Harleysville Insurance Company v. Certified Testing Laboratories Inc.
- Rochon
- 1:22-cv-02764
- U.S. District Court · Southern District of New York
- 3
Harleysville v. Certified Testing Laboratories: Judge Rochon granted default judgment, declaring no insurance duties and no third-party policy rights.
Harleysville Insurance Company, Certified Testing Laboratories Inc., and Edgar Tobar. The judgment relieved Harleysville of a duty to defend or indemnify Certified, allowed it to withdraw from its 50% defense contribution, and denied Tobar third-party rights under Certified’s policy for the underlying lawsuit.
What happened
In Harleysville Insurance Company v. Certified Testing Laboratories Inc., Harleysville sought a declaration that it did not have to defend or cover Certified in a pending personal-injury lawsuit. Edgar Tobar, who brought that underlying lawsuit, was also named as a defendant in this case.
Certified and Tobar were served but did not answer or appear. After the court clerk entered their defaults, Harleysville asked for default judgment. A magistrate judge recommended granting that request, and no party objected.
Judge Jennifer L. Rochon reviewed the recommendation for clear error, adopted it in full, and granted Harleysville’s motion for default judgment. The judgment declares that Harleysville has no duty to defend or indemnify Certified, may stop its 50% contribution to Certified’s defense, and that Tobar has no third-party rights under Certified’s policy for any award or judgment related to the underlying lawsuit.
The detailed version
- Harleysville Insurance Company v. Certified Testing Laboratories Inc. · No. 1:22-cv-02764
- Rochon
- July 7, 2023
Background
Harleysville Insurance Company brought this action seeking a declaratory judgment—a court ruling defining the parties’ legal rights—concerning an insurance policy issued to Certified Testing Laboratories Inc. Harleysville asked the court to declare that it had no duty to defend or indemnify Certified in connection with a pending personal-injury lawsuit in New York State court. Edgar Tobar was the plaintiff in that underlying lawsuit and was also named as a defendant in this action.
Harleysville served Certified and Tobar. Neither defendant filed an answer or otherwise appeared. After their deadlines to answer expired, the Clerk of Court entered a certificate of default. Harleysville then moved for default judgment.
Report and Recommendation
Magistrate Judge Robert W. Lehrburger recommended granting Harleysville’s motion for default judgment. The Report warned the parties that objections had to be filed within 14 days and that failing to object could waive further review. Harleysville served the Report, but no party filed an objection.
Because there were no timely objections, the Court reviewed the Report for clear error on the face of the record. Judge Rochon found that the Report’s reasoning and conclusions were sound, supported by the facts and law, and not clearly erroneous.
Ruling
The Court adopted the Report in its entirety and granted Harleysville’s motion for default judgment. The Clerk was directed to enter default judgment against Certified and Tobar and in favor of Harleysville, declaring that:
- Harleysville has no duty to defend or indemnify Certified in connection with the underlying lawsuit; - Harleysville may withdraw from its 50% contribution to Certified’s defense; and - Tobar has no third-party rights, as a beneficiary or otherwise, under the policy issued to Certified for any award or judgment related to the allegations in the underlying lawsuit.
The Court also stated that the defendants’ failure to make timely objections, despite the notice provided in the Report, precludes appellate review of the decision.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.