Source: https://casetext.com/case/american-express-travel-v-stylex-design-llc
Timestamp: 2019-04-24 16:17:11+00:00

Document:
This is an action to recover "charge back" for unauthorized / disputed credit card charges. Plaintiff moves, pursuant to CPLR § 3215, for entry of a default judgment against the defendant. Although there is due proof of service of the underlying summons and verified complaint, as well as the instant motion, the defendant has not opposed or otherwise appeared in this action within the time provided for in the CPLR. Defendant's time to do so has not been extended by the court. Plaintiff has also filed proof of additional service in compliance with CPLR § 3215 [g]. Therefore, the defendant has defaulted in this action and the motion will be considered without opposition.
Plaintiff is entitled to a default judgment against the defendant, provided it otherwise demonstrates that it has a prima facie cause of action. Gagen v. Kipany Productions Ltd., 289 A.D.2d 844 (3d Dept. 2001). The defendant's default in answering the complaint constitutes an admission of the factual allegations therein and the reasonable inferences which may be made therefrom. Rokina Optical Co., Inc. v. Camera King. Inc., 63 N.Y.2d 728 (1st Dept. 1984).
Defendant is a vendor who had privileges with and accepted the American Express Card Agreement (the "Agreement"). Under the Agreement, plaintiff is entitled to full recourse for any charges that are the subject of a claim, complaint, or unresolved question.
The complaint contains three causes of action, to wit:  breach of contract;  unjust enrichment; and  account stated.
Plaintiff has provided the affidavit of David Elliott, an Operations Analyst for the plaintiff. Mr. Elliott states that between November 2007 and December 2007, certain charges totaling $20,052.34 were disputed by other American Express card members. As a result of the disputed / fraudulent charges, plaintiff sent notices to defendant demanding that it respond to the disputes, as to avoid a charge back. Defendant failed to challenge the charge back and plaintiff now seeks its right to recover the full payments it made to the vendor pursuant to the Agreement.
The elements of a cause of action for breach of contract are: (1) formation of a contract between the parties; (2) performance by plaintiff; (3) defendant's failure to perform; and (4) resulting damage.Furia v. Furia, 166 A.D.2d 694 (2d Dept. 1990).
An account stated represents an agreement between the parties reflecting amounts due on prior transactions. Jim-Mar Corp. v. Aquatic Constr., 195 A.D.2d 868 (3d Dept. 1993), Iv. denied 82 N.Y.2d 660 (1993). Where either no account has been presented or there is any dispute regarding the correctness of the account, the cause of action fails. M A Const. Corp. v. McTague, 21 A.D.3d 610 (3d Dept. 2005).
Based on the foregoing, plaintiff has established a prima facie cause of action for breach of contract and account stated against the defendant. Accordingly, plaintiff is entitled to entry of default judgment against the defendant on its first and third causes of action. However, plaintiff's second cause of action for unjust enrichment must fail in the face of a valid contract. Clark-Fitzpatrick v. L.I.R.R., 70 N.Y.2d 382 (2d Dept. 1987). Plaintiff is entitled to a money judgment in the amount of $20,052.34 with interest from March 15, 2008 (as a reasonable intermediate date [CPLR § 5001(b]).
ORDERED that this shall constitute the decision and order of the court.

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