Galloo-Ile-De- France v. Lancaster International LLC
1:14-cv-00629
N.D.N.Y.Jun 10, 2015Background
- Plaintiff Gallo Ile-de-France sues Lancaster International, LLC for misrepresentation to induce payment of invoices totaling €447,353.50.
- Invoices alleged for scrap metal shipments that never occurred and referenced container numbers that did not exist.
- Lancaster failed to respond after service; default entered by Clerk pursuant to Rule 55.
- Plaintiff seeks compensatory and consequential damages, prejudgment interest, and costs.
- Court may enter default judgment on liability and determine damages from affidavits and documents, not necessarily a hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment on liability is proper | Gallo argues Lancaster failed to respond, entitling default liability. | Lancaster did not appear; no counterarguments are presented in the record. | Default judgment granted as to liability. |
| Whether damages can be awarded without a hearing | Damages supported by detailed affidavits and invoices; computation feasible. | Not explicitly stated in record; default procedure allows damages if supported. | Damages awarded based on affidavits and documentary evidence. |
| Whether prejudgment interest is recoverable | Interest accrues on compensatory and fraud-related damages at 9% per annum. | Not directly challenged in record. | Prejudgment interest awarded at 9% per annum up to judgment date. |
| Whether plaintiff is entitled to attorney's fees under NY Gen. Bus. Law § 349 | Plaintiff seeks fees under § 349 for deceptive acts. | No cause of action pled under § 349; broad consumer impact lacking. | Attorney's fees and costs denied. |
Key Cases Cited
- Bravado Int'l Group Merch. Servs. v. Ninna, Inc., 655 F. Supp. 2d 177 (E.D.N.Y. 2009) (liability established; damages require proof; default damages possible with basis)
- Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir. 1992) (default judgment requires court to ensure basis for damages)
- Flaks v. Koegel, 504 F.2d 702 (2d Cir. 1974) (damages generally require proof; not all cases need a hearing)
- Overcash v. United Abstract Group, Inc., 549 F. Supp. 2d 193 (N.D.N.Y. 2008) (court may rely on affidavits/documentary evidence for damages)
- Insurance Co. of North America v. S/S Hellenic Challenger, 88 F.R.D. 545 (S.D.N.Y. 1980) (prejudgment interest rules and recoverability)
- City of New York v. Smokes–Spirits.Com, Inc., 12 N.Y.3d 616 (N.Y. 2009) (§ 349 consumer-oriented conduct; need broad impact)
- New York Univ. v. Continental Ins. Co., 87 N.Y.2d 308 (N.Y. 1995) (consumer-related standards; private contract disputes not within § 349)
- Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, 85 N.Y.2d 20 (N.Y. 1995) (private disputes not within § 349; consumer impact required)
- Lama Holding Co. v. Smith Barney Inc., 88 N.Y.2d 413 (N.Y. 1996) (consequential damages when naturally flowing and computable)
- North State Autobahn, Inc. v. Progressive Ins. Group Co., 102 A.D.3d 5 (N.Y. App. Div. 2012) (§ 349 requires consumer-oriented conduct with broad impact)
