Newark, NJ – A federal judge in New Jersey has granted a partial default judgment in a contract dispute after a supplier failed to respond to allegations that it accepted more than $120,000 for custom restaurant products but delivered only a fraction of the order.
The ruling stems from a lawsuit filed by The Dutch Pot Jamaican Restaurant, Inc., a Florida-based restaurant chain that operates several locations across southern Florida. The company alleged that New Jersey supplier XPakk, LLC accepted $123,125 for custom paper goods but delivered products valued at only about $23,125.
The case moved forward without opposition after XPakk did not respond to the complaint or appear in court.
Key Points
- A Florida restaurant chain sued a New Jersey supplier over $123,125 in custom paper products allegedly not delivered.
- The supplier failed to respond to the lawsuit, leading to a clerk’s entry of default and a motion for default judgment.
- A federal judge granted the motion in part, allowing the case to proceed toward recovery of damages.
Court records show the dispute began after The Dutch Pot placed an order with XPakk for custom paper products used in restaurant operations. According to the complaint, the company paid the supplier more than $123,000 but received goods valued at roughly $23,125.
The restaurant chain also claimed it mistakenly sent an additional payment of $3,022.50 to XPakk and later asked for the money to be returned. The company said the supplier did not respond to requests for reimbursement.
The lawsuit, filed May 8 in the U.S. District Court for the District of New Jersey, accused XPakk of breach of contract and several related claims, including unjust enrichment, conversion, promissory estoppel, and breach of the implied duty of good faith and fair dealing.
Court finds jurisdiction and proper service
U.S. District Judge Georgette Castner determined that the court had authority to hear the case under federal diversity jurisdiction, which applies when parties from different states dispute more than $75,000.
The Dutch Pot is incorporated and operates in Florida, while XPakk is a New Jersey limited liability company with business addresses in Bridgewater and Freehold, according to filings cited in the opinion.
The court also found that the supplier was properly served with the lawsuit. Court records show that after the complaint was served in May, XPakk did not file an answer or otherwise respond. The clerk entered default against the company on June 12.
Because the defendant failed to participate in the case, the court treated the factual allegations in the complaint as admitted for the purposes of evaluating the default judgment request, except for the specific amount of damages.
Default judgment granted in part
Under federal rules, judges have discretion to grant default judgments when defendants fail to defend a lawsuit. Courts must first confirm jurisdiction, proper service, and that the complaint states valid legal claims before awarding relief.
Judge Castner wrote that default judgments are generally disfavored because they prevent cases from being decided on their merits, but they may be appropriate when a defendant fails to appear or respond.
After reviewing the filings, the court concluded that the case satisfied the legal requirements for default judgment on certain claims.
The opinion states that XPakk’s failure to respond left the plaintiff without another avenue to pursue its claims, and that the court found sufficient grounds to grant the motion in part while denying other aspects.
The decision allows the case to proceed toward recovery related to the alleged breach of contract and associated damages tied to the undelivered products and additional payment.
The exact amount of damages to be awarded will be determined through the court’s evaluation of the evidence submitted with the motion.