United States District Court, S.D. Georgia, Augusta Division
CHUBB CUSTOM INSURANCE COMPANY, as Subrogee of Wilkinson Real Estate Advisers, Inc., Plaintiff,
GREGORY EARL TORIAN, Defendant.
J. RANDAL HALL, District Judge.
Presently pending before the Court is Plaintiff's Amended Motion for Default Judgment. (Doc. 14.) For the reasons set forth below, Plaintiff's motion is GRANTED.
This case arises from a kitchen fire that ignited in Defendant's apartment on August 8, 2008. (Compl. ¶¶ 9, 10.) Defendant was a tenant of an apartment complex called Merrick Place Apartments ("the Property"), and occupied Apartment 10B located at 3188 Skinner Mill Road, Augusta, Georgia 30909. (Id. ¶ 6.) On August 8, 2008, Defendant left food on his stovetop to cook while he watched Barack Obama's acceptance speech at the Democratic National Convention. (Id. ¶¶ 10, 11.) At some point, Defendant returned to the kitchen to find flames "licking up onto the kitchen cabinets." (Id. ¶ 13.) With smoke accumulating in his apartment and unable to immediately put out the fire, Defendant fled his apartment and called 911. (Id. ¶¶ 14, 15.) The fire proceeded to spread throughout Unit 10B and into other units of the complex, ultimately causing substantial damage to the Property. (Id. ¶ 16.)
The Property was owned and operated by Wilkinson Real Estate Advisers, Inc. ("the Owner"), a Georgia corporation, and insured by Plaintiff under a policy issued to the Owner. (Id. ¶¶ 7, 8.) After the fire, the Owner made a claim on the policy for the damages sustained, and Plaintiff indemnified the Owner in the amount of $479, 223.06 according to the terms of the policy. (Id. ¶ 18, 19.) This amount includes both the cost of repair to the building and the loss of rents suffered while the building could not be occupied. (Id. ¶ 19.)
Under the terms of Defendant's Lease Agreement, he was obligated: (1) to reimburse the Owner for damage to the Property beyond normal wear and tear resulting from his occupancy of Apartment 10B (Id. ¶ 28, Ex. A ¶ 23.); (2) to maintain liability insurance for damages suffered as a result of Defendant's negligence (Id. ¶ 28, Ex. A ¶ 15); and (3) to indemnify the Owner for any loss incurred as a result of any act or omission on the part of Defendant (Id. ¶ 28, Ex. A ¶ 19). Defendant has failed to do any of these. (Id. ¶ 29.)
On May 8, 2013, Plaintiff filed suit alleging that Defendant was negligent and in breach of the Lease Agreement. (Doc. 1.) Defendant was served on May 30, 2013. (See Doc. 9.) Defendant failed to plead or otherwise respond to the Complaint. (Doc. 15.) Subsequently, Plaintiff filed its Amended Motion for Default Judgment on June 17, 2014, asserting that, pursuant to Federal Rule of Civil Procedure 55(b), the Court should enter a default judgment against Defendant on its negligence and breach of contract claims. (Doc. 14.)
"[D]efendant's default does not in itself warrant the court in entering a default judgment. There must be a sufficient basis in the pleadings for a judgment entered. The defendant is not held to admit facts that are not well-pleaded or to admit conclusions of law." Nishimatsu Constr. Co. v. Houston Nat'l Bank , 515 F.2d 1200, 1206 (5th Cir. 1975). A defendant, by his default, is only deemed to have admitted the "plaintiff's well-pleaded allegations of fact." Id . "[T]hree distinct matters [are] essential in considering any default judgment: (1) jurisdiction; (2) liability; and (3) damages." Pitts ex rel. Pitts v. Seneca Sports, Inc. , 321 F.Supp.2d 1353, 1356 (S.D. Ga. 2004).
The parties in this case are diverse and the amount in controversy exceeds $75, 000. Thus, the Court has subject matter jurisdiction over this matter pursuant to 28 U.S.C. § 1332. Moreover, this Court has personal jurisdiction over Defendant because he is a resident of Georgia.
Based on Plaintiff's allegations and the evidence in the record, the Court is satisfied that the well-pleaded allegations of the Complaint state a cause of action for breach of contract against Defendant and that there is a substantive, sufficient basis in the pleadings for the relief Plaintiff seeks. The evidence submitted by Plaintiff includes the Lease Agreement (Compl., Ex. A) and the Declaration of Laura Prickett, the Regional Recovery Claims Examiner for Plaintiff (Doc. 14, Ex. 1 ("Prickett Decl.")), which includes the payment records associated with this claim.
Under Georgia law, the elements for a breach of contract claim are: "(1) breach and the (2) resultant damages (3) to the party who has the right to complain about the contract being broken." Norton v. Budget Rent A Car Sys., Inc. , 307 Ga.App. 501, 502 (2010). Here, the record reveals that Defendant breached the terms of the Lease Agreement. Specifically, the Lease Agreement required Defendant: (1) to reimburse the Owner for damage to the property beyond normal wear and tear (Compl., Ex. A ¶ 23); (2) to maintain liability insurance (id. ¶ 15); and (3) to indemnify the Owner for any losses incurred as a result of Defendant's conduct (id. ¶ 19). By virtue of his default, Defendant has admitted that he failed to reimburse Plaintiff or the Owner for damage to the Property ...