HSBC Bank USA, National Association v. SFR Investments Pool 1, LLC et al
Filing
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ORDER granting 45 Motion for Default Judgment against Defendant Marilu Aguilera in favor of SFR Investments Pool 1, LLC. Signed by Judge Richard F. Boulware, II on 3/31/2021. (Copies have been distributed pursuant to the NEF - DRS)
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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HSBC BANK USA, NATIONAL ASSOCIATION,
Case No.: 2:16-cv-02762-RFB-NJK
Plaintiff,
ORDER
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v.
SFR INVESTMENTS POOL 1, LLC.,
Defendants.
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I.
INTRODUCTION
Before the Court is Defendant SFR Investments Pool 1, LLC’s (“SFR”) Motion for Default
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Judgment. ECF No 45. For the following reasons, the Court grants this motion.
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II.
PROCEDURAL BACKGROUND
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HSBC Bank USA, National Association (“HSBC”) filed its complaint against Defendants
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on December 2, 2016. ECF No. 1. On January 27, 2017, SFR answered and asserted cross-claims
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against Marilu Aguilera. ECF No. 24. Aguilera was served with SFR’s Answer with cross-claims
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on April 25, 2017. ECF No. 27. On May 30, 2017, this SFR filed a Motion for Entry of Clerk’s
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Default as to Marilu Aguilera and it was entered on May 31, 2017. ECF Nos. 27, 28. On December
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12, 2018, this Court entered stipulation of dismissal with prejudice as to HSBC, SFR, and Belcrest
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Homeowners Association; this did not affect the cross-claims against Aguilera. ECF No. 44. On
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May 7, 2020, SFR filed a Motion for Default Judgment against Aguilera and there was no
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opposition filed. ECF Nos. 45, 46.
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III.
LEGAL STANDARD
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The granting of a default judgment is a two-step process directed by Rule 55 of the Federal
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Rules of Civil Procedure. Fed. R. Civ. P. 55; Eitel v. McCool, 782 F.2d 1470, 1471 (9th Cir. 1986).
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The first step is an entry of clerk's default based on a showing, by affidavit or otherwise, that the
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party against whom the judgment is sought “has failed to plead or otherwise defend.” Fed. R. Civ.
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P. 55(a). The second step is default judgment under Rule 55(b), a decision which lies within the
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discretion of the Court. Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). Factors which a
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court, in its discretion, may consider in deciding whether to grant a default judgment include: (1)
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the possibility of prejudice to the plaintiff, (2) the merits of the substantive claims, (3) the
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sufficiency of the complaint, (4) the amount of money at stake, (5) the possibility of a dispute of
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material fact, (6) whether the default was due to excusable neglect, and (7) the Federal Rules’
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strong policy in favor of deciding cases on the merits. Eitel, 782 F.2d at 1471–72.
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If an entry of default is made, the Court accepts all well-pleaded factual allegations in the
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complaint as true; however, conclusions of law and allegations of fact that are not well-pleaded
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will not be deemed admitted by the defaulted party. DirecTV, Inc. v. Hoa Huynh, 503 F.3d 847,
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854 (9th Cir. 2007). Additionally, the Court does not accept factual allegations relating to the
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amount of damages as true. Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977). Default
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establishes a party's liability, but not the amount of damages claimed in the pleading. Id.
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IV.
DISCUSSION
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In considering the seven Eitel factors, the Court finds default judgment against Marilu
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Aguilera is warranted. The first and sixth factors favor granting default judgment because the
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Cross-Defendant failed to defend—or appear at all in this matter—since being served with the
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summons and SFR’s Answer. Aguilera’s failure to appear for the past four years prejudices SFR
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by preventing it from determining injunctive relief against Aguilera. Further, Aguilera’s failure to
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appear for a substantial period of time demonstrates the lack of excusable neglect. And while the
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seventh factor generally counsels against the granting of default judgment, Aguilera’s failure to
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appear prevents the Court from determining the cross-claims on its merits.
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The second and third factors also favor a grant of default judgment. SFR seeks quiet title
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and injunctive relief against Aguilera’s. There are sufficient exhibits attached to this instant motion
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demonstrating SFR is entitled to the relief requested. Thus, SFR has demonstrated its claims are
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meritorious.
Finally, there is no money at stake to counsel against the grant of default judgment. Thus,
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the Court finds the Eitel factors favor the grant of default judgment against Cross-Defendant.
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V.
CONCLUSION
IT IS THEREFORE ORDERED that Defendant SFR Investments Pool 1, LLC’s Motion
for Motion for Default Judgment (ECF No. 45) is GRANTED.
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The Clerk of the Court is instructed to enter judgment accordingly and close this case.
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DATED: March 31, 2021.
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__________________________________
RICHARD F. BOULWARE, II
UNITED STATES DISTRICT JUDGE
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