COURT OF CHANCERY

OF THE

STATE OF DELAWARE

KATHALEEN ST. JUDE MCCORMICK

CHANCELLOR

LEONARD L. WILLIAMS JUSTICE CENTER

500 N. KING STREET, SUITE 11400

WILMINGTON, DELAWARE 19801-3734

March 2, 2023

Lynn A. Kelly, Esquire

Delaware Department of Justice

4435 N. Market Street, 3rd Floor

Wilmington, DE 19802

Drew’s Tree Service LLC

c/o Andrew Massarelli, Jr.

P.O. Box 16

Magnolia, DE 19962

Re: Delaware Dept. of Labor v. Drew’s Tree Service, LLC,

C.A. No. 2022-0081-SG

Dear Litigants:

Petitioner Delaware Department of Labor (“Petitioner”) has moved pursuant to 

Court of Chancery Rules 12 and 55(b) for default judgment against Respondent Drew’s 

Tree Service LLC (“Respondent”). I have transferred this matter to myself for the limited 

purpose of resolving the pending motion. The motion is granted.

This action arises from Respondent’s alleged failure to pay workers’ compensation 

insurance. Petitioner alleges that the Respondent does business in the state of Delaware,1

that it employs workers in this state,2and that the Respondent has not complied with the 

Delaware Department of Labor’s May 28, 2021 subpoena requiring Respondent to obtain 

worker’s compensation insurance and provide Petitioner proof of such insurance.3 On 

August 4, 2021, the Industrial Accident Board (“IAB”) held a hearing regarding 

1 Pet’r’s Verified Pet. Injunction Order (“Pet.”) ¶ 10, Dkt. No. 1.

2

Id. ¶ 11.

3

Id. ¶ 19.
C.A. No. 2022-0081-SG

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Respondent’s non-compliance with the subpoena.4 As a result of the hearing, the IAB 

issued an order on August 4, 2021 (the “Order”).5

The IAB found that the Respondent was in violation of 19 Del. C. § 2374(a), which 

requires compliance with 19 Del. C. §§ 2372–73, and ordered the Respondent to 

immediately obtain workers’ compensation insurance and submit proof of such insurance 

by September 4, 2021.6 The Order provided that non-compliance would result in referral 

“back to the Industrial Accident Board for civil penalties per § 2374(e).”7 The Petitioner

did not provide proof of insurance, so the matter was referred to the Department of Justice 

to file this Petition.8

Petitioner filed this action on January 25, 2022.9 Respondents failed to appear or 

answer.10 On March 1, 2022, Petitioner moved for default judgment.11 On September 16, 

2022, Vice Chancellor Glasscock issued an order scheduling a hearing on the motion for 

4

Id. ¶ 21.

5

Id. ¶ 23.

6

Id. Ex. C.

7

Id. Ex. C.

8

Id. ¶¶ 27–28.

9 See id.

10 After receiving a letter and a copy of the Petition from Mr. Massarelli, the Court informed 

Mr. Massarelli that he could not appear pro se on behalf of his limited liability company 

Drew’s Tree Service. Letter to Mr. Massarelli Regarding Return of Documents from the 

Court, Dkt. No. 5. 

11 Mot. Default J., Dkt. No. 6.
C.A. No. 2022-0081-SG

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default judgment to be held on October 26, 2022.12 However, on October 24, 2022, 

Petitioner informed the Court that it was unable to obtain service and requested that the 

hearing be continued.13 Vice Chancellor Glasscock continued the hearing.14 

Respondent’s owner and registered agent, Andrew Massarelli, Jr., did not receive 

word that the hearing was cancelled and appeared at the courthouse on October 26, 2022. 

While present, he provided the Court with his updated phone number and mailing 

address.15 On November 16, 2022, the Vice Chancellor rescheduled the hearing on the 

motion for default judgment for January 6, 2023.16 

The Vice Chancellor held the January 6th hearing by Zoom.17 Mr. Massarelli 

attended, but the Respondent was not represented by counsel.18 While individual litigants 

may appear pro se under Delaware law, entities, may not.19 The Vice Chancellor informed 

Mr. Massarelli that because he is not a licensed attorney, he cannot represent the 

12 Order for Hr’g, Dkt. No. 9. 

13 Letter, Dkt. No. 17. 

14 Order, Dkt. No. 18. 

15 Resp’t’s Updated Mailing Address and Phone Number, Dkt. No. 20. 

16 Letter to Counsel and Litigant, Dkt. No. 21.

17 Judicial Action Form, Dkt. No. 23. 

18 Id.

19 See Harris v. RHH P’rs, LP, 2009 WL 891810, at *2 (Del. Ch. Apr. 3, 2009) (citing 

Transpolymer Indus. v. Chapel Main Corp., 582 A.2d 936 (Del. 1990)).
C.A. No. 2022-0081-SG

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Respondent in proceedings in the Court of Chancery.

20

 Mr. Massarelli indicated that he 

wished to hire an attorney to represent the Respondent and to contest the Petition. In the 

interest of litigating claims fully,21 the Vice Chancellor gave Mr. Massarelli twenty days 

to cause counsel to enter an appearance on Respondent’s behalf and continued the hearing 

until January 26, 2023.22 January 26, 2023 came and went. Respondent did not cause an 

attorney to enter an appearance on the Respondent’s behalf. 

“The effect of a default in answering . . . is to deem admitted all the well-pleaded 

facts in the complaint.”23 A respondent is entitled to a default judgment only if “those 

facts, taken together, state a claim upon which relief can be granted.”24

Deeming the well-pled facts admitting, the Petitioner is entitled to default judgment. 

Under Delaware law, all employers subject to Chapter 23, Title 19 of the Delaware Code

(“Subject Employers”) are required to carry valid workers’ compensation insurance or to 

qualify for self-insurance and to comply with the requirements for those who are selfinsured.25

 Subject Employers must be in compliance with 19 Del. C. § 2372(a) and provide 

20 There are advantages and disadvantages in running a business in one’s own name or 

through an LLC, but one of the incidents of the LLC form is the requirement that the entity 

be represented by counsel in court proceedings. 

21 See J.F. Sobieski Mechanical Contractors Inc. v. Kruger, C.A. No. 8250-VCP, 13:3–9

(Del. Ch. Aug. 28, 2013) (TRANSCRIPT) (denying a default judgment when pro se

defendant stated an intention to contest the merits at rule to show cause hearing).

22 Judicial Action Form, Dkt. No. 23.

23 Hauspie v. Stonington P’rs, Inc., 945 A.2d 584, 586 (Del. 2008).

24 Id.

25 19 Del. C. § 2372(a).
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evidence that they are in compliance on request by the Department of Labor.26 An 

employer is a Subject Employer when they employ one or more employees and are not 

otherwise exempt.27

There are penalties for a continuing violation of 19 Del. C. § 2374(a).28 These 

include, “[a]n assessment of $10 per day for each employee in the employer’s service at 

the time when the insurance became due, but not less than $250 for each day of such refusal 

or neglect and until the same ceases.”29 Further, thirty days after notice is given, 19 Del.

C. § 2374(f) permits the Department of Labor the power to seek an injunction from the 

Court of Chancery enjoining employers who fail to comply with 19 Del. C. §§ 2372–73 

from carrying on business while out of compliance with either of those provisions.30

The Petition alleges that Respondent employs workers in Delaware.31 The 

Respondent is therefore a Subject Employer. The Petition alleges that Respondent does 

not carry workers’ compensation insurance.32 The Respondent is thus out of compliance 

with 19 Del. C. § 2372(a). The Petition alleges that Respondent did not provide proof of 

insurance when subpoenaed by the Department of Labor or when ordered to provide such 

26 19 Del. C. § 2374(a).

27 19 Del. C. § 2306(a).

28 19 Del. C. § 2374(e).

29 19 Del. C. § 2374(e)(2).

30 19 Del. C. § 2374(f).

31 Pet. ¶ 11.

32 See Pet. ¶¶ 17, 27.
C.A. No. 2022-0081-SG

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information by the IAB.33 The Respondent is thus out of compliance with 19 Del. C.

§ 2374(a).

Petitioner seeks an order finding that Respondent is in violation of Chapter 23, Title 

19 of the Delaware Code and requiring Respondent to pay $52,250.00 in assessments, 

which is $250 per day for the 209 days of non-compliance between Respondent’s 

notification of its obligation to comply with the Order and the filing of Petitioner’s motion 

for default judgment.34 Such relief is warranted under 19 Del. C. § 2374(e).

Petitioner also requests an injunction prohibiting Respondent from carrying on 

business during the period in which he is out of compliance.

35

 More than 30 days have 

passed since Respondent was informed of his non-compliance and the Petitioner avers that 

it has received no evidence of compliance with the Order,

36 an injunction prohibiting the 

Respondent from carrying on business until it comes into compliance is therefore just and 

proper under § 2374(f).

Petitioner’s motion is thus granted. Petitioner is entitled to an assessment of 

$52,250.00 and an injunction prohibiting Respondent from operating its business in 

Delaware pursuant to 19 Del. C. § 2374(f) while Respondent is out of compliance. 

33 Pet. ¶¶ 19, 24–27, Ex. C.

34 Mot. Default J. ¶¶ 10–11; Pet. Prayer for Relief Sought.

35 Pet. Prayer for Relief Sought.

36 Pet. ¶ 27; Mot. Default J. ¶ 9.
C.A. No. 2022-0081-SG

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The Petitioner’s proposed form of order will be entered on the docket.

Sincerely,

/s/ Kathaleen St. Jude McCormick

Kathaleen St. Jude McCormick

Chancellor

cc: All counsel of record (by File & ServeXpress)