Chubb Seguros Ecuador S.A. v. Lan Cargo S.A.

Background

On March 18, 2022, Judge Andrew Carter entered a default judgment against Lan Cargo S.A. and referred the case to Magistrate Judge James L. Cott for an inquest into damages. A default judgment is a judgment entered after a defendant does not appear or otherwise participate, but the court explained that a plaintiff still must prove damages with admissible evidence. Allegations about damages in the complaint are not automatically treated as established.

The court also noted that, when a defendant has not appeared, the court may examine whether it has personal jurisdiction—the legal authority to exercise power over that defendant. The order states that the complaint describes Lan Cargo as a Florida-based corporation and directs Chubb to provide facts supporting personal jurisdiction, as well as subject-matter jurisdiction, the court’s authority to hear the type of dispute involved.

Required submissions

The order requires Chubb to serve Lan Cargo and file proposed findings of fact and conclusions of law concerning all damages and other monetary relief allowed by the default judgment by April 12, 2022. The submission must end with a concise statement of the amount or other relief sought, including the exact dollar amount.

The proposed factual findings must connect each damages figure to the legal claims on which liability was established and explain how Chubb calculated the figures. Each finding must cite supporting affidavit paragraphs or documentary evidence. Any allegations about liability must cite the corresponding portion of the complaint.

Chubb may instead provide a memorandum of law explaining the legal principles supporting its damages claims, including any request for interest or attorney’s fees. The papers must include an affidavit from a person with personal knowledge of the facts supporting the proposed damages and the court’s jurisdiction. The court directed Chubb to supplement materials it had previously submitted at Docket Nos. 15 through 18, including materials addressing personal jurisdiction and the legal basis for attorney’s fees and costs.

Any request for attorney’s fees must include contemporaneous time records identifying the date of service, hours worked, and work performed by each attorney. Counsel must also provide information about each attorney’s years of bar admission and hourly rate, appropriate charts, the legal basis for the fee request, and documentary support for costs. Lan Cargo may file a response by May 3, 2022.

Damages inquest procedure

Judge Cott notified the parties that he may decide the damages inquest solely from written submissions. A party seeking an evidentiary hearing must explain why written submissions are insufficient and describe the witnesses and evidence it would present. The order sets the procedure for determining damages but does not itself determine the amount of damages, attorney’s fees, costs, or interest.