Progressive Northern Insurance Co. v. Carmona et al

Filing 84

MEMORANDUM AND ORDER - The plaintiff's unopposed motion for default judgment (filing 78 ) is granted. Judgment is entered in favor of Progressive Northern Insurance Co., and against Poudre Valley Medical Group, LLC d/b/a Colorado Health Medical Group and Medical Center of the Rockies, finding that it is not entitled to any share of the judgment proceeds in the underlying interpleader action. Ordered by Judge John M. Gerrard. (GJG)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
PROGRESSIVE NORTHERN
INSURANCE CO.,
Plaintiff,

4:15-CV-3000
MEMORANDUM AND ORDER

vs.
JOSE CARMONA, et al.,
Defendants.

This matter is before the Court on the plaintiff's unopposed motion for
default judgment against Poudre Valley Medical Group, LLC d/b/a Colorado
Health Medical Group and Medical Center of the Rockies ("Poudre Valley")
(filing 78).
Rule 55 of the Federal Rules of Civil Procedure contemplates a two-step
procedure for the entry of default judgments. First, pursuant to Rule 55(a),
the party seeking a default judgment must have the Clerk of Court enter a
default by showing that the opposing party has failed to plead or otherwise
defend. Second, pursuant to Rule 55(b), the moving party may seek entry of
judgment on the default under either subdivision (b)(1) or (b)(2) of the Rule.
The Clerk of Court has entered a default against Poudre Valley (filing 81).
When a default is entered, facts alleged in the complaint—except as to
damages—may not be later contested. Marshall v. Baggett, 616 F.3d 849, 852
(8th Cir. 2010); Murray v. Lene, 595 F.3d 868, 871 (8th Cir. 2010). But before
entering a default judgment, the Court must consider whether the
unchallenged facts constitute a legitimate cause of action, since a party in
default does not admit mere conclusions of law. Murray, 595 F.3d at 871. It
is, therefore, incumbent upon the Court to ensure that the unchallenged facts
constitute a legitimate cause of action before entering final judgment.
Marshall, 616 F.3d at 852–53. Having examined the complaint, the Court
concludes that Progressive Northern Insurance Co. has stated a claim for
interpleader. See 28 U.S.C. § 1335.
Accordingly, the Court finds that default judgment is appropriate. In
the context of an interpleader action, a defendant against whom a default
judgment has been entered forfeits any claim of entitlement that it might
have asserted. See Gulf Coast Galvanizing, Inc. v. Steel Sales, Co., 826 F.
Supp. 197, 203 (S.D. Miss. 1993) (quoting General Accident Grp. v. Gagliardi,
593 F. Supp. 1080, 1089 (D. Conn. 1984)); see also Nationwide Mut. Fire Ins.

Co. v. Eason, 736 F.2d 130, 133 n.4 (4th Cir. 1984) ("[I]f all but one named
interpleader defendant defaulted, the remaining defendant would be entitled
to the fund.").
Finally, the Court concludes that under the circumstances of this case,
no hearing or notice to Poudre Valley is necessary before entering a default
judgment: Poudre Valley has not appeared, and the interpleader relates to a
sum certain.
IT IS ORDERED:
1.

The plaintiff's unopposed motion for default judgment (filing 78)
is granted.

2.

Judgment is entered in favor of Progressive Northern Insurance
Co., and against Poudre Valley Medical Group, LLC d/b/a
Colorado Health Medical Group and Medical Center of the
Rockies, finding that it is not entitled to any share of the
judgment proceeds in the underlying interpleader action.

Dated this 8th day of April, 2016.
BY THE COURT:
John M. Gerrard
United States District Judge

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