The Eshelman Company Inc V Waste Water Industrial Solutions Llc

Key Facts

Transaction Type

Issues

• An account stated claim in Alabama requires a balanced statement of accounts, mutual agreement on its correctness, and the defendant's admission. The plaintiff's invoice, along with the defendant's email acknowledgments of the unpaid balance and non-payment, satisfy these elements. The court concludes that the account stated claim is viable.
• To state a breach of contract claim in Alabama, the plaintiff must show a valid contract, their performance, the defendant's nonperformance, and resulting damages. The court notes that the purchase order was accepted by performance (delivery of pumps and accessories), and the defendant's failure to pay constitutes nonperformance leading to damages. Thus, the breach of contract claim is adequately pleaded.
• Under Alabama law, a suit on account requires a contract and evidence that the defendant owes a debt. The plaintiff alleges that it provided pumps to WWIS for a stated price, which were delivered, but WWIS has not paid. The court finds that these allegations meet the requirements for a suit on an open account, establishing a valid claim.
• For unjust enrichment, the plaintiff must show that the defendant holds money belonging to the plaintiff in equity. The court finds that the allegations support this claim, as WWIS has not paid for the goods received and benefits from their use without compensation, which would be unjust under Alabama law.

Holdings

• The Court found a claim for unjust enrichment, as WWIS retained the value of the pumps and accessories without paying Eshelman, which would be inequitable.
• The Court found that Eshelman has a viable claim for suit on an open account under Alabama law, as the parties had a contract for pumps and accessories, Eshelman delivered the goods, and WWIS failed to pay, establishing a debt.
• The Court determined that WWIS breached the contract by failing to pay for the pumps and accessories after Eshelman performed under the purchase order and invoice, resulting in damages.
• The Court granted Eshelman's motion for default judgment against WWIS, concluding that all claims (open account, breach of contract, account stated, unjust enrichment) are viable under Alabama law and federal jurisdiction is satisfied.
• Eshelman's account stated claim was supported by allegations that WWIS acknowledged the unpaid balance via email and admitted liability, meeting Alabama's requirements for an account stated.

Remedies

• The Court sets a telephone conference for January 20, 2026, at 3:00 PM CST to determine the total amount of damages. Counsel must dial the provided number and access code to participate.
• The Court grants Eshelman's motion for default judgment against Waste Water Industrial Solutions, LLC (WWIS) for the outstanding invoice of industrial pumps and accessories. WWIS has not appeared or defended against the claims, leading to the entry of default judgment.

Contract Value

Legal Principles

• The court applied Rule 55 of the Federal Rules of Civil Procedure, which establishes a two-step process for default judgments: entry of default by the clerk and subsequent entry of judgment by the court based on the plaintiff's well-pleaded allegations.
• Diversity jurisdiction under 28 U.S.C. § 1332 was confirmed, requiring complete diversity of citizenship and an amount in controversy exceeding $75,000. The court found the plaintiff (Alabama corporation) and defendant (Georgia LLC) to be citizens of different states, satisfying the jurisdictional requirement.
• The court determined that the plaintiff met its burden to establish personal jurisdiction by pleading sufficient facts showing the defendant's minimum contacts with Alabama and that jurisdiction comported with due process.
• The court applied Alabama law to the claims in this diversity case, as the parties did not specify a governing law and the action was filed in the Northern District of Alabama. This included analyses of contract claims (breach, suit on account, account stated) and unjust enrichment under state law.

Precedent Name

• Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C.
• Mantiply v. Mantiply
• Karrh v. Crawford-Sturgeon Ins., Inc.
• Marsala v. Gulf Shores Bldg. Supply, Inc.
• Shaffer v. Regions Fin. Corp.
• Slate v. Shell Oil Co.
• Molinos Valle Del Cibao v. Lama
• Lloyd Noland Found., Inc. v. City of Fairfield Healthcare Auth.

Cited Statute

• United States Code, Title 28, Section 1332
• Federal Rules of Civil Procedure

Judge Name

Passage Text

• The Court grants Eshelman's motion for default judgment against WWIS and sets this matter for a telephone conference ... to determine the total amount of damages. ... Counsel of record shall please dial 205-931-0422 and enter access code 351578662 five minutes prior to the start time to participate in the call.
• Under Alabama law, to state a breach of contract claim, a plaintiff must establish: (1) a valid contract; (2) performance by plaintiff; (3) defendant's nonperformance; and (4) resulting damages. ... These allegations provide an adequate basis for a breach of contract claim under Alabama law.
• Eshelman is an Alabama corporation with its principal place of business in Jefferson County, Alabama. ... Therefore, WWIS is a citizen of Georgia for purposes of diversity jurisdiction. ... In its complaint, Eshelman seeks relief in an amount not less than $233,442.00, satisfying the amount in controversy requirement.

Damages / Relief Type