Ameris Bank, through its division, Balboa Capital Corporation v. Geaux Express Incorporated et al

Page 1 of 14
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
AMERIS BANK, 	)
)
Plaintiff, 	)
)
v. 	) 	CIVIL ACTION NO. 1:24-cv-394-TFM-N
)
GEAUX EXPRESS INCORPORATED, 	)
et al., 	)
)
Defendants. 	)
MEMORANDUM OPINION AND ORDER
Pending before the Court is the Motion for Entry of Default Judgment Against Defendants
(Doc. 13, filed on April 25, 2025) in which Plaintiff Ameris Bank motions the Court enter default
judgment against Defendant Geaux Express Incorporated and Defendant Harry Nicholas Palles.
Having considered the motion and the relevant law, the Court finds the motion for default judgment
is due to be GRANTED in part and DENIED in part.
I. 	JURISDICTION AND VENUE
The Court has subject matter jurisdiction over the claims in this action pursuant to 28 U.S.C.
§ 1332 (diversity).
There are adequate allegations to support personal jurisdiction and venue. 	The district
court has personal jurisdiction over the claims in this action because the events that gave rise to
this action are alleged to have occurred within this judicial district. 	See Consol. Dev. Corp. v.
Sherritt, Inc., 216 F.3d 1286, 1291-92 (11th Cir. 2000) (“Specific jurisdiction arises out of a party’s
activities in the forum that are related to the cause of action alleged in the complaint. . . . General
personal jurisdiction, on the other hand, arises from a defendant’s contacts with the forum that are
unrelated to the cause of action being litigated. The due process requirements for general personal
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 1 of 14 PageID#
<pageID>

Page 2 of 14
jurisdiction are more stringent than for specific personal jurisdiction, and require a showing of
continuous and systematic general business contacts between the defendant and the forum state.”).
Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b)(2) because a substantial part
of the events or omissions that gave rise to this litigation occurred in this judicial district.
II. 	BACKGROUND
A. 	Factual Background
1. 	Vehicle Financing Agreement 7-000
On or about September 28, 2020, Defendant Geaux Express (“Geaux Express”) entered
into and executed a certain Vehicle Financing Agreement (“VFA 7-000”) in favor of Balboa
Capital Corporation (“Balboa”) for the purpose of Plaintiff Ameris Bank (“Ameris”) providing
Geaux Express financing for the purchase of a 2020 Chevrolet Express 	3500 	Truck, 	Vehicle
Identification Number 1HA3GTCG2LN009630 (“Vehicle 1”). Doc. 10 at 3, 17-19; Doc. 13 at
9-10. 	Contemporaneously with the execution of VFA 7-000, Defendant Harry Nicholas Palles
(“Palles”) entered into and executed a certain Personal Guaranty Vehicle Financing Agreement
#338037-000 (“Guaranty 7-000”) in favor of Balboa, guarantying the payment and performance
of all obligations of Geaux Express due to Balboa under VFA 7-000 and all other obligations
existing or thereafter arising. 	Doc. 10 at 3-4, 21; Doc. 13 at 9-10. 	To secure the amounts due
Balboa pursuant to VFA 7-000 and to secure all other obligations due Balboa, Geaux Express
granted Balboa a first priority security interest in Vehicle 1. 	Doc. 10 at 3. 	Balboa perfected its
security interest in Vehicle 1 by filing the proper forms with the Alabama Department of Revenue.
Id. 	The Alabama Department of Revenue issued a Certificate of Title for Vehicle 1, denoting
Balboa as the first priority lienholder on Vehicle 1. Id. 	Effective as of December 10, 2021, Balboa
entered into and executed an Assignment of Agreements (“Assignment”) in favor of Ameris,
assigning to Ameris its interest in the VFA 7-000, Guaranty 7-000, and the Certificate of Title
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 2 of 14 PageID#
<pageID>

Page 3 of 14
issued for Vehicle 1. 	Id. at 5-6, 39-55.
Pursuant to VFA 7-000, Geaux Express agreed to repay Balboa in seventy-two (72) equal
monthly payments of $857.00 each, beginning on December 7, 2020. 	Id. at 3, 18-19. 	Pursuant
to Section 16 of VFA 7-000, Geaux Express defaulted in the terms of the VFA 7-000 and Palles
defaulted upon the term of Guaranty 7-000 by failing to make any payment which became due on
or after January 7, 2024. 	Id. at 6, 9, 18-19, 21. Section 17(a) of VFA 7-000 states:
[u]pon the occurrence of an event of default, Creditor may: (a) sue for and recover
from Debtor the sum of: (1) all unpaid Monthly Installment Payments and other
payments, including late charges and interest, due under this Agreement then
accrued, all accelerated future payments due through the last day of the term of this
Agreement; (2) any and all cost or expenses paid or incurred by Creditor in
connection with the repossession, holding, repair, reconditioning and subsequent
sale, lease or disposition of the Collateral, including without but not limited to
attorney’s fees and costs, whether or not litigation is commenced; (3) the residual
value of the Collateral which Debtor fails to return to Creditor (or which Debtor
converts or destroys, or which Creditor does not or is unable to repossess); (4) all
other costs or expenses paid or incurred by creditor at any time in connection with
the execution, delivery, administration, amendment and enforcement or exercise of
any of the creditors rights and remedies under this agreement, including, but not
limited to, attorney’s fees and costs, whether or not litigation is commenced, and
taxes imposed by any governmental agency; (5) any actual or anticipated loss of
federal or state tax benefits to Creditor (as determined by Creditor) resulting from
Debtors default or Creditors repossession or disposition of the Collateral; and (6)
any and all other damages proximately caused by Debtor’s default.
Id. at 6-7, 18-19.
On February 2, 2024, Ameris exercised its right to accelerate the maturity date and declared
all obligations arising pursuant to the VFA 7-000 immediately due and payable as provided in
paragraph 17 of the VFA 7-000. Id. at 7, 18-19. 	As of February 2, 2024, Geaux Express was past
due in the payments due Ameris pursuant to VFA 7-000 in an amount totaling $857.00 and late
charges of $308.52 were due pursuant to VFA 7-001. Id. at 7. 	On February 2, 2024, the present
value of the remaining thirty-four (34) future payments discounted at five and eighty-five one-
hundredths percent (5.85%) yields an amount equal to $26,791.26. 	Id. at 7. 	As of February 2,
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 3 of 14 PageID#
<pageID>

Page 4 of 14
2024, the outstanding balance of the sum of past due payments, late charges, and the present value
of the remaining outstanding payments totaled an amount equal to $27,956.78. Id. 	Beginning
on February 2, 2024, and continuing thereafter, interest began accruing on the outstanding balance
at the rate of 18% per annum or $13.79 per diem. 	Id. at 8.
On or about March 27, 2024, Ameris provided Geaux Express and Palles a Notice of
Disposition of Collateral (“the Vehicle 1 Auction Notice”), notifying Geaux Express and Palles
that Ameris would sell Vehicle 1 by auction. 	Id. at 8, 57. 	Ritchie Bros. (“the 	Auctioneer”)
advertised Vehicle 1 for sale on its website www.ironplanet.com (“the Auction Website”).
Id. at 8. 	On or about April 4, 2024, the Auctioneer closed the sale of Vehicle 1 for $7,500.00.
Id. On or about April 18, 2024, after paying sales commissions and other costs of the sale, Ameris
received net proceeds of $3,253.75 from the sale of Vehicle 1. 	Id. 	As of April 18, 2024, interest
had accrued on VFA 7-000 in the total amount of $1,047.80. Id. 	After applying the net proceeds
of $3,253.75 to the outstanding balance, Geaux Express owed Ameris the principal balance of
$25,750.84 as of April 18, 2024. 	Id. 	Between April 18, 2024, and October 23, 2024, interest
continued to accrue on the outstanding balance at the rate of 18% per annum or $12.70 per diem.
Id. at 9. Accordingly, as of October 23, 2024, Geaux Express and Palles owed Ameris the sum of
$28,138.26, comprising of principal of $25,750.84 and accrued interest of $2,387.42, plus interest
accruing after October 23, 2024, at the per diem rate of $12.70. 	Id. at 9; Doc. 13 at 11.
Between October 23, 2024, and April 11, 2025, interest continued to accrue on the
outstanding balance owing on VFA 7-000 at the rate of 18% per annum, or $12.70 per diem, in
the additional amount of $2,158.84. Doc. 10 at 8-9; Doc. 13 at 11. As a result of Geaux Express’s
breach of the VFA 7-000 and Palles’ breach of the Guaranty 7-000, Geaux Express and Palles
have damaged Ameris and are jointly and severally liable to Ameris in an amount (calculated as
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 4 of 14 PageID#
<pageID>

Page 5 of 14
of April 11, 2025) equal to $30,297.10, plus interest accruing after April 11, 2025, at the per diem
rate of $12.70. 	Id.
2. 	Vehicle Financing Agreement 7-001
On or about December 31, 2020, Geaux Express entered into and executed a certain Vehicle
Financing Agreement (“VFA 7-001”) in favor of Balboa for the purpose of Balboa providing
Geaux 	Express 	financing 	for 	the 	purchase 	of 	a 	2020 	Chevrolet 	Express 	3500, 	Vehicle
Identification Number: 1HA3GTCG5LN013431 (“Vehicle 2”), a GMC Savana 3500, Vehicle
Identification Number: 1GD37SCGOL1275083 (“Vehicle 3”), and a GMC Savana 3500, Vehicle
Identification Number: 7GZ67VCGXLN010542 (“Vehicle 4”). 	Doc. 10 at 4, 26-28; Doc. 13 at
10. On or about December 31, 2020, Palles entered into and executed a certain Personal Guaranty
Vehicle Financing Agreement #338037-001 (“Guaranty 7-001”) in favor of Balboa, guarantying
the payment and performance of all obligations of Geaux Express due to Balboa under VFA 7-001
and all other obligations existing or thereafter arising. 	Doc. 10 at 5; Doc. 13 at 10. To secure the
amounts due Balboa pursuant to VFA 7-001 and to secure all other obligations due Balboa, Geaux
Express granted Balboa a first priority security interest in Vehicle 2, Vehicle 3, and Vehicle 4.
Doc. 10 at 4. 	Balboa perfected its security interest in Vehicle 2, Vehicle 3, and Vehicle 4 by filing
the proper forms with the Alabama Department of Revenue. 	Id. at 5. 	The Alabama Department
of Revenue issued a Certificate of Title for Vehicle 2, Vehicle 3, and Vehicle 4, denoting Ameris
as the first priority lienholder. Id. 	Effective as of December 10, 2021, Balboa entered into and
executed the Assignment in favor of Ameris, assigning to Ameris its interest in the VFA 7-001,
Guaranty 7-001, and each Certificate of Titled issued for Vehicle 2, 3, and 4. Id. at 5-6, 39-55.
Pursuant to VFA 7-001, Geaux Express agreed to repay Balboa in seventy-two (72) equal
monthly payments of $2,375.00 each, beginning on February 13, 2021. Id. at 4, 26-28. 	Pursuant
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 5 of 14 PageID#
<pageID>

Page 6 of 14
to section 16(b) of the VFA 7-001, Geaux Express defaulted in the terms of the VFA 7-001 and
Palles defaulted on the terms of Guaranty 7-001 by failing to make any payment which became
due pursuant to VFA 7-001 on or after January 7, 2024. 	Id. at 9-10, 14. 	Section 17(a) of VFA
7-001 states:
[u]pon the occurrence of an event of default, Creditor may: (a) sue for and recover
from Debtor the sum of: (1) all unpaid Monthly Installment Payments and other
payments, including late charges and interest, due under this Agreement then
accrued, all accelerated future payments due through the last day of the term of this
Agreement; (2) any and all cost or expenses paid or incurred by Creditor in
connection with the repossession, holding, repair, reconditioning and subsequent
sale, lease or disposition of the Collateral, including without but not limited to
attorney’s fees and costs, whether or not litigation is commenced; (3) the residual
value of the Collateral which Debtor fails to return to Creditor (or which Debtor
converts or destroys, or which Creditor does not or is unable to repossess); (4) all
other costs or expenses paid or incurred by creditor at any time in connection with
the execution, delivery, administration, amendment and enforcement or exercise of
any of the creditors rights and remedies under this agreement, including, but not
limited to, attorney’s fees and costs, whether or not litigation is commenced, and
taxes imposed by any governmental agency; (5) any actual or anticipated loss of
federal or state tax benefits to Creditor (as determined by Creditor) resulting from
Debtors default or Creditors repossession or disposition of the Collateral; and (6)
any and all other damages proximately caused by Debtor’s default.
Id. at 10, 18-19.
On February 2, 2024, Ameris exercised its right to accelerate the maturity date and declared
all obligations arising pursuant to the VFA 7-001 immediately due and payable as provided in
Section 17 of the VFA 7-001. 	Id. at 10. On February 2, 2024, the present value of the remaining
thirty-six (36) future payments discounted at five and eighty-five one-hundredths percent
(5.85%) yields an amount equal to $78,243.35. 	Id. 	As of February 2, 2024, the outstanding
balance of the sum of past due payments and the present value of the remaining outstanding
payments totaled an amount equal to $78,243.35. 	Id. at 11. Beginning on February 2, 2024, and
continuing thereafter, interest began accruing on the outstanding balance at the rate of 18% per
annum or $38.59 per diem. Id.
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 6 of 14 PageID#
<pageID>

Page 7 of 14
On or about March 12, 2024, Ameris provided Geaux Express and Palles a Notice of
Disposition of Collateral for Vehicle 4 (“the Vehicle 4 1st Auction Notice”), notifying Geaux
Express and Palles that Ameris would sell Vehicle 4 by auction. Id. at 11, 59. 	On or about April
20, 2024, Ameris provided Geaux Express and Palles a Notice of Disposition of Collateral for
Vehicle 3 (“the Vehicle 3 Auction Notice”), notifying Geaux Express and Palles that Ameris would
sell Vehicle 3 by auction. 	Id. at 11, 61. 	On or about May 1, 2024, Ameris provided Geaux
Express and Palles a second Notice of Disposition of Collateral for Vehicle 4 (“the Vehicle 4 2nd
Auction Notice”), notifying Geaux Express and Palles that Ameris would sell Vehicle 4 by
auction. 	Id. at 11, 63. 	On or about May 14, 2024, Ameris provided Geaux Express and Palles a
Notice of Disposition of Collateral for Vehicle 2 (“the Vehicle 2 Auction Notice”), notifying
Geaux Express and Palles that Ameris would sell Vehicle 2 by auction. Id. at 12, 65.
The Auctioneer advertised Vehicle 2, Vehicle 3, and Vehicle 4 for sale on the Auction
Website. 	Id. at 12. 	On or about May 17, 2024, the Auctioneer closed the sale of Vehicle 3 for
$6,000.00, netting proceeds paid to Ameris of $2,025.00 after paying sales commissions and other
costs of the sale. Id. 	As of May 17, 2024, interest had accrued on VFA 7- 001 in the total amount
of $4,051.50. 	Id. After applying the net proceeds of $2,025.00 to the outstanding balance, Geaux
Express owed Ameris a balance of $80,269.85 as of May 17, 2024, comprising of principal of
$78,243.35 and accrued interest of $2,026.50. 	Id. 	After May 17, 2024, interest continued to
accrue on the outstanding principal balance at the rate of 18% per annum or $38.59 per diem. Id.
at 13.
On or about May 24, 2024, the Auctioneer closed the sale of Vehicle 4 for $9,000.00,
netting proceeds paid to Ameris of $4,255.90 after paying sales commissions and other costs of
the sale. 	Id. 	Between May 17, 2024, and May 24, 2024, interest had accrued on VFA 7-001 in
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 7 of 14 PageID#
<pageID>

Page 8 of 14
the total amount of $270.11. Id. 	After applying the net proceeds of $4,255.90 to the outstanding
balance, Geaux Express owed Ameris the principal balance of $76,284.05 as of May 24, 2024. Id.
After May 24, 2024, interest continued to accrue on the outstanding balance at the rate of 18% per
annum or $37.62 per diem. Id.
On or about June 6, 2024, the Auctioneer closed the sale of Vehicle 2 for $7,500.00, netting
proceeds paid to Ameris of $3,073.75 after paying sales commissions and other costs of the sale.
Id. 	As of June 6, 2024, interest had accrued on VFA 7-001 in the total amount of $489.05. 	Id.
After applying the net proceeds of $3,073.75 to the outstanding balance, Geaux Express owed
Ameris the principal balance of $73,699.36 as of June 6, 2024. 	Id. at 14. 	After June 6, 2024,
interest continued to accrue on the outstanding balance at the rate of 18% per annum or $36.34
per diem. Id. 	Between May 24, 2024, and October 23, 2024, interest continued to accrue on the
outstanding balance at the rate of 18% per annum or $36.34 per diem. 	Id. As a result of Geaux
Express’s breach of the VFA 7-001 and Palles’s breach of Guaranty 7-001, as of October 23, 2024,
Ameris has been damaged in the amount of $78,751.30, comprising of principal of $73,699.36 and
accrued interest of $5,051.94, plus interest accruing after October 23, 2024, at the per diem rate of
$36.34. 	Id.; Doc. 13 at 11. Between October 23, 2024, and April 11, 2025, interest continued to
accrue on the outstanding balance owing on VFA 7-001 at the rate of 18% per annum, or $36.34
per diem, in the additional amount of $6,178.63. 	Doc. 10 at 14; Doc. 13 at 11.
As a result of Geaux Express’s breach of the VFA 7-001 and Palles’ breach of the Guaranty
7-001, Geaux Express and Palles have damaged Ameris and are jointly and severally liable to
Ameris in an amount (calculated as of April 11, 2025) equal to $84,929.93, plus interest accruing
after April 11, 2025, at the per diem rate of $36.34. 	Doc. 10 at 14; Doc. 13 at 12.
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 8 of 14 PageID#
<pageID>

Page 9 of 14
B. 	Procedural Background
On October 24, 2024, Ameris originally filed its Complaint in which it brought claims
against Geaux Express and Palles for breach of contract and attorney’s fees. Doc. 1. Summonses
were issued for Geaux Express and Palles (Doc. 3) on October 28, 2024, which were returned
executed (Docs. 5, 6). According to the proofs of service, Geaux Express was served on November
4, 2024, through its registered agent, Palles (Doc. 5), and Palles was personally served on the same
date (Doc. 6).
On November 14, 2024, the Court ordered Ameris to file an amended complaint to properly
plead jurisdiction (Doc. 9), and Ameris filed its Amended Complaint (Doc. 10) on December 2,
2024, in which it corrected its jurisdictional pleadings as directed by the Court.
On January 2, 2025, Ameris filed a Motion for Entry of Default Against Defendants (Doc.
11) in which it motioned the Clerk of Court enter default against Geaux Express and Palles,
pursuant to Fed. R. Civ. P. 55(a), and the Clerk of Court entered default against the defendants on
January 3, 2025 (Doc. 12). 	On April 25, 2025, Ameris filed a Motion for Entry of Default
Judgment Against Defendants (Doc. 13) and memorandum in support (Doc. 13-1), in which it
motions the Court enter default judgment against Geaux Express and Palles, pursuant to Fed. R.
Civ. P. 55(b)(2). On May 5, 2025, the Court entered an Order that set a deadline for the defendants
to file a response to the motion for default judgment, set the motion for a virtual hearing for June
20, 2025, and directed Ameris to serve the defendants, via mail and email, a copy of the Order as
well as the instructions to attend the virtual hearing. Doc. 16. The certified mail returns were sent
to the defendants’ registered address and were both returned as undeliverable (Docs. 18, 19), but
Ameris filed a notice it emailed to the defendants the information that the Court ordered (Doc. 17).
Neither Geaux Express nor Palles filed a response to the motion for default judgment.
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 9 of 14 PageID#
<pageID>

Page 10 of 14
On June 20, 2025, Palles filed a Suggestion of Bankruptcy (Doc. 20), and the Court, in turn,
stayed this matter as to Palles, pursuant to 11 U.S.C. § 362(a) (Doc. 21). The Court held the virtual
hearing for the motion for default judgment at which only counsel for Ameris, Stephen Alan Ray,
attended. The motion for default judgment is ripe for review as to Geaux Express, based on the
evidentiary material that was filed in support of the motion.
III. 	STANDARD OF REVIEW
Fed. R. Civ. P. 55 provides the mechanism for default judgments. 	Specifically, Fed. R.
Civ. P. 55 establishes a two-part process for obtaining a default judgment. First, “[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 [of court] must enter the party's
default.” FED. R. CIV. P. 55(a). After default has been entered, if the “claim is for a sum certain
or a sum that can be made certain by computation,” the clerk must enter default judgment. FED.
R. CIV. P. 55(b)(1). “In all other cases, the party must apply to the court for a default judgment.”
Fed. R. Civ. P. 55(b)(2). Once a party applies for a default judgment, “[t]he court may conduct
hearings or make referrals . . . when, to enter or effectuate judgment, it needs to: (A) conduct an
accounting; (B) determine the amount of damages; (C) establish the truth of any allegation by
evidence; or (D) investigate any other matter.” Id. Accordingly, simply because a defendant is in
default under Fed. R. Civ. P. 55(a) does not mean the plaintiff is automatically entitled to a default
judgment under Fed. R. Civ. P. 55(b). See generally 10A CHARLES ALAN WRIGHT, ARTHUR R.
MILLER, & MARY KAY KANE, FEDERAL PRACTICE & PROCEDURE § 2685 (4th ed. 2016).
Additionally, in this Circuit, “there is a strong policy of determining cases on their merits and we
therefore view defaults with disfavor.” In re Worldwide Web Sys., Inc., 328 F.3d 1291, 1295 (11th
Cir. 2003); see also Surtain v. Hamlin Terrace Found., 789 F.3d 1239, 1244-45 (11th Cir. 2015)
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 10 of 14 PageID#
<pageID>

Page 11 of 14
(quoting Worldwide Web Sys. and holding same). The Eleventh Circuit states default judgments
are “a drastic remedy that should be used sparingly and only in extreme situations where no other
forms of relief are available.” Graveling v. Castle Mortg. Co., 631 F. App'x 690, 698 (11th Cir.
2015)1 (quoting Mitchell v. Brown & Williamson Tobacco Corp., 294 F.3d 1309, 1316-17 (11th
Cir. 2002)) (internal quotations omitted).
While the entry of default is a necessary condition for obtaining a default judgment, it is
not sufficient. “[A] default is not treated as an absolute confession by the defendant of his liability
and of the plaintiff's right to recover,” but instead “a defaulted defendant is deemed to ‘admit[ ]
the plaintiff's well-pleaded allegations of fact.’” Tyco Fire & Sec., LLC v. Alcocer, 218 F. App'x
860, 863 (11th Cir. 2007) (quoting Nishimatsu Constr. Co. v. Houston Nat'l Bank, 515 F.2d 1200,
1206 (5th Cir. 1975)).
Fed. R. Civ. P. 55(b)(1) permits entry of judgment by the clerk without a hearing in cases
where “the plaintiff's claim is for a sum certain or a sum that can be made certain by computation.”
FED. R. CIV. P. 55(b)(1). 	In all other cases, the Court “may conduct hearings” to “conduct an
accounting,” “determine the amount of damages,” “establish the truth of any allegation by
evidence,” or “investigate any other matter.” 	FED. R. CIV. P. 55(b)(2)(A)-(D). 	Though the
language indicates a hearing is not a “per se requirement,” Eleventh Circuit precedent indicates
that evidentiary hearings “are required in all but limited circumstances.” SEC v. Smythe, 420 F.3d
1225, 1231-32 n.13 (11th Cir. 2005); see also Safari Programs, Inc. v. CollectA Int'l Ltd., 686 F.
App'x 737, 746-47 (11th Cir. 2017) (citations omitted).
1 In this Circuit, “[u]npublished opinions are not considered binding precedent, but they may be
cited as persuasive authority.” 	11th Cir. R. 36-2 (effective Dec. 1, 2014); see also Henry v.
Comm’r of Soc. Sec., 802 F.3d 1264, 1267 n.1 (11th Cir. 2015) (“Cases printed in the Federal
Appendix are cited as persuasive authority.”).
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 11 of 14 PageID#
<pageID>

Page 12 of 14
IV. 	DISCUSSION AND ANALYSIS
Since default has been entered, the factual allegations of the amended complaint are now
deemed admitted. 	See Giovanno v. Fabec, 804 F.3d 1361, 1366 (11th Cir. 2015) (“When a
defendant defaults, he admits the plaintiff’s well-pleaded allegations of fact.” (internal quotations
marks and citation omitted)).
“The elements of a breach-of-contract claim under Alabama law are (1) a valid contract
binding the parties; (2) the plaintiffs’ performance under the contract; (3) the defendant’s
nonperformance; and (4) resulting damages.” Shaffer v. Regions Fin. Corp., 29 So. 3d 872, 880
(Ala. 2009).
The facts that are alleged in the Amended Complaint, along with the evidence that was
tendered by Ameris in support of its motion for default judgment, support Ameris’ claims that are
based on Geaux Express’ default upon the terms of the vehicle financing agreements, including,
without limitation, the recovery of money damages, attorney’s fees, and expenses. Additionally,
the Court finds the relief that Ameris requests adheres to Fed. R. Civ. P. 54(c). See FED. R. CIV.
P. 54(c) (“[D]efault judgment must not differ in kind from, or exceed in amount, what is demanded
in the pleadings.”). Accordingly, Ameris’ motion for default judgment for money damages that
are requested in Counts I and II of the Amended Complaint is GRANTED solely as to Geaux
Express, its request for attorney’s fees and expenses that is found in Count III of the Amended
Complaint is HELD IN ABEYANCE pending Ameris’ submission of a separate motion and
evidentiary support, and the motion for default judgment is DENIED with leave to refile as to
Palles after his bankruptcy case is resolved, and if appropriate.
V. 	CONCLUSION
Based on the Court’s analysis, the Motion for Entry of Default Judgment Against
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 12 of 14 PageID#
<pageID>

Page 13 of 14
Defendants (Doc. 13) is GRANTED as to Plaintiff Ameris Bank’s request to enter default
judgment against Defendant Geaux Express Incorporated for money damages as requested in
Counts I and II of the Amended Complaint, HELD IN ABEYANCE as to Ameris Bank’s request
for attorney’s fees and expenses as requested in Count III of the Amended Complaint, and
DENIED with leave to refile as to Defendant Harry Nicholas Palles. It is therefore ORDERED:
1. 	As 	to 	Count 	I 	of 	the 	Amended 	Complaint, 	DEFAULT 	JUDGMENT 	is
ENTERED in favor of Plaintiff Ameris Bank and against Defendant Geaux Express Incorporated
in the amount of $31,186.10 as of June 20, 2025, plus interest accruing at the rate of $12.70 per
diem after June 20, 2025, and until the date of judgment2;
2. 	As 	to 	Count 	II 	of 	the 	Amended 	Complaint, 	DEFAULT 	JUDGMENT 	is
ENTERED in favor of Plaintiff Ameris Bank and against Defendant Geaux Express Incorporated
in the amount of $87,473.73 as of June 20, 2025, plus interest accruing at the rate of $36.34 per
diem after June 20, 2025, and until the date of judgment3;
3. 	As to Count III of the Amended Complaint, Plaintiff Ameris Bank’s request for
attorney’s fees and costs is HELD IN ABEYANCE, and Ameris Bank shall submit its attorney’s
fees and costs by motion with evidentiary support by September 9, 2025; and
2 Ameris’ motion for default judgment sought Count I damages as of April 11, 2025, in the amount
of $30,297.10, comprising of principal of $25,750.84 and accrued interest (as of April 11, 2025)
of $4,546.26, plus interest accruing after April 11, 2025, and until entry of the Judgment at the per
diem rate of $12.70. The Court takes judicial notice that 70 days of interest has accrued at the rate
of $12.70 per day between April 11, 2025, and June 20, 2025, resulting in additional interest of
$889.00.
3 Ameris’ motion for default judgment sought Count II damages as of April 11, 2025, in the amount
of $84,929.93, comprising of principal of $73,699.36 and accrued interest (as of April 11, 2025)
of $11,230.57, plus interest accruing after April 11, 2025, and until entry of the Judgment at the
per diem rate of $36.34. The Court takes judicial notice that 70 days of interest has accrued at the
rate of $36.34 per day between April 11, 2025, and June 20, 2025, resulting in additional interest
of $2,543.80.
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 13 of 14 PageID#
<pageID>

Page 14 of 14
4. 	Interest shall accrue on the judgment at the rate established by 28 U.S.C. § 1961.
This matter remains stayed as to Defendant Harry Nicholas Palles, and consequently, the
Court will withhold entry of a final judgment pursuant to Fed. R. Civ. P. 58. 	Plaintiff Ameris
Bank, however, may seek by motion entry of a final judgment pursuant to Fed. R. Civ. P. 54(b)4
as to its claims against Defendant Geaux Express if it deems such necessary.
DONE and ORDERED this 18th day of August 2025.
/s/ Terry F. Moorer
TERRY F. MOORER
UNITED STATES DISTRICT JUDGE
4 “A district court must follow a two-step analysis in determining whether a partial final judgment
may properly be certified under Rule 54(b).” 	Peden v. Stephens, 50 F.4th 972, 977 (11th Cir.
2022) (quoting Lloyd Noland Found., Inc. v. Tenet Health Care Corp., 483 F.3d 773, 777 (11th
Cir. 2007)). 	“First, the court must determine that its final judgment is, in fact, both final and a
judgment.” 	Id. (Lloyd Noland Found., 483 F.3d at 977). 	Second, “the district court must then
determine that there is no just reason for delay in certifying it[s] [decision] as final and immediately
appealable.” 	Id. (quoting Lloyd Noland Found., 483 F.3d at 977). 	When determining whether
there is no just reason for delay, the district court must consider “judicial administrative interests—
including the historic federal policy against piecemeal appeals—and the equities resolved” and
“certifications must be reserved for the unusual case in which the costs and risks of multiplying
the number of proceedings and of overcrowding the appellate docket are outbalanced by pressing
needs of the litigants for an early and separate judgment as to some claims or parties.” Id. (internal
citations omitted).
Case 1:24-cv-00394-TFM-N Doc# 22 Filed 08/18/25 Page 14 of 14 PageID#
<pageID>