Starr Indemnity & Liability Insurance Company v. Ross Island Sand & Gravel Co.

Summary

The United States District Court for the Eastern District of California adopted the magistrate judge’s findings and recommendations and granted Starr Indemnity & Liability Insurance Company’s motion for default judgment. The court entered judgment against Ross Island Sand & Gravel Co. for $1,049,077, consisting of $1,010,000 in damages and $39,077 in prejudgment interest, plus post-judgment interest under 28 U.S.C. § 1961. The action sought enforcement of a settlement agreement from an earlier insurance-related case.

Holdings

1. The court had subject matter jurisdiction based on diversity of citizenship and personal jurisdiction over defendant because the underlying settlement agreement was negotiated and entered into following mediation conducted in the district.
2. Default judgment should be entered where the defendant was properly served, failed to appear, and the Eitel factors favor judgment for the plaintiff.
3. Plaintiff was entitled to $1,010,000 in damages, $39,077 in prejudgment interest, and post-judgment interest at the applicable statutory rate under 28 U.S.C. § 1961.

Questions Presented

1. Whether the court had subject matter jurisdiction based on diversity of citizenship and personal jurisdiction over defendant.
2. Whether plaintiff was entitled to default judgment under the Eitel factors.
3. Whether plaintiff was entitled to damages, prejudgment interest, and post-judgment interest under the settlement agreement and applicable law.

Disposition

other