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Brown v. Global Check Processing

United States District Court, D. Colorado

May 12, 2014

CLAYTON BROWN, and MYRON BROWN, Plaintiffs,
v.
GLOBAL CHECK PROCESSING, Defendant.

ORDER GRANTING IN PART PLAINTIFFS' MOTION FOR ENTRY OF DEFAULT JUDGMENT

WILLIAM J. MARTÍNEZ, District Judge.

Plaintiffs Clayton Brown and Myron Brown (together, "Plaintiffs") bring this action against Global Check Processing ("Defendant") alleging violations under the Fair Debt Collections Practices Act ("FDCPA"), 15 U.S.C. §§ 1692 et seq. (ECF No. 1.) Before the Court is Plaintiffs' Motion for Entry of Default Judgment Against Defendant (the "Motion"). (ECF No. 13.) For the following reasons, the Motion is granted in part.

I. BACKGROUND

Plaintiffs initiated this action by filing a Complaint on July 10, 2013. (Compl. (ECF No. 1).) The Complaint alleges that "[s]ometime before 2013, " Myron Brown incurred a car loan debt (the "Debt") that was "consigned, placed or otherwise transferred to Defendant for collection[.]" ( Id. ¶¶ 9-10.) Defendant began contacting Clayton Brown, Myron Brown's brother, to seek payment on the Debt. ( Id. ¶ 12.) Although Clayton Brown informed Defendant that the Debt was not his, Defendant's representatives continued to call him "many times" and threaten him with legal action. ( Id. ¶ 13.)

Plaintiffs bring claims for violations of the FDCPA and the unlawful invasion of Clayton Brown's privacy by intrusion upon seclusion. ( Id. ¶¶ 25-38.) Plaintiffs seek the following damages: (1) $1, 000.00 in statutory damages under the FDCPA for each Plaintiff; (2) $1, 500.00 in actual damages for the invasion of Clayton Brown's privacy by intrusion upon seclusion; (3) $3, 635.25 in attorneys' fees; and (4) $540.00 in costs. (ECF No. 14 ¶ 1.)

Defendant was served with a Summons and a copy of the Complaint on August 8, 2013. (ECF No. 9.) After Defendant failed to answer or otherwise defend against this action, upon Plaintiffs' Motion, the clerk entered default against Defendant. (ECF No. 11.) Plaintiffs filed their Motion for Entry of Default Judgment against Defendant on September 11, 2013. (ECF No. 13.)

The Court has reviewed the Motion, the exhibit and affidavit, and the applicable law, and is sufficiently advised on the issues involved.

II. LEGAL STANDARD

Default must enter against a party who fails to appear or otherwise defend a lawsuit. Fed.R.Civ.P. 55(a). Pursuant to Rule 55(b)(1), default judgment must be entered by the clerk of court if the claim is for "a sum certain"; in all other cases, "the party must apply to the court for a default judgment." Fed.R.Civ.P. 55(b)(2). "[D]efault judgment must normally be viewed as available only when the adversary process has been halted because of an essentially unresponsive party. In that instance, the diligent party must be protected lest he be faced with interminable delay and continued uncertainty as to his rights. The default judgment remedy serves as such a protection." In re Rains, 946 F.2d 731, 732-33 (10th Cir. 1991) (internal quotation marks and citation omitted).

Further, "a party is not entitled to a default judgment as of right; rather the entry of a default judgment is entrusted to the sound judicial discretion' of the court." Greenwich Ins. Co. v. Daniel Law Firm, 2008 WL 793606, at *2 (D. Colo. Mar. 22, 2008) (internal citation omitted). Before granting a motion for default judgment, the Court must take several steps. First, the Court must ensure that it has personal jurisdiction over the defaulting defendants and subject matter jurisdiction over the action. See Williams v. Life Sav. & Loan, 802 F.2d 1200, 1202-03 (10th Cir. 1986). Next, the Court should consider whether the well-pleaded allegations of fact, which are deemed admitted by a defendant in default, support a judgment on the claims against the defaulting defendants. See Federal Fruit & Produce Co. v. Red Tomato, Inc., 2009 WL 765872, at *3 (D. Colo. March 20, 2009) ("Even after entry of default, however, it remains for the court to consider whether the unchallenged facts constitute a legitimate basis for the entry of a judgment.") (citations omitted). "In determining whether a claim for relief has been established, the well-pleaded facts of the complaint are deemed true." Id. (citing Dundee Cement Co. v. Howard Pipe & Concrete Prods., Inc., 722 F.2d 1319, 1323 (7th Cir. 1983)).

Once the Court is satisfied that default judgment should be entered, it has the discretion to hold a hearing to determine the amount of damages. See Fed. R. Civ. Pro. 55(b)(2). Generally, a damages hearing is not needed when the damages requested are for a sum certain. See United States v. Craighead, 176 F.Appx. 922, 925 (10th Cir. 2006).

III. ANALYSIS

A. Jurisdiction

The Court finds that jurisdiction exists in this case pursuant to the FDCPA, which states that a plaintiff may pursue a civil cause of action "in any appropriate United States district court without regard to the amount in controversy... within one year from the date on which the violation occurs." 15 U.S.C. § 1692k(d). Plaintiffs allege that Defendant conducts business in ...


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