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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: August 17, 2016

Inquest Required in Default if Insufficient Evidence of Damages

On August 3, 2016, Justice Bransten of the New York County Commercial Division issued a decision in At Last Sportswear, Inc. v. North America Textile, Co., LLC, 2016 NY Slip Op. 31492(U), ordering an inquest to determine the damages of a plaintiff that obtained a default judgment, explaining:

At Last has failed to substantiate the amount of damages sought. When a defendant defaults on the action, it is deemed to have admitted all traversable allegations in the complaint, including the basic allegation of liability, but does not admit the plaintiff’s conclusion as to damages. Here, since Plaintiff has not attached evidence substantiating the amount of damages that it alleges against Defendant Fortunex, a damages inquest is thus necessary to calculate the amount of damages that Defendant Fortunex Limited owes Plaintiff.

(Internal quotations and citations omitted).

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