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IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA GENTEX CORP., Plaintiff : No. 09cv1209 : : (Judge Munley) v. : : A.J. HUGHES SCREW : PRODUCTS CO., INC., : Defendant : :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ORDER Before the court is plaintiff's request for a default judgment and assessment of damages against defendant (Doc. 6), pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure. The matter is now ripe for disposition. BACKGROUND Plaintiff Gentex Corp. ("Gentex"), a military helmet manufacturer, filed its complaint in this court on June 25, 2009. (Compl. (Doc. 1)). Plaintiff asserts a breach of contract (Count I) against Defendant A.J. Hughes Screw Products Company, Inc. ("A.J. Hughes") for delivering nonconforming screws. (Compl. (Doc. 1)). Plaintiff also asserts a claim of fraud (Count II) against defendant for certifying the screws as meeting the military specifications when they in fact did not. (Id.) Lastly, plaintiff claims a breach of duty of good faith and fair dealing (Count III) against defendant for shipping non-conforming screws and falsely representing that they were conforming. (Id.) On Count I, plaintiff seeks contract damages and interest. On Count II, plaintiff seeks compensatory and punitive damages.1 On Count III, plaintiff seeks compensatory damages.

Plaintiff indicated at the damages hearing that it is not seeking punitive damages based on its fraud claim at this point. Therefore the court will address only the contract damages.

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Plaintiff served Doreen Raimondi, as co-owner and authorized agent for A.J. Hughes, with a copy of the summons and complaint on September 24, 2009. (Affidavit of Service (Doc. 3)). On October 21, 2009 this court noted that defendant had not answered and prompted plaintiff to further the action. (Doc. 4). Plaintiff requested that the Clerk of Court enter defendant's default, pursuant to Federal Rule of Civil Procedure 55(a), on October 30, 2009. (Doc. 5). Simultaneously, plaintiff applied for an entry of default judgment against defendant pursuant to Federal Rule of Civil Procedure 55(b). (Doc. 6). On November 2, 2009 the Clerk entered default against defendant. (Doc. 7). The court held a damages hearing on January 19, 2010 where plaintiff presented its evidence on damages, bringing the case to its present posture. DISCUSSION At the damages hearing plaintiff-witness Erin Fitzpatrick ("Fitzpatrick"), an employee of Gentex, testified that A.J. Hughes contracted to supply military specification screws to be used in Gentex's military helmets. She further testified that A.J. Hughes actually supplied screws of a lower quality alloy which did not meet military specifications and therefore did not conform with the contract. Fitzpatrick testified to the following items of damages resulting from A.J. Hughes's breach of contract: $80,247.17 to obtain conforming replacement screws; $340,758.58 in labor and expenses in removing nonconforming screws from helmets and replacing them with the conforming screws; $179,749.07 for overcharging plaintiff for screws over the course of the contract; and $124,564.00 for helmets Gentex provided to the government free-of-charge to make up for helmets it supplied that contained non-conforming screws. The subtotal for these items of damage 2

is $725,318.82. Erin Fitzpatrick also testified that Gentex withheld an open invoice for $53,203.80 owed to A.J. Hughes. Subtracting this withholding from the $725,318.82 subtotal leaves net damages of $672,115.02. The replacement screws, costing $80,247.17, represent a reasonable purchase of substitute goods. Plaintiff is therefore entitled to that amount as cover damages. See 13 Pa. C.S.A.

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