United States of America v. Molina
Memorandum Opinion and Order Grants 9 Motion to Amend/Correct filed by United States of America, 8 Motion for Default Judgment filed by United States of America. (Ordered by Judge Sam A Lindsay on 7/12/2017) (ndt)
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
UNITED STATES OF AMERICA,
MARY J. MOLINA a/k/a Mary J.
Civil Action No. 3:17-CV-1474-L
MEMORANDUM OPINION AND ORDER
Before the court is the United States’ Motion for Default Judgment, filed July 6, 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 June 5, 2017, against Mary J. Molina a/k/a Mary J. Rosberg (“Defendant” or
“Molina”). This action arises from the failure of Molina to make the required payments on loans
she obtained on or about July 17, 1991; August 9, 1991; August 3, 1994; and October 4, 1995.
The loans were disbursed for $2,625 on August 9, 1991; $4,000 on August 12, 1991;
$5,500 and $2,414 on September 5, 1994, and $5,500 on October 13, 1995, at a variable rate of
interest to be established annually by the Department of Education. The loan obligations were
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
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Department of Education is the owner and holder of the promissory note. After demand of
payment by the United States, Molina defaulted on the loans on January 17, 1998, and August 11,
Molina was served with a copy of the summons and Complaint on June 8, 2017. She was
required to answer or otherwise respond to the Complaint by June 29, 2017, 21 days after service
of the summons and Complaint. See Fed. R. Civ. P. 12. To this date, Molina has not answered or
otherwise responded to the Complaint.
On July 6, 2017, the United States requested the clerk of court to enter a default against
Molina, and the clerk made an entry of default against Molina the same day. Plaintiff now requests
the court to enter a default judgment against Molina and award it damages and applicable interest
as a result of her 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 Molina.
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.
Molina, 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
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the court accepts as true, and the record in this action, the court determines that Molina is in default
and that the United States is entitled to a default judgment and appropriate damages.
Based on the record, the total amounts that Molina owed the United States as of January
18, 2017 through June 30, 2017, were:
1. $5,450.37 ($2,834.69 in principal and $2,615.68 in interest) for Certificate of
Indebtedness #1. After June 30, 2017, interest accrues on the principal at a daily rate
of $0.33. The number of days from June 30, 2017, to July 12, 2017, is 12, which results
in additional interest in the amounts of $3.96;
2. $13,600.18 ($6,833.73 in principal and $6,766.45 in interest) for Certificate of
Indebtedness #2. After June 30, 2017, interest accrues on the principal at a daily rate
of $0.84. The number of days from June 30, 2017, to July 12, 2017, is 12, which results
in additional interest in the amounts of $10.08; and
$29,393.04 ($15,798.38 in principal and $13,594.66 in interest) for Certificate of
Indebtedness #3. After June 30, 2017, interest accrues on the principal at a daily rate
of $1.76. The number of days from June 30, 2017, to July 12, 2017, is 12, which results
in additional interest in the amounts of $21.12.
Therefore, the total amount of judgment to which the United States is entitled is $48,478.75.
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 $48,478.75.
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.
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It is so ordered this 12th day of July, 2017.
Sam A. Lindsay
United States District Judge
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