Greater New York Mutual Insurance Company v. Hutchinson et al

Filing 14

MEMORANDUM ORDER Granting 13 MOTION for Default Judgment as to All Defendants filed by Greater New York Mutual Insurance Company; the Clerk of Court shall enter default judgment in favor of Plaintiff and against Defendants in the aggregate amount of $2,815,975.79. Signed by Judge Leonard P. Stark on 3/20/14. (ntl)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

GREATER NEW YORK MUTUAL
INSURANCE COMP ANY a/s/o
Mitchell Morgan Management, Inc. d/b/a
Woodcrest Arms Apartments,
CIVIL ACTION NO. 1: 12-cv-00632
Plaintiff,
v.

PATRICIA HUTCHINSON,
and
DALE GRIMM,
Defendants.

MEMORANDUM ORDER

Pending before the Court is a Motion For Default Judgment (the "Motion") filed by
Plaintiff Greater New York Mutual Insurance Company, a/s/o Mitchell Morgan Management,
Inc. d/b/a Woodcrest Arms Apartments (collectively "GNY"). (D.I. 13) For the reasons
discussed below, the Court will GRANT GNY's Motion.
BACKGROUND

The action stems from an insurance policy issued by Plaintiff GNY to Plaintiffs
subrogee for the real property known as Woodcrest Arms Apartments located at 4 Woodcrest
Drive, Dover, Delaware, 19904.
On or about June 2, 2010, GNY, a New York corporation with its principal place of
business in New York, executed a lease with Defendant Patricia Hutchinson ("Hutchinson"), a
resident of Delaware, for Apartment Unit 3-7 ("Unit 3-7") in Building 904 of Woodcrest Arms.

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(See D.I. 1 at 2, 10) On or around June 6, 2010, Defendant Hutchinson allowed Defendant
Dale Grimm ("Grimm"), Hutchinson's son, along with Christina Lunn Taylor (Grimm's
girlfriend) to reside in Unit 3-7. (D.1. 1at3)
On June 6, 2010 at approximately 5:00 a.m., a fire started in the range of the kitchen
stove in Unit 3-7, which then spread throughout the kitchen of Unit 3-7 and to the adjacent
apartments in Building 904, leading to severe injuries and the deaths of Taylor and another
resident of Woodcrest Arms. (See id.) Additionally, as a result of the fire and its related
damage, Building 904 was condemned and ultimately demolished. (See id.)

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On June 8, 2010 and November 24, 2010, Plaintiff GNY obtained a "Sworn Statement
in Proof of Loss," which documented the extent of the monetary damages caused by the fire.
(D.I. 1, 13)
After the fire, GNY filed suit against Defendants Hutchinson and Grimm in the U.S.
District Court for the District of Delaware, alleging breach of contract by Hutchinson and
negligence by Grimm. (D.I. 1at3-7) On September 10, 2012, GNY effectuated service on
Hutchinson, but Hutchinson failed to answer the petition or to enter an appearance. (See D.I. 5)
Accordingly, on January 8, 2013, GNY requested the entry of default against Hutchinson
pursuant to Federal Rule of Civil Procedure 55(a). (D.I. 6) Default was subsequently entered
on February 7, 2013 by the Clerk of the Court. (D.I. 10)
On January 10, 2013, GNY effectuated service on Defendant Grimm; Grimm failed to
answer the petition or to enter an appearance. (D.I. 8) On February 13, 2013, GNY requested
the entry of default against Grimm and, pursuant to Rule 55(a), the Clerk entered a default on
May 20, 2013. (D.I. 11, 12)
On August 7, 2013, GNY filed its Motion for Default Judgment pursuant to Rule
55(b)(2), requesting that the Court enter an Order of Judgment by Default against non-

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answering Defendants Hutchinson and Grimm for damages in the aggregate amount of
$2,815,975.79, consisting of a principal balance of $2,715,975.79 for the property/building
damage caused by the fire, plus $100,000.00 for the advance payment owing to Plaintiffs
subrogee. (D .I. 1, 13)

LEGAL STANDARDS
Entry of default judgment is a two-step process. See Fed. R. Civ. P. 55(a), (b). A party
seeking to obtain a default judgment must first request that the Clerk of the Court "enter ... the
default" of the party that has not answered the pleading or "otherwise defend[ed]," within the
time required by the rules or as extended by court order. See id. at Rule 55(a). A party who
defaults by failing to plead or defend does not admit the allegations in the claims as to the
amount of damages. See Hoxworth v. Blinder, Robinson & Co., Inc., 980 F.2d 912 (3d Cir.
1992).

DISCUSSION
The Court will grant GNY's Motion for Default Judgment against Defendants
Hutchinson and Grimm. GNY seeks to recover on a debt arising from an apartment fire in Unit
3-7 during the early morning of June 6, 2010. Despite being properly served and informed
about the proceeding, Defendants Hutchinson and Grimm have failed to answer the complaint
or "otherwise defend" themselves in this action. Moreover, the defaulting Defendants are not
infants, have not been declared incompetent, and are not currently in the military or otherwise
exempted from default judgment under the Soldiers' and Sailors' Civil Relief Act of 1940, 50
U.S.C. § 520. (D.I. 13 at 2) The Clerk of Court entered default many months ago, and
Defendants have not taken any action in response.

CONCLUSION
Accordingly, for the reasons stated above, IT IS HEREBY ORDERED that:

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1.

Plaintiffs Motion for Default Judgment (D.I. 13) is GRANTED.

2.

Pursuant to Rule 55 of the Federal Rules of Civil Procedure, the Clerk of the

Court shall enter a default judgment in favor Plaintiff and against Defendants, granting Plaintiff
the monetary relief that it requested in the aggregate amount of$2,815,975.79, consisting of a
principal balance of $2,715,975.79 for the property/building damage caused by the fire at issue
in this action, plus $100,000.00 for the advance payment owing to Plaintiffs subrogee. (D.I. 1,
13)

Dated: March 20, 2014
Wilmington, Delaware

UNITED STATES DISTRICT JUDGE

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