4:25-cv-03086•Ocean Marine Services, LLC v. DMW Marine, LLC et al
Testo completo
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION OCEAN MARINE SERVICES, LLC, Plaintiff, § § § § § § § § § § § v. CIVIL ACTION NO. 4:25-cv-3086 DMW MARINE, LLC, DMW MARINE GROUP, LLC, Defendants. MEMORANDUM AND RECOMMENDATION Pending before the Court1 is Plaintiff Ocean Marine Services, LLC’s (“Ocean Marine”) Motion for Default Judgment against Defendants DMW Marine, LLC (“DMW Marine”), and DMW Marine Group, LLC (“DMW Marine Group”) (collectively, “Defendants”). (ECF No. 10). Defendants have failed to answer or otherwise defend the action. Based on a review of the motion, argument, and relevant law, the Court RECOMMENDS Ocean Marine’s Motion for Default Judgment (id.) be GRANTED. 1 On July 8, 2025, this case was referred to the Undersigned for all purposes pursuant to 28 U.S.C. § 636(b)(1)(A) and (B) and Federal Rule of Civil Procedure 72. (ECF No. 4). A motion for default judgment is a dispositive motion appropriate for a Magistrate Judge recommendation. PHH Mortg. Corp. v. Atkins, No. 4:24-cv-3111, 2025 WL 1490542, at *6 (S.D. Tex. Apr. 3, 2025), report and recommendation adopted, No. 4:24-cv-03111, 2025 WL 1490501 (S.D. Tex. May 23, 2025). United States District Court Southern District of Texas ENTERED January 09, 2026 Nathan Ochsner, Clerk Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 1 of 25
2 I. Background2 On July 2, 2025, Ocean Marine sued Defendants for breach of contract over the purchase of marine industrial equipment. (ECF No. 1). According to the Complaint, Ocean Marine “is engaged in the business of marine services and equipment operations in the Gulf of Mexico and other waters.” (Id. at 2). In 2022, Ocean Marine negotiated with DMW Marine Group to buy a marine crane and related equipment for Ocean Marine’s operations. (Id. at 3). Around June 11, 2022, DMW Marine Group issued Invoice No. 29761 (the “Invoice”) to Ocean Marine for the purchase of a DMW Model marine crane with radio remote controls and a 15000 kg winch for $229,500, and a 12-foot-tall pedestal for $8,350, for a total of $237,850. (Id., Ex. A). The Invoice required Ocean Marine to pay a 50% deposit of $118,925 upon order, “with the balance due following Factory Acceptance Testing but prior to shipment.” (Id.). In accordance with the agreement, Ocean Marine timely paid the $118,925 deposit to DMW Marine Group. (Id.). Despite receiving the deposit, DMW Marine Group failed to deliver the marine crane and related equipment 2 Because Defendants failed to respond to Ocean Marine’s complaint and the default judgment motion or to otherwise appear in this case, the Court accepts the allegations in the complaint as true. See Cantu v. Platinum Mktg. Grp., LLC., No. 1:14-cv-71, 2015 WL 13912331, at *2 (S.D. Tex. July 13, 2015). Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 2 of 25
3 to Ocean Marine as agreed. (Id.). After 24 weeks passed since the order, DMW Marine Group provided no updates, explanations, or delivery. (Id.). On December 9, 2022, Ocean Marine’s counsel sent a demand letter to DMW Marine Group, requesting information about the delivery and delay. (Id., Ex. B). Instead of finalizing delivery of the equipment, Ocean Marine and Douglas Weidner, DMW Marine Group’s president, agreed to a return of the deposit.3 (Id. at 3–4). However, only $25,000 of the $118,925 deposit was returned, and the remaining $93,925 was not repaid. (Id. at 4). Around April 6, 2023, DMW Marine—through Weidner who was its Managing Member—executed a promissory note (the “Promissory Note”) acknowledging it owed a $93,925 debt to Ocean Marine and promising to repay by May 31, 2023. (Id., Ex. C). Under the Promissory Note’s terms, DMW Marine agreed that if the $93,925 was not paid by May 31, 2023, DMW Marine would make monthly payments of $7,500 until the debt was fully satisfied, and interest would accrue at a rate of 5% per annum. (Id.). On June 6, 2023, DMW Marine Group paid $10,000 to Ocean Marine, leaving the remaining principal balance owed at $83,925. (ECF No. 10 at 9). No other payment was made under the Promissory Note. (Id.). 3 Ocean Marine contends Douglas Weidner performs the work for both DMW Marine Group and DMW Marine and serves as an officer or managing member of each. (ECF No. 1 at 4). Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 3 of 25
4 On June 4, 2025, Ocean Marine’s counsel sent a final demand letter to DMW Marine Group demanding immediate payment of the outstanding debt, including principal and accrued interest (ECF Nos. 1 at 4; 10 at 9). On July 2, 2025, Ocean Marine filed its Complaint against Defendants, raising claims for breach of contract based on the unperformed Invoice against DMW Marine Group and Promissory Note against DMW Marine, as well as unjust enrichment in the alternative against both Defendants. (ECF No. 1 at 5–6). According to filed certificates, the Texas Secretary of State forwarded the Complaint by certified mail to Defendants on August 1, 2025; a return receipt as to DMW Marine Group was dated August 8, 2025 (ECF No. 7); and a return receipt as to DMW Marine was dated September 12, 2025 (ECF No. 9).4 Defendants failed to file an answer or other responsive pleading. On October 23, 2025, Ocean Marine filed a request for entry of default and motion for default judgment, requesting the remaining principal amount of $83,925, pre- and post-judgment interest, and attorneys’ fees. (ECF No. 10). 4 Although the certified mailing to DMW Marine, LLC was returned as “Unable to Forward,” Ocean Marine has provided proof that the address used corresponds to DMW Marine’s registered business address in its home state. (See ECF No. 10-1 at 3–4, 11–13, 18– 19). Ocean Marine also effected supplemental service on both Defendants by FedEx and regular mail at their respective business and personal addresses found in corporate filings, with delivery confirmations dated October 3, 2025. (ECF No. 10-1 at 5–6, 22–38). Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 4 of 25
5 Based on the Court’s Order (ECF No. 13), the Clerk of the Court entered default against Defendants on December 10, 2025.5 (ECF Nos. 14–15). In support of its complaint and motion for default, Ocean Marine submitted, among other things, the following evidence: (1) the Invoice, (ECF No. 1-1; ECF No. 10-2 at 6–7); (2) December 9, 2022 Demand Letter, (ECF No. 1-2; ECF No. 10-2 at 8–9); (3) Promissory Note, (ECF No. 1-3; ECF No. 10-2 at 10–11); (4) Declaration of Jamie L. Godsey in Support of Proof of Service and Defendants’ Default, (ECF No. 10-1 at 1–6); (5) Proofs of service from the Texas Secretary of State, (ECF No. 10-1 at 14–19); (6) Declaration of Jordan Snikeris, Ocean Marine’s Interim Chief Financial Officer, in Support of Defendants’ Default, (ECF No. 10-2 at 1–5); (7) June 4, 2025 Demand Letter (ECF No. 10- 2 at 12–14); (8) Plaintiff’s counsel’s Servicemember Affidavit, (ECF No. 10-3 at 1–3); (9) Plaintiff’s counsel’s Declaration for Attorneys’ Fees, (ECF No. 10-4 at 5 As the Court found in its Order, Ocean Marine has met the standard for entry of default based on the evidence provided. (ECF No. 13 at 1–2). Specifically, Ocean Marine has demonstrated proper service of the Complaint on Defendants, as detailed in the Declaration of Jamie L. Godsey in Support of Proof of Service and Defendants’ Default (ECF No. 10-1, Ex. A). The declaration is supported by the Whitney certificates from the Texas Secretary of State (ECF No. 10-1, Exs. A-4, A-5), which certify that the Secretary of State forwarded process to Defendants at their respective business addresses in accordance with Texas Business Organizations Code § 5.251 (providing secretary of state is an agent of a filing entity or foreign entity for purposes of service when, inter alia, the entity fails to designate a registered agent, the registered agent cannot be found with reasonable diligence, or the entity transacts business in the state without being registered), and § 5.252 (prescribing how to effectuate service on the secretary of state under § 5.251). See also Ziegler v. Subalipack (M) SDN BHD, No. 16-cv-2598, 2018 WL 3241230, at *1 (S.D. Tex. July 3, 2018); Campus Invs., Inc. v. Cullever, 144 S.W.3d 464, 465–66 (Tex. 2004). Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 5 of 25
6 1–9); and (10) Plaintiff’s counsel’s billing invoices, (ECF No. 10-4 at 17–33). Plaintiff represents these exhibits are true and correct copies of the Invoice, Promissory Note, and proofs of service. (ECF No. 10-1 at 4–6; ECF No. 10-2 at 2–4).6 To date, Defendants have not answered or otherwise made an appearance in this case. II. Legal Standard for Default Judgment Under Federal Rule of Civil Procedure (“Rule”) 55, “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” FED. R. C IV . P. 55(a). After the entry of default, a party can apply to the court for a default judgment. FED. R. C IV . P. 55(b)(2). “Default judgments are a drastic remedy, not favored by the Federal Rules and resorted to by courts only in extreme situations.” Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989). Default judgments are “available only when the adversary process has been halted because of an essentially unresponsive party.” Id. 6 On October 24, 2025, Ocean Marine also filed an Amended Certificate of Service, certifying its Request for Entry of Default and Motion for Default Judgment (ECF No. 10) was served via the Court’s CM/ECF system and certified mail return receipt requested to all known counsel of record and to Defendants at their respective business addresses. (ECF No. 11). Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 6 of 25
7 “When a party is seeking entry of default judgment under Rule 55, the district court must examine its jurisdiction both over the subject matter and the parties, liability, and damages.” PHH Mortg. Corp. v. Atkins, No. 4:24-cv- 3111, 2025 WL 1490542, at *2 (S.D. Tex. Apr. 3, 2025), report and recommendation adopted, No. 4:24-cv-03111, 2025 WL 1490501 (S.D. Tex. May 23, 2025) (citing BSG Clearing Sols. N. Am., LLC v. Durham Tech., LLC, No. 17-cv-1097, 2018 WL 6219812, at *2 (W.D. Tex. Nov. 20, 2018)). A. Subject Matter Jurisdiction Based on Diversity The district courts “have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs,” and is between “citizens of different States.” 28 U.S.C. § 1332. When a plaintiff seeks declaratory relief, the amount in controversy is based on the value of the object of the litigation, the value of the right to be protected, or the extent of the injury to be prevented. PHH Mortg. Corp., 2025 WL 1490542, at *2 (citations omitted). Here, Ocean Marine seeks relief for Defendants breaching their agreement regarding the purchase of the marine crane and equipment. (ECF No. 1 at 6–7). Specifically, Ocean Marine seeks damages of $83,925 stemming from the breached contract with DMW Marine Group and the unfulfilled Promissory Note executed by DMW Marine, which exceeds the $75,000 Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 7 of 25
8 jurisdictional threshold. (ECF No. 10 at 14). Ocean Marine is a Delaware LLC and is a wholly owned subsidiary of JDH Capital LLC, whose sole member is a Texas resident.7 (ECF No. 8). DMW Marine Group is a Georgia LLC, DMW Marine is a Pennsylvania LLC, and they both share a sole member who is a Georgia resident. (ECF No. 1 at 1–2). Therefore, based on the pleadings and other evidence before the Court, diversity jurisdiction exists. B. Personal Jurisdiction over Defendants According to Ocean Marine, “[t]his Court has personal jurisdiction over both Defendants under Texas long-arm jurisdiction and [Rule] 4(e)(1).” (Id. at 2). Ocean Marine alleges: Defendants purposefully directed activities to Texas and entered into agreements that required performance in Texas. More specifically, Defendants have done business within the State of Texas, including the transactions and promissory note that gave rise to the claims asserted in this lawsuit, and DMW Marine Group maintains two regular places of business in Corpus Christi and Houston, Texas. (Id.); see also Escalante v. Lidge, 34 F.4th 486, 489 (5th Cir. 2022) (“A defaulting defendant is deemed to admit a plaintiff’s factual allegations, but the district court still may inquire whether those allegations demonstrate legal 7 See Sinclair v. Krassenstein, No. 23-cv-109, 2023 WL 11999254, at *1 (S.D. Tex. Oct. 17, 2023) (“‘[T]he citizenship of an LLC is determined by the citizenship of all of its members.’ For any members of the LLC that are natural persons, their citizenship ‘is determined by [their] domicile.’ And if any member of the LLC is itself an LLC, then citizenship ultimately ‘must be traced through however many layers of partners or members there may be to determine the citizenship of the LLC.’”) (citations omitted). Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 8 of 25
9 liability.”); PHH Mortg. Corp., 2025 WL 1490542, at *2 (“[U]ncontroverted, non-conclusory allegations in the plaintiff's complaint must be taken as true[.]”) In addition, “a plaintiff must submit evidence that the defendant has been properly served with the summons, complaint, and the default judgment motion.” PHH Mortg. Corp., 2025 WL 1490542, at *3 (citing James Avery Craftsman, Inc. v. Sam Moon Trading Enters., Ltd., No. 16-cv-463, 2018 WL 4688778, at *3 (W.D. Tex. July 5, 2018)); see also S.D. Tex. L. R. 5.5 (“Motions for default judgment must be served on the defendant-respondent by certified mail (return receipt requested).”). “Without proper service, a court does not have personal jurisdiction over the defendant, and, as a result, any default judgment is void.” PHH Mortg. Corp., 2025 WL 1490542, at *3 (citation omitted). Here, Ocean Marine has established service. See supra Part I notes 4– 5; (ECF No. 10-1 at 1–6, 14–19). Because Ocean Marine properly effectuated service on Defendants through the Texas Secretary of State and certified mail (ECF Nos. 7, 9, 11), the Court has personal jurisdiction over Defendants. III. Plaintiff’s Motion for Default Judgment Should be Granted “A default judgment is unassailable on the merits but only so far as it is supported by well-pleaded allegations, assumed to be true.” Wooten v. Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 9 of 25
10 McDonald Transit Assocs., Inc., 788 F.3d 490, 496 (5th Cir. 2015) (quoting Nishimatsu Constr. Co., v. Hous. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)). “There must be a sufficient basis in the pleadings for the judgment entered.” Nishimatsu Constr. Co., 515 F.2d at 1206. “For the court to enter default judgment, the complaint must satisfy Rule 8 of the Federal Rules of Civil Procedure.” PHH Mortg. Corp., 2025 WL 1490542, at *3. In the Fifth Circuit, Courts have developed a three-part test to determine whether a default judgment should be entered. “First, the court must consider whether the entry of default judgment is ‘procedurally warranted.’ Second, the court assesses the substantive merits of the plaintiff’s claims to determine whether there is a ‘sufficient basis in the pleadings for the judgment.’ Third, the court determines ‘[the] form of relief. . . .’” Hancock Whitney Bank v. ECS Exec. Corp Servs., No. 4:21-cv-00932, 2022 WL 1211375, at *2 (S.D. Tex. Apr. 25, 2022) (citation modified). The Court will address each step in turn. A. Default Judgment is Procedurally Warranted Under the first prong, the court must consider whether: (1) material issues of fact are at issue; (2) there has been substantial prejudice; (3) the grounds for default are clearly established; (4) the default was caused by a good faith mistake or excusable neglect; (5) the harshness of a default judgment; and (6) the court would think itself obliged to set aside the default on the Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 10 of 25
11 defendant’s motion. PHH Mortg. Corp., 2025 WL 1490542, at *3 (citing Vela v. M&G USA Corp., No. 2:17-cv-13, 2020 WL 421188, at *2 (S.D. Tex. Jan. 27, 2020) (citing Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998))). The Court finds that all these factors have been met in this case. First, Defendants have not filed an answer or any responsive pleadings; consequently, there are no material facts in dispute. See Nishimatsu Constr. Co., 515 F.2d at 1206 (“The defendant, by his default, admits the plaintiff’s well-pleaded allegations of fact, is concluded on those facts by the judgment, and is barred from contesting on appeal the facts thus established.”). Second, Defendants’ “failure to respond threatens to bring the adversary process to a halt, effectively prejudicing Plaintiff’s interests.” Ins. Co. of the W. v. H & G Contractors, Inc., No. 10-cv-390, 2011 WL 4738197, at *3 (S.D. Tex. Oct. 5, 2011). Third, grounds for default are clearly established given that, as reflected by the record and noted in the Clerk’s Entry of Default, Defendants “failed to plead or otherwise defend in this case as required by law.” (ECF Nos. 14–15). Fourth, there is no indication that Defendants’ silence is the result of a “good faith mistake or excusable neglect.” Lindsey, 161 F.3d at 893. Fifth, Ocean Marine seeks only the relief to which it is entitled under the law, mitigating the harshness of a default judgment against Defendants. See id. Finally, the Court is not aware of any facts that would give rise to “good cause” Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 11 of 25
12 to set aside the default if challenged by Defendants. Id. Therefore, the Court concludes that default judgment is procedurally warranted. B. There is a Sufficient Basis for Default Judgment Next, the Court must determine whether the pleadings provide a “sufficient basis” for entering default judgment. Hancock Whitney Bank, 2022 WL 1211375, at *3. Due to their default, Defendants are deemed to have admitted the well-pleaded facts alleged in the Complaint. Nonetheless, the Court must review the pleadings to determine the substantive merits of Ocean Marine’s claims for relief. Id.; Nishimatsu Constr. Co., 515 F.2d at 1206. Ocean Marine has asserted claims for breach of contract against each of the Defendants.8 (ECF. No. 1 at 5–6). Under Texas law, to prevail on a breach- of-contract claim a plaintiff must show “(1) the existence of a valid contract; (2) performance or tendered performance by the plaintiff; (3) breach of the contract by the defendant; and (4) damages sustained by the plaintiff as a result of the breach.” Mullins v. TestAmerica, Inc., 564 F.3d 386, 418 (5th Cir. 2009) 8 Because the Court finds that a valid contract for the purchase of the crane and equipment covers the subject matter of the parties’ dispute, the Court does not reach Plaintiff’s unjust enrichment claim. See N. Cypress Med. Ctr. Operating Co., v. Cigna Healthcare, 781 F.3d 182, 204 (5th Cir. 2015) (“Generally, ‘when a valid, express contract covers the subject matter of the parties’ dispute, there can be no recovery under a quasi- contract theory, such as unjust enrichment.’”); Osborn v. Blue Pumpkin Software, Inc., No. 3:03-cv-2085, 2005 WL 8158040, at *8 (N.D. Tex. Sept. 22, 2005) (“Under Texas law, no recovery can be had under the theories of quantum meruit or unjust enrichment when claims pleaded under those theories are the subject of a valid contract between the parties.”) Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 12 of 25
13 (quoting Aguiar v. Segal, 167 S.W.3d 443, 450 (Tex. App.—Houston [14th Dist.] 2005, pet. denied)). The allegations set out in the Complaint satisfy these four elements. Specifically, the Complaint alleges: (1) the Invoice and Promissory Note at issue constitute valid, enforceable contracts; (2) Ocean Marine performed its contractual obligations; (3) DMW Marine Group failed to deliver the marine crane and equipment as required by the purchase agreement, and DMW Marine failed to pay back Ocean Marine as required by the Promissory Note; and (4) Defendants’ breaches have caused significant financial injury to Ocean Marine. Both the Invoice and Promissory Note were attached to the Complaint. (See ECF No. 1-1; ECF No. 1-3). Given these well-pleaded factual allegations, default judgment is appropriate. C. Plaintiff is Entitled to Damages After a court determines default judgment can be entered, the court must determine what form of relief, if any, the plaintiff should receive. Nasufi v. King Cable Inc., No. 3:15-cv-3273, 2017 WL 6497762, at *2 (N.D. Tex. Dec. 19, 2017). The plaintiff bears the burden of proving the amount of damages. Hancock Whitney Bank, 2022 WL 1211375, at *4 (citing U.S. for Use of M-CO Constr., Inc. v. Shipco Gen., Inc., 814 F.2d 1011, 1014 (5th Cir. 1987)). The plaintiff must establish the necessary facts, either through detailed affidavits or an evidentiary hearing, to show its damages are “capable of mathematical Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 13 of 25
14 calculation.” United Artists Corp. v. Freeman, 605 F.2d 854, 857 (5th Cir. 1979). If a calculation can be made “with certainty by reference to the pleadings and supporting documents,” a hearing to determine damages is unnecessary. Hancock Whitney Bank, 2022 WL 1211375, at *4 (quoting James v. Frame, 6 F.3d 307, 311 (5th Cir. 1993) (quoting Frame v. S-H, Inc., 967 F.2d 194, 204 (5th Cir. 1992))). “Accordingly, it remains Plaintiff’s burden to provide an evidentiary basis for the damages it seeks.” Geiken v. Worku, No. 3:15-cv- 2442, 2017 WL 1709692, at *8 (N.D. Tex. May 2, 2017). 1. Breach of Contract In its motion for default judgment, Ocean Marine seeks damages of (a) $83,925 for the unpaid principal balance on the Promissory Note; (b) pre- judgment interest at the rate of 5.0% per annum on the outstanding principal balance from June 1, 2023, to the date of entry of the final default judgment; and (c) post-judgment interest. (ECF No. 10 at 14–16). Ocean Marine supports its request for damages and pre-judgment interest with the Declaration of Jordy Snikeris (“Snikeris”), Ocean Marine’s Interim Chief Financial Officer. (ECF No. 10-2 at 1–5). The declaration states that Snikeris has personal knowledge of the purchase of the marine crane and equipment from DMW Marine Group, the unpaid portion of Ocean Marine’s deposit that DMW Marine Group failed to refund after failing to deliver the Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 14 of 25
15 purchased equipment, and the outstanding debt DMW Marine promised to pay back under the Promissory Note. (Id. at 2–4). It further states that, other than DMW Marine Group’s single payment of $10,000, Defendants have failed to repay the Promissory Note, and that, giving all proper offsets, there was an unpaid principal balance of $83,925 and accrued, unpaid interest of about $9,975.759 (Id. at 4). The declaration also states that “[i]nterest continues to accrue at the daily rate of approximately $11.50 per day ($83,925.00 × 0.05 ÷ 365 days) until the debt is paid in full.” (Id. at 5). This rate is consistent with the 5% annual interest rate specified in the Promissory Note. (See ECF No. 1- 3; ECF No. 10-2 at 10–11) (“No interest shall accrue on any unpaid amount of this obligation from the date that this Promissory Note is executed through May 31, 2023. In the event that any portion remains unpaid as of May 31, 2023, interest shall accrue at the rate of 5% (five percent) per annum on any unpaid portion . . . .”). Entering default judgment with respect to damages is appropriate. The figures established by Snikeris’s declaration have not been disputed by Defendants. Thus, “[Ocean Marine’s] damages for its breach of contract claims 9 This $9,975.75 figure represents the interest on the principal amount of $83,925.00 at the contractual rate of 5% per annum from June 1, 2023 (the day after the payment due date) through October 15, 2025 (the final date invoiced by counsel for work performed on this matter). Specifically, the $9,975.75 total is comprised of $77.20 accrued from June 1–6, 2023 and $9,898.55 accrued from June 7, 2023–October 15, 2025. (See ECF No. 10-2 at 4). Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 15 of 25
16 can be determined ‘with certainty by reference to the pleadings and supporting documents,’ obviating the need for an evidentiary hearing. Hancock Whitney Bank, 2022 WL 1211375, at *4; James, 6 F.3d at 311. The Court enters default judgment with respect to damages for breach of contract in the amounts specified above. Moreover, an award of post-judgment interest at the applicable federal rate is appropriate. Fairmont Specialty Ins. Co. v. Apodaca, 234 F. Supp. 3d 843, 855 (S.D. Tex. 2017) (noting district courts do not have the discretion to deny post-judgment interest on monetary judgments); see 28 U.S.C. § 1961. 2. Attorneys’ Fees Ocean Marine also seeks $38,288.23 in attorneys’ fees, submitting declarations and invoices in support. (ECF No. 10 at 15–16; ECF No. 10-1 at 1–6; ECF No. 10-4 at 1–9, 17–33). The Declaration of Jamie L. Godsey, counsel for Ocean Marine, states that she and other attorneys worked on this matter at the following rates: (1) Jamie Godsey, partner, at $655; (2) Lakshmi Kumar, associate, at $450; and (3) Shelby Shanks, of counsel, at $450. (ECF No. 10-4 at 3). Per the declaration, the work they performed includes: reviewing relevant documents and correspondence relating to the relationship and obligations between the parties; counseling with Ocean Marine’s representatives regarding payment demand to Defendants and the facts and circumstances forming the basis of the Dispute; researching and reviewing applicable legal authorities; preparing and filing Plaintiff s Original Complaint; Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 16 of 25
17 conducting legal research and fact investigation related to the breach of contract claims; conducting fact investigation regarding the ownership, state of incorporation, and domicile of the Defendant entities; preparing service documents and coordinating service on Defendants through the Texas Secretary of State and via alternative methods; sending demand letters to Defendants; preparing the Request for Entry of Default and Motion for Default Judgment and evidence and legal research in support of the same; and preparing for the final hearing on Ocean Marine’s Motion for Default Judgment. (Id.). The declaration indicates that as of October 15, 2025, Jamie Godsey worked 23.1 hours, Lakshmi Kumar worked 41.7 hours, and Shelby Shanks worked 1.6 hours on the matter, for a total of 66.4 hours. (Id. at 4). The declaration further states Ocean Marine incurred $34,633.50 in attorney fees, and $3,654.73 in costs, for a total demand of $38,288.23. (Id. at 4, 9). Counsel has attached corresponding invoices submitted to Ocean Marine as of October 15, 2025, but the records “do[] not contain $14,053.00 in charges from the firm for work performed from October 1, 2025 through October 15, 2025.” (Id. at 4, 17–33). However, “[t]hose amounts are included in the totals stated [t]herein.” (Id. at 4). “State law controls both the award of and the reasonableness of fees awarded where state law supplies the rule of decision.” Mathis v. Exxon Corp., 302 F.3d 448, 461 (5th Cir. 2002). Under Texas law—which supplies the rule of decision in this case—a prevailing party “may recover reasonable attorney’s fees from an individual or organization” in a suit for breach of contract. T EX . Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 17 of 25
18 C IV . PRAC . & R EM. C ODE § 38.001(b)(8). When a prevailing party in a breach of contract suit seeks fees, an award of reasonable fees is mandatory, as long as there is proof of reasonable fees. Mathis, 302 F.3d at 462. In determining the reasonableness of attorneys’ fees, Texas courts consider the following factors: (1) the time and labor required, the novelty and difficulty of the questions involved, and the skill required to perform the legal service properly; (2) the likelihood that the acceptance of the particular employment will preclude other employment by the lawyer; (3) the fee customarily charged in the locality for similar legal services; (4) the amount involved and the results obtained; (5) the time limitations imposed by the client or by the circumstances; (6) the nature and length of the professional relationship with the client; (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and (8) whether the fee is fixed or contingent on results obtained or uncertainty of collection before the legal services have been rendered. Arthur Andersen & Co. v. Perry Equip. Corp., 945 S.W.2d 812, 818 (Tex. 1997). “[E]vidence of each of the Andersen factors is not required to support an award of attorney’s fees.” Arthur J. Gallagher & Co. v. Dieterich, 270 S.W.3d 695, 706 (Tex. App.—Dallas 2008, no pet.). “The court can also look at the entire record, the evidence presented on reasonableness, the amount in controversy, the common knowledge of the participants as lawyers and judges, and the relative success of the parties.” Hancock Whitney Bank, 2022 WL 1211375, at *5 (citing Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 18 of 25
19 Jarvis v. Rocanville Corp., 298 S.W.3d 305, 318 (Tex. App.—Dallas 2009, pet. denied)). After reviewing the submitted billing records, declarations, and supporting documentation, the Court finds that Ocean Marine’s requested attorneys’ fees of $38,288.23 are excessive in light of the uncontested nature of this breach-of-contract action, the limited complexity of the claims, and the relatively modest amount in controversy ($83,925 in principal). At the outset, to militate against an excessive fee award, the Court will exclude $14,053 from the fee calculation because Ocean Marine has not submitted contemporaneous billing records or other documentation from which the Court can ascertain the reasonableness of those charges. See Chamberlain v. Waller Cnty. Asphalt Inc., No. 4:19-cv-4941, 2023 WL 25380, at *1 (S.D. Tex. Jan. 3, 2023) (“[T]o be considered reasonable . . . fees and costs must be properly documented and supported.” (citing Hensley v. Eckerhart, 461 U.S. 424, 433 (1983)); Firequip, Inc. v. Precision Frac, LLC, No. 17-cv-073, 2019 WL 13159712, at *7 (W.D. Tex. July 15, 2019) (“The reasonableness of attorney fees is a question of fact that must be supported by competent evidence.”). Although counsel represents that Ocean Marine incurred $34,633.50 in attorneys’ fees, the invoices submitted do not account for $14,053.00 in charges purportedly incurred between October 1, 2025 and October 15, 2025. Absent itemized time entries or supporting Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 19 of 25
20 records, the Court cannot evaluate the nature of the work performed, the time expended, or whether the charges are reasonable under the Andersen factors. See Sonesta RL Hotels Franchising, Inc. v. Patel, 715 F. Supp. 3d 155, 165 (D. Mass. 2024) (“[Plaintiff] has failed to produce the required time and billing records. As an initial matter, ‘[i]t is unclear why it would take [over 75 hours] to file a complaint, serve defendants, file a motion for an entry of default, and file a motion for a default judgment.’ And where, as here, a party omits any ‘detailed contemporaneous time records,’ ordinarily ‘a substantial reduction in any award’ is warranted.”) (citation modified); Nat’l Env’t Safety Co., Inc. v. Katz, No. 18-cv-2161, 2019 WL 1994049, at *2 (E.D.N.Y. May 6, 2019) (reviewing billing records in motion for default judgment involving breach of promissory note and finding “the hourly rates detailed therein to be unreasonably high, particularly considering that plaintiff failed to provide any support for the reasonableness of the requested rates”); cf. Wei v. Xu, No. 21- cv-601, 2022 WL 1422926, at *14–16 (D. Md. May 4, 2022) (granting award of $18,520 in attorney fees for 72 hours of work done by 2 attorneys and 2 paralegals following uncontested default judgment) (emphasis added).10 10 Although the Declaration of Jamie L. Godsey cites authority to support the requested fee amount (ECF No. 10-4 at 7–8), the Court finds those cases inapposite to the instant action: Spark Multinational, LLC v. Yong Xing Ltd., No. 22-cv-00030, 2023 WL 2569441, at *1, 6 (W.D. Tex. Mar. 17, 2023) (granting $10,571.50 in attorneys’ fees in default judgment action where a partner expended 6.25 hours and an associate expended 13.2 hours, and although higher average hourly rate was found to be “fair and reasonable,” the work Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 20 of 25
21 Accordingly, any fee award must be based solely on the adequately documented portion of Ocean Marine’s request. As such, the Court recommends reducing the requested fee award to $24,235.23.11 Next, while the time spent on legal work by counsel, including partner Jamie Godsey, associate Lakshmi Kumar, and of counsel Shelby Shanks, was generally reasonable, a substantial portion of the hours billed appear disproportionate to the tasks necessary for obtaining a default judgment. In line with Fifth Circuit and Texas law, and consistent with reductions applied in analogous out-of-circuit cases, the Court recommends a reduction of both hours and rates. See M&T Equip. Fin. Corp. v. Bullet Express Line Inc., No. 4:23-cv-4177, 2024 WL 5048968, at *5–6 (S.D. Tex. Dec. 6, 2024) (awarding $5,428.50 in attorneys’ fees for an uncontested default judgment, where counsel’s work included preparing the complaint, coordinating service of process, and filing motions related to the default judgment, with a total of 13.9 hours billed at rates ranging from $245 to $550 per hour); Griffin v. O’Brien, performed was against an international trading and export company located in China that agreed to sell plaintiff 8,200 cases of nitrile examination gloves for $639,600) (emphasis added); Jane Roe/Rachel V. Rose v. BCE Tech. Corp., No. 4:12-cv-1621, 2014 WL 1322979, at *3 (S.D. Tex. Mar. 28, 2014) (assessing requested hourly rates from $65 to $475 and still finding some excessive and duplicative billing, thus, reducing request to $19,964, in litigation that reached motion to dismiss stage); EHO360, LLC v. Opalich, No. 3:21-cv-0724, 2025 WL 1638923, at *1 (N.D. Tex. June 9, 2025) (awarding $568,862.40 in attorneys’ fees on post- appeal motion after prevailing on breach of contract claim that went to trial) (emphasis added).11 $34,633.50 – $14,053.00 = $20,580.50. $20,580.50 + $3,654.73 = $24,235.23. Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 21 of 25
22 Wexler, & Assocs., LLC, 680 F. Supp. 3d 772, 788 (E.D. Tex. 2023) (awarding $10,840 in attorneys’ fees for an uncontested default judgment based on 27.1 hours of work billed at $400 per hour, where counsel’s efforts were limited to identifying defendants, attempting communications, and preparing the entry of default, motion for default judgment, and supporting declarations); Hardy v. SDM Hosp., LLC, No. 20-cv-3157, 2022 WL 272718, at *6 (N.D. Tex. Jan. 10, 2022), report and recommendation adopted, No. 3:20-cv-3157, 2022 WL 271751 (N.D. Tex. Jan. 28, 2022) (approving attorney hourly rate of $525 in employment default judgment case ); Branch Banking & Tr. Co. v. Re Rez L.P., No. 4:19-cv-630, 2021 WL 863766, at *10–12 (E.D. Tex. Jan. 8, 2021), report and recommendation adopted, No. 4:19-cv-630, 2021 WL 857937 (E.D. Tex. Mar. 5, 2021) (finding reasonable attorneys’ fees of $8,317.80 for 10.5 hours of work on an uncontested default judgment where plaintiff raised claim for breach of promissory note); see also Prime Contractors Inc. v. APS Contractors Inc., 786 F. Supp. 3d 524, 553–54 (E.D.N.Y. 2025) (reducing attorneys’ fees in an uncontested breach-of-contract default judgment by lowering both hourly rates and compensable hours where the case involved a straightforward application of contract law; awarding $9,442.50 based on 31.8 total hours— 26.7 associate hours at $325 per hour and 5.1 paralegal hours at $150 per hour); Nat’l Env’t. Safety Co., Inc., 2019 WL 1994049, at *2 (reducing requested Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 22 of 25
23 hourly rates in default judgment action on promissory note to: $500–$600 per hour for partners, $300 per hour for associates, and $100 per hour for paralegals, which lowered requested award by approximately 16%); Sonesta RL Hotels Franchising, Inc., 715 F. Supp. 3d at 164–65 (reducing $27,957 in requested attorneys’ fees to $20,800 in uncontested default judgment action to allow “fees for the work performed by the two attorneys who [] signed [Plaintiff’s] pleadings,” “while addressing the seemingly excessive hours attributed to this litigation”); Faraca v. Fleet 1 Logistics, LLC, 693 F. Supp. 2d 891, 895–96 (E.D. Wis. 2010) (reducing attorneys’ fees in a default-judgment commercial contract action from $5,875 to $5,075 by deducting hours spent on misdirected or unnecessary tasks while otherwise finding 30.25 hours billed at $200–$250 per hour reasonable for obtaining default judgment). Applying the foregoing analysis to the contemporaneously documented billing records, the Court therefore recommends further adjusting the hours and rates.12 Partner Jamie Godsey’s hours are reduced from 15.60 to 12.50 and her hourly rate is reduced from $655 to $550, resulting in an adjusted fee of $6,875. Associate Lakshmi Kumar’s hours are reduced from 20.70 to 16.60 and her rate is reduced from $450 to $350, yielding an adjusted fee of $5,810. Of 12 The Court’s recommendation is based on an approximate 20% reduction of the reported hours of work, and at reduced hourly rates of $550 for the partner, and $350 for the associate and of counsel. Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 23 of 25
24 counsel Shelby Shanks’ hours are reduced from 1.60 to 1.30 at a rate of $350, producing an adjusted fee of $455. Accordingly, the Court recommends awarding Ocean Marine $13,140 in attorneys’ fees for services, in addition to the previously documented $3,654.73 in costs, for a total recommended recovery of $16,794.73. These adjustments reflect the Court’s assessment of the time reasonably expended on essential tasks, including drafting the Complaint, coordinating service via the Texas Secretary of State, preparing the Request for Entry of Default and Motion for Default Judgment, and limited legal research directly related to obtaining the default judgment, while excluding hours that were excessive, duplicative, or not directly tied to the default judgment process. This award ensures that Ocean Marine is fully compensated for reasonable and necessary attorney work without including charges that cannot be substantiated or are disproportionate to the nature of this uncontested breach- of-contract action at the default judgment stage. IV. Conclusion Based on the foregoing, the Court RECOMMENDS Ocean Marine’s Motion for Default Judgment (ECF No. 10) be GRANTED. The Court FURTHER RECOMMENDS (1) a Final Default Judgment be entered in Ocean Marine’s favor on its breach of contract claims against Defendants; (2) Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 24 of 25
25 Ocean Marine be awarded actual damages in the amount of $83,925; (3) pre- judgment interest at the rate of 5.0% per annum from June 1, 2023 through the date of entry of final default judgment; (4) $16,794.73 in attorneys’ fees and costs; and (5) post-judgment interest at the applicable rate provided by 28 U.S.C. § 1961 from the date of final default judgment until paid in full. The Clerk shall send copies of this Memorandum and Recommendation to the respective parties who have fourteen days from the receipt thereof to file written objections thereto pursuant to Federal Rule of Civil Procedure 72(b) and General Order 2002-13. Failure to file written objections within the time period mentioned shall bar an aggrieved party from attacking the factual findings and legal conclusions on appeal. SIGNED in Houston, Texas on January 8, 2026. ______________________________ Richard W. Bennett United States Magistrate Judge Case 4:25-cv-03086 Document 19 Filed 01/08/26 in TXSD Page 25 of 25
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