.00

Proof Available

Japanese Foil Maelstrom Pulse

66.00

4

264.00

Proof Available

Japanese Foil Ichorid

130.00

2

260.00

Proof Available

Japanese Foil Sculpting Steel

130.00

2

260.00

Proof Available

Japanese Foil Jin Gitaxas Core Auger

43.00

6

258.00

Proof Available

Japanese Foil Grim Lavamancer

85.00

3

255.00

Proof Available

125.00

2

250.00

Proof Available

Japanese Foil Cursecatcher

40.00

6

240.00

Proof Available

English Foil Scalding Tarn

60.00

4

240.00

Proof Available

Japanese Iona Shield of Emria

80.00

3

240.00

Proof Available

Japanese Foil Reflecting Pool

58.00

4

232.00

Proof Available

Japanese Foil Gaddock Teeg

50.00

4

200.00

Proof Available

Japanese Foil Ponder

50.00

4

200.00

Proof Available

100.00

2

200.00

Proof Available

50.00

4

200.00

Proof Available

Japanese Foil Petrified Field

100.00

2

200.00

Proof Available

Japanese Foil Urborg Tomb of Yawgmoth

200.00

1

200.00

Proof Available

Japanese Foil Sorin Lord of Innistrad

100.00

2

200.00

Proof Available

Japanese Foil Zur the Enchanter

200.00

1

200.00

Proof Available

Japanese Foil Figure of Destiny

50.00

4

200.00

Proof Available

Japanese Foil Elesh Norn

90.00

2

180.00

Proof Available

Japanese Foil Duress 7th Edition

60.00

3

180.00

Proof Available

Japanese Foil Fact or Fiction

60.00

3

180.00

Proof Available

Russian Foil Geist of Saint Traft

172.00

1

172.00

Proof Available

Japanese Foil Doran Siege Tower

43.00

4

172.00

Proof Available

Judge Foil Maze of Ith

168.00

1

168.00

Proof Available

Japanese Sneak Attack

38.00

4

152.00

Proof Available

Japanese Foil Vengevine

Japanese Foil Vindicate

Guru Swamp

Japanese Foil Griselbrand
Japanese Foil Surgical Extraction

9

Japanese Foil Dismember

38.00

4

152.00

Proof Available

Japanese Foil Spell Pierce

50.00

3

150.00

Proof Available

Taiga Revised

70.00

2

140.00

Proof Available

Japanese Foil Kiki Jiki Mirror Breaker

140.00

1

140.00

Proof Available

Korean Tolarian Academy

135.00

1

135.00

Proof Available

Japanese Foil Noble Hierarch

130.00

1

130.00

Proof Available

Japanese Polluted Delta

60.00

2

120.00

Proof Available

Japanese Foil Soothsaying

30.00

4

120.00

Proof Available

Japanese Foil Ponder

19.00

6

114.00

Proof Available

Japanese Foil Hive Mind

28.00

4

112.00

Proof Available

Japanese Foil Inquisition of Kozilek

27.50

4

110.00

Proof Available

Japanese Foil Time Stretch

35.00

3

105.00

Proof Available

Japanese Foil Stinkweed IMP

26.00

4

104.00

Proof Available

Japanese Foil Graftdigger’s Cage

50.00

2

100.00

Proof Available

Japanese Foil Sword of Mind and Body

50.00

2

100.00

Proof Available

Japanese Foil Terravore

100.00

1

100.00

Proof Available

Japanese Foil Academy Ruins

100.00

1

100.00

Proof Available

Japanese Foil Creeping Tar Pit

25.00

4

100.00

Proof Available

Japanese Foil Gideon Jura

50.00

2

100.00

Proof Available

Japanese City of Traitors

48.00

2

96.00

Proof Available

Japanese Foil Gravecrawler

22.00

4

88.00

Proof Available

Japanese Foil Legacy Weapon

29.00

3

87.00

Proof Available

Korean Mana Vault

80.00

1

80.00

Proof Available

Mother of Runes Foil FNM

20.00

4

80.00

Proof Available

Japanese Foil Memarch

80.00

1

80.00

Proof Available

Geist of Saint Traft

26.00

3

78.00

Proof Available

Japanese Foil Ulamog Gyre

70.00

1

70.00

Proof Available

Japanese Foil Primeval Titan

60.00

1

60.00

Proof Available

Japanese Foil Thrun Last Troll

50.00

1

50.00

Proof Available

Japanese Foil Consecrated Sphinx

40.00

1

40.00

Proof Available

Japanese Foil Ancient Grudge

13.00

3

39.00

Proof Available

Ancient Tomb English

10.00

3

30.00

Proof Available

Korean Lotus Petal

10.00

3

30.00

Proof Available

Japanese Foil Mountain

12.50

2

25.00

Proof Available

FBB Underground Sea

407.76

4

1631.04

Proof Available

Japanese Foil Scalding Tarn

150.00

32

4800.00

Proof Available

70.00

3

210.00

Proof Available

100.00

4

400.00

Proof Available

2000.00

2

4000.00

Foil Intuition
Japanese Foil Kozilek Butcher of Truth
Beta Black Lotus

10

No Proof

BGS 9.5 Beta Ancestral Recall

2500.00

1

2500.00

No Proof

750.00

1

750.00

No Proof

44.00

4

176.00

No Proof

Japanese Foil Polluted Delta

825.00

4

3300.00

No Proof

Japanese Foil Windswept Heath

550.00

4

2200.00

No Proof

Chinese Foil Polluted Delta

350.00

4

1400.00

No Proof

25.00

83

2075.00

No Proof

English Tarmogoyf

120.00

7

840.00

No Proof

Mishra’s Workshop

400.00

3

1200.00

No Proof

Library of Alexandria

300.00

5

1500.00

No Proof

55.00

2

110.00

No Proof

110.00

12

1320.00

No Proof

English Foil Verdant Catacomb

42.00

8

336.00

No Proof

English Foil Arid Mesa

39.00

8

312.00

No Proof

English Foil Marsh Flats

32.00

4

128.00

No Proof

Chinese Foil Flooded Strand

300.00

1

300.00

No Proof

English Foil Dark Confidant

117.00

4

468.00

No Proof

English Jace Mindsculptor

66.00

4

264.00

No Proof

Japanese Jace Mindsculptor

85.00

1

85.00

No Proof

English Foil Polluted Delta

126.00

4

504.00

No Proof

70.00

1

70.00

No Proof

Bazaar of Baghdad

330.00

1

330.00

No Proof

Beta Nevinryals

190.00

1

190.00

No Proof

Entreat the Angels

25.00

2

50.00

No Proof

Cavern of Souls

32.00

6

192.00

No Proof

Maze of Ith Dark

45.00

6

270.00

No Proof

100.00

1

100.00

No Proof

Beta Lightning Bolt

35.00

4

140.00

No Proof

English Foil Misty Rainforest

78.00

12

936.00

No Proof

225.00

3

675.00

No Proof

Unlimited Mox Sapphire
English Show and Tell

Snapcaster Mage

English Dark Confidant
Chinese Foil Misty Rainforest

Korean Intuition

Japanese Foil Vedalkan Shackles

Japanese Foil Elspeth Knight Errant

Total proven: $186,269.12

11