David A. Gill v. Bruce F. Friedman et al
Filing
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FINAL JUDGMENT by Judge Manuel L. Real, in favor of David A. Gill against Bruce F. Friedman. The Receiver is entitled to damages in the amount of $37,354,445.80 from Defendant Bruce Friedman. It is further ORDERED that, since there is no just reason for delay, this JUDGMENT is to be entered forthwith as a Final Judgment. (pj)
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MARC M. SELTZER (54534)
mseltzer@susmangodfrey.com
STEPHEN E. MORRISSEY (187865)
smorrissey@susmangodfrey.com
BRYAN J.E. CAFORIO (261265)
bcaforio@susmangodfrey.com
SUSMAN GODFREY L.L.P.
1901 Avenue of the Stars, Suite 950
Los Angeles, CA 90067-6029
Telephone: (310) 789-3100
Facsimile: (310) 789-3150
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Attorneys for David A. Gill, Receiver
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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WESTERN DIVISION
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DAVID A GILL, solely in his capacity as
Permanent Receiver in the matter of
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Diversified Lending Group, Inc.; Applied
14 Equities, Inc.; Scott Siemers and Tina M.
Placourakis, U.S.D.C. Case No. CV 0915 01533-R-SS,
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vs.
Plaintiff,
BRUCE F. FRIEDMAN, an individual, et
al.,
Defendants.
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1648679v1/011870
Case No. 10-CV-01554-R (SSx)
FINAL JUDGMENT AGAINST
BRUCE FRIEDMAN
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The Court, having considered the Application for Final Judgment Against
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Defendant Bruce Friedman (“the Application”) submitted by David A. Gill (“the
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Receiver”), the exhibits and declarations submitted in support of the Application,
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the other documents on file, and the applicable law, has concluded that the
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Receiver’s Application shall be granted in its entirety.
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The Receiver has complied with all the procedural requirements of Federal
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Rule of Civil Procedure 55 and Local Rule 55-1. Additionally, the Court has
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considered the seven factors enumerated in Eitel v. McCool, 782 F.2d 1470, 1471-
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72 (9th Cir. 1986), and determined that granting a default judgment against
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Defendant Friedman is appropriate.
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While policy generally favors decisions on the merits, Defendant Friedman’s
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failure to Answer the Complaint renders such a decision impossible. There appears
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to be no likelihood of dispute concerning the material facts of this case, and
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Defendant Friedman’s default is not due to excusable neglect.
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Furthermore, the Court finds there is no just reason to delay entry of Final
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Judgment against Bruce Friedman. See Fed. R. Civ. Proc. 54(b). As the principal of
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Diversified Lending Group, Inc., and the primary wrongdoer in this Action, Mr.
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Friedman is uniquely positioned in this litigation. The claims against him, and any
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possible defenses thereto, do not depend on resolution of the Receiver’s claims
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against any other defendant. Conversely, the Receivership Estate will immediately
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benefit from a Final Judgment against Mr. Friedman at this time.
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The factual allegations from the First Amended Complaint (“FAC”) are taken
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as true. See Geddes v. United Fin. Grp., 559 F. 2d 557, 560 (9th Cir. 1977). The
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Court has considered those factual allegations in the FAC, along with the evidence
1648679v1/0118702
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submitted in support of the Receiver’s Application, including a declaration and
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exhibit from the Receiver’s accountant, and the Court finds that Mr. Friedman is
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liable on the fraudulent transfer claims in the amount of $37,354,445.80.
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It is, therefore, ORDERED, ADJUDGED AND, DECREED that Defendant
Bruce Friedman is liable on the following claims:
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(1) Claim 9 for avoidance and recovery of fraudulent transfers;
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(2) Claim 10 for avoidance and recovery of fraudulent transfers;
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(3) Claim 11 for avoidance and recovery of fraudulent transfers; and
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(4) Claim 12 for avoidance and recovery of fraudulent transfers.
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The Receiver is entitled to damages in the amount of $37,354,445.80 from
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Defendant Bruce Friedman.
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It is further ORDERED that, since there is no just reason for delay, this
JUDGMENT is to be entered forthwith as a Final Judgment.
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Dated: August 30, 2011
_______________________
MANUEL L. REAL
U.S. DISTRICT JUDGE
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1648679v1/0118703
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