United States of America v. Mcarthur
MEMORANDUM OPINION AND ORDER granting 8 Motion for Default Judgment: Plaintiff is entitled to and shall recover from Defendant the amount of $5,399.64. The court will enter judgment by separate document, as required by FRCvP 58, in the amount stated in favor of the United States. (Ordered by Judge Sam A Lindsay on 3/28/2017) (twd)
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
UNITED STATES OF AMERICA,
ANDRE D. MCARTHUR,
Civil Action No. 3:17-CV-462-L
MEMORANDUM OPINION AND ORDER
Before the court is the United States’ Motion for Default Judgment, filed March 28, 2017.
After careful consideration of the motion, appendix, record, and applicable law, the court grants
the United States’ Motion for Default Judgment.
The United States (“Plaintiff” or “United States”) filed Plaintiff’s Complaint
(“Complaint”) on February 17, 2017, against Andre D. McArthur (“Defendant” or “McArthur”).
This action arises from the failure of McArthur to make the required payments on loans he obtained
on or about April 30, 1997, and April 8, 1998.
The loans were disbursed for $2,625 and $1,950 on July 16, 1997; and $1,800 on April 22,
1998, at a variable rate of interest to be established annually by the Department of Education. The
loan obligation was guaranteed by Texas Guaranteed Student Loan Corporation, and then
reinsured by the Department of Education under loan guaranty programs authorized under Title
IV-B of the Higher Education Act of 1965, as amended, 20 U.S.C. 1071a et seq. (34 C.F.R. Part
682). The United States Department of Education is the owner and holders of each promissory
Memorandum Opinion and Order – Page 1
note. After demand of payment by the United States, McArthur defaulted on the loans on
September 15, 2003.
McArthur was served with a copy of the summons and Complaint on February 25, 2017.
He was required to answer or otherwise respond to the Complaint by March 18, 2017, 21 days
after service of the summons and Complaint. See Fed. R. Civ. P. 12. As March 18, 2017, was a
Saturday, the time to answer or otherwise respond was March 20, 2017. To this date, McArthur
has not answered or otherwise responded to the Complaint.
On March 27, 2017, the United States requested the clerk of court to enter a default against
McArthur, and the clerk made an entry of default against McArthur on March 28, 2017. Plaintiff
now requests the court to enter a default judgment against McArthur and award it damages and
applicable interest as a result of his default.
A party is entitled to entry of a default by the clerk of the court if the opposing party fails
to plead or otherwise defend as required by law. Fed. R. Civ. P. 55(a). Under Rule 55(a), a default
must be entered before the court may enter a default judgment. Id.; New York Life Ins. Co. v.
Brown, 84 F.3d 137, 141 (5th Cir. 1996). The clerk of court has entered a default against
McArthur. The court also finds, based upon the information in the record, that Defendant is not a
minor, incompetent person, or member of the United States military.
McArthur, by failing to answer or otherwise respond to Plaintiff’s Complaint, has admitted
the well-pleaded allegations of the Complaint and is precluded from contesting the established
facts on appeal. Nishimatsu Constr. Co. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir.
1975) (citations omitted). Based on the well-pleaded allegations of Plaintiff’s Complaint, which
Memorandum Opinion and Order – Page 2
the court accepts as true, and the record in this action, the court determines that McArthur is in
default and that the United States is entitled to a default judgment and appropriate damages.
Based on the record, the total amount that McArthur owed the United States as of February
13, 2017, was $5,382.01 ($4,343.16 in principal and $1,038.85 in interest). Interest accrues on the
principal at the rate of $0.41 per day. The number of days from February 13, 2017, to March 28,
2017, is 43, which results in additional interest in the amount of $17.63. Therefore, the total
amount of judgment to which the United States is entitled is $5,399.64.
For the reasons herein stated, the court grants the United States’ Motion for Default
Judgment, and Plaintiff is entitled to and shall recover from Defendant the amount of $5,399.64.
The court will enter judgment by separate document, as required by Federal Rule of Civil
Procedure 58, in the amount stated in favor of the United States.
It is so ordered this 28th day of March, 2017.
Sam A. Lindsay
United States District Judge
Memorandum Opinion and Order – Page 3
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