Corizon Health, Inc. v. Faulks

Filing 18

ORDER denying 10 Motion for Default Judgment. Plaintiff is directed to file a renewed motion for default judgment within 30 days of this order. Signed by Judge William T. Moore, Jr on 12/3/20. (wwp)

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 1 of 8

IN THE tJNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF GEORGIA
SAVANNAH DIVISION

CORIZON HEALTH, INC.,

Plaintiff,
CASE NO. CV417-012

V.

CARL FAULKS, M.D.,
Defendant.

ORDER

Before the Court is Plaintiff Corizon Health, Inc.'s Motion

for Default Judgment (Doc. 10), to which Defendant Carl Faulks,
M.D., has not responded. In the motion. Plaintiff requests that

the Clerk enter default judgment against Defendant under Federal
Rule of Civil Procedure 55(b)(1). (Doc. 10 at 1.) For the following
reasons. Plaintiff's motion is DENIED and Plaintiff is DIRECTED to

file a renewed motion within thirty (30) days of this order.
BACKGROUND

This case arises from Plaintiff s inadvertent overpayment of
wages to

Defendant.

(Doc.

1 at 3.)

Defendant

was employed

by

Plaintiff from December 17, 2014 until February 8, 2016. (Id. at

2.) On February 2, 2015, Defendant injured his knee while working
for Plaintiff. (Id.) On June 8, 2015, Plaintiff placed Defendant
on unpaid leave while Defendant underwent surgery on his knee.
(Id.) However, due to a clerical oversight. Defendant continued to

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 2 of 8

received salary payments from Plaintiff while he was on leave.
(Id.) Plaintiff eventually terminated Defendant's employment on

February 8, 2016, because Defendant was unable to return to work
after his surgery. (Id.) Due to the clerical oversight, Defendant

continued to receive salary payments from Plaintiff on a bi-weekly
basis until on or about June 10, 2016, when Plaintiff discovered

the error. (Id.) Specifically, Defendant received net pay between

$5,108.26 and $5,579.46 every other week from June 8, 2015 until
June 10, 2016, totaling $129,347.09 in overpaid wages. (Id.)

On September 14, 2016, Plaintiff sent a letter to Defendant
via certified mail requesting that Defendant return the overpaid
wages.

(Id.

at

3.)

Defendant

signed

a

certified

receipt

acknowledging that he received the letter on or about October 13,
2016. (Id.) Between October 2016 and December 2016, Plaintiff sent

two more letters via UPS and FedEx to Defendant requesting that

Defendant return the overpaid wages. (Id.) Defendant failed to
respond to any of Plaintiff's demand letters and failed to return

the overpaid wages. (Id.) Subsequently, Plaintiff brought suit
against Defendant in this Court on January 20, 2017. (Id. at 1.)
In its complaint. Plaintiff seeks recovery of the overpaid wages
under theories of money had and received and unjust enrichment.

(Id. at 3-4.) Defendant was served a copy of the complaint and
summons on April 20, 2017 (Doc. 5), but he failed to respond.
Plaintiff received a Clerk's Entry of Default on June 1, 2017 (Doc.

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 3 of 8

9) and subsequently filed this motion for default judgment (Doc.
10).

Prior to the Court addressing Plaintiff s motion. Defendant
filed a notice of automatic stay on account of bankruptcy. (Doc.

13.) Pursuant to 11 U.S.C. § 362, the Court stayed this case until
the Bankruptcy Court granted relief from the stay, closed the
bankruptcy case, or dismissed the bankruptcy petition. (Doc. 14.)
On March 25, 2019, Magistrate Judge Ray lifted the stay because
Defendant's bankruptcy case had ended and ordered the parties to
submit a joint status report to apprise the Court of the current

status of this case. (Doc. 15.) In response to Magistrate Judge

Ray's order. Plaintiff filed a status report stating that Plaintiff
attempted to contact Defendant via phone calls and a letter. (Doc.
16 at 1.) Plaintiff also contacted Defendant's attorney of record
for Defendant's bankruptcy case, who indicated that he no longer
has contact with

Defendant. (Id.) As of the date of filing of

Plaintiff's status report. Plaintiff had not received any response
from Defendant. (Id. at 2.)

In

addition

to

the

status

report.

Plaintiff

provided

a

stipulated judgment from the United States Bankruptcy Court for
the Southern District of Georgia indicating that Defendant was
denied

bankruptcy discharge

due to

Defendant's execution

of a

waiver of discharge. (Doc. 16, Attach. 3 at 2-3.) Plaintiff also
provided evidence that it received a pro rata share of Defendant's

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 4 of 8

remaining assets, after the payment of administrative expenses and

priority creditors, in the amount of $2,524.85. (Doc. 16, Attach.
4 at 3; Doc. 16, Attach. 5 at 1.) In the status report. Plaintiff
indicates that because Defendant's debt was not discharged in his

bankruptcy case. Plaintiff intends to continue with the instant
action

to

recover the

overpayment of

wages in

the

amount

of

$129,347.09 less the $2,524.85 that Plaintiff recovered from the

bankruptcy proceeding. {Doc. 16 at 2-3.) Plaintiff also indicates
that it seeks to recover attorneys' fees incurred in this action.
(Id. at 3.)
ANALYSIS

Under Federal Rule of Civil Procedure 55, a party can only

obtain default judgment through a two-step process. First, ''[w]hen
a party against whom a judgment for affirmative relief is sought

has failed to plead or otherwise defend, and that failure is shown
by

affidavit

or

otherwise,

the

clerk

must

enter

the

party's

default." Fed. R. Civ. P. 55(a). After a clerk's entry of default,

the moving party may request an entry of default judgment. Fed. R.
Civ. P. 55(b). ^MB]efore entering a default judgment for damages,
the district court must ensure that the well-pleaded allegations

in the complaint, which are taken as true due to the default,

actually state a substantive cause of action and that there is a
substantive, sufficient basis in the pleadings for the particular

relief sought." Tyco Fire & Sec., LLC v. Alcocer, 218 F. App'x

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 5 of 8

860, 863 (11th Cir. 2007); see also Adolph Coors Co. v. Movement

Against Racism and the Klan, 111 F.2d 1538, 1543 (11th Cir. 1985)

(finding that court may enter a default judgment without conducting
a hearing ^^if the amount claimed is a liquidated sum or one capable
of

mathematical

calculation," or

where "the

record

adequately

reflects the basis for the award via a . . . demonstration by

detailed affidavits establishing the necessary facts.").

Plaintiff received a Clerk's Entry of Default on June 1, 2017.
(Doc. 9.) Plaintiff then moved the Court to enter default judgment

against Defendant and sought damages for overpaid wages in the
amount of $129,347.09, plus interest, and costs in the amount of
$630.00. (Doc. 10 at 2.) However, according to Plaintiff's status

report. Plaintiff now seeks damages for overpaid wages in the
amount of $126,822.24—that is, $129,347.09 less the $2,524.85
recovered

from

Additionally,

the

bankruptcy

Plaintiff

now

proceeding.

requests

(Doc.

attorneys'

16

fees

at

2-3.)

that

it

incurred in this action. (Id.)

Plaintiff's motion for default judgment no longer ascribes
the appropriate amount of damages Plaintiff seeks to recover from
Defendant. Plaintiff also cannot raise a new request for attorneys'

fees in its status report that it failed to raise in its motion
for

default

judgment.

Because

the

circumstances

surrounding

Plaintiff s requested damages have changed since Plaintiff filed
its motion for default judgment, the Court DIRECTS Plaintiff to

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 6 of 8

refile its motion and supporting documentation. Plaintiff should

specify the amount of overpaid wages {less the $2,524.85 recovered
from the bankruptcy proceeding), attorneys' fees, and costs it
seeks to recover from Defendant.

The Court also notes that Plaintiff has failed to adequately

support the amount of overpaid wages and attorneys' fees it seeks
to recover. Plaintiff, in its motion, requests that the Clerk enter

default judgment under Federal Rule of Civil Procedure 55(b)(1).

For default judgment to be entered by the Clerk, the alleged
damages must be either for a ^^sum certain or for a sum which can
by computation be made certain." Fed. R. Civ. P. 55(b)(1). For a
sum to be made computationally certain, ^'[i]t is not sufficient to

simply

request

^reasonable

a

specific

under the

amount,

rather

the

circumstances.' " Carter

amount must
v.

Macon

be

Manor

NRC, LLC, No. 506CV00030HL, 2007 WL 951419, at *1 (M.D. Ga. Mar.

27, 2007) (quoting Patray v. Nw. Publ'g., Inc., 931 F. Supp. 865,
869 (S.D. Ga. 1996)) A reasonable basis for the award must be
.

established through ^^a

hearing or a demonstration by detailed

affidavits establishing the necessary facts." Adolph Coors Co. v.
Movement Against Racism & the Klan, 111 F.2d 1538, 1544 (11th Cir.
1985) (quotations omitted).

Although Plaintiff filed an affidavit with its motion for
default judgment that attests to the amount of overpaid wages (Doc.
10, Attach. 1), this affidavit only generally alleges the amount

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 7 of 8

without any further explanation, calculation, or evidence. Such a
simple

breakdown

does

not

demonstrate

the

facts

necessary

to

support default judgment. See Carter, 2007 WL 951419, at *1 {^'[T]he

affidavit provided simply alleges the amount of damages without
supporting the amount specifically . . . ."). Additionally, if
Plaintiff intends to seek attorneys' fees in its renewed motion.
Plaintiff cannot request an entry of default judgment under Rule
55(b)(1). ""'Courts

in

the

Eleventh

Circuit

do

not

consider

the

reasonableness of attorneys' fees a sum certain under Rule 55."
Senn Brothers, Inc. v. Heavenly Produce Palace LLC, No. CV 119196, 2020 WL 2115805, at *2 (S.D. Ga. May 4, 2020);

e.g.,

Lubin, Sari, a French Co. v. Lubin N. Am., Inc., No. 1:13-CV-2696-

AT, 2014 WL 11955396, at *1 (N.D. Ga. Apr. 10, 2014) ("Plaintiff
demanded attorney's fees, which are not a sum certain."); Synovus
Bank v. ACCU V, No. 11-0116-WS-B, 2012 WL 4760780, at *1 n.l (S.D.

Ala. Oct. 4, 2012) ("Because the plaintiff seeks attorney's fees

and expenses as part of its contractual recovery, and because the

reasonableness of such fees and expenses cannot 'be made certain
by computation,' entry of default judgment must proceed from the
Court under Rule 55(b)(2).").
CONCLUSION

For the forgoing reasons.

Plaintiff's motion for default

judgment (Doc. 10) is DENIED. Plaintiff is DIRECTED to file a
renewed motion for default judgment within thirty (30) days of

Case 4:17-cv-00012-WTM-CLR Document 18 Filed 12/03/20 Page 8 of 8

this order. Plaintiff's renewed motion shall specify the amount of

overpaid

wages

it

seeks

to

recover

from

Defendant

after

the

disposition of Defendant's bankruptcy case and shall provide the
necessary support for the amount requested.^
SO ORDERED this

day of December 2020.

E,
WILLIAM T, MOORE, JFK
UNITED STATES

DISTRICT COURT

SOUTHERN DISTRICT OF GEORGIA

^ The Court will not accept any renewed
by reference any factual allegation or
earlier filing, or that offers only
Plaintiff's renewed motion should be a
independently contains all the factual
justify entering default judgment.

motion that incorporates
argument contained in an
a piecemeal amendment.
stand-alone filing that
allegations necessary to