United States District Court, M.D. Florida, Orlando Division
TRANSPORTATION ALLIANCE BANK, INC. d/b/a TAB BANK, Plaintiff,
SKY LIMITS INC. and ANTWON TRICE, Defendants.
REPORT AND RECOMMENDATIONS
GREGORY J. KELLY UNITED STATES MAGISTRATE JUDGE
cause came on for consideration without oral argument on the
MOTION: MOTION FOR ENTRY OF DEFAULT JUDGMENT AGAINST
DEFENDANTS ANTWON TRICE AND SKY LIMITS INC. (Doc. No.
FILED:April 15, 2019
THEREON it is RECOMMENDED
that the motion be GRANTED in part and DENIED in
January 9, 2019, Plaintiff filed a Complaint for breach of a
promissory note, breach of a commercial guaranty, and
foreclosure of security interest based on a commercial loan
provided to Defendant Sky Limits Inc. (“Sky
Limits”) that was guaranteed by Defendant Antwon Trice
(“Trice”). Doc. No. 1. Redacted copies of the subject
Promissory Note (Doc. No. 9-2), Business Loan Agreement (the
“Loan Agreement”) (Doc. No. 9-3), Commercial
Security Agreement (the “Security Agreement”)
(Doc. No. 9-4), Corporate Resolution to Borrow/Grant
Collateral (Doc. No. 9-5), Commercial Guaranty (the
“Guaranty”) (Doc. No. 9-6), and a demand letter
delivered to Defendants upon default (Doc. No. 9-7) were
filed in support of the Complaint. Doc. No. 9.
alleges Defendants are in default because Sky Limits failed
to pay the monthly installments due in connection with the
loan beginning with the payment due on July 25, 2018, and
every monthly installment due thereafter. Doc. No. 1 at 8.
Plaintiff alleges it notified Defendants of the default and
that it had exercised its option to accelerate the total debt
owed. Doc. No. 1 at 8. Neither Sky Limits nor Trice paid the
amounts due as demanded. Doc. No. 1 at 8. In its Complaint,
Plaintiff alleges that Defendants owe $72, 158.41 in
principal, $3, 165.25 in interest, and $266.18 in late fees
as of September 18, 2018. Doc. No. 1 at 8.
alleges: Plaintiff is a Utah corporation, Sky Limits is a
Florida corporation with its principal place of business in
Brevard County, Florida, and Trice is a citizen of and
resides in Brevard County, Florida. Doc. No. 1 at 1-2. Trice
is the President, Treasurer and Director of Sky Limits. Doc.
No. 1 at 2.
January 25, 2019, Trice was served. Doc. No. 15-1. On
February 19, 2019, Sky Limits was served via Trice, who is
Sky Limits' registered agent. Doc. No. 16-1. A return of
service was filed for each Defendant on February 28, 2019.
Doc. Nos. 15 and 16. On March 14, 2019, Plaintiff filed a
motion for entry of clerk's default against the
Defendants. Doc. No. 17. A Clerk's default was entered on
March 15, 2019. Doc. Nos. 18 and 19.
April 15, 2019, Plaintiff filed a Motion for Entry of Default
Judgment Against Defendants Antwon Trice and Sky Limits Inc.
(the “Motion”). Doc. No. 23. Plaintiff seeks
judgment for the damages alleged in its Complaint. Doc. No.
23 at 4. The current amounts claimed to be due and owing are
$72, 158.41 in principal, $13, 118.09 in interest under the
loan, and $266.18 in late fees, for a total of $85, 542.68.
Doc. No. 23 at 6. Plaintiff provides the affidavit of David
Law, a Vice President of Plaintiff, to authenticate the
documents and support Plaintiff's underlying claim and
damages. Doc. No. 23 at 17-48.
party against whom a judgment for affirmative relief is
sought fails to plead or otherwise defend as provided by the
Federal Rules of Civil Procedure, and that fact is made to
appear by affidavit or otherwise, the Clerk enters default.
Fed.R.Civ.P. 55(a). The mere entry of a default by the Clerk
does not in itself warrant the entry of a default judgment by
the Court. Rather, the Court must find that there is a
sufficient basis in the pleadings for the judgment to be
entered. Nishimatsu Construction v. Houston Nat'l
Bank, 515 F.2d 1200, 1206 (5th Cir. 1975).A default judgment
has the effect of establishing as fact the plaintiff's
well-plead allegations of fact, and bars the defendant from
contesting those facts on appeal. Buchanan v.
Bowman, 820 F.2d 359, 361 (11th Cir. 1987) (citing
Nishimatsu, 515 F.2d at 1206).
Rule of Civil Procedure Rule 55(b)(2) provides the Court with
the authority to enter a default judgment. “As a
general rule, the court may enter a default judgment awarding
damages without a hearing only if the amount of damages is a
liquidated sum, an amount capable of mathematical
calculation, or an amount demonstrated by detailed
affidavits.” Directv, Inc. v. Huynh, 318