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Two Old Hippies, LLC v. Catch the Bus, LLC

Citations: 807 F. Supp. 2d 1059; 277 F.R.D. 448; 2011 U.S. Dist. LEXIS 95237; 2011 WL 3939177Docket: CIV 10-0459 JB/RLP

Court: District Court, D. New Mexico; August 18, 2011; Federal District Court

Narrative Opinion Summary

In a breach of contract case, Two Old Hippies, LLC filed actions against Catch the Bus, LLC, and its owners, resulting in a default judgment against the defendants. The court awarded Two Old Hippies $116,818.14 in compensatory damages for the purchase and repair costs of two Volkswagen buses, which were misrepresented regarding their condition. The court denied the request for treble damages under the New Mexico Unfair Practices Act due to insufficient evidence of willful misconduct. Procedurally, Catch the Bus failed to respond adequately, leading to the default judgment, and was not represented by an attorney, violating local rules. The court also addressed the issue of attorneys' fees, requiring detailed billing submissions to determine the reasonableness of the claimed $24,427.90 in fees. The court will hold a hearing to finalize the amount of statutory damages and attorneys' fees, as details pertaining to unsuccessful claims and the calculation of fees remain unresolved. Thus, while liability was established through default, the quantification of damages continues to necessitate further judicial review.

Legal Issues Addressed

Attorneys' Fees Calculation and Requirements

Application: The court required Two Old Hippies to provide detailed billing information to justify attorneys' fees, excluding fees related to dismissed claims.

Reasoning: Reasonable attorneys' fees will be awarded, contingent upon Two Old Hippies submitting detailed billing information, as fees related to dismissed claims against G. Mack and F. Mack will not be compensated.

Award of Compensatory Damages

Application: The court awarded compensatory damages of $116,818.14 to Two Old Hippies based on verified expenditures related to the buses.

Reasoning: The Court awarded Two Old Hippies $116,818.14 in compensatory damages.

Default Judgment and Admission of Liability

Application: The court entered a default judgment against Catch the Bus, LLC, accepting the allegations in Two Old Hippies' complaint as true, as the defendant failed to respond.

Reasoning: The Court previously entered a default judgment against Catch the Bus, which means the allegations in Two Old Hippies' complaint are accepted as true, and the lack of response from Catch the Bus to the summary judgment motion is treated as consent to grant the motion.

Representation of LLCs in Court

Application: Catch the Bus, as an LLC, was required to be represented by an attorney according to local rules, leading to procedural complications when it proceeded pro se.

Reasoning: Local Rule 83.8(c) mandates that corporations or partnerships must be represented by an attorney, and any filings made without counsel may be subject to strikethrough or sanctions.

Summary Judgment Standards under Rule 56(c)

Application: The court must determine if there are genuine issues of material fact, granting summary judgment if the movant is entitled to judgment as a matter of law, despite Catch the Bus being pro se.

Reasoning: The legal standard for summary judgment under Rule 56(c) requires that it be granted if there are no genuine issues of material fact and the movant is entitled to judgment as a matter of law.

Treble Damages under New Mexico Unfair Practices Act

Application: Two Old Hippies' request for treble damages was denied due to insufficient evidence of willful misrepresentation supporting such damages under the statute.

Reasoning: However, since Two Old Hippies did not provide sufficient evidence or allegations to justify treble damages under N.M.S.A.1978, § 57-12-10B, such damages were not granted at this time.