Fountain Equipment Finance, LLC v. ZZ Energy, LLC and Trey Zimmerman

Summary

The United States District Court for the Eastern District of Tennessee grants Fountain Equipment Finance, LLC’s motions for default judgment against ZZ Energy, LLC and Trey Zimmerman. The court finds that the complaint sufficiently alleges breach of seven financing agreements and awards $626,617.87 in damages, $3,255 in attorney’s fees, and $525 in costs, for a total judgment of $630,397.87 jointly and severally.

Holdings

1. Because plaintiff sought reasonable attorney's fees whose amount required judicial determination, the motions could not be resolved by the Clerk under Rule 55(b)(1) and were properly decided by the court under Rule 55(b)(2).
2. Plaintiff sufficiently alleged a breach of contract claim against both ZZ Energy and Zimmerman and was entitled to default judgment on that claim.
3. Plaintiff established that $626,617.87 was due under the seven financing agreements and was entitled to recover that amount as breach-of-contract damages.
4. Plaintiff was entitled to $3,255 in attorney's fees and $525 in costs under the contracts, for a total award of $630,397.87 when combined with contract damages.

Questions Presented

1. Whether plaintiff satisfied the requirements for default judgment under Federal Rule of Civil Procedure 55.
2. Whether the complaint sufficiently alleged breach of contract against ZZ Energy and Zimmerman.
3. Whether plaintiff established entitlement to $626,617.87 in contract damages.
4. Whether plaintiff established entitlement to $3,255 in attorney's fees and $525 in costs.

Disposition

other