Assure Global, LLC v. Anderson
1:21-cv-05785
S.D.N.Y.Jun 2, 2025Background
- Assure Global (d/b/a WeShield) contracted with Axxeum, LLC (run by Aaron Anderson) to buy 500,000 nitrile gloves of specific quality for $65,000.
- The shipment delivered by Axxeum was missing 160,000 gloves and the gloves received were of inferior thickness and quality.
- Assure initially sought to return the entire shipment except for a small portion, but eventually kept the full delivery after an agreement that Anderson would send the missing gloves, which never arrived.
- Assure sought a refund for the missing gloves and attempted to resell the inferior gloves but was able to recover only $7,498.37.
- Defendants failed to participate in the litigation; a default judgment was entered as to liability, but damages required further inquest due to deficiencies in Assure's proof.
- Ultimately, Magistrate Judge Cave found Assure's evidence of damages insufficient and only awarded $1,108.10 in costs (filing and service fees).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages for missing/nonconforming goods | Full refund or market loss | No participation (default) | Insufficient evidence; no damages awarded |
| Cover Damages (replacement purchase) | Entitled to full replacement cost | No participation (default) | No adequate evidence; no damages awarded |
| Consequential damages (labor/shipping) | Entitled to overtime and extra shipping | No participation (default) | No documentation; no damages awarded |
| Attorneys’ fees | Requested fees | No participation (default) | Not permitted without statute/contract |
| Costs (filing, service fees) | Sought reimbursement | No participation (default) | Awarded $1,108.10 in costs |
Key Cases Cited
- Green v. New York, 420 F.3d 99 (2d Cir. 2005) (outlining default judgment procedure)
- Getty Images (US) Inc. v. Advernet, Inc., 797 F. Supp. 2d 399 (S.D.N.Y. 2011) (establishing standard for proving damages on default judgment)
- Credit Lyonnais Sec. (USA) v. Alcantara, 183 F.3d 151 (2d Cir. 1999) (requiring reasonable certainty in proof of damages on default)
- Bi-Econ. Mkt., Inc. v. Harleysville Ins. Co. of N.Y., 886 N.E.2d 127 (N.Y. 2008) (distinguishing between general and consequential breach of contract damages)
- Schonfeld v. Hilliard, 218 F.3d 164 (2d Cir. 2000) (discussing special or consequential damages in contract cases)
- House v. Kent Worldwide Mach. Works, Inc., 359 F. App’x 206 (2d Cir. 2010) (damages must be based on admissible evidence)