United States District Court, D. Minnesota
DEFAULT JUDGMENT ORDER
DONOVAN W. FRANK UNITED STATES DISTRICT JUDGE
22, 2016, Defendants KK Air, LLC and Justin Smith were served
with Plaintiff's original Summons and Complaint. (Doc.
Nos. 9, 10.) On August 29, 2016, the Clerk of the Court
entered default against Defendants for failure to plead or
defend the action. (Doc. No. 13.) On September 6, 2016,
Plaintiff filed a Motion for Default Judgment, and the Court
scheduled a November 4, 2016 hearing on the motion. (Doc.
Nos. 14, 16.) The day before the hearing, this Court
received, by e-mail, a document styled “Defendant
Justin Smith's Motion to Dismiss for Lack of Personal
Jurisdiction Pursuant to F.R.C.P. Rule 12(b)(2) and for
Failure to State a Claim Upon Which Relief Can Be Granted
Pursuant to F.R.C.P. Rule 12(b)(6).” (See Doc. No. 19.)
Mr. Smith, acting pro se, did not properly file said document
and made no appearance at the November 4, 2016 hearing. (Doc.
Nos. 19, 20.)
November 17, 2016, the Court ordered Defendant Justin Smith
to pay Plaintiff's incurred attorney fees and costs
associated with bringing the Motion for Default Judgment
within thirty days and reserved ruling on the pending
motions. (Doc. No. 24.) Defendant Justin Smith failed to pay
any fees or costs. At the Court's request, Plaintiff
filed a letter brief on January 5, 2017 responding to the
jurisdictional issues raised by Defendant Justin Smith. (Doc.
No. 25.) On April 17, 2017, the Court granted Plaintiff's
Motion for Default Judgment against Defendant KK Air and
granted Plaintiff leave to amend the Complaint to include
more detailed allegations related to Smith's liability
under an alter ego theory. (Doc. No. 28.)
filed the Amended Complaint on June 15, 2017, incorporating
additional allegations against Defendant Smith. (Doc. No.
37.) The same day, Defendants KK Air, LLC and Smith were
served by mail. (Doc. No. 37; Doc. No. 37-1.) On October 13,
2017, a Clerk's Entry of Default was filed with respect
to both defendants. (Doc. No. 42.) This matter is now before
the Court on Plaintiff's Motion for Default Judgment
against Justin Smith, (Doc. No. 44), and Application to the
Court and Affidavit for Entry of Default Judgement By the
Court, (Doc. No. 46). In the latter document, Plaintiff asks the
Court to “enter default judgment, pursuant to Rules 54
and 55(b)(2) of the Federal Rules of Civil Procedure, against
. . . Justin Smith, individually, for the Defendant's
failure to plead, answer, or otherwise defend, and a
judgement [sic] amount against all Defendants, jointly and
severally, in the amount of $736, 721.10.” (Doc. No. 46
Court hereby finds as follows:
Based on Plaintiff's uncontroverted allegations,
Defendant Smith entered into a number of aircraft leases
utilizing undercapitalized entities as his alter-ego and, in
this case, the acts of KK Air, LLC were, in fact, the acts of
Plaintiff is entitled to the equitable remedy of piercing the
corporate veil to hold Defendant Justin Smith liable for
damages alleged against Defendant KK Air, LLC.
Defendant Justin Smith is not a minor, nor an incompetent
person, nor a member of the military service of the United
Defendants KK Air, LLC and Justin Smith entered into a
contract (“Lease”) with Plaintiff Bakko Aviation,
LLC to lease from Plaintiff an airplane, more fully described
as: Piper PA46-500TP, Serial Number 4697295, Registration
Number N1065Y (“the Aircraft”).
Defendants KK Air, LLC and Justin Smith are in breach under
the terms of the Lease with Plaintiff Bakko Aviation, LLC.
of July 30, 2018, Defendants KK Air, LLC and Justin Smith are
indebted to Bakko Aviation for the outstanding balance of
$738, 682.78, which includes $25, 000 for failure to pay the
security deposit, $67, 227.19 for failed monthly payments,
$122, 500 for failed payment of 1750 hours of engine reserved
time, a total of $381, 925.75 in repairs to bring the
Aircraft back to in-service condition, interest from July 22,
2016 through July 30, 2018 of $120, 638.35, and attorney fees
of $21, 391.49.
upon the submissions before the Court, and the Court being
otherwise duly advised in the premises, IT IS HEREBY
Plaintiff Bakko Aviation, LLC's Motion for Default
Judgment Against Justin Smith (Doc. No. ) and Application
to the Court and Affidavit for Entry of Default Judgement By
the Court (Doc. No. ) are GRANT ...