Axis Insurance Company v. Carlo Lizza & Sons Paving, Inc.
2:21-cv-05258
| E.D.N.Y | Mar 22, 2023Background
- AXIS Insurance sued Carlo Lizza & Sons Paving, Inc. for breach of commercial liability insurance contracts after AXIS defended and settled multiple underlying suits and paid indemnity amounts.
- Each policy contained a $25,000 per-occurrence deductible; AXIS alleges Lizza repeatedly failed to reimburse AXIS for deductible amounts.
- AXIS served the complaint, Lizza defaulted, and the Clerk entered default; AXIS moved for a default judgment seeking $554,115.65 in damages plus $11,580.11 in fees and costs, submitting policies, a claims spreadsheet, affidavits, and a fees table.
- The court found the complaint and uncontroverted materials establish Lizza’s liability on AXIS’s breach-of-contract claim but not on AXIS’s separate declaratory-judgment claim seeking relief as to hypothetical future obligations.
- The court denied AXIS’s requested monetary relief because AXIS failed to adequately document or explain the $554,115.65 damages figure and failed to provide contemporaneous billing records, timekeeper IDs/rates, or receipts to justify the fees and costs.
- The court granted the motion in part and ordered AXIS to supplement its submissions and file a revised proposed judgment by April 21, 2023, and to serve the order on Lizza.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entry of default judgment on breach of contract | AXIS: entry appropriate; default entered; policies and filings show Lizza breached by not reimbursing deductibles | Lizza: no response (defaulted) | Granted as to breach: liability established as a matter of law |
| Declaratory judgment for future deductible obligations | AXIS: seeks declaration that Lizza must reimburse AXIS for future deductible amounts AXIS pays on pending claims | Lizza: no response; court treats claim as speculative | Denied: no actual case or controversy; claim concerns contingent future events and lacks supporting authority |
| Quantum of damages and attorneys’ fees/costs | AXIS: submitted claims spreadsheet and fees table asserting specific totals | Lizza: no response (defaulted) | Denied without prejudice: amounts not adequately documented or explained; court ordered supplementation with detailed calculations, billing records, and receipts |
Key Cases Cited
- Bricklayers & Allied Craftworkers Local 2, Albany, N.Y. Pension Fund v. Moulton Masonry & Const., LLC, 779 F.3d 182 (2d Cir. 2015) (default establishes factual allegations for liability but does not constitute admission of damages)
- City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114 (2d Cir. 2011) (entry of default does not automatically entitle plaintiff to default judgment; court must determine liability as a matter of law)