Nationwide General Insurance Company v. MCJ Restaurant Group, LLC et al

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IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS
NATIONWIDE GENERAL
INSURANCE COMPANY,
Plaintiff,
v.
MCJ RESTAURANT GROUP, LLC
d/b/a THE GASTHAUS,
Defendant.
Case No. 25-CV-01378-SPM
DEFAULT JUDGMENT
Plaintiff Nationwide General Insurance Company of America filed the instant
declaratory judgment action pursuant to 28 U.S.C. § 2201 seeking a declaration that
it does not owe a duty to defend or indemnify Defendant MCJ Restaurant Group, LLC
d/b/a The Gasthaus with respect to a lawsuit filed by Elizabeth Wright against MCJ
in the Twentieth Judicial circuit for St. Clair County, Illinois. (See Doc. 21, p. 1 (citing
Wright v. MCJ Rest. Grp., LLC, No. 2025LA000186 (Ill. Cir. Ct.)); see also Doc. 1). In
her state court case, Wright alleges that she was sexually harassed and assaulted by
her supervisor (an owner of MCJ) when she was employed by MCJ as a manager for
The Gasthaus. (See Doc. 21). This Court granted Nationwide’s Motion for Default
Judgment on November 19, 2025. (See Doc. 22). For the reasons below, Nationwide’s
request for declaratory judgment is GRANTED and Default Judgment is hereby
ENTERED.
There are two stages to default. First, the Clerk of Court must enter a party’s
default “[w]hen a party against whom a judgment for affirmative relief has failed to
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plead or otherwise defend, and that failure is shown by affidavit or otherwise.” F ED.
R. CIV. P. 55. Then, the Court may enter a default judgment for the amount due. Id.
The Clerk of Court entered Defendant’s default on September 10, 2025. (See Doc. 14).
Plaintiff Nationwide has provided evidence proving that (1) MCJ is not a named
insured on the policy and (2) that the conduct at issue in Wright’s lawsuit falls under
the various exclusions in the policy. (See Docs. 21, 22). “It is well-settled that the court
has authority to enter declaratory default judgments as well as default judgments for
monetary damages.” Tygris Asset Fin., Inc. v. Szollas, No. 09 C 4488, 2010 WL
2266432, at *6 (N.D. Ill. June 7, 2010) (citing Owners Ins. Co. v. Complete Mech.
Servs., Inc., No. 08 C 4201, 2008 WL 4821654, at *1–2 (N.D. Ill. Oct. 31, 2008)). It is
therefore appropriate for this Court to enter a default judgment.
Accordingly, IT IS HEREBY ORDERED AND ADJUDGED that Plaintiff
Nationwide General Insurance Company has a default judgment against Defendant
MCJ Restaurant Group, LLC d/b/a The Gasthaus. This Court holds that Nationwide
owes no coverage to MCJ nor does it have a duty to defend or indemnify MCJ with
respect to the lawsuit filed by Elizabeth Wright against MCJ in the Twentieth
Judicial Circuit for St. Clair County, Illinois. See Wright v. MCJ Rest. Grp., LLC, No.
2025LA000186 (Ill. Cir. Ct.).
IT IS SO ORDERED.
DATED: November 19, 2025
s/ Stephen P. McGlynn
STEPHEN P. McGLYNN
U.S. District Judge
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