Assure Global, LLC v. Anderson

Background

Assure Global moved for a default judgment against Aaron Anderson and Axxeum, LLC on the breach-of-contract claim in its amended complaint. Neither defendant responded to the motion. At the June 8, 2023 hearing, counsel appeared for Assure Global, Anderson appeared without counsel, and no counsel appeared for Axxeum.

Court’s Analysis

The court stated that the amended complaint and relevant facts supported a default judgment against Axxeum on the contract claim. But the court declined to enter that judgment at that time. In a case with multiple defendants, entering judgment against a defendant who defaulted while another defendant continues to litigate can create inconsistent judgments. Here, Anderson’s liability allegedly depended in part on Axxeum’s underlying liability. If Axxeum had not breached the insurance policy, Anderson could not be liable as Axxeum’s alter ego. Anderson therefore could challenge whether Axxeum breached the policy, and a judgment against Anderson could conflict with a default judgment against Axxeum.

The court also stated that the facts did not support Assure Global’s request for an entry of default against Anderson on the contract claim under an alter-ego theory.

Ruling and Next Step

The court found that a default judgment against Axxeum was premature and deferred entering judgment on liability and damages. It directed Assure Global to inform the court by June 21, 2023, whether it intended to continue litigating the case against Anderson.