MADELINE COX ARLEO, District Judge.
Plaintiff is an Illinois corporation. Complaint ¶ 1, ECF No. 1. Defendant is a New Jersey limited liability company with its principal place of business in New Jersey.
ZAICI issued Option a workers' compensation insurance policy ("Policy") under the policy number WC 5714419-00 that covered the period from May 23, 2015 to May 23, 2016.
On or around August 31, 2016, ZAICI conducted an audit of Option and determined that Option owed an additional $165,709 in insurance premiums. Compl. ¶ 12; Totzke Aff., Ex. C, ECF No. 6-5. On September 21, 2016, ZAICI sent Option a letter informing Option that the $165,709 was overdue and demanding the unpaid premium by October 10, 2016.
Option made two installment payments of $5,000—one on January 30, 2017 and the other on February 6, 2017—toward the final premium payment. Compl. ¶ 15; Totzke Aff., Ex. D, ECF No. 6-6. Option has failed to remit any remaining portion of the final payment. Compl. ¶ 16.
Defendant was properly served on April 20, 2017. ECF No. 4. Defendant has not appeared in this case nor filed an answer or otherwise pled in response to the Complaint. ECF No. 6-1 ¶ 5. On May 12, 2017, pursuant to Fed. R. Civ. P. 55(a), Plaintiff requested an entry of default by the Clerk of Court as to Defendant, and the Clerk entered default on May 15, 2017. ECF No. 5; ECF No. 6-1 ¶ 6-7.
Plaintiff's Complaint contains four largely redundant counts. In Count One, for breach of contract as to the Policy, Plaintiff seeks payment of the outstanding $155,709 as well as attorney fees, costs, and interest. In Count Two, for breach of contract as to the payment agreement, Plaintiff seeks payment of the same $155,709 as well as attorney fees, costs, and interest. In Count Three, for unjust enrichment, Plaintiff seeks payment of the same outstanding $155,709 as well as attorney fees, costs, and interest. In Count Four, for "account stated," Plaintiff seeks payment of the same outstanding $155,709 as well as attorney fees, costs, and interest.
"The district court has the discretion to enter default judgment, although entry of default judgments is disfavored as decisions on the merits are preferred."
In addition, prior to granting default judgment, the Court must make explicit factual findings as to: (1) whether the party subject to the default has a meritorious defense; (2) the prejudice suffered by the party seeking default judgment; and (3) the culpability of the party subject to default.
This Court has subject matter jurisdiction over this dispute by virtue of diversity jurisdiction under 28 U.S.C. § 1332 because Plaintiff is a citizen of Illinois with a principal place of business in Illinois, Defendant is a citizen of New Jersey, and the amount in controversy exceeds $75,000. Compl. ¶ 4. The Court has personal jurisdiction over Option because Option is a New Jersey citizen.
As Defendant has not filed an Answer or otherwise responded to the Complaint, the Court must accept the truthfulness of Plaintiff's well-pled allegations as to liability.
To state a claim for breach of contract in New Jersey, a plaintiff must allege: (1) the existence of a valid contract between the parties; (2) that Defendant breached the contract; and (3) that Plaintiff suffered damages due to the breach. See
Next, the Court must consider: (1) whether the party subject to the default has a meritorious defense; (2) the prejudice suffered by the party seeking default judgment; and (3) the culpability of the party subject to default.
ZAICI has requested a default judgment in the amount of $155,709. Totzke Aff. ¶ 13, This amount is calculated as of February 8, 2017 and consists of the unpaid final audit premium of $165,709, minus the two installment payments of $5,000.00 each, one made on January 30, 2017 and the other on February 6, 2017.
Based on the foregoing, judgment shall be entered against Option Staffing Services, LLC for $155,709.00. Plaintiff may file an interest calculation within thirty days. As Plaintiff has not provided a contractual basis for its request for attorney fees and costs, that request is
For the reasons set forth herein, ZAICI's motion for default judgment, ECF. No. 6, is