Aurora Bank FSB v. First Residential Mortgage Services Corporation

Filing 34

ORDER granting 30 Motion for Summary Judgment, judgment to enter in favor of the plaintiff and against the defendant. by Judge R. Brooke Jackson on 2/4/14.(rbjcd, )

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Judge R. Brooke Jackson
Civil Action No. 12-cv-02926-RBJ
AURORA COMMERCIAL CORP., as successor to AURORA BANK FSB, a Federal Savings
Bank,
Plaintiff,
v.
FIRST RESIDENTIAL MORTGAGE SERVICES CORPORATION,
A New Jersey Corporation,
Defendant.

ORDER

This case arises from First Residential Mortgage Services Corporation’s alleged failure to
honor repurchase terms in a January 27, 2005 Loan Purchase Agreement. Asserting jurisdiction
based upon diversity of citizenship pursuant to 28 U.S.C. § 1332, the plaintiff, Aurora
Commercial Corp., alleged claims of breach of contract, breach of express warranties, and unjust
enrichment. Amended Complaint [ECF No. 8].
Defendant, represented by counsel, filed an Answer to the Amended Complaint. [ECF
No. 12] A scheduling conference was held, and the case was set for a trial preparation
conference on March 21, 2014 and two two-day trials to the Court beginning April 7 and 14,
2014. [ECF No. 21]
On November 27, 2013 plaintiff filed a Motion for Summary Judgment. [ECF No. 30].
The motion states that defendant had not responded to discovery, and its counsel has indicated
that it might file bankruptcy. The motion certifies that plaintiff’s counsel has conferred with
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defendant’s counsel who indicated that she would speak with her client about the motion.
However, as at the date of the filing of the motion, defendant’s counsel had not indicated
whether her client opposes the motion. The essence of the motion is that (1) there is no genuine
dispute of material fact; (2) the defendant has failed to respond discovery and appears no longer
to be willing to defend; and (3) therefore, judgment should be entered as a matter of law.
Defendant did not respond to the motion for summary judgment. On January 5, 2014
defendant’s counsel moved for leave to withdraw, indicating that defendant’s COO has advised
that defendant has insufficient funds to afford counsel or to continue litigating the case. The
Court denied the motion to withdraw because there was no indication either that counsel had
conferred with plaintiff’s counsel or whether the client objects to counsel’s withdrawal.
On January 17, 2014 the Court issued an order that defendant show cause as to why
summary judgment should not be granted based on the defendant’s failure to respond to the
motion and seeming unwillingness to defend the case. [ECF No. 33]. I noted that this is the
second case in which the Court had been notified of First Residential’s situation. The Court
requested a response within 14 days.
Accordingly, the Court now grants the motion for summary judgment. Having reviewed
the Affidavit of Aurora Bank FSB [ECF No. 30-1] and the other documents in the file, the Court
is satisfied that judgment should enter in the amount described in the affidavit.
ORDER
1. Plaintiff’s motion for summary judgment [ECF No. 30] is GRANTED.
2. The Court orders that final judgment enter in favor of Aurora Commercial Corp. and
against First Residential Mortgage Services Corporation in the amount of $1,042,488.93 plus

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post-judgment interest. The Court further orders that, as the prevailing party, plaintiff is awarded
its costs pursuant to Fed. R. Civ. P. 54(d)(1) and D.C.COLO.LCivR 54.1.
3. The trial preparation conference and trials are vacated.
DATED this 4th day of February, 2014.
BY THE COURT:

___________________________________
R. Brooke Jackson
United States District Judge

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