Delmar International Inc. v. MVP Group International, Inc.

Background

Delmar International (USA) Inc. brought this admiralty action against MVP Group International, Inc. and Bank of Baroda. In its Second Amended Complaint, Delmar asserted a breach-of-contract claim based on the defendants’ alleged failure to pay freight and take delivery of cargo shipped under several bills of lading. Delmar alleged that the defendants were jointly and severally liable, meaning each could be held responsible for the full amount of the claimed damages.

MVP Group did not appear in the action. On April 15, 2024, the court entered an order of default against MVP Group and referred the case to Magistrate Judge Cott to determine MVP Group’s damages. Meanwhile, Delmar and Bank of Baroda filed cross-motions for summary judgment.

Court’s Reasoning

The court explained that when a plaintiff alleges joint and several liability and some defendants are actively litigating, deciding damages against a defendant who defaulted before resolving the merits against the active defendant could create inconsistent judgments. The court therefore concluded that judicial efficiency required deferring the damages determination until the cross-motions for summary judgment were resolved.

Disposition

The court vacated its April 15, 2024 order referring MVP Group’s damages to Judge Cott for an inquest. This order deferred the damages determination; it did not decide the cross-motions for summary judgment or set the amount of damages.