Happy CP Company Limited v. LB Accessories LLC, et al.

Happy CP · United States District Court for the Eastern District of California · May 19, 2025 · No. 2:24-cv-2274-TLN-JDP

Summary

The document contains findings and recommendations in an action by Happy CP Company Limited to confirm a Hong Kong arbitration award against LB Accessories LLC and Megan Castillo. The magistrate judge recommends granting default judgment and entering joint and several judgment for $204,988.69, while denying without prejudice the request for litigation attorney’s fees and costs because the required supporting submissions were not provided.

Holdings

  1. Default judgment was appropriate because respondents were properly served, failed to appear, and the Eitel factors favored judgment for petitioner.
  2. The arbitration award should be confirmed under the New York Convention because it arose from a commercial relationship involving a Hong Kong company and respondents did not establish any Convention defense.
  3. Petitioner established entitlement to a total award of $204,988.69 under the arbitration award.
  4. The request for attorney fees and costs incurred in bringing the federal action should be denied without prejudice because petitioner failed to comply with the applicable fee-affidavit and bill-of-costs requirements.

Questions Presented

  1. Whether respondents' failure to appear and defend warranted entry of default judgment under Federal Rule of Civil Procedure 55 and the Eitel factors.
  2. Whether the arbitration award was subject to confirmation under the New York Convention and Chapter Two of the Federal Arbitration Act.
  3. Whether petitioner established the amount of damages awarded in the arbitration.
  4. Whether petitioner was entitled at that stage to attorney fees and litigation costs incurred in the federal confirmation action.

Disposition

other

Cases Cited (20)

  • PepsiCo, Inc. v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 1174 (C.D. Cal. 2002)(followed)
  • Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986)(followed)
  • Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980)(followed)
  • Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986)(followed)
  • Philip Morris USA, Inc. v. Castworld Prods., Inc., 219 F.R.D. 494, 498 (C.D. Cal. 2003)(followed)
  • PepsiCo, Inc. v. Triunfo-Mex, Inc., 189 F.R.D. 431, 432 (C.D. Cal. 1999)(followed)
  • TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987)(followed)
  • Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)(followed)
  • Cripps v. Life Ins. Co. of N. Am., 980 F.2d 1261, 1267 (9th Cir. 1992)(followed)
  • Day v. Orrick, Herrington & Sutcliffe, LLP, 42 F.4th 1131, 1133 (9th Cir. 2022)(followed)

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