United States District Court, W.D. New York
May 3, 2005.
MPOWER COMMUNICATIONS CORP., Plaintiff,
VOIPLD. COM, INC., PARADYME MORTGAGE, d/b/a VOIPLD.COM, INC., ZACK YASS, a/k/a ZAHI YASEEN, Defendants.
The opinion of the court was delivered by: DAVID LARIMER, Chief Judge, District
DECISION AND ORDER
Plaintiff, MPower Communications Corp. ("MPower") entered into
several contracts with defendants in 2002 to provide local
exchange telephone and telecommunication services. These
contracts contained explicit terms and conditions and also
referenced supplemental terms and conditions which were contained
on MPower's website (Ex. 2).*fn1
In early April 2003, MPower disconnected service to defendants
for several reasons. First, defendants were in default in making
monthly payments on the several contracts. In addition, there was
ample evidence that defendants had abused the system by engaging
in a practice called "stripping the ani." Ronald J. Teeters,
Vice-President for Marketing at MPower described this practice as
fraudulently hiding the actual origin of a telephone call,
especially international calls, to avoid costs for such connections. When defendants were advised of
this fraudulent practice, and failed to take steps to rectify
such activity, MPower disconnected service.
Entry of default by the Clerk was entered against defendants
Voipld.Com, Inc. and Paradyme Mortgage on February 17, 2005, and
a similar default was entered against defendant Zack Yass on
April 22, 2005.
The Court conducted an inquest on damages at a hearing on May
2, 2005. The Court heard testimony from Teeters and received
numerous exhibits, including the original contracts and invoices
I credit the testimony received and find that plaintiff is
entitled to recover judgment against the three defendants and
that the sums requested are reasonable and appropriate based on
the contracts and addenda to the contracts. Those documents
establish the applicable tariffs and rates as well as the
applicable late fees and penalty provisions for early termination
of the contracts.
Having considered the pleadings, evidence and issues presented
in this matter, it is
ORDERED that the plaintiff Mpower Communications Corp. is
entitled to judgment against the defaulting defendants as
(1) from defendant VOIPLD.Com, Inc., judgment in the amount of
(2) from defendant Paradyme Mortgage (a/k/a Paradyme Mortgage),
judgment in the amount of $513,709.85; and (3) from defendant Zack Yass (a/k/a Zahi Yaseen a/k/a Zahi
Yasseen), judgment in the amount of $276,545.61;
All with post-judgment interest thereon and plaintiff's costs
The Clerk shall enter judgment accordingly.
IT IS SO ORDERED.