United States District Court, D. Colorado
ORDER
RAYMOND P. MOORE United States District Judge.
This
matter is before the Court on Plaintiff's motion for
default judgment (ECF No. 10). After Defendant was served
with the complaint and failed to respond, Plaintiff moved for
entry of default, and the Clerk of the Court entered default
on May 23, 2019 (ECF No. 9). In its current motion, Plaintiff
requests entry of default judgment under Fed.R.Civ.P.
55(b)(1). For the reasons given below, the motion is granted.
I.LEGAL
STANDARD
“[E]ven
after entry of default, the Court must decide whether the
unchallenged facts create a legitimate basis for entry of a
judgment.” Villanueva v. Account Discovery Sys.,
LLC, 77 F.Supp.3d 1058, 1066 (D. Colo. 2015) (quotation
omitted). Although the Court has discretion to enter default
judgment, strong policies favor resolution of disputes on
their merits; therefore, it is generally appropriate
“only when the adversary process has been halted
because of an essentially unresponsive party.”
Id. at 1067 (quotation omitted).
II.
BACKGROUND
According
to the complaint, Defendant owes two debts to Plaintiff.
Count One alleges a debt in the principal amount of $21,
688.28, plus interest computed at the applicable note rate in
the amount of $14, 851.70 as of March 26, 2019, and interest
thereafter on this principal at the applicable rate (5.03%)
from this date until the date of judgment. Count Two alleges
a debt in the principal amount of $4, 391.46, plus interest
computed at the applicable not rate in the amount of $2,
457.82 as of March 26, 2019, and interest thereafter on this
principal at the applicable rate (4.23%) from this date until
the date of judgment. Plaintiff has made demands for the
amounts owed, but they remain unpaid.
III.
ANALYSIS
The
Court first finds that the jurisdictional prerequisites for
granting default judgment are satisfied in this case. The
Court has subject matter jurisdiction over actions brought by
the United States. 28 U.S.C. § 1345. In addition, the
Court has personal jurisdiction over Colorado residents.
See Dennis Garberg & Assocs., Inc. v. Pack-Tech
Int'l Corp., 115 F.3d 767, 773 (10th Cir. 1997)
(“[T]he plaintiff need only make a prima facie
showing [of personal jurisdiction] if the motion [for default
judgment] is decided only on the basis of the parties'
affidavits and other written materials.”).
Next,
the Court finds that the well-pleaded allegations in the
complaint constitute a legitimate basis for entry of a
judgment. The complaint alleges that Defendant executed
promissory notes to secure two loans and that she has
defaulted on her obligation to repay them. These allegations
are supported by the certificates of indebtedness attached to
the complaint. The complaint further alleges that Plaintiff
has made demand to Defendant for the amounts owed and that
they remain unpaid. The Federal Debt Collection Procedure Act
provides the “civil procedures for the United States .
. . to recover a judgment on a debt.” 28 U.S.C. §
3001(a)(1).
The
Court further finds that a default judgment should be entered
for the sum certain damages Plaintiff seeks. Plaintiff has
provided a declaration of a paralegal specialist as well as
the certificates of indebtedness mentioned above to support
its claims. The Court concludes Plaintiff is entitled to
judgment in its favor.
Finally,
the Court finds that costs in the amount of $400 are
appropriate under to 28 U.S.C. § 2412(a)(2).
IV.
CONCLUSION
Accordingly,
the Court GRANTS Plaintiff's motion for default judgment
(ECF No. 10) and ORDERS that the Clerk enter judgment for a
sum certain against Defendant as follows:
(A) On
Count One, Defendant is indebted to Plaintiff in the sum of
$21, 688.28 principal, plus $14, 851.70 in prejudgment
interest, plus interest accruing as of March 26, 2019, at the
applicable note rate of 5.03 percent until the date of
judgment, and post-judgment interest at the legal rate in
effect on the date of entry of judgment, to be compounded
annually pursuant to 28 U.S.C. § 1961(b), and (B) On
Count Two, Defendant is indebted to Plaintiff in the sum of
$4, 391.46 principal, plus $2, 457.82 in prejudgment
interest, plus interest accruing as of March 26, 2019, at the
applicate note rate of 4.23 percent until the date ...