Reported / Citable
Background
Kansas City Southern de Mexico, S.A. de C.V. provided international rail-freight service for Luxemborg Trading, LLC between the United States and Mexico during 2023, 2024, and 2025. KCSM paid freight-movement and related tariff charges and invoiced Luxemborg for the amounts due.
KCSM alleged that Luxemborg failed or refused to pay the invoices. After filing suit in June 2025, KCSM served Luxemborg, but Luxemborg did not appear or respond. The clerk entered default on July 28, 2026, and KCSM moved for default judgment.
The Court’s Holding
Judge Andrew S. Hanen granted KCSM’s motion for default judgment. Default judgment was procedurally warranted because Luxemborg was properly served, failed to answer or otherwise participate, and the clerk had entered default. As a result, the well-pleaded factual allegations were deemed admitted.
The court held that the pleadings established Luxemborg’s liability for the freight charges under 49 U.S.C. § 10743(a). KCSM adequately established damages through invoices showing $233,197.21 outstanding in U.S. dollars and 3,279,135 Mexican pesos. Because the amounts were capable of mathematical calculation, no evidentiary hearing was required.
Key Takeaways
- A consignee that accepts a carrier’s services may be liable for the applicable freight charges even without an express payment agreement.
- A defendant’s failure to appear after proper service can support default judgment when the pleaded allegations establish liability.
- Invoices can establish default-judgment damages without a hearing when the requested amounts are liquidated or mathematically ascertainable.
Why It Matters
The decision illustrates a carrier’s ability to obtain a default judgment for unpaid cross-border freight charges when the customer does not contest the case. It also reinforces the importance of maintaining invoices and related billing records to prove damages.
The separate judgment was to award KCSM $233,197.21, 3,279,135 MXD, and post-judgment interest at 4.49% from the date of judgment until payment.