W. Coast Distrib., Inc. v. Preferred Produce & Food Serv., Inc.
| Decision Date | 13 March 2013 |
| Docket Number | CIVIL ACTION NO. 3:CV-09-1323 |
| Court | U.S. District Court — Middle District of Pennsylvania |
| Parties | WEST COAST DISTRIBUTING, INC., Plaintiff v. PREFERRED PRODUCE & FOOD SERVICE, INC., et al., Defendants |
MEMORANDUM AND ORDER
On July 10, 2009, Plaintiff, West Coast Distributing, Inc. ("WCD" or "Plaintiff"), a corporation engaged in the business of buying, selling, and transporting wholesale quantities of fresh fruit and vegetables in interstate commerce with its principal place of business in Maiden, Massachusetts, filed this action, through counsel, pursuant to the Perishable Agricultural Commodities Act, 7 U.S.C. § 499a, et seq. ("PACA"). (Doc. 1). Plaintiff paid the filing fee. This Court has jurisdiction over this action pursuant to 7 U.S.C. § 499e(c)(5), 28 U.S.C. § 1331, and 28 U.S.C. § 1337(a). See Tanimura & Antle, Inc. v. Packed Fresh Produce, Inc., 222 F.3d 132, 138 (3d Cir. 2000). Additionally, pursuant to doctrine of pendent jurisdiction, this Court has jurisdiction over Plaintiff's claims arising under state law, as any state law claims derive with the federal claims from "a common nucleus of operative fact." See United Mine Workers of Am. v. Gibbs, 383 U.S. 715, 725 (1966).
On December 9, 2009, Plaintiff filed an Amended Complaint ("Amended Complaint"). (Doc. 24). In its Amended Complaint, Plaintiff named as Defendants: Preferred Produce & FoodService, Inc. ("Preferred" or "Corporate Defendant"); Phillip Abdalla; Maurice J. Abdalla; Maurice Abdalla (collectively, "Abdalla Defendants"); John Cooper; Paul Cooper; and Angela Cooper (collectively, "Cooper Defendants"). (Doc. 24, pp. 2-3).
Defendant Maurice Abdalla, Defendant Phillip Abdalla, and the Cooper Defendants each filed separate Motions to Dismiss (Docs. 26, 34, 46, respectively) between December 2009 and March 2010.
On April 16, 2010, we issued a Report and Recommendation ("R&R") recommending that the Individual Defendants' Motions to Dismiss be granted with respect to Count IV of Plaintiff's Amended Complaint and that Plaintiff's claims against the Individual Defendants for breach of fiduciary duties under PACA be dismissed with prejudice because they were time-barred. (Doc. 52). We further recommended that the Individual Defendants' Motions to Dismiss be denied with respect to Counts III and V of Plaintiff's Amended Complaint. (Doc. 52). On June 29, 2012, this Court issued a Memorandum and Order that adopted our R&R. (Doc. 56).
Subsequently, the Individual Defendants filed Answers to Plaintiff's Amended Complaint with Affirmative Defenses as well as Cross-Claims and Counter Claims. (Docs. 61, 63, 66-68). In the Answer to Plaintiff's Amended Complaint with Affirmative Defenses and Cross-Claim against Cooper Defendants filed by Defendant Phillip Abdalla, he requested a jury trial. (Doc. 63). Also, Answers to the Cross-Claims and Counter Claims Abdalla Defendants and Cooper Defendants raised against each other, with Affirmative Defenses, were also filed by Defendants. (Docs. 94-97). Specifically, Abdalla Defendants and Cooper Defendants filed Cross-Claims and Counter Claims against each other which were raised in their respective Answers toPlaintiff's Amended Complaint. (Docs. 61, 63, 66, 67 & 68).
On September 9, 2010, Plaintiff filed with the Clerk of Court a Request for Entry of Default Judgment as against Defendant Preferred pursuant to Federal Rule of Civil Procedure 55(a). (Doc. 83). The following day, the Clerk entered Default as against Defendant Preferred pursuant to Rule 55(a). (Doc. 84).1
On September 30, 2012, we issued an R&R wherein we recommended that Plaintiff's August 27, 2010, Motion for Default Judgment against Defendant Preferred (Doc. 73) be granted and that Defendant Phillip Abdalla's Request for Hearing (Doc. 77) be denied. (Doc. 90). We further recommended that the District Court direct the Clerk of Court to enter default judgment as against the Corporate Defendant pursuant to Rule 55(b)(1) because Plaintiff's claim against it was for a sum certain. (Doc. 90).2 We also recommended that this matter be remanded to the undersigned for further proceedings. (Doc. 90). No party filed objections to our R&R.
While the Doc. 90 R&R was pending before the District Court, the parties consented tothe jurisdiction of the undersigned Magistrate Judge pursuant to 28 U.S.C. § 636(c). (Doc. 99).3
On May 20, 2011, the District court ordered that Plaintiff's Motion for Default Judgment against the Corporate Defendant be granted but that Defendant Phillip Abdalla's Request for Hearing be denied. (Doc. 101). The Court directed the clerk to enter Default Judgment pursuant to FRCP 55(b)(1). (Doc. 101). On May 26, 2011, the Default Judgment was entered by the Court against the Corporate Defendant in the amount of $189,673.75.4 (Doc. 104).
On November 15, 2011, Defendant Phillip Abdalla filed a Motion for Summary Judgment with six (6) attachments, alleging that Plaintiff's claims against him were barred by a 2-year statute of limitations and by the doctrine of accord and satisfaction. (Doc. 105). With his Motion, Defendant Phillip Abdalla also submitted an Affidavit in Support with four (4) attachments and a Statement of Material Facts with four (4) attachments. (Docs. 106, 107, respectively). Additionally, Defendant Phillip Abdalla filed a Brief in Support of his Motion. (Doc. 108).
On December 27, 2011, Plaintiff filed an Answer to Defendant Phillip Abdalla's Statement of Material Facts and a Brief in Opposition to the Doc. 105 Motion. (Docs. 114, 115, respectively).
Two days thereafter, on December 29, 2011, the Cooper Defendants filed a Cross-Motion for Summary Judgment with one (1) attachment, and Affidavit in Opposition of Defendant Phillip Abdalla's Motion for Summary Judgment with two (2) exhibits, a Statement ofFacts, and a Brief in Support of the Cross-Motion. (Docs. 116, 117, 118, 119, respectively).
On January 5, 2012, Defendant Phillip Abdalla filed a Reply Brief in Support and an Affidavit in Support of both Motions for Summary Judgment. (Docs. 121, 122, respectively). On March 6, 2012, Defendant Phillip Abdalla filed a Response to the Cooper Defendants' Statement of Facts with two (2) exhibits and a Brief in Opposition to the Cooper Defendants' Cross-Motion. (Docs. 133, 134, respectively).
On March 28, 2012, Plaintiff filed a Response to the Motions for Summary Judgment with two (2) exhibits, including an Affidavit of Defendant Angela Cooper. (Doc. 140). Plaintiff additionally filed on March 28, 2012, a Brief in Response to the Motions for Summary Judgment wherein it claimed that Defendant Abdalla's Motion was irrelevant and requested oral argument on all pending motions. (Doc. 141).
On April 18, 2012, the Cooper Defendants filed a Reply Brief to the filings of Defendant Phillip Abdalla and Plaintiff regarding the Motions to Dismiss with two (2) exhibits, including a Supplemental Affidavit of Defendant Angela Cooper. (Doc. 142).
On June 25, 2012, this Court directed that oral argument on the Motions for Summary Judgment (Docs. 105, 116) would take place on July 3, 2012, at 10:00am. (Doc. 149).
On July 2, 2012, the undersigned ordered that this action be dismissed with respect to Plaintiff's claims against the Cooper Defendants, as the matter had been settled regarding those claims. (Doc. 150). Pending resolution of the remaining claims and cross-claims, however, this action remained open. (Doc. 150).
On July 3, 2012, the parties presented oral argument on the Motions for SummaryJudgment before the undersigned. During the proceeding, counsel for Defendant Phillip Abdalla withdrew on the record his Doc. 105 Motion for Summary Judgment. (Docs. 151, 152). This Court found the Cooper Defendants' Doc. 116 Cross-Motion for Summary Judgment moot, as those Defendant had settled with Plaintiff. (Docs. 151, 153). Further, the Court agreed with the Abdalla Defendants' assertion that they were not on notice that the Cooper Defendants were similarly moving against them for summary judgment in said Motion. (Docs. 151, 153). The Court also denied Plaintiff's request to orally move for summary judgment as against the Abdalla Defendants and directed Plaintiff to file a new summary judgment, out of time, against these Defendants. (Docs. 151, 154). The Court similarly afforded the Cooper Defendants leave to file a summary judgment motion out of time regarding their cross-claims against the Abdalla Defendants. (Docs. 151, 154). Both Plaintiff and the Cooper Defendants were ordered to file their respective summary judgment motions within ten (10) days of the July 3, 2012, order. (Doc. 154).
On July 13, 2012, the Cooper Defendants filed a Cross-Motion for Summary Judgment with respect to the Cross-Claims they filed against the Abdalla Defendants. (Doc. 155). The Cooper Defendants attached their Statement of Facts and the Affidavit of Angela Cooper to their Motion. On July 27, 2012, the Cooper Defendants filed their Brief in support of their Cross-Motion for Summary Judgment as against the Abdalla Defendants with Exhibits. (Doc. 159).
Also, on July 13, 2012, Plaintiff filed a Motion for Summary Judgment as against the Defendants Phillip and Maurice Abdalla. (Doc. 156). Plaintiff attached its Statement of Facts and the Affidavit of its counsel to their Motion. Further, Plaintiff filed the Declaration of Angela Cooper with attached Exhibits and its support Brief. (Docs. 157 & 158). Plaintiff seeks the Courtto enter judgment against Defendants Phillip and Maurice Abdalla with respect to its remaining Counts III and V of its Amended Complaint (Doc. 24), in which Plaintiff sought a declaration of constructive and/or substituted trust, and disgorgement by Defendants Phillip and Maurice Abdalla of PACA Trust assets they received from Defendant Preferred. Specifically, in its Doc. 156 Summary Judgment Motion, Plaintiff seeks judgment against Defendants Phillip and Maurice Abdalla and an order...
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