Pinnacle Bank V Cope Investments Llc

Key Facts

Transaction Type

Issues

• The court determined that subject matter jurisdiction exists under 28 U.S.C. § 1332 due to complete diversity of citizenship between the Mississippi defendants and the Tennessee plaintiff, and the amount in controversy exceeds $75,000 as the plaintiff seeks over $1.5 million in damages.
• The court evaluated if the plaintiff's complaint met the requirements under Fed. R. Civ. P. 8(a)(2) to show entitlement to relief and whether the default judgment is supported by well-pleaded allegations, as the defendant did not respond to the motion or the complaint.
• The court calculated the damages based on the unpaid principal and interest, including a variable rate of 1-month Term SOFR plus 2.750 percentage points, and determined that the total amount due as of March 3, 2026, was $1,607,897.78, with additional post-judgment interest at 3.48% and attorney's fees to be determined later.

Holdings

Remedies

• The Court grants Pinnacle's Motion for Default Judgment against Cope Investments, LLC and will enter a separate default judgment as required by Fed. R. Civ. P. 58(a).
• Pinnacle is permitted to move for recovery of reasonable attorneys' fees within 14 days upon the entry of the default judgment under Fed. R. Civ. P. 54(d).

Contract Value

Monetary Damages

Legal Principles

• The court emphasized the pleading standard under Fed. R. Civ. P. 8(a)(2), requiring a 'short and plain statement of the claim' to establish a right to relief above the speculative level.
• The court applied the three-step process for default judgment under Fed. R. Civ. P. 55, requiring (1) defendant's default, (2) clerk's entry of default, and (3) judicial discretion to grant judgment based on well-pleaded allegations.
• The court applied statutory provisions for pre-judgment interest under Mississippi Code Ann. § 75-17-7 and post-judgment interest under 28 U.S.C. § 1961 to calculate interest rates for the default judgment.
• The court cited Rule 54(c), holding that default judgments must not differ in kind or exceed the amount demanded in the pleadings, limiting recovery to amounts explicitly stated in the complaint.

Precedent Name

• James v. Frame
• Bell Atl. Corp. v. Twombly
• Wooten v. McDonald Transit Assocs., Inc.
• Strange v. Glob. Virtual Opportunities, Inc.
• Acadian Diagnostic Lab'ys, L.L.C. v. Quality Toxicology, L.L.C.
• Est. of Baxter v. Shaw Assocs., Inc.
• Rogers v. Hartford Life & Accident Ins. Co.

Key Disputed Contract Clauses

• The Commercial Guaranty, signed by Bruce C. Cope, obligated the guarantor to guarantee the full payment of the loan on an 'open and continuing basis,' covering all existing and future indebtedness of the borrowers.
• The court determined that the damages were liquidated, allowing recovery of pre-judgment interest at the contract rate without requiring an evidentiary hearing, as the amounts could be calculated with certainty from the pleadings and supporting documents.
• The Promissory Note included a variable interest rate of 1-month Term SOFR plus 2.750 percentage points, a maturity date of July 15, 2026, and provisions for recovery of costs and expenses, including attorneys' fees, incurred in collecting amounts due.

Cited Statute

• Judicial Code
• Mississippi Code

Judge Name

Passage Text

• Because the damages are liquidated, Pinnacle is entitled to recover pre-judgment interest accruing at the rate set forth in the Note. See Miss. Code Ann.§ 75-17-7...
• Accordingly, the first two steps for obtaining a default judgment are satisfied. The Court turns to whether default judgment is appropriate.
• IT IS THEREFORE ORDERED AND ADJUDGED that Pinnacle's [10] Motion for Default Judgment as to Cope Investments is GRANTED.

Damages / Relief Type

• Attorney's fees and costs incurred for collection, to be determined in a subsequent motion.
• Liquidated Damages: $1,607,897.78 in principal and interest as of March 3, 2026.