Farmers Insurance Company, Inc. v. Quality Truck & Trailer Repair

CourtDistrict Court, W.D. Texas
DecidedOctober 23, 2020
Docket3:20-cv-00126
StatusUnknown

This text of Farmers Insurance Company, Inc. v. Quality Truck & Trailer Repair (Farmers Insurance Company, Inc. v. Quality Truck & Trailer Repair) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers Insurance Company, Inc. v. Quality Truck & Trailer Repair, (W.D. Tex. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS EL PASO DIVISION

FARMERS INSURANCE § COMPANY, INC., § Plaintiff, § § v. § EP-20-CV-126-PRM § QUALITY TRUCK & § TRAILER REPAIR, § Defendant. §

MEMORANDUM OPINION AND ORDER GRANTING MOTION FOR DEFAULT JUDGMENT

On this day, the Court sua sponte considered the above-captioned cause. For the reasons that follow, the Court concludes that default judgment should be entered in Plaintiff Farmers Insurance Company, Inc.’s favor. I. PROCEDURAL AND FACTUAL BACKGROUND This is a negligence action arising from a welding fire. Plaintiff Farmers Insurance Company, Inc. [hereinafter “Plaintiff”] brings this action as subrogee of Nandkishor and Geeta Parmar-Patel [hereinafter “Insured”]. First Am. Compl. 1, May 7, 2020, ECF No. 4 [hereinafter “Complaint”]. Plaintiff alleges that it provided the Insured with a policy of insurance that covered the Insured’s personal property [hereinafter

“Property”]. According to Plaintiff, the Insured hired Bekins Moving Company [hereinafter “Bekins”] to transport the Property from “their residence in San Ramon, California to their new residence located in

Houston, Texas.” Id. ¶ 8. Plaintiff alleges that “Bekins transported the Property by loading it into a tractor-trailer rig.” Id. ¶ 9

While en route to the destination, Bekins’ driver stopped in Texas after “notic[ing] something loose on the trailer” carrying the Property. Id. ¶ 10. Thereafter, on July 16, 2019, “the Bekins driver drove the

tractor-trailer to Quality Truck & Trailer Repair” [hereinafter “Defendant”] and “requested repair/welding to the roof of the [t]railer.” Id. ¶ 11.

Plaintiff further alleges that on July 17, 2019 “a welder working for [Defendant]” was performing the requested repairs when he noticed “smoke and fire coming from the [t]railer’s roof.” Id. ¶¶ 13–14. After

attempting to extinguish the fire himself, “[t]he welder contacted the El Paso Fire Department who, upon arrival utilized a type of foam to extinguish the fire.” Id. ¶¶ 15, 17. Defendant then moved the tractor-trailer to a different part of its worksite, id. ¶ 18, but did not remove the Property from the trailer “subsequent to the [i]nitial [f]ire,”

id. ¶ 21. As a result, Plaintiff alleges that, at approximately 4:00 a.m. on July 18, 2019, the fire “rekindled causing a total loss of the [Insured’s] Property contained within the [t]railer.” Id. ¶¶ 19, 22.

Plaintiff avers that it paid for “damages to the Property” “[p]ursuant to its policy of insurance with the Insured[s]” and that

Plaintiff “is therefore subrogated to that amount.” Id. ¶ 23. Accordingly, Plaintiff brings this action as subrogee of the Insured. Id. at 1.

Plaintiff alleges that Defendant “had a duty to protect the [Insured’s] Property from being destroyed” and “to act in a reasonable and prudent manner with regard to welding on the [t]railer.” Id. ¶ 25.

Additionally, Plaintiff alleges that Defendant had a duty to remove the Insured’s “Property from the [t]railer in a reasonable and prudent manner prior to welding.” Id. ¶ 26.

Plaintiff further alleges that Defendant failed to discharge these duties, id. ¶ 27, and that this failure was the “direct and proximate cause” of the damages it sustained, id. ¶ 28. Plaintiff contends that the “welding event ignit[ed] the Property located within the trailer” and caused the initial fire. Id. ¶ 20. Plaintiff further contends that

Defendant failed to remove “the Property that remained in the [t]railer” and, as a result, caused the fire to re-ignite. Id. ¶ 21. As a result of the “total loss of the Property contained within the

Trailer,” id. ¶ 19, Plaintiff alleges that “the Insured suffered damages in excess of $500,000.00,” id. ¶ 22, and that Plaintiff “is therefore

subrogated to that amount,” id. ¶ 23. Plaintiff filed its Complaint on May 6, 2020. On May 7, 2020, summons was issued as to Defendant. Summons Civil Action, May 7,

2020, ECF No. 3 [hereinafter “Summons”]. Therein, Defendant was apprised that a response was required “[w]ithin 21 days after service” pursuant to the Federal Rules of Civil Procedure.” Id. at 1. Defendant

was further apprised that a “fail[ure] to respond” would result in “judgment by default . . . be[ing] entered . . . for the relief demanded in the complaint.” Id.

On July 30, 2020, Plaintiff filed its “Return of Service” (ECF No. 5). Therein, Leticia Briano, a process server, declares under penalty of perjury that on July 24, 2020 a copy of the Complaint and Summons was served on “Fernando who represented that they were authorized to accept service on behalf of [Defendant].” Return of

Service 1. Defendant did not file a response within twenty-one days of receiving service of process. On August 24, 2020, the Court entered its “Order” (ECF No. 7),

directing Plaintiff to request an entry of default against Defendant or dismiss the cause. Thereafter, on August 27, 2020, Plaintiff filed its

“Motion for Entry of Default” (ECF No. 8) [hereinafter “Motion”]. In support of its Motion, Plaintiff filed an affidavit [hereinafter “Affidavit”] signed by Jonathan Strybos, a subrogation representative employed by

Plaintiff. Mot. Ex. A, at 1. Plaintiff also included a document [hereinafter “Payment Log”] memorializing a payment for $203,337.21 from Plaintiff to the Insured that occurred on October 28, 2019. Mot.

Ex. B, at 1. On September 8, 2020, the Clerk entered Defendant’s default. Entry of Default, Sep. 8, 2020, ECF No. 9. In its Motion, Plaintiff states that “Defendant has failed to file an

answer or otherwise respond to [the] Complaint,” as of August 27, 2020. Mot. ¶ 4. Plaintiff further states that “[p]ursuant to its policy of insurance with the [Insured], [Plaintiff] has paid” $203,337.21 “for damages to the Property as a result of the Defendant’s negligence.” Mot. ¶ 7; see also Aff. ¶ 4; Payment Log 1. Plaintiff states it “resolved a

portion of [its] claim with . . . [Bekins] in the amount of $75,320.” Mot. ¶ 7; see also Aff. ¶ 5. Thus, after reducing the amount paid out to the Insured by the amount recovered from Bekins, Plaintiff contends that

“$128,017.21 [remains] due and owing from Defendant.” Mot. ¶ 7; Aff. ¶ 5.

As of the date of this Order, Defendant has not entered an appearance in the above-captioned cause. II. LAW AND ANALYSIS

A. Default Judgment Rule 55 governs the procedure by which a party may seek entry of party’s default and a default judgment. N.Y. Life Ins. Co. v. Brown, 84

F.3d 137, 141 (5th Cir. 1996). If a party “against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend,” and “that failure is shown by affidavit or otherwise, the clerk must enter the

party's default.” Fed. R. Civ. P. 55(a). Once a party’s default has been entered, as default judgment may be requested pursuant to Rule 55(b). Fed. R. Civ. P. 55(b). The Fifth Circuit has summarized the process set forth by Rule 55:

A default occurs when a defendant has failed to plead or otherwise respond to the complaint within the time required by the Federal Rules. An entry of default is what the clerk enters when the default is established by affidavit or otherwise . . . . After defendant's default has been entered, plaintiff may apply for a judgment based on such default. This is a default judgment.

N.Y. Life, 84 F.3d at 141.

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