Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Amerifactors Financial Group, LLC v. Mike

United States District Court, M.D. Florida, Orlando Division

October 20, 2017

AMERIFACTORS FINANCIAL GROUP, LLC, Plaintiff,
v.
MIKE B. MIKE, III, Defendant.

          REPORT AND RECOMMENDATION

          DANIEL C. IRICK UNITES STATES MAGISTRATE JUDGE.

         This cause comes before the Court for consideration without oral argument on the following motion:

         MOTION: PLAINTIFF'S THIRD AMENDED MOTION FOR DEFAULT JUDGMENT AGAINST MIKE B. MIKE, III (Doc. 20)

         FILED:April 6, 2017

         THEREON it is RECOMMENDED that the motion be GRANTED in part and DENIED in part.

         I. BACKGROUND.

         A. The Agreements.

         The case stems from two factoring agreements between Trin Polymers, LLC (Trin), who is not a party to this action, and Amerifactors Financial Group, LLC (Plaintiff). Doc. 1.

         1. The 2014 Agreements.

         Trin and Plaintiff entered into the first factoring agreement on April 24, 2014 (2014 Factoring Agreement). Docs. 1 at ¶ 7; 1-2 at 2-7. Plaintiff and Mike B. Mike, III (Defendant) entered into a guaranty agreement that same day (2014 Guaranty), in which Defendant guaranteed the obligations of Trin under the 2014 Factoring Agreement. Docs. 1 at ¶ 8; 1-2 at 10-12.

         The 2014 Factoring Agreement contained the following relevant provision governing the volume of accounts Trin was required to sell to Plaintiff:

Volume. You will sell to us $11, 000, 000 of your Accounts (except cash sales) generated between the date of this Agreement and April 24, 2015. During the term of this Agreement, we will purchase, in the aggregate, Accounts up to $11, 000, 000, subject to other terms and conditions of this Agreement. You agree that we are entitled to recover damages if you fail to perform your obligations under this agreement.

         Doc. 1-2 at 3.[1] Plaintiff alleges that the 2014 Factoring Agreement renewed twice before Trin filed for bankruptcy in July 2016. Doc. 1 at ¶¶ 13, 15, 17; see Doc. 1-2 at 3. Plaintiff asserts that Trin sold Plaintiff the following accounts prior to filing bankruptcy:

Term

Dates

Accounts

Original Term

April 24, 2014 - April 24, 2015

$2, 941, 187.65

First Renewal Term

April 24, 2015 - April 24, 2016

$3, 468, 702.60

Second Renewal Tem

April 24, 2016 - July 11, 2016

$244, 411.60

Doc. 1 at ¶¶ 12, 14, 17. Plaintiff alleges that Trin fell short of the $11, 000, 000.00 volume requirement during each term of the 2014 Factoring Agreement, and, thus, breached the 2014 Factoring Agreement. Id. at ¶ 25. Plaintiff alleges that if Trin sold the requisite volume of accounts, it “would have earned profits of at least 3.25% on all such accounts.” Id. at ¶ 26. Plaintiff, as a result, alleges that it suffered a total of $856, 235.19 in lost profit damages as a result of Trin's breach of the 2014 Factoring Agreement. Id. at ¶ 27. Plaintiff alleges that Defendant was obligated to pay it the foregoing lost profit damages pursuant to the terms of the 2014 Guaranty, but failed to do so. Id. at ¶ 30. Thus, Plaintiff alleges that Defendant has breached the 2014 Guaranty. Id.

         2. The 2015 Agreements.

         Trin and Plaintiff entered into the second factoring agreement on December 30, 2015 (2015 Factoring Agreement). Docs. 1 at ¶ 20; 1-2 at 22-28. This agreement explicitly involved Trin's sale of Resintech Int'l, LLC accounts to Plaintiff after December 30, 2015.[2] Id. Plaintiff and Defendant entered into a guaranty agreement that same day (2015 Guaranty), in which Defendant guaranteed the obligations of Trin under the 2015 Factoring Agreement. Docs. 1 at ¶ 21; 1-2 at 31-33.

         The 2015 Factoring Agreement contained, in relevant part, a recourse provision, which provided:

Repurchase of Accounts. We may require that you repurchase, by payment of the unpaid Face Amount thereof together with any unpaid fees relating to the Purchased Account on demand, or charged, to the Reserve Account by us:
(b) all Purchase Accounts upon the occurrence of an Event of Default, or upon the termination date of this Agreement;
(c) any Purchased Account which remains unpaid beyond one hundred fifty (150) days.

Doc. 1-2 at 24. Trin sold Plaintiff $121, 288.80 in Resintech accounts under the 2015 Factoring Agreement prior to filing for bankruptcy. Doc. 1 at ¶ 22. The Resintech accounts have not been paid. Id. Thus, Plaintiff requested Trin repurchase the unpaid Resintech accounts pursuant to the foregoing recourse provision. Id. Plaintiff alleges that Trin is unable to repurchase the unpaid Resintech accounts because of its bankruptcy, and, thus, breached the 2015 Factoring Agreement. See Id. at ¶ 28. Plaintiff, as a result, alleges that it suffered a total of $121, 288.80 in damages as a result of Trin's breach of the 2015 Factoring Agreement. See id. Plaintiff alleges that Defendant was obligated to pay it the foregoing amount to satisfy Trin's liability pursuant to the terms of the 2015 Guaranty, but failed to do so. Id. at ¶ 30. Thus, Plaintiff alleges that Defendant has breached the 2015 Guaranty. Id.

         B. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.