GoDaddy.com Wins $1.14M Default Judgment in Breach of Contract Case Against Data Center


On Monday, GoDaddy Media Temple Inc. obtained an entry of default judgment against defendant Anexio Data Centers LLC for its failure to return credit to GoDaddy after it stopped rendering services in violation of the parties’ contract. The District of Delaware court adopted the magistrate judge’s Apr. 19 report and recommendation in exercising its discretion to hold Anexio accountable.

The suit dates back to October 2020 when GoDaddy filed the action for breach of contract, account stated, book account, and unjust enrichment against the data center offering storage services in El Segundo, California. GoDaddy and Anexio reportedly contracted pursuant to a master services agreement.

When Anexio was evicted from the El Segundo facility in June 2019 however, it owed GoDaddy a credit for approximately $1.14 million due GoDaddy’s pre-payment. GoDaddy subsequently filed the lawsuit, serving Anexio with summons and the complaint which was purportedly executed by the defendant.

Then, the court wrote, Anexio failed to file a responsive pleading or motion as are required by the Federal Rules of Civil Procedure. On Jan. 11, the clerk of court entered a default in appearance against Anexio at GoDaddy’s request.

In March, the plaintiff moved for entry of default judgment. The court explained that for both default requests, it required GoDaddy to serve the defendant’s registered agent, which it did.

At the outset of its analysis, the court first noted that awarding a default judgment is discretionary. The magistrate judge then determined that GoDaddy had satisfied both steps of the two-part process under Federal Rule of Civil Procedure 55.

In awarding damages for Anexio’s failure to perform, the court found that the requested amount represented the damages GoDaddy suffered as a result of the defendant’s failure to perform. The court based its ruling on the facts alleged, an affidavit, and the invoices attached to the complaint.

GoDaddy is represented by Cozen O’Connor.