Automotive Finance Corporation v. Raphael et al

Filing 49

MEMORANDUM & ORDER ADOPTING REPORT AND RECOMMENDATIONS. The Court has reviewed the record and, having found no clear error, adopts Magistrate Judge Gold's well-reasoned R&R as the opinion of the court. Accordingly, the court grants Plaintiff's motion for default judgment, and the Clerk of Court is directed to close this case. Ordered by Judge Carol Bagley Amon on 9/14/2018. (Piper, Francine)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

us DISTRICT COURT E.D.N.Y.

AUTOMOTIVE FINANCE CORPORATION,

5 SEPIU8I8 *

Plaintiff,

IN CLERK'S OFFICE

BROOKLYN OFFICE
NOT FOR PUBLICATION

-against-

MEMORANDUM & ORDER

16-CV-2027(CBA)
(SMG)
KELLEY ANDREE RAPHAEL and
AUTOSOURCE I, INC.
Defendants.

AMON,United States District Judge:

In January of2015, Plaintiff Automotive Finance Corporation and Defendant Autosource

I, Inc. entered into a Demand Promissory Note and Security Agreement(the "Note")in the amount
of $300,000 for floor-plan financing of the Defendants' car-rental business. (D.E. # 1 at 2.)

Defendant Kelley Andree Raphael acted as guarantor of the Note. (D.E.# 1-1 at 15.) By fall of

that year,the parties increased the financing limit to $450,000,and Plaintiffsecured a lien on eight
of Defendants' vehicles to use as collateral in the event of default. (D.E. # 1 at 2.) Defendants
defaulted on the Note and failed to deliver possession ofthe eight vehicles. (Id at 3.)

Plaintifffiled this defaultjudgment action in April of2016. (D.E.# 1 at 1.) After initially

appearing, defense counsel withdrew, and Defendants failed to continue to appear. (D.E. # 9 at
1.)(D.E. # 22 at 1.) The Clerk of Court entered a certificate of default, and Plaintiff filed this
motion. (D.E.# 41-42.) The Court referred Plaintiffs motion to the Honorable Steven M. Gold,
United States Magistrate Judge, for a Report and Recommendation ("R&R"). Magistrate Judge
Gold found that Indiana law governs the Note pursuant to the contract's choice-of-Iaw provision.

that Defendants are liable for breach ofcontract, and that Plaintiff is entitled to the relief sought in

the Complaint, excepting attorney's fees and "Contract Charges."

No party has objected to the R&R,and the time for doing so has passed. The Court"may

accept, reject, or modify, in whole or in part, the findings or recommendations made by the
magistrate judge." 28 U.S.C. § 636(b)(1). The Court may accept portions ofthe R&R so long as
there is "no clear error on the face of the record." Jarvis v. N. Am. Globex Fund, L.P., 823 F.

Supp. 2d 161, 163 (E.D.N.Y. 2011)(quoting Wilds v. United Parcel Serv., 262 P. Supp. 2d 163,
169(S.D.N.Y. 2003)).

The Court has reviewed the record and, having found no clear error, adopts Magistrate

Judge Gold's well-reasoned R&R as the opinion of the Court. Accordingly, the Court grants
Plaintiffs motion for defaultjudgment, and the Clerk of Court is directed to close this case.
SO ORDERED.

Dated: September 13,2018
Brooklyn, New York

s/Carol B. Amon
Carol Bagl
United States

ict Judge