Frost & Miller, LLP v. Heaven's Way Investment Trust
- Analisa Torres
- 1:21-cv-06648
- U.S. District Court · Southern District of New York
- 3
Frost & Miller v. Heaven’s Way, Judge Moses extended default-judgment deadlines, required supporting evidence, and postponed the conference indefinitely.
Frost & Miller, LLP must file consolidated default-judgment papers by April 26, 2022. The remaining defaulted defendants are affected by the extended deadline and the requirements for proving liability and damages.
What happened
In Frost & Miller, LLP v. Heaven’s Way Investment Trust, the court granted the plaintiff’s request to extend its deadline for seeking a default judgment against the remaining defendants who had not defended the case. The plaintiff must file one consolidated set of motion papers by April 26, 2022.
The court reminded the plaintiff that it must support liability with the complaint’s factual allegations and prove damages with admissible evidence. It noted that the plaintiff had sought $345,000 in compensatory damages and $100,000 in punitive damages but had submitted no evidence supporting those amounts or connecting them to the remaining defaulted defendants.
Judge Barbara Moses also adjourned the April 14, 2022 conference indefinitely. The order did not decide whether the plaintiff would receive default judgment or damages.
The detailed version
- Frost & Miller, LLP v. Heaven's Way Investment Trust · No. 1:21-cv-06648
- Analisa Torres
- Apr. 5, 2022
Background
Frost & Miller, LLP filed a letter-motion dated March 31, 2022, asking for relief related to its anticipated motion for a default judgment against the remaining defaulted defendants. A default judgment is a judgment entered against a defendant who has not defended the case. The plaintiff’s earlier filings sought $345,000 in compensatory damages and $100,000 in punitive damages.
Order
Judge Barbara Moses granted the letter-motion to the extent stated in the order. She extended the plaintiff’s deadline to April 26, 2022, for filing one consolidated set of motion papers seeking a default judgment against the remaining defaulted defendants. The papers must comply with the requirements in the court’s February 22, 2022 order concerning pretrial management and default motions.
The order explained that the plaintiff must establish liability using the well-pleaded factual allegations in the complaint served on the defaulted defendants. It separately explained that damages must be supported by admissible evidence sufficient to allow the court to determine the amount with reasonable certainty. A defendant’s default does not admit the amount of damages.
Damages Concerns
The court noted that the plaintiff had provided no evidence supporting its requested compensatory or punitive damages and had not tied either amount to the conduct of any remaining defaulted defendant. The court stated that the $345,000 compensatory-damages figure appeared to be the amount of a cash deposit that the plaintiff allegedly received from McKnight and distributed according to McKnight’s instructions. According to the order, that money did not belong to the plaintiff, so the disbursement did not itself show that the plaintiff was damaged.
The court also noted that the plaintiff alleged that H&J threatened to sue it in the United Kingdom but did not allege that H&J actually sued or that the plaintiff paid $345,000, or any other amount, to H&J or another defendant. The order further stated that the plaintiff’s default papers did not connect the $345,000 request to a disciplinary action allegedly filed in New York by Fox and Omomo, or to any remaining defaulted defendant. H&J, Fox, and Omomo were described in the order as defendants whose claims or disputes with the plaintiff had been settled.
Disposition
The April 14, 2022 conference was adjourned indefinitely. The order extended the deadline and provided instructions for the future default-judgment papers; it did not enter a default judgment or award damages.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.