Southwind Risk Retention Group v. Sod of Central Florida, Inc., Robert Adams, and Dmytro Hryhorash

Summary

The United States District Court for the Middle District of Florida denied without prejudice Southwind Risk Retention Group’s amended motion for default judgment in a declaratory insurance coverage action. The court held that the complaint did not adequately establish the amount in controversy required for diversity jurisdiction because it relied on conclusory allegations and an underlying complaint seeking damages exceeding $50,000. The court permitted Southwind to file a renewed motion supported by evidence within twenty-one days and denied the earlier default-judgment motion as moot.

Holdings

1. A default judgment cannot be entered unless the pleadings provide a sufficient factual basis for the requested relief and establish the court's subject matter jurisdiction.
2. Southwind failed to establish that the amount in controversy exceeded $75,000 because it relied on a conclusory allegation and did not provide sufficient information about the underlying damages, coverage, or defense obligation.

Questions Presented

1. Whether Southwind was entitled to default judgment under Federal Rule of Civil Procedure 55(b).
2. Whether Southwind adequately alleged that the amount in controversy exceeded $75,000, exclusive of interest and costs, to establish diversity subject matter jurisdiction under 28 U.S.C. § 1332(a).

Disposition

other