Lenard v. Design Studio
2012 U.S. Dist. LEXIS 120867
| S.D.N.Y. | 2012Background
- Plaintiff Dena Lenard sues Design Studio Inc. and Rose C. Christo for breach of contract, negligence, fraud, deceptive trade practices, and conversion.
- Defendants defaulted; Judge Holwell entered a default judgment to be inquired for damages.
- Magistrate Freeman recommended no damages and vacating most claims due to inadequacy of pleadings and evidence.
- The Court adopted the R&R, denying damages for breach of contract and dismissing several claims; conversion may be re-pleaded.
- Plaintiff may amend the conversion claim only; deadline set for amendment (Sept. 24, 2012).
- This Order is a combination of the damages inquest and related dispositive rulings on pleadings and remedies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages for breach of contract? | Lenard seeks damages for contract breach. | Defendants contend insufficient proof of damages. | No contract damages awarded. |
| Negligence claim viability? | Lenard asserts independent duty and damages. | No independent duty; contract breach alone. | Negligence claim dismissed. |
| Fraud claim viability? | Fraud separate from contract, warrants damages. | Fraud duplicative of contract breach. | Fraud claim dismissed. |
| Deceptive trade practices viability? | Lenard relies on consumer-protection damages. | Private contract dispute not covered by §349. | Deceptive trade practices claim dismissed. |
| Conversion claim sufficiency? | Lenard seeks damages for hardware conversion. | No demand and refusal pleaded; improper under law. | Conversion claim dismissed without prejudice; leave to replead upon proper demand/refusal. |
Key Cases Cited
- Bambu Sales, Inc. v. Ozak Trading, Inc., 58 F.3d 849 (2d Cir.1995) (default damages must be supported by adequate proofs)
- Au Bon Pain Corp. v. Artect, Inc., 653 F.2d 61 (2d Cir.1981) (damages in a default inquest require proof of damages and causation)
- Trans World Airlines, Inc. v. Hughes, 449 F.2d 51 (2d Cir.1971) (damages inquest; governs standard for inquest when liability is established by default)
- US Naval Inst. v. Charter Communications, Inc., 936 F.2d 692 (2d Cir.1991) (attorney’s fees generally not recoverable absent contract or statute; not here)