PATCH OF LAND LENDING, LLC v. 1289 HUDSON, LLC et al

Filing 22

OPINION AND ORDER granting in part and administratively terminating without prejudice Plaintiff's 18 19 and 20 Motions for Default Judgment against Defendants 1289 Hudson, LLC., Christian D. Chavez and Slava Brin: GRANTED TO THE EXTENT tha t it seeks the entry of default judgment on the issue of liability against the defendants 1289 Hudson, LLC., Christian D. Chavez and Slava Brin and ADMINISTRATIVELY TERMINATED WITHOUT PREJUDICE TO THE EXTENT that it seeks the entry of default judgment on the issue of damages against the defendants 1289 Hudson, LLC., Christian D. Chavez and Slava Brin, etc. Signed by Judge Jose L. Linares on 05/01/2017. (ek)

NOT FOR PUBLICATION
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY

PATCH OF LAND LENDING, LLC,
Plaintiff,

:
:

CIVIL ACTION NO. 17-0027 (JLL)
OPINION & ORDER

V.

1289 HUDSON, LLC, et al.,
Defendants.

LINARES, District Judge

IT APPEARING THAT:
1.

This is an action to foreclose upon a coimuercial mortgage and to recover

the amount due thereunder. (See dkt. 1 through dkt. 1-6; dkt. 17; dkt. 17-1.)’ The
plaintiff has named the following defendants:
(a)
(b)

Christian D. Chavez;

(c)

Sangeetha Kuppuswami; and

(d)
2.

1289 Hudson, LLC;

SlavaBrin.

The Court possesses diversity jurisdiction over this action.

5—8 (setting forth the citizenship of each party).) çç 28 U.S.C.

§

(Scc dkt.

1 at

1332; see also Nat’l

The Court will refer to documents by the docket entry numbers and the
page numbers imposed by the Electronic Case Filing System.

City Mortg. Co. v. Stephen, 647 F.3d 78, 82 (3d Cir. 2011) (holding that “[a]lthough
foreclosure actions are more common in state court, the District Court had diversity
jurisdiction”); id. at 80 n.2 (stating that mortgage foreclosure actions are becoming more
coiiirnon in the federal courts).2
3.

Currently pending before the Court are the plaintiffs three separate

motions pursuant to Federal Rule of Civil Procedure 55(b)(2) for the entry of default
judgment against 1289 Hudson, LLC, Chavez, and Brin. (See dkt. 18 through dkt. 18-4
(concerning 1289 Hudson, LLC); dkt. 19 through dkt. 19-4 (concerning Chavez); dkt. 20
through dkt. 20-4 (concerning Brin).) Defaults were entered against those three
aforementioned defendants before the plaintiff filed the three motions. (Scc unnumbered
docket entry following dkt. 14.) See Fed.R.Civ.P. 55(a). The plaintiff has demonstrated
that it has served the three motions upon the defendants by providing certificates of
service. (Seedkt. 18-4; dkt. 19-4; dkt. 20-4.)
4.

However, Kuppuswami has appeared pro se in this action, and she has

participated in this litigation by filing an answer. (See dkt. 21.) The plaintiff has not
moved for any relief against Kuppuswarni.

The plaintiffs predecessor entity initially brought the foreclosure claims in
New Jersey state court against 1289 Hudson, LLC, Chavez, Kuppuswarni, and Brin in
August 2016. See N.J. Dkt. No. F-22108-16. On January 3, 2017, the foreclosure claims
were withdrawn from state court, and were then brought in federal court.
2

2

5.

The decision to either enter a default judgment or refuse to enter such a

judgment rests in the Court’s discretion. $ç Emcasco Ins. Co. v. Sambrick, 834 F.2d 71,
74 (3d Cir. 1987).
6.

It is apparent that the plaintiff intends to continue to prosecute the action

against Kuppuswarni, because the plaintiff has not withdrawn the claims that are asserted
against her. Thus, a default judgment entered against 1289 Hudson, LLC, Chavez, and
Brin at this juncture would not end this litigation, thereby giving rise to piecemeal
litigation, the possibility of a double recovery for the plaintiff, and the danger of a
logically inconsistent determination as to Kuppuswami.
7.

Therefore, the Court grants the parts of the three motions that seek the entry

of default judgment only on the issue of liability against 1289 Hudson, LLC, Chavez, and
Brin, and administratively terminates the parts of the three motions that seek the entry of
default judgment against those defendants on the issue of damages.
8.

The plaintiff may seek a judgment on the issue of damages against 1289

Hudson, LLC, Chavez, and Brin when appropriate, i.e., when the liability of
Kuppuswami has been ascertained.

Fed.R.Civ.P. 55(b)(2) (stating that a district

court may conduct a hearing in order to properly effectuate a default judgment). If the
plaintiff eventually moves again for judgment on the issue of damages, then the plaintiff
should be sure to file a proposed order that specifically sets forth the extent to which any
of the defendants are jointly and severally liable for any monetary amounts owed.
FOR GOOD CAUSE APPEARING:

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_________

day of May, 2017, ORDERED that

IT IS THEREFORE on this

the plaintiffs motion for the entry of default judgment against the defendant 1289
Hudson, LLC (dkt. 18) is resolved as follows:
GRANTED TO THE EXTENT that it seeks the entry of default judgment
on the issue of liability against the defendant 1289 Hudson, LLC, and
ADMINISTRATIVELY TERMINATED WITHOUT PREJUDICE TO

THE EXTENT that it seeks the entry of default judgment on the issue of damages
against the defendant 1289 Hudson, LLC, and with leave to the plaintiff to move for
judgment on the issue of damages against the defendant 1289 Hudson, LLC, when
appropriate; and it is further
ORDERED that the plaintiffs motion for the entry of default judgment against

the defendant Christian D. Chavez (dkt. 19) is resolved as follows:
GRANTED TO THE EXTENT that it seeks the entry of default judgment

on the issue of liability against the defendant Christian D. Chavez, and
ADMINISTRATIVELY TERMINATED WITHOUT PREJUDICE TO

THE EXTENT that it seeks the entry of default judgment on the issue of damages
against the defendant Christian D. Chavez, and with leave to the plaintiff to move for
judgment on the issue of damages against the defendant Christian D. Chavez when
appropriate; and it is further
ORDERED that the plaintiffs motion for the entry of default judgment against
the defendant Slava Brin (dkt. 20) is resolved as follows:

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GRANTED TO THE EXTENT that it seeks the entry of default judgment
on the issue of liability against the defendant Slava Brin, and
ADMINISTRATIVELY TERMINATED WITHOUT PREJUDICE TO
THE EXTENT that it seeks the entry of default judgment on the issue of damages
against the defendant S lava Brin, and with leave to the plaintiff to move for judgment
against the defendant Slava Brin on the issue of damages when appropriate; and it is
further
ORDERED that default judgment is entered in favor of the plaintiff and against
the defendants 1289 Hudson, LLC, Christian D. Chavez, and S lava Brin on the issue of
liability only.

//OSE L. LINARES
United States District Judge

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