Mack Financial Services et al v. All Island Truck Leasing Corp., et al

Filing 29

MEMORANDUM AND ORDER ADOPTING REPORT AND RECOMMENDATION granting 11 Motion for Entry of Default; adopting in part 27 Report and Recommendation. The Court adopts all portions of the R&R except the discussion of prejudgment interest and orders that a default judgment be entered against Defendants. Plaintiffs are awarded (1) $721,370.97 in principal; (2) $1,272.62 in attorneys' fees; (3) $599.19 in costs; and (4) $360.69 per day in prejudgment interest from February 1, 2011 through the date of judgment. The Clerk of the Court is directed to mark this case CLOSED. So Ordered by Judge Joanna Seybert on 9/30/2011. C/ECF (Valle, Christine)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
---------------------------------------X
MACK FINANICAL SERVICES, a division
Of VFS US LLC, f/k/a Mack Commercial
Finance, VOLVO FINANCIAL SERVICES, a
Division of VFS US LLC, f/k/a Volvo
Commercial Finance,
MEMORANDUM & ORDER
10-CV-3799(JS)(ETB)
Plaintiffs,
-againstFRANK POCZATEK and ROBERT POCZATEK,
Defendants.
---------------------------------------X
APPEARANCES:
For Plaintiffs:
Christopher B. Block, Esq.
Joshua S. Hurwit, Esq.
Gordon & Rees LLP
90 Broad St.
New York, NY 10005
For Defendants:

No Appearances.

SEYBERT, District Judge:
Plaintiffs Mack Financial Services and Volvo Financial
Services
Poczatek

(“Plaintiffs”)
(“Defendants”)

sued
for

Defendants

breach

of

Frank

and

guaranty.

Robert

Defendants

defaulted, and Plaintiffs moved for a default judgment.

On

August 30, 2011, Magistrate Judge A. Kathleen Tomlinson issued a
Report and Recommendation (“R&R”) recommending that Plaintiffs
be awarded $776,604.47 in damages, costs, and attorneys’ fees.
No objections were filed within the prescribed time.
exception,

the

Court

agrees

with

Judge

With one

Tomlinson’s

recommendations.
The R&R awarded prejudgment interest at 18% because,
for

large

commercial

loans,

North

Carolina

law

honors

interest rate to which the parties to the loan agreed.

the

The R&R

calculated prejudgment at 18% over a 365-day year for an amount
of

$355.74

between

accruing

February

1,

in

interest

2011

each

(the

date

judgment motion) and July 1, 2011.

day
of

for

the

Plaintiffs’

(R&R 11.)

150

days

default

In this case, the

parties had actually agreed to 18% percent interest computed on
the basis of a 360-day year (see Docket Entry 24 at 2), which
results in an amount of $360.69 accruing in interest each day.
Additionally, the Court concludes that, rather than cutting off
at July 1, 2011, prejudgment interest should accrue each day
between February 1, 2011 and the date of judgment.
The remainder of the R&R is thorough, well-reasoned,
and free from clear error.
portions

of

the

R&R

Accordingly, the Court adopts all

except

the

discussion

of

prejudgment

interest and orders that a default judgment be entered against
Defendants.
principal;

Plaintiffs
(2)

$1,272.62

are
in

awarded

attorneys’

(1)
fees;

$721,370.97

in

(3)

in

$599.19

costs; and (4) $360.69 per day in prejudgment interest from
February 1, 2011 through the date of judgment.
The Clerk of the Court is directed to mark this case
CLOSED.
2

SO ORDERED.
/s/ JOANNA SEYBERT______
Joanna Seybert, U.S.D.J.
Dated:

September
30 , 2011
Central Islip, New York

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