United States of America v. Hartz

Filing 20

FINDINGS and RECOMMENDATIONS signed by Magistrate Judge Carolyn K. Delaney on 4/11/14 recommending that 19 MOTION for DEFAULT JUDGMENT be granted; default judgment be entered in favor of the United States and against Ruthie E. Hartz in the amoun t of $44,564.72 together with interest from the date of 4/8/14, in accordance with 28 USC Section 1961(c)(1)and 26 U.S.C. §§ 6601, 6621, and 6622 until the liabilities are fully paid; the Clerk of Court be directed to close this case. Referred to Judge William B. Shubb; Objections to F&R due within 14 days after being served with these findings and recommendations. (Meuleman, A)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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UNITED STATES OF AMERICA,

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No. 2:14-cv-0112 WBS CKD PS

Plaintiff,
v.

FINDINGS AND RECOMMENDATIONS

RUTHIE E. HARTZ,
Defendant.

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Presently before the court is plaintiff’s motion for default judgment. This matter is

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submitted without oral argument. The undersigned has fully considered the briefs and record in

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this case and, for the reasons stated below, will recommend that plaintiff’s motion for default

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judgment be granted.

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The Internal Revenue Service (“IRS”) has made assessments against defendant Ruthie E.

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Hartz for the 1998 tax year. The United States commenced the instant action to reduce to

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judgment the unpaid balance of the assessed amount, plus statutory interest and other additions

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accruing to the date of payment.

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The record reflects that defendant Ruthie E. Hartz was properly served with process by

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substituted service on February 5, 2014. ECF No. 4. Defendant filed a document on March 10,

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2014, which was non-responsive to the complaint. By order filed March 14, 2014, defendant was

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ordered to file a responsive pleading no later than March 27, 2014 and cautioned that failure to
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file a responsive pleading may result in a recommendation that default judgment be entered

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against defendant. Defendant failed to timely file a responsive pleading and on April 4, 2014,

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default was entered against defendant. ECF No. 17. Plaintiff thereafter filed a motion for default

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judgment with a proof of service reflecting service of the motion on defendant. Plaintiff seeks an

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entry of default judgment in the amount of $44,564.72 together with interest from the date of

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April 8, 2014, in accordance with 28 U.S.C. § 1961(c)(1) and 26 U.S.C. §§ 6601, 6621, and 6622

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until the liabilities are fully paid.

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Entry of default effects an admission of all well-pleaded allegations of the complaint by

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the defaulted party. Geddes v. United Financial Group, 559 F.2d 557 (9th Cir. 1977). The court

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finds the well pleaded allegations of the complaint state a claim for which relief can be granted.

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Anderson v. Air West, 542 F.2d 1090, 1093 (9th Cir. 1976). The memorandum of points and

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authorities and affidavits filed in support of the motion for entry of default judgment also support

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the finding that plaintiff is entitled to the relief requested in the prayer for default judgment,

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which does not differ in kind from the relief requested in the complaint. Henry v. Sneiders, 490

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F.2d 315, 317 (9th Cir.), cert. denied, 419 U.S. 832 (1974). Plaintiff has established a prima facie

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case by submitting the declaration of Steven Kemp with supporting documents, including Forms

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4340 (Certificates of Assessments and Payments), a copy of the Notice of Deficiency sent to

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defendant, and the IRS Examination workpapers. Plaintiff has also submitted the declaration of

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Alan Pobre with supporting documents, which establish the amount of tax, penalties and accrued

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interest. There are no policy considerations which preclude the entry of default judgment of the

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type requested. See Eitel v. McCool, 782 F.2d 1470, 1471-1472 (9th Cir. 1986) (factors that may

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be considered by the court are possibility of prejudice to the plaintiff, merits of plaintiff’s

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substantive claim, sufficiency of the complaint, sum of money at stake in the action; possibility of

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a dispute concerning material facts; whether the default was due to excusable neglect, and strong

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policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits).

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Accordingly, IT IS HEREBY RECOMMENDED that:

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1. Plaintiff’s motion for default judgment (ECF No. 19) against defendant Ruthie E. Hartz

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be granted;
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2. Default judgment be entered in favor of the United States and against Ruthie E. Hartz

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in the amount of $44,564.72 together with interest from the date of April 8, 2014, in accordance

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with 28 U.S.C. § 1961(c)(1) and 26 U.S.C. §§ 6601, 6621, and 6622 until the liabilities are fully

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paid.

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3. The Clerk of Court be directed to close this case.

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These findings and recommendations are submitted to the United States District Judge

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assigned to the case, pursuant to the provisions of 28 U.S.C. § 636(b)(l). Within fourteen days

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after being served with these findings and recommendations, any party may file written

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objections with the court and serve a copy on all parties. Such a document should be captioned

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“Objections to Magistrate Judge’s Findings and Recommendations.” Failure to file objections

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within the specified time may waive the right to appeal the District Court’s order. Martinez v.

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Ylst, 951 F.2d 1153 (9th Cir. 1991).

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Dated: April 11, 2014

_____________________________________
CAROLYN K. DELANEY
UNITED STATES MAGISTRATE JUDGE

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