United States of America v. Lyons

Filing 12

DECISION AND ORDER granting 6 Motion for Default Judgment. Signed by Senior Judge Thomas J. McAvoy on 4/10/12. [Served by mail.] (sfp, )

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF NEW YORK
-------------------------------UNITED STATES OF AMERICA,
Plaintiff,
v.

5:12-cv-130

LAWRENCE J. ROLAND,
Defendant.
-------------------------------UNITED STATES OF AMERICA,
Plaintiff,
v.

8:12-cv-134

WILLIAM D. DOWSTRA,
Defendant.
-------------------------------UNITED STATES OF AMERICA,
Plaintiff,
v.

5:12-cv-140

FRANCIS L. SNYDER,
Defendant.
-------------------------------UNITED STATES OF AMERICA,
Plaintiff,
v.

1:12-cv-153

JOHN J. KELLEHER,
Defendants.

-------------------------------UNITED STATES OF AMERICA,
Plaintiff,
v.

1:12-cv-144

CHRISTOPHER R. LYONS,
Defendant.
-------------------------------THOMAS J. McAVOY
Senior United States District Judge
DECISION and ORDER
In each of the above-referenced cases, the United States of America moves for a
default judgment in connection with the defendants’ failure to repay student loans or other
promissory notes. The Complaint in each of the cases allege that the Defendants executed
promissory notes to secure loans from the Department of Education and that they have failed
to repay loans in full. These allegations, which are deemed admitted by Defendants’ failure
to respond, see Cotton v. Slone, 4 F.3d 176, 181 (2d Cir. 1993); Greyhound Exhibitgroup.,
Inc., v. E.L.U.L. Realty Group Corp., 973 F.2d 155, 158 (2d Cir. 1992), are sufficient to
establish Defendants’ liability.
"While a default judgment constitutes an admission of liability, the quantum of
damages remains to be established by proof unless the amount is liquidated or susceptible
of mathematical computation." Flaks v. Koegel, 504 F.2d 702, 707 (2d Cir. 1974). "[E]ven
upon default, a court may not rubber-stamp the non-defaulting party's damages calculation,
but rather must ensure that there is a basis for the damages that are sought." "The burden is
on the plaintiff to establish its entitlement to recovery." Bravado Int'l Group Merch. Servs. v.
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Ninna, Inc., 655 F. Supp.2d 177, 189 (E.D.N.Y. 2009); Greyhound Exhibitgroup, 973 F.2d at
158, 160. Here, the materials submitted with the Complaints together with the affidavits in
support of the motions for default are sufficient to establish damages on the promissory
notes because those amounts (principal owed on the notes and interest) are susceptible to
mathematical computation. The submissions are insufficient, however, to establish a right to
attorney’s fees or costs.1 The papers in support in the motion for default judgment do not
adequately establish: (1) that the underlying promissory notes included an agreement by
defendants to pay reasonable attorneys’ fees; (2) the proper amount of any such fees (i.e.,
what is a reasonable attorney’s fee); (3) that the government incurred a filing fee; or (4) any
fees incurred in connection with the service of process. The government shall have the
opportunity to substantiate its claims for fees and costs by filling additional supporting
documents within fourteen days of the date of this Order. If the government does file
additional papers, Defendants shall then have twenty-eight days from the date of this Order
to challenge the claim for fees and costs.
For the foregoing reasons, the motions for default judgment are GRANTED with
respect to the arrears on the promissory notes as follows:
Case Number
I.

Judgment Amount2

12-cv-130 (Roland)

$13,013.22 as of May 26, 2011, plus
additional interest in the amount of $0.87
per day from May 26, 2011 through the
date of judgment;

1

Originally, the United States sought attorneys’ fees in each of the cases. The motion for
attorney fees was withdrawn in cases 12-cv-144 and 12-cv-153.
2

These figures are based on the calculations of principal and interest as set forth in the
Certificates of Indebtedness attached to the Complaints.
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II.

12-cv-134 (Dowstra)

$38,402.58 as of May 26, 2011, plus
additional interest in the amount of $4.53
per day from May 26, 2011 through the
date of judgment;

III.

12-cv-140 (Snyder)

$5,078.39 as of May 27, 2011, plus
additional interest in the amount of $0.41
per day from May 27, 2011 through the
date of judgment;

IV.

12-cv-153 (Kelleher)

$44,645.06 as of March 22, 2010, plus
additional interest in the amount of $2.87
per day from March 22, 2010 through the
date of judgment;

V.

12-cv-144 (Lyons)

$80,787.69 as of July 2, 2010, plus
additional interest in the amount of $14.79
per day from July 2, 2010 through the
date of judgment.

In the event the government does not submit additional documentation in support of its claim
for fees and costs within fourteen days, the Clerk of the Court shall enter judgment as set
forth above without further order of the Court.
IT IS SO ORDERED.
Dated: April 10, 2012

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