USA v. Williams, et al
Filing
46
ORDER granting 44 Motion for Leave to File Second Amended Complaint as set forth; and granting 44 Decree of Foreclosure in Rem in amount of $37,940.78 and interest at a rate of 8.75% per annum from August 28, 2014 to date of judgment. Further, if judgment is not paid within ten days, setting forth terms and conditions for judicial sale. Signed by Honorable Susan O. Hickey on January 22, 2016. (cc: U.S. Marshals Service) (mll)
IN THE UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF ARKANSAS
TEXARKANA DIVISION
UNITED STATES OF AMERICA
v.
PLAINTIFF
CASE NO. 4:02-cv-4025
PHILLIP J. WILLIAMS; LaSHAWNDA CLARK,
f/k/a LaSHAWNDA WILLIAMS, and
ARKANSAS STATE LAND COMMISSIONER
DEFENDANTS
DECREE OF FORECLOSURE
Now on this 22nd day of January 2016, this case comes on to be heard as to the
Complaint and Amended Complaint filed against the Defendants, Phillip J. Williams and
LaShawnda Clark f/k/a LaShawnda Williams, Willie Clark, Walker Rental Property, Inc., and
the Arkansas State Land Commissioner, and the Court being advised of the premises, finds:
1.
The Court has jurisdiction of the parties and the subject matter herein pursuant to
28 U.S.C. § 1345.
2.
That the Plaintiff filed its Amended Complaint against the Defendants on October
24, 2014.
3.
That Defendant Phillip J. Williams, was served by publication; the Defendant
Willie Clark was served by publication; the Defendant Walker Rental Property, Inc. was served
with summons and a copy of Amended Complaint by certified mail; and the Defendant
LaShawnda Clark f/k/a LaShawnda Williams was served with summons and a copy of the
Amended Complaint by certified mail.
4.
That the Defendant Arkansas Land Commissioner entered his appearance with the
filing of his Answer which was filed on October 30, 2014.
5.
That the default of Defendants, Walker Rental Property, Inc. and LaShawnda
Clark f/k/a LaShawnda Williams, was entered by the Court on January 26, 2015, pursuant to
Rule 55(b), of the Federal Rules of Civil Procedure.
6.
That on July 15, 2015, the United States filed its Motion for In Rem Default
Judgment against Defendants Phillip Williams and Willie Clark. Said Motion was granted August
6, 2015. The Court entered its Order and Judgment on Default as to Phillip J. Williams on August
6, 2015. The Court entered its Order and Judgment on Default as to Willie Clark on August 6,
2015. (ECF Nos. 41-42).
7.
That on or about August 23, 1991, for a good and valuable consideration, the
Defendants, Phillip J. Williams and LaShawnda Clark f/k/a LaShawnda Williams, executed and
delivered their Promissory Note payable to the United States of America, acting through the Rural
Development Service (formerly known as Farmers Home Administration), United States
Department of Agriculture, in the principal amount of $22,240.00, with interest accruing at the rate
of 8.75 percent per annum, payable in installments beginning on August 23, 1991, and continuing
thereafter until paid in full, and providing that upon default the holder might declare the entire
indebtedness due and payable.
8.
That the Plaintiff is the legal holder of this note.
9.
That to secure payment of this note, the Defendants Phillip J. Williams and
LaShawnda Clark f/k/a LaShawnda Williams executed, acknowledged and delivered to the United
States of America, acting through the Rural Development Service (formerly known as the Farmers
Home Administration), United States Department of Agriculture, on August 23, 1991, their Real
Estate Mortgage, conditioned upon repayment of this note, which was recorded on August 23,
1991, at Book 592, Page 258, in the records of Hempstead County, Arkansas, covering the
following described property in Hempstead County, Arkansas to-wit:
Lots Nine (9) and Ten (10) in Block Three (3) of Sullivan’s
Addition to the City of Hope, Arkansas.
10.
That the Plaintiff is the legal holder of this mortgage.
11.
That despite notice and demand, the Defendants Phillip J. Williams and
LaShawnda Clark f/k/a LaShawnda Williams have neglected to pay their obligation on this note
and are in default thereon, and the Plaintiff has declared the entire indebtedness due and payable
and elected to seek judgment and judicial aid of its claim, as allowed in said mortgage and by law,
and that there is due the Plaintiff on account of this note the principal sum of $20,881.59, plus
accrued interest of $17,059.19, as of August 28, 2014, with interest accruing thereafter at a rate of
8.75 percent per annum, until date of judgment, and costs/fees in the amount of $5,976.01 through
August 28, 2014, for a total owing of $43,916.79, plus interest from August 28, 2014, and any
additional fees and/or costs incurred thereafter.
12.
For valuable consideration, the Defendants, Phillip J. Williams and LaShawnda
Clark f/k/a LaShawnda Williams, in said mortgage waived all rights of appraisement, sale,
redemption, and homestead and particularly all rights of redemption under the Act of the Arkansas
Legislature approved May 8, 1899, and acts amendatory thereof, and said the Defendants, Phillip
J. Williams and LaShawnda Clark f/k/a LaShawnda Williams, likewise expressly waived all rights
or possibility of dower, curtesy, and homestead in and to said land and property.
13.
That the relief now granted to the Plaintiff is not different as to type or material
amount from that sought in its Complaint and Amended Complaint.
14.
That the time for Defendants, Phillip J. Williams and LaShawnda Clark f/k/a
LaShawnda Williams, to otherwise plead has now expired and they have failed to appear or plead
to the Complaint and Amended Complaint. They are not infants or incompetent persons, or in the
active military of the United States, and they are in default.
15.
Any claim which Defendant, Walker Rental Property, Inc., may have in the
property which is subject of this action by virtue of a purchase of the property at a U.S. Marshal’s
Sale is void since Defendant, LaShawnda Clark f/k/a LaShawnda Williams, commenced her
Chapter 13 bankruptcy proceeding, Case No.4:03-bk-71509, Western District Arkansas, prior to
the sale of the property being completed.
16.
That the Defendant, Arkansas State Land Commissioner, no longer claims an
interest in the property which is the subject of this action by virtue of Certificate recorded in Book
714 at Page 606 (forfeited for non-payment of taxes). Said property was redeemed by Redemption
Deed No. 166184 dated March 4, 2002, recorded in Book 734, at Page 602. The Arkansas State
Land Commissioner does not object to the relief requested by Plaintiff, and the Arkansas State
Land Commissioner is immune from any and all liability arising herein.
17.
Plaintiff has filed a motion to file a Second Amended Complaint (ECF No. 44) to
join the State of Arkansas, Dept. of Finance and Administration, Office of Child Support
Enforcement; Stephanie Williams and Contreata Robinson as additional defendants, all of whom
may claim an interest in the subject property.
IT IS THEREFORE, ORDERED AND DECREED:
That the Plaintiff, United States of America, have and recover judgment in rem against the
property and not in personam against the Defendants, Phillip J. Williams and LaShawnda Clark
f/k/a LaShawnda Williams in the amount of $37,940.78, plus interest accruing at a rate of 8.75%
per annum from August 28, 2014, to the date of judgment, together with interest at the legal rate of
.58% percent per annum pursuant to 28 U.S.C. § 1961(a) from the date of this judgment until paid,
and costs herein laid out and expended.
That the Plaintiff is granted leave of Court to file its Second Amended Complaint which
includes the addition of three additional Defendants, the State of Arkansas, Dept. of Finance and
Administration, Office of Child Support Enforcement; Stephanie Williams and Contreata
Robinson. Pursuant to CM/ECF Administrative Policies and Procedures Manual for Civil
Filings for the Western District of Arkansas § IV, A, any pleading that adds a party must be
filed conventionally, on paper with the clerk’s office. Pursuant to Rule 5.5(e) of the Rules for
the United States District Courts for the Eastern and Western Districts of Arkansas,
Plaintiff shall file the amended complaint within seven (7) days of the entry of this order.
That the prayer of the Plaintiff, United States of America, for a Decree of Foreclosure (ECF
No. 44) should be, and is hereby, GRANTED.
IT IS FURTHER ORDERED, that if the judgment of the Plaintiff is not paid within ten
days from this date, then Harold Oglesby, United States Marshal for the Western District of
Arkansas shall advertise the time, place and terms of judicial sale according to law and this decree,
at least once weekly for four weeks prior to sale in a newspaper having a general circulation in
Hempstead County, Arkansas, and he shall sell at public outcry, to the highest qualified bidder, at
the main door of the Hempstead County Courthouse in Hope, Arkansas, on a credit of three
months, the property above described.
The purchaser at the Marshal’s sale shall give bond with approved security to secure
payment of the purchase price, and a lien shall be retained on the property to secure payment
thereof. If the Plaintiff purchases the property for an amount not in excess of its judgment and
costs, which are hereby granted, it may credit the amount of its bid, less all court costs, upon its
judgment and need not give bond to secure the purchase price.
IT IS FURTHER ORDERED, that upon judicial sale of this property, and confirmation
thereof by this Court, then all right, title, and interest of all parties in and to said property, including
any rights or possibility of curtesy, dower, homestead, appraisement, and redemption are forever
barred and FORECLOSED. Should the sale bring proceeds or credits in excess of the Plaintiff’s
claim and costs, the Court will determine the rightful owner thereof.
JURISDICTION of this case is retained.
/s/ Susan O. Hickey
Susan O. Hickey
United States District Judge
APPROVED:
/s/ Claude S. Hawkins, Jr.
Claude S. Hawkins, Jr.
Assistant United States Attorney
/s/ Carol L. Lincoln
Carol L. Lincoln
Attorney for Commissioner of
State Lands
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