U.S. Bank National Association v. SFR Investments Pool 1 LLC et al
Filing
48
ORDER granting 46 Motion for Default Judgment against Casey A. Freeman. FURTHER ORDERED that the County Recorded for Clark County, Nevada is directed to expunge the 8 and 23 notices of lis pendens recorded by Plaintiff U.S. Bank National Association and Defendant SFR Investments Pool 1, LLC., on the property located at 1064 Menands Avenue, Las Vegas, Nevada 89123 APN 177-22-811-182. Signed by Judge Richard F. Boulware, II on 3/31/2021. (Copies have been distributed pursuant to the NEF - DRS)
1
UNITED STATES DISTRICT COURT
2
DISTRICT OF NEVADA
3
***
4
5
6
7
8
ORDER
Plaintiff,
v.
SFR INVESTMENTS POOL 1, LLC et al.,
Defendants.
9
10
Case No.: 2:17-cv-01419-RFB-VCF
U.S. BANK NATIONAL ASSOCIATION,
I.
INTRODUCTION
Before the Court is Defendant SFR Investments Pool 1, LLC’s (“SFR”) Motion for Default
11
12
Judgment. ECF No 46. For the following reasons, the Court grants this motion.
13
II.
PROCEDURAL BACKGROUND
14
U.S. Bank National Association (“U.S. Bank”) filed its complaint against Defendants on
15
May 19, 2017. ECF No. 1. On June 5, 2017, Plaintiff filed an amended complaint. ECF No. 9.
16
On July 24, 2017, SFR Investments Pool 1, LLC (“SFR”) answered and asserted cross-claims
17
against Casey A. Freeman and counter-claims against U.S. Bank. ECF No. 20. Freeman was served
18
with SFR’s Answer with cross-claims on October 23, 2017. ECF No. 36. On March 1, 2018, SFR
19
filed a Motion for Entry of Clerk’s Default as to Casey A. Freeman and it was entered on March
20
2, 2018. ECF Nos. 34,35. On November 7, 2018, this Court entered a stipulation of dismissal
21
between SFR and U.S. Bank and the case remained opened as to SFR’s pending cross-claims
22
against Freeman. On May 7, 2020, SFR filed a Motion for Default Judgment against Freeman and
23
there was no opposition filed. ECF Nos. 46,47.
24
III.
LEGAL STANDARD
25
The granting of a default judgment is a two-step process directed by Rule 55 of the Federal
26
Rules of Civil Procedure. Fed. R. Civ. P. 55; Eitel v. McCool, 782 F.2d 1470, 1471 (9th Cir. 1986).
27
The first step is an entry of clerk's default based on a showing, by affidavit or otherwise, that the
28
party against whom the judgment is sought “has failed to plead or otherwise defend.” Fed. R. Civ.
1
1
P. 55(a). The second step is default judgment under Rule 55(b), a decision which lies within the
2
discretion of the Court. Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). Factors which a
3
court, in its discretion, may consider in deciding whether to grant a default judgment include: (1)
4
the possibility of prejudice to the plaintiff, (2) the merits of the substantive claims, (3) the
5
sufficiency of the complaint, (4) the amount of money at stake, (5) the possibility of a dispute of
6
material fact, (6) whether the default was due to excusable neglect, and (7) the Federal Rules’
7
strong policy in favor of deciding cases on the merits. Eitel, 782 F.2d at 1471–72.
8
If an entry of default is made, the Court accepts all well-pleaded factual allegations in the
9
complaint as true; however, conclusions of law and allegations of fact that are not well-pleaded
10
will not be deemed admitted by the defaulted party. DirecTV, Inc. v. Hoa Huynh, 503 F.3d 847,
11
854 (9th Cir. 2007). Additionally, the Court does not accept factual allegations relating to the
12
amount of damages as true. Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977). Default
13
establishes a party's liability, but not the amount of damages claimed in the pleading. Id.
14
IV.
DISCUSSION
15
In considering the seven Eitel factors, the Court finds default judgment against Casey A.
16
Freeman is warranted. The first and sixth factors favor granting default judgment because the
17
Cross-Defendant failed to defend—or appear at all in this matter—since being served with the
18
summons and SFR’s Answer. Freeman’s failure to appear for the past four years prejudices SFR
19
by preventing it from determining injunctive relief against Freeman. Further, Freeman’s failure to
20
appear for a substantial period of time demonstrates the lack of excusable neglect. And while the
21
seventh factor generally counsels against the granting of default judgment, Freeman’s failure to
22
appear prevents the Court from determining the cross-claims on its merits.
23
The second and third factors also favor a grant of default judgment. SFR seeks quiet title
24
and injunctive relief against Freeman’s. There are sufficient exhibits attached to this instant motion
25
demonstrating SFR is entitled to the relief requested. Thus, SFR has demonstrated its claims are
26
meritorious.
27
28
Finally, there is no money at stake to counsel against the grant of default judgment. Thus,
the Court finds the Eitel factors favor the grant of default judgment against Cross-Defendant.
2
1
2
3
V.
CONCLUSION
IT IS THEREFORE ORDERED that Defendant SFR Investments Pool 1, LLC’s Motion
for Motion for Default Judgment (ECF No. 46) is GRANTED.
4
IT IS FURTHER ORDERED that the County Recorded for Clark County, Nevada is
5
directed to expunge the notices of lis pendens recorded by Plaintiff U.S. Bank National Association
6
and Defendant SFR Investments Pool 1, LLC., on the property located at 1064 Menands Avenue,
7
Las Vegas, Nevada 89123 APN 177-22-811-182
8
The Clerk of the Court is instructed to enter judgment accordingly and close this case.
9
DATED: March 31, 2021.
10
11
12
__________________________________
RICHARD F. BOULWARE, II
UNITED STATES DISTRICT JUDGE
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
3
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?