Automated Summary
Key Facts
In this case, C.H. Robinson Worldwide, Inc. (CHRW) filed a third-party complaint against CHI Logistics, Inc. seeking damages for breach of contract. CHRW arranged for CHI Logistics to transport a shipment of Skechers shoes (Load No. 445872491) via CHRW's proprietary Navisphere platform. CHI Logistics breached the Navisphere Terms and CHRW Website Terms by failing to protect its account credentials, allowing a third-party criminal actor to access CHRW's Navisphere system using CHI Logistics' login credentials. This breach resulted in fraudulent contracts and the theft of the Subject Load. The Court granted CHRW's motion for default judgment, awarding damages of $161,227.48 for the wholesale purchase price of the stolen cargo based on declaration and documentary evidence submitted by CHRW's Director of Risk Management, Heather Woods.
Transaction Type
Navisphere platform access agreement and terms
Issues
- Determination of the appropriate amount of damages, which the court found to be $161,227.48 based on the wholesale invoice cost of the stolen Subject Load
- Whether CHRW's motion for default judgment against CHI Logistics should be granted based on breach of Navisphere Terms and CHRW Website Terms
- Whether CHRW is entitled to recover attorney fees and costs under the Navisphere Terms and CHRW Website Terms
Holdings
The United States District Court for the Southern District of Indiana granted C.H. Robinson Worldwide, Inc.'s motion for default judgment against CHI Logistics, Inc. The court found CHI Logistics breached Navisphere Terms and CHRW Website Terms by failing to protect its account credentials, which allowed a third-party criminal actor to access the system and steal a shipment of Skechers shoes. Judgment was entered in favor of CHRW against CHI Logistics in the amount of $161,227.48 for the wholesale invoice purchase price of the stolen cargo, together with post-judgment interest as provided by law. CHRW was ordered to file any request for attorney fees and costs within fourteen (14) days of the Order date.
Remedies
- The court granted CHRW's motion for default judgment against CHI Logistics, awarding damages of $161,227.48 for the loss of stolen cargo, plus post-judgment interest as provided by law.
- While attorney fees and costs are not yet awarded, CHRW is ordered to file a motion for attorney fees and costs within fourteen days of the order date, if it so chooses.
Monetary Damages
161227.48
Legal Principles
The court applied Federal Rule of Civil Procedure 55 to grant a default judgment. The court found that CHI Logistics breached the Navisphere Terms and CHRW Website Terms by failing to protect its account credentials, allowing unauthorized third-party access. As a result, CHRW suffered damages including the theft of the Subject Load and associated costs.
Precedent Name
- e360 Insight v. The Spamhaus Project
- In re Catt
- Wehrs v. Wells
- VLM Food Trading Int'l, Inc. v. Illinois Trading Co.
Key Disputed Contract Clauses
- Navisphere Terms and CHRW Website Terms provide that in the event of breach, CHI Logistics agreed to indemnify CHRW from any claim or demand resulting from any violation arising out of CHI Logistics' use of Navisphere or any other CHRW application. This includes entitlement to be defended, indemnified, and held harmless, including costs and attorney fees.
- Navisphere Terms and CHRW Website Terms require CHI Logistics to securely maintain its access credentials and prevent unauthorized use of the platform. CHI Logistics breached these terms by failing to protect its account information, allowing a third-party criminal actor to access CHRW's Navisphere system using CHI Logistics' login credentials.
Cited Statute
Federal Rules of Civil Procedure
Judge Name
Sarah Evans Barker
Passage Text
- Now before the Court is CHRW's Motion for Default Judgment [Dkt. 101] against CHI Logistics, which seeks an award in the amount of $161,227.48. For the reasons detailed below, CHRW's motion for default judgment GRANTED.
- Judgment will be entered in this case in favor of CHRW and against CHI Logistics in the amount of $161,227.48 in damages, together with post-judgment interest as provided by law. To the extent that CHRW seeks to recover its attorney fees and costs, it is ordered to file any such request within fourteen (14) days of the date of this Order.
- Because 'damages must be proved unless they are liquidated or capable of calculation,' Wehrs, 688 F.3d at 892, the Court is required to hold a damages hearing unless 'the amount claimed is liquidated or capable of ascertainment from definite figures contained in the documentary evidence or in detailed affidavits.' e360 Insight, 500 F.3d at 602 (citation and quotation marks omitted). Here, the declaration submitted in support of CHRW's motion for default judgment are sufficiently detailed to render a hearing unnecessary.
Damages / Relief Type
Compensatory damages of $161,227.48 for wholesale invoice purchase price of stolen cargo