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Country Inns & Suites By Carlson, Inc. v. Wright

United States District Court, D. Minnesota

February 7, 2014

COUNTRY INNS & SUITES BY CARLSON, INC., a Minnesota corporation, Plaintiff,
v.
LARRY WRIGHT, a Florida resident, Defendant.

FINDINGS OF FACT, CONCLUSIONS OF LAW, AND. ORDER FOR ENTRY OF DEFAULT JUDGMENT AND AWARD OF ATTORNEYS' FEES AND COSTS

SUSAN RICHARD NELSON, District Judge.

The above-entitled matter came on before the Court upon Plaintiff Country Inns & Suites By Carlson, Inc.'s ("Country") motion for entry of default judgment against Defendant Larry Wright ("Defendant") and request for an award of attorneys' fees and costs under Rule 55 of the Federal Rules of Civil Procedure [Doc. No. 10]. The Court, having carefully reviewed Country's motion and all of the files, pleadings and proceedings herein, makes the following findings of fact, conclusions of law and order for judgment:

FINDINGS OF FACT

A. Parties

1. Country is a corporation organized under the laws of the state of Minnesota with its principal place of business located at 701 Carlson Parkway, Minnetonka, Minnesota.

2. Country is the franchisor of the Country Inn & Suites By Carlson® hotel system. Country Inn & Suites By Carlson® System Hotels ("Country Inn & Suites System Hotels") operate under license agreements with Country.

3. Defendant Larry Wright is a citizen of the state of Florida with a last known address of 4276 Wild Boar Run, Niceville, FL 32578.

B. The COUNTRY INN & SUITES BY CARLSON® License Agreement

4. Country and Defendant entered into a License Agreement with an effective date of June 30, 2008 ("License Agreement") granting Defendant the non-exclusive right to construct and operate a Country Inn & Suites By Carlson® guest lodging facility located at 1130 Joaneen Drive, Saraland, Alabama 36571 (the "Hotel") for a period of 20 years.

C. Defendant's Breach of the License Agreement and Subsequent Termination

5. By letter dated July 20, 2010, Country issued Defendant a Notice of Monetary Default ("Notice of Default") based upon Defendant's failure to pay all of the required Royalty Fees, Marketing Fees and Reservation Fees due and owing under the License Agreement.

6. Pursuant to the Notice of Default, and in accordance with Article 17.2(a) of the License Agreement, Defendant was given until August 2, 2010, to cure his default by paying the amount of $45, 624.90 (the "Original Monetary Default"). Defendant was further advised that if such payment was not made by August 2, 2010, Country may exercise its right to terminate the License Agreement.

7. After granting Defendant an extension of time to cure the original monetary default, Country issued Defendant a Notice of Termination letter dated November 17, 2010, due to Defendant's failure to cure the Original Monetary Default and pay all amounts due under the License Agreement. Pursuant to the Notice of Termination, Defendant was advised that the License Agreement would be terminated effective at 11:59 P.M. on December 2, 2010.

8. By letter dated December 13, 2010, Country again extended the time in which Defendant had to cure the Original Monetary Default to January 13, 2011, and ...


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