MEMORANDUM & ORDER Plaintiff American Empire Surplus Lines Insurance Company (“American Empire”) brought this action in an effort to recover premiums owed under insurance policies it had issued to Defendants Disano Demolition Co., Inc. and Disano Construction Co., Inc. (collectively, “Disano”). (See Compl. (Dkt. 1); Am. Compl. (Dkt. 6); Second Am. Compl. (Dkt. 29).) Pending before the court is American Empire’s Motion for Default Judgment, which the court referred to Chief Magistrate Judge Cheryl L. Pollak for a Report and Recommendation (“R&R”). (See Mot. for Default J. ((Dkt. 42); Sept. 27, 2019 Order Referring Mot.) On January 2, 2020, Judge Pollak issued an R&R recommending that the court enter a default judgment in favor of American Empire in the amount of $216,394.00 and issue a declaration that American Empire has no duty to defend or indemnify Disano. (See Jan. 2, 2020 R&R (Dkt. 44) at 10.) Judge Pollak recommended that the court award no interest or attorneys’ fees to American Empire. (Id. at 9-10.) American Empire filed a timely objection to Judge Pollak’s recommendations regarding interest and attorneys’ fees. (Obj. to R&R (“Obj.”) (Dkt. 45)
5-9.) For the reasons explained below, the court SUSTAINS American Empire’s objection regarding prejudgment interest and REJECTS its objection regarding attorneys’ fees. It therefore DECLINES TO ADOPT the R&R with respect to the issue of prejudgment interest, but ADOPTS the R&R in all other respects. The court GRANTS American Empire’s (Dkt. 42) Motion for Default Judgment in the total amount of $216,394.00, plus prejudgment interest as set forth below. The court also DECLARES that American Empire has no duty to defend or indemnify Disano under the American Empire policies for which Disano failed to pay the premium. I. BACKGROUND A. Factual Background Plaintiff American Empire is a “participant in the pool of [insurance] companies led by Great American Insurance Company. (Aff. of T. Matthew Held (“Held Aff.”) (Dkt. 42-3) 1.) In 2016 and 2017, American Empire issued four insurance policies to Disano: (1) a Commercial General Liability policy, designated as Policy No. 16CG0204628, for the period June 25, 2016 through July 25, 2017 (the “2016 Primary Policy”); (2) an Excess Liability policy, designated as Policy No. 16CX0204629, for the period June 25, 2016 through July 25, 2017 (the “2016 Excess Policy); (3) a Commercial General Liability policy, designated as Policy No. 17CG0214926, for the period July 25, 2017 through July 25, 2018 (the “2017 Primary Policy”); and (4) an Excess Liability Policy, designated as Policy No. 17CX0214927, for the period July 25, 2017 through July 25, 2018 (the “2017 Excess Policy”). (Id.
