United States of America v. Bergstrom
Filing
12
MEMORANDUM OPINION AND ORDER: The court grants the United States' 11 Motion for Default Judgment, and Plaintiff is entitled to and shall recover from Defendant the amount of $3,819.68. 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. (Ordered by Judge Sam A Lindsay on 8/15/2017) (sss)
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
v.
MARTHA E. BERGSTROM a/k/a
Martha Austin,
Defendant.
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Civil Action No. 3:17-CV-575-L
MEMORANDUM OPINION AND ORDER
Before the court is the United States’ Motion for Default Judgment, filed August 9, 2017.
After careful consideration of the motion, appendix, record, and applicable law, the court grants
the United States’ Motion for Default Judgment.
I.
Background
The United States (“Plaintiff” or “United States”) filed Plaintiff’s Complaint
(“Complaint”) on February 28, 2017, against Martha E. Bergstrom a/k/a Martha Austin
(“Defendant” or “Bergstrom”). This action arises from the failure of Bergstrom to make the
required payments on a loan she obtained on or about February 5, 1997.
The loan was disbursed for $1,312 and $739 on March 18, 1997, 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. 1071 et seq. (34 C.F.R. Part 682). The United States Department
Memorandum Opinion and Order – Page 1
of Education is the owner and holder of the promissory note. After demand of payment by the
United States, Bergstrom defaulted on the loan on January 25, 2005.
Bergstrom was served with a copy of the summons and Complaint on May 5, 2017. She
was required to answer or otherwise respond to the Complaint by May 26, 2017, 21 days after
service of the summons and Complaint. See Fed. R. Civ. P. 12. To this date, Bergstrom has not
answered or otherwise responded to the Complaint.
On August 8, 2017, the United States requested the clerk of court to enter a default against
Bergstrom, and the clerk made an entry of default against Bergstrom the same day. Plaintiff now
requests the court to enter a default judgment against Bergstrom and award it damages and
applicable interest as a result of her default.
II.
Discussion
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
Bergstrom. 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.
Bergstrom, 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
the court accepts as true, and the record in this action, the court determines that Bergstrom is in
default and that the United States is entitled to a default judgment and appropriate damages.
Memorandum Opinion and Order – Page 2
Based on the record, the total amount that Pierce owed the United States as of February 16,
2017, was $3,774.18 ($2,561.39 in principal and $1,212.79 in interest). Interest accrues on the
principal at the rate of $0.24 per day through June 30, 2017. The number of days from February
16, 2017, to June 30, 2017, is 134, which results in additional interest in the amount of $32.16.
The number of days from June 30, 2017, to August 14, 2017, is 46, which results in additional
interest in the amount of $13.34. Therefore, the total amount of judgment to which the United
States is entitled is $3,819.68.
III.
Conclusion
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 $3,819.68.
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 15th day of August, 2017.
_________________________________
Sam A. Lindsay
United States District Judge
Memorandum Opinion and Order – Page 3
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