TCF Inventory Finance, Inc. v. Marker Oil Company, Inc. et al

Filing 60

ORDER signed by District Judge John A. Mendez on 5/4/18 GRANTING Final Default Judgment. (Kaminski, H)

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UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF CALIFORNIA

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12 TCF INVENTORY FINANCE, INC.
13

Plaintiff,

14 v.
15 MARKER OIL COMPANY, INC.
16 and

CASE NO. 2:17-cv-01768-JAM-DB
ORDER GRANTING FINAL
DEFAULT JUDGMENT BY COURT
AGAINST DEFENDANTS
MARKER OIL COMPANY, INC.
AND BILLY LEON MARKER, JR.

17 BILLY LEON MARKER, JR.
18

Defendants

19

This matter is before the Court on Plaintiff TCF Inventory Finance’s

20 Motion for Court’s Entry of Final Default Judgment Against Defendants
21 Marker Oil Company, Inc. and Billy Leon Marker (ECF No. 23) and Motion to
22 Vacate Clerk’s Entry of Non-Final Default Judgment and For Court’s Entry of
23 Final Default Judgment (ECF No. 26).
24

On April 5, 2018, the magistrate judge filed findings and

25 recommendations herein (ECF No. 46) which were served on the parties
26 and which contained notice that any objections to the findings and
27 recommendations were to be filed within fourteen days. Plaintiff filed its
28 objections to the findings and recommendations on April 19, 2018 (ECF No.

1 54). Defendants filed their non-opposition to the findings and
2 recommendations on April 18, 2018 (ECF No. 53). Plaintiff filed a response
3 to Defendants’ non-opposition on April 26, 2018 (ECF No. 57). Defendants
4 did not file a response to Plaintiff’s objections. See E.D. Local Rule 304 (d).
5

In accordance with the provisions of 28 U.S.C. § 636(b)(1)(C) and

6 Local Rule 304, this Court has conducted a de novo review of these
7 motions. Having carefully reviewed the entire file, the Court finds that the
8 findings and recommendation to set aside the Clerk’s Entry of Default (ECF
9 No. 22) are supported by the record and by proper analysis. The Court
10 further finds that the findings and recommendation to deny Plaintiff’s Motion
11 for Default Judgment are not supported by the record and by proper
12 analysis.
13

Defendants, who have been represented by counsel since the outset

14 of the case, have failed to show good cause for setting aside their default as
15 required under Rule 55(c). Defendants have yet to present any specific
16 facts showing they have any meritorious defense to TCFIF’s claims.
17 Further, Defendants have engaged in culpable misconduct. They have
18 repeatedly ignored deadlines imposed by the Federal Rules of Civil
19 Procedure and the Court for responding to TCFIF’s complaint and its
20 motions for a temporary restraining order (TRO), preliminary injunction, and
21 writ of possession. As the Court recently found, Defendants knowingly
22 violated the Court’s preliminary injunction and dissipated TCFIF’s collateral.
23 Finally, TCFIF will be prejudiced if the default is set aside. This case has
24 been pending for nearly eight months. Setting aside the default would
25 significantly delay TCFIF’s ability to obtain a final judgment establishing it as
26 the owner of the collateral and thereby subject TCFIF to the ongoing risk
27 that Defendants will continue to dissipate the collateral, as they have
28 previously done in violation of the Court’s preliminary injunction. Moreover,
2

1 TCFIF has incurred attorney’s fees and expenses to obtain the entry of
2 default and to pursue a final default judgment.
3

Accordingly, IT IS HEREBY ORDERED that:

4

1.

The Clerk’s Non-Final Default Judgment (ECF No. 22) is

5 vacated.
6

2.

Judgment is entered in favor of Plaintiff TCF Inventory Finance,

7 Inc. and against Defendants Marker Oil Company, Inc. and Billy Leon
8 Marker, Jr., jointly and severally, in the amount of $1,079,110.40.
9

3.

Judgment is entered in favor of Plaintiff TCF Inventory Finance,

10 Inc. and against Defendant Marker Oil Company, Inc. requiring Marker Oil
11 Company, Inc. to deliver possession and awarding possession of all of the
12 following described property to TCF Inventory Finance, Inc.: (i) all inventory,
13 accounts, chattel paper, documents, instruments, promissory notes,
14 equipment, fixtures, contract rights, investment property, other goods,
15 general intangibles and payment intangibles (including without limitation and
16 whether or not included in the foregoing, seller credits, deposit accounts,
17 and certificates of deposit), (ii) any books and records (whether paper,
18 electronic, digitized or otherwise) which relate to the collateral, and any
19 computers, disks, tapes, media, websites, databases, electronic storage
20 devices and other devices upon which, or within which, such records may be
21 stored, (iii) all repossessions, returns, replacements, exchanges,
22 substitutions, parts, attachments, accessories and accessions to or of the
23 foregoing, and (iv) all products and proceeds in any form and wherever
24 located derived directly or indirectly from any dealing with any of the
25 foregoing including, without limitation, insurance proceeds and any other
26 payment representing indemnity or compensation for loss of or damage
27 thereto, all whether now or hereafter existing, owned, licensed, leased,
28 consigned, acquired or arising, and all proceeds of all the foregoing (the
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1 “Collateral”), including specifically, the following inventory (the “Subject
2 Property”):
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Serial Number
3JBPEAR27GJ002169
3JBPDAR25GJ003307
YDV41356E616
YDV02139F616
YDV01853E616
3JBUKAN27HK000001
3JBKKAP22HJ000367
3JBKBAP22HJ000014
3JBKKAN29HJ000191
3JBPEAR29HJ000229
YDV33206J617
3JBLWAU26HJ000580
RFGUB2518HS022379
3JBLWAJ21HJ000300
3JBMWAX27HJ000457
3JBLKAJ21HJ000521
3JBRKAP28HJ000159
3JBVDAW29HK001406
3JBPDAR23HJ000178
3JBVGAW26HK000429
3JBLKAJ29HJ000640
3JBKKAP26HJ000842
3JBVDAW23HK001482
3JBKKAN24HJ000602
3JBUKAP28HK000036
3JBKKAP20HJ001016
3JBUGAR29HK001324
3JBVDAW21HK002307
3JBVGAW21HK000791
3JBLGAR26HJ002948
YDV06988J617
YDV09408A717
3JBKKAP24HJ001780
3JBLGAR28HJ003115
YDV70229B717
3JBUGAR25HK002194

Model
0007FGA00
0006UGA00
00039GA00
00033GA00
00018GA00
0008FHE00
0006EHA00
0006HHA00
0006DHB00
0007FHA00
00036HA00
0004KHA00
0003JHA00
0005EHA00
0004FHC00
0002PHC00
0001DHB00
0007SHF00
0006UHC00
0007XHC00
0002PHE00
0006BHC00
0007SHA00
0006DHB00
0008CHG00
0006YHA00
0008WHF00
0007SHA00
0007XHC00
0005AHA00
00044HA00
00026HA00
0006YHA00
0002WHA00
00064HB00
0008WHJ00
4

Invoice Number
9013910519
9013974315
9014362140
9014391072
9014506729
9014610472
9014666054
9014666054
9014666054
9014724724
9015010008
9015212462
9015212462
9015212462
9015212462
9015212462
9015212462
9015212461
9015212461
9015212461
9015272016
9015272017
9015272017
9015332565
9015494390
9015494390
9015598848
9015598848
9015598848
9015649641
9015649639
9015649639
9015649640
9015666835
9015666834
9015775380

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Serial Number
5KTWS1314HF544146
5KTWS1316HF544147
5KTWS1418HF544150
5KTWS1310HF544158
5KTWS141XHF544151
3JBLKAJ28HJ001150
YDV73871C717
YDV45570C717
3JBUGAN27HK000050
3JBKGAN20HJ001070
3JBUGAP22HK000017
3JBLGAT27HJ003373
3JBLGAR23HJ005497
3JBLGAR27HJ004983
3JBLGAR20HJ005490
3JBLGAR27HJ004577
3JBVNAW21HK001168
3JBUGAR20HK002586
3JBUBAP25HK000012
4X4TSHT24HC003300
4X4TSHC2XHC003401
4X4TSMY23HE021227
4X4TSMY27HE021229
4X4TSHW24HC003454
4X4TSMC26HC014114
4X4TSMW25HE021247
4X4TSMB28HE021331
4X4TSMC29HE021336
4X4TSMC20HE021337
4X4TSHZ20HC003530
4X4TSMZ20HE021507
4X4TSHW25HC003625
4X4TSHA22JC003885
4X4TSMV27JE021824
4X4FSHD25JC003923
4X4TSMU23JE021983
4X4TSMA20JE021976
4X4TSHD26JC003996

Model
000T5HD00
000T5HD00
000T5HT00
000T7HD00
000T5HT00
0002PHE00
00065HA00
00037HA00
0006WHC00
0006THC00
0008BHE00
0002THB00
0005AHE00
0005AHA00
0005AHE00
0005AHA00
0009NHD00
0008WHF00
0008LHE00
CSHT18SSMX
CSHT27FQGDX
CSMT231BHXL
CSMT231BHXL
CSHT21FQMX
CSMT27TDSS
CSMT211SSXL
CSMT261BHXL
CSMT273QBXL
CSMT273QBXL
CSHT24RQMX
CSMT241QBXL
CSHT21RQMX
CSHT25FQGMX
CSMT202RDXL
CSHF28FWGDX
CSMT191SSXL
CSMT254RLXL
CSHT28KSGDX

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Invoice Number
9015808516
9015808516
9015808516
9015808516
9015808516
9015822863
9015822862
9015822862
9015927599
9015927599
9015927599
9016254630
9016254630
9016254630
9016254630
9016254630
9016254631
9016254631
9016324767
INV2534265
INV2548904
INV2573996
INV2575371
INV2566865
INV2576040
INV2579189
INV2589631
INV2589625
INV2603423
INV2592601
INV2616757
INV2619707
INV2653459
INV2657459
INV2663408
INV2664358
INV2664357
INV2664335

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4.

Any recovery of money from the recovery and sale of the

2 Collateral by TCF Inventory Finance, Inc. net of any expenses incurred shall
3 be credited toward the money judgment.
4

5.

Defendant Marker Oil Company, Inc. and its officers, directors,

5 agents, representatives, and employees, Defendant Billy Leon Marker, Jr.,
6 and any others acting on their behalf, are hereby permanently enjoined from
7 doing the following:
8

A.

Transferring any interest by sale, pledge, or grant of

9 security interest, or otherwise disposing of, transferring, or encumbering the
10 Subject Property;
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B.

Concealing, hiding, or otherwise removing the Subject

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C.

Impairing the value of any of the Subject Property; and

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D.

Removing the Subject Property from the principal place of

12 Property;

15 business of Borrower or otherwise outside of the jurisdiction of this Judicial
16 District; and
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E.

Disposing of the proceeds from the transfer of any interest

18 of the Subject Property that may have occurred prior to issuance of this
19 Order.
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6.

Defendant Marker Oil Company, Inc. and its officers, directors,

21 agents, representatives, and employees, Defendant Billy Leon Marker, Jr.,
22 and any others acting on their behalf, are required to do the following:
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A.

Return the Subject Property to the principal place of

24 business of Defendant Marker Oil Company, Inc. at 205 N. Main Street,
25 Alturas, California 96101 or such other location within the Judicial District
26 agreeable to the parties for delivery to TCFIF; and
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B.

Maintain the books and records of Defendants Marker Oil

28 Company, Inc. and provide TCFIF full access to such books and records.
6

1

Any bond(s) filed or posted by or on behalf of TCF Inventory Finance,

2 Inc. in connection with the prejudgment injunctive relief and prejudgment
3 order for possession in this case are hereby released.
4

Plaintiff’s claim for attorneys fees and costs have not been included in

5 this final default judgment and will only be considered by this Court if
6 properly made in compliance with Local Rules 292 and 293 and the
7 applicable Federal Rules of Civil Procedure.
8

This Judgment of the Court resolves all matters before the Court in this

9 case and constitutes this Court’s final judgment.
10 Dated: May 4, 2018
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