Assure Global, LLC v. Anderson

District Court, S.D. New York·Decided June 2, 2025·No. 1:21-cv-05785·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

ASSURE GLOBAL, LLC d/b/a WESHIELD,

Plaintiff,

CIVIL ACTION NO. 21 Civ. 5785 (LJL) (SLC) -v-

REPORT AND RECOMMENDATION

AARON ANDERSON and AXXEUM, LLC,

Defendants.

SARAH L. CAVE, United States Magistrate Judge. TO THE HONORABLE LEWIS J. LIMAN, United States District Judge: I.INTRODUCTION Plaintiff Assure Global, LLC d/b/a WeShield (“Assure”) alleges that Defendants Aaron Anderson (“Mr. Anderson”) and Axxeum, LLC (“Axxeum,” with Mr. Anderson, “Defendants”) breached a contract to sell Assure nitrile gloves of a particular thickness and quality. (See ECF Nos. 1 (the “Complaint”); 33 (the “FAC”); 74 (the “SAC”)). Defendants failed to answer, move against, or otherwise oppose any of the Complaint, FAC, or SAC, and efforts to settle the case were unsuccessful. (See ECF Nos. 66–68). Accordingly, on August 1, 2024, Assure moved for default judgment (ECF Nos. 75–77), which the Honorable Lewis J. Liman granted on January 16, 2025 as to liability and denied with respect to damages. (ECF No. 81 (the “Jan. 16 Order”)). See Assure Global, LLC v. Anderson, 763 F. Supp. 3d 476 (S.D.N.Y. Jan. 16, 2025). Following his issuance of the Jan. 16 Order, Judge Liman referred this matter to the undersigned for settlement and an inquest as to damages. (See ECF No. 82). At the Court’s direction (see ECF No. 84), Assure filed Proposed Findings of Fact and Conclusions of Law (ECF No. 85 (the “Proposed Findings”)), supported by a declaration from Amy Bove, a principal of Assure (ECF No. 85-1 (the “Bove Declaration”)); a screenshot of the docket,

showing that Assure paid a $402.00 filing fee (ECF No. 85-2 (the “Filing Fee Receipt”)); invoices showing the prices Assure paid for service of process (ECF Nos. 85-3 – 85-4 (the “Invoices”)); and attorney billing records (ECF No. 85-5 (the “Billing Records,” with the Proposed Findings, Bove Declaration, the Filing Fee Receipt, the Invoices, and the Billing Records, the “Damages Submission”)). (ECF Nos. 85; 85-1 – 85-4). At the Court’s direction due to deficiencies in the

Damages Submission, Assure also filed a supplemental declaration from Amy Bove (the “Second Bove Declaration”) (ECF No. 90) attempting—unsuccessfully, as we explain below—to correct the deficiencies the Court had identified. Having reviewed the Damages Submission and the Second Bove Declaration, and for the reasons set forth below, we respectfully recommend that no damages be awarded, but that Assure recover costs in the amount of $1,108.10.

II.BACKGROUND Judge Liman summarized the factual and procedural background in the Jan. 16 Order, so we provide only the background necessary for the inquest on damages. See Assure Global, 763 F. Supp. 3d at 480–82. A. Factual Background 1. The Parties

Assure is a New York limited liability corporation that “trades in personal protection equipment.” (ECF Nos. 74 ¶¶ 4, 11; 85-1 ¶ 5). It has five members: Michael Sinensky (“Mr. Sinensky”), Erika London, Amy Bove, Katharine Harris, and Roman Vintfeld. (ECF No. 74 ¶ 5). Axxeum—whose sole member is Mr. Anderson—is a Pennsylvania limited liability corporation. (ECF No. 74 ¶¶ 7–8).

2. The Agreement On November 20, 2020, in a WhatsApp group chat including Mr. Anderson (the “Group Chat”), Mr. Sinensky solicited “five hundred thousand Ammex 6 mil Thick Industrial Nitrile Gloves.” (ECF No. 85-1 ¶ 5). In response, Mr. Anderson provided an address and Axxeum’s bank information. (ECF No. 74-1 at 1). Assure then generated a purchase order that specified

the quantities of each glove size to be purchased, listing a price of thirteen cents per glove, for a total of $65,000.00. (ECF No. 74-2). Axxeum then sent Assure an invoice for “500 Cases of black nitrile [gloves]” for the same price (ECF No. 74-3), after which Assure wired Axxeum the $65,000.00. (ECF No. 74-4). Mr. Sinensky then directed Jared Paul, an apparent associate or employee of Assure, to arrange transport of the gloves from Defendants’ warehouse to Assure. (ECF No. 74-1 at 2).

Behind the scenes, Mr. Paul contacted Whitehorse Freight, a shipping company, which agreed to pick up and deliver the gloves for $850.00. (See ECF No. 74-7 at 2). This shipment was memorialized in an invoice (ECF No. 74-7 at 1) and a bill of lading (ECF No. 74-5), each dated November 25, 2020, which was the date on which the shipment occurred. 3. Problems with the Shipment On November 30, 2020, Assure provided Mr. Anderson an accounting of the items in the

shipment, which was missing 160,000 gloves. (ECF No. 85-1 ¶¶ 11–12). Assure “had the warehouse stay late” on the night of November 30, 2020, “to confirm these counts and the products” and, subsequently informed Mr. Anderson that “[n]one of the[] gloves [we]re 6 mil like [they expected].” (Id. ¶ 13). Assure then told Mr. Anderson that they wanted to “return everything [except] the aurelia robusts[,]” which already “went out.” (Id.) After a back and forth,

however, Mr. Sinensky agreed to keep the gloves as delivered (ECF No. 74-1 at 3), and Mr. Anderson agreed to ship the missing 160,000 gloves. (Id.) In the following weeks, Assure repeatedly followed up with Mr. Anderson, who failed to ship the missing gloves, so Assure requested a refund of the $20,800.00 it had paid for them. (See ECF No. 74-1 at 3–10). Assure did not receive its requested refund (id. at 8–11), and resold only $7,498.37 of the non-

conforming gloves it received from Axxeum. (ECF No. 74 ¶ 37). B. Procedural Background1 On February 16, 2025, Assure filed the SAC, seeking to pierce Axxeum’s corporate veil and raising claims for breach of contract, breach of the covenant of good faith and fair dealing, fraud, unjust enrichment, and conversion. (ECF No. 74 at 6–13). On August 1, 2024, Assure filed the Third MDJ (ECF No. 75), which Judge Liman granted as to liability but denied as to damages. See

Assure Global, 763 F. Supp. 3d at 488–90. As to the latter issue, he found that “[t]he bulk of [Assure’s] damages claim [was] legally deficient” and identified three specific defects: 1. An improper claim that Assure “should receive back the full price it paid for all of the gloves it did not receive and of the inferior gloves it received and failed to resell, without accounting for any of the value of the inferior gloves it accepted but failed to resell.”

1 A full recitation of this case’s procedural history is not necessary to perform the damages inquest. We therefore focus only on the orders and submissions most relevant to the inquest, such as the filing of the SAC and Third Motion for Default Judgment (“MDJ”). 2. Double counting of “the $20,800 [Assure] paid for the 160,000 gloves it never received.” 3. Requesting attorneys’ fees without identifying any statute or contractual provision

permitting recovery. Id. at 489-90 (the “Damages Defects”). Concluding that Assure’s submissions “d[id] not allow [him] to calculate damages with reasonable certainty” (id.), Judge Liman referred the matter to the undersigned for settlement and to conduct an inquest. (ECF No. 82). Because the order of reference included settlement, on January 31, 2025, the

undersigned scheduled and held a telephonic conference regarding settlement (the “Jan. 31 Conference”). (See ECF No. 83; ECF min. entry Jan. 31, 2025). Assure appeared at the Jan. 31 Conference, but Defendants did not. (See ECF min. entry Jan. 31, 2025). Accordingly, the same day, the Court issued a scheduling order directing Assure to file the Damages Submission. (ECF No. 84). In the Order, we cited the portion of the Jan. 16 Order that identified the Damages Defects and reminded Assure that it must “support all factual assertions by affidavit and/or other

evidentiary material.” (Id. at 1). On February 27, 2025, Assure filed the Damages Submission (ECF No.

Free access — add to your briefcase to read the full text and ask questions with AI

Assure Global, LLC v. Anderson, (S.D.N.Y. 2025).

Assure Global, LLC v. Anderson (Assure Global, LLC v. Anderson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Schipani v. McLeod
541 F.3d 158 (Second Circuit, 2008)
Silge v. Merz
510 F.3d 157 (Second Circuit, 2007)
House v. Kent Worldwide MacHine Works, Inc.
359 F. App'x 206 (Second Circuit, 2010)
Thomas v. Arn
474 U.S. 140 (Supreme Court, 1986)
Wood v. Milyard
132 S. Ct. 1826 (Supreme Court, 2012)
McCoy v. Goldberg
810 F. Supp. 539 (S.D. New York, 1993)
Hounddog Productions, L.L.C. v. Empire Film Group, Inc.
826 F. Supp. 2d 619 (S.D. New York, 2011)
Getty Images (Us) Inc. v. Advernet, Inc.
797 F. Supp. 2d 399 (S.D. New York, 2011)
Bi-Economy Market, Inc. v. Harleysville Insurance
886 N.E.2d 127 (New York Court of Appeals, 2008)
The Topps Co., Inc. v. Cadbury Stani SAIC
380 F. Supp. 2d 250 (S.D. New York, 2005)
Milligan Contracting Inc. v. Mancini Associates Inc.
174 A.D.2d 136 (Appellate Division of the Supreme Court of New York, 1992)