Wells Fargo Bank National Association v. Architectural Door Systems et al

Filing 23

MEMORANDUM DECISION granting 19 Motion for Default Judgment as to Architectural Door Systems,Inc.s (ADS). Signed by Judge Ted Stewart on 12/18/12. (ss)

IN THE UNITED STATES COURT FOR THE DISTRICT OF UTAH
CENTRAL DIVISION

WELLS FARGO BANK, NATIONAL
ASSOCIATION,
Plaintiff,

MEMORANDUM DECISION AND
ORDER GRANTING DEFAULT
JUDGMENT

vs.

ARCHITECTURAL DOOR SYSTEMS,
INC., LISA L. CAMERON; and RANDALL
K. CAMERON,

Case No. 2:11-CV-934 TS

Defendants.

This matter is before the Court on Plaintiff’s Motion for Default Judgment.1 Plaintiff also
requests the Court issue a writ of replevin for a number of assets in Architectural Door Systems,
Inc.’s (“ADS”) possession, for which Plaintiff has a first priority security interest. For the
reasons discussed below, the Court will grant Plaintiff’s Motion.
I. DEFAULT JUDGMENT
Plaintiff filed its Complaint on October 6, 2011, seeking to collect amounts owed to it
under a delinquent line of credit extended to ADS. Defendants Lisa L. Cameron and Randall K.

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Docket No. 19.
1

Cameron are guarantors for Defendant ADS’s obligations. Defendants were served with copies
of the Summons and Complaint on October 24, 2011. Defendants have not answered or
otherwise responded to the Complaint. On February 3, 2012, the Clerk entered Default
Certificates against the Cameron Defendants. On February 6, 2012, the Clerk entered a Default
Certificate against ADS.
On October 11, 2012, Plaintiff filed a Notice of Withdrawal of Plaintiff’s Motion for
Default Judgment Against Lisa L. Cameron and Randall K. Cameron. In its notice, Plaintiff
indicated that the Cameron Defendants filed a petition for bankruptcy relief and, therefore,
Plaintiff withdrew its request for default judgment against those Defendants. While withdrawing
its claims against the guarantors, Plaintiff expressed its desire to maintain its claims against
ADS.
In declarations filed on February 3, 2012, Plaintiff established the amount owed under the
agreements, as of January 24, 2012, to be $282,110.55 and that the expenses and fees in
connection with this action are $2,130.50. Interest continues to accrue after that date at the rate
set forth in the parties’ agreement ($36.07 per day). Thus, Plaintiff is entitled to an entry of
default judgment in the amount of $296,108.08.
II. WRIT OF REPLEVIN
Planitiff’s Motion for Default Judgment contains a request that the Court grant a writ of
replevin so that it may repossess certain collateral that was conveyed to it in exchange for the line
of credit. In order to obtain a writ of replevin, Plaintiff must establish that 1) it is entitled to
possession and (2) that the defendant wrongfully detains the property.2
2

See Utah R. Civ. P. 64B(b)(1)-(2).
2

Pursuant to the agreement, ADS granted Plaintiff a security interest in the following
assets:
all accounts (including health care insurance receivables), deposit accounts,
contract rights, chattel paper (whether electronic or tangible), commercial tort
claims, instruments, promissory notes, investment property, general intangibles
(including payment intangibles and software), letter of credit rights, letters of
credit, and other rights to payment of every kind now existing or at any time
hereafter arising;
all Inventory;
all Equipment;
all Documents of Title;
all Farm Products;
all Titled Goods; and
all money and investment property (including securities and financial assets),
heretofore, now or hereafter delivered to or deposited with Bank or otherwise
coming into the possession, custody or control of Bank (or any agent or bailee of
Bank) in any manner or for any purpose whatsoever during the existence of the
Agreement and whether held in a general or special account or deposition for
safekeeping or otherwise.
This security interest was perfected with the Utah Department of Commerce. Defendant ADS
failed to make payment on the revolving line of credit. Article 9 of the Uniform Commercial
Code gives Plaintiff the right to repossess the above-listed assets in the event Defendant ADS
defaults on the line of credit. As Defendant ADS has defaulted on the line of credit, Plaintiff is
entitled to possession. Plaintiff has put forward evidence that ADS has wrongfully detained the
above-listed assets. Therefore, Plaintiff is entitled to a writ of replevin.
III. CONCLUSION
Based on the above it is hereby
ORDERED that Plaintiff’s Motion for Entry of Default (Docket No. 19) in the amount of
$296,108.08 is GRANTED. It is further

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ORDERED that the Clerk of Court issue a Writ of Replevin for the collateral listed
above, currently in possession of Defendant ADS. The Clerk of Court is instructed to close this
case forthwith. If Plaintiff desires to reassert its claims against the Cameron Defendants after the
completion the bankruptcy proceedings, it may file a motion to reopen this case at that time.
DATED December 18, 2012
BY THE COURT:

_______________________________
TED STEWART
United States District Judge

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