In a February 15, 2011 decision by Justice Warshawsky, the Court granted the motion of plaintiff for a default judgment against two of the defendants. Plaintiff and defendant Sand Lane Title Agency (“Sand Lane”) entered into an agreement in 2005, by which Sand Lane agreed to issue title insurance policies on behalf of plaintiff. Defendant Aleksandr Polyakov was the manager and officer of Sand Lane. Years later, plaintiff sued Sand Lane for breaching the parties’ agreement, namely, by failing to record numerous deeds, mortgages and other instruments, and failing to account for trust funds. Plaintiff alleges that Polyakov exercised complete dominion and control over Sand Lane, and is thus entitled to pierce the corporate veil. Justice Warshawsky found that plaintiff established proper service on defendants, and therefore was entitled to a default. Since plaintiff sought entry of a default judgment on the various claims, i.e., breach of contract, breach of fiduciary duty, conversion, negligence, fraud, indemnification, equitable accounting, constructive trust, injunction, piercing the corporate veil, account stated and attorney’s fees, the court considered each.
After considering the allegations as to each of the claims, the court granted a default on all except for conversion, fraud, indemnity, constructive trust and account stated, and directed the filing of a Note of Issue for an inquest on damages and fees. As to the conversion and constructive trust claims, the court denied the motion since they appeared duplicative of the breach of contract claim. Turning to the fraud claim, the court dismissed that cause of action for lack of particularity required by CPLR 3016. The court next dismissed the indemnity claim on the basis that the parties’ agreement did not provide for the express indemnity sought. Finally, the court dismissed the account stated claim on the ground that there was no evidence of the rendering of accounts with balances due.
Washington Title Insurance Co. v. Sand Lane Title Agency, Sup Ct, Nassau County, February 15, 2011, Warshawsky, J, Index No. 021167/2009.