Cara Mulson v. USAA Casualty Insurance Company

Summary

In this recommendation, the United States Magistrate Judge addresses Plaintiff Cara Mulson’s amended motion for default judgment against USAA Casualty Insurance Company in an insurance-coverage dispute. The court recommends entering default judgment on the breach-of-contract and Colorado insurance bad-faith claims, awarding $506,790.40 in damages and attorneys’ fees, with court costs to be taxed separately and post-judgment interest at eight percent per annum. The recommendation permits objections within 14 days of service.

Holdings

1. The Court found that subject-matter jurisdiction, personal jurisdiction, proper entry of default, and sufficient allegations establishing liability were satisfied; default judgment was therefore appropriate as to liability, subject to ascertainment of damages.
2. Plaintiff sufficiently demonstrated entitlement to $8,854 for electrical code upgrades and $9,159.14 for damaged personal-property replacement, for total breach-of-contract damages of $18,013.14.
3. Plaintiff sufficiently demonstrated that Defendant unreasonably delayed or denied payment of covered benefits and was entitled to double the relevant benefits under Colorado Revised Statutes § 10-3-1116(1), producing $36,026.28 in doubled breach-of-contract damages and $417,824.48 for the doubled appraisal award.
4. The Court recommended awarding $34,926.50 in reasonable attorney fees and post-judgment interest at eight percent per annum, compounded annually, while denying without prejudice a specific cost award and directing that court costs be taxed under the local rule.

Questions Presented

1. Whether default judgment should be entered after Defendant failed to plead or otherwise defend.
2. Whether Plaintiff established a valid breach-of-contract claim and a statutory claim under Colorado Revised Statutes §§ 10-3-1115 and 10-3-1116.
3. Whether Plaintiff's claimed insurance damages were ascertainable and supported by the policy and documentary evidence.
4. Whether Plaintiff was entitled to statutory double damages, attorney fees, court costs, and post-judgment interest.

Disposition

other