Williams v. Firequench, Inc.

Background

The court had entered a default judgment on liability on December 16, 2021, in favor of Shatoya Williams against Firequench Inc. d/b/a Firetronics. The opinion states that Firequench did not answer or otherwise appear, even though it was validly served at the address on file with the New York Secretary of State. A magistrate judge later conducted an inquiry into damages and recommended awarding Williams $142,421.45.

Firequench appeared for the first time on September 1, 2022, and moved on September 9, 2022, to vacate, meaning set aside, the default judgment. The opinion addresses how the court would proceed with that motion; it does not state that the court granted or denied the motion in this order.

Order

The court stated that it would condition any vacatur of the default judgment on Firequench’s payment of all fees and costs that Williams reasonably incurred in pursuing the default judgment and the damages inquiry. The court reasoned that those expenses would not have been incurred if Firequench had updated its address with the Secretary of State as required. The potentially reimbursable expenses included work preparing Williams’s proposed findings of fact, conclusions of law, and supporting filings.

The court directed Williams’s counsel to submit, by October 11, 2022, a sworn declaration accounting for the reasonably incurred fees and costs. If Firequench continued to seek vacatur, it had to submit by October 18, 2022, a sworn declaration stating that it would promptly reimburse those fees and costs if the default judgment were vacated. The court stated that it would deny the motion if Firequench refused to bear those costs, and would give the motion prompt and full consideration if Firequench agreed.

The court also directed Firequench to explain in its declaration how it learned about the lawsuit and the default judgment. Judge Paul A. Engelmayer therefore required additional submissions before deciding whether to vacate the default judgment.