Umpqua Bank v. Nehring et al

Filing 39

ORDER re plaintiff's 37 Renewed Motion for Default Judgment In Personam & RENEWED filed by Umpqua Bank; Clerk is DIRECTED to enter default judgment consistent with this Order, by Judge Thomas S. Zilly. (AD) cc: Robert Nehring

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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UMPQUA BANK,

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Plaintiff,
C14-879 TSZ
v.
ORDER
ROBERT NEHRING, et al.,

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Defendants.

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THIS MATTER comes before the Court on plaintiff Umpqua Bank’s renewed
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motion, docket no. 37, for default judgment against in personam defendant Robert
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Nehring. Plaintiff was previously granted partial default judgment, docket no. 19,
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pursuant to which the Preferred Mortgage on in rem defendant M/Y FANTA SEAS,
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Official No. 1166172, was foreclosed and the vessel was ordered to be sold at public
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auction. At the time such partial default judgment was entered, the amount remaining
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due on the Promissory Note underlying the Preferred Mortgage at issue was $120,417.27,
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inclusive of interest as of December 9, 2014. The vessel was purchased at public auction
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by a third party for $20,250. See Process Receipt and Return (docket no. 20). Plaintiff
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previously moved for default judgment against Nehring, seeking to use the net amount of
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ORDER - 1

1 the auction proceeds ($19,911.84) in calculating the deficiency owed by Nehring. The
2 Court denied the earlier motion because the record did not provide a basis for the Court to
3 confirm the public sale. See Minute Order (docket no. 36).
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In connection with the renewed motion for default judgment now before the Court,

5 plaintiff has submitted a Marine Survey Report dated February 10, 2015, indicating that
6 the fair market value of the M/Y FANTA SEAS in its then current condition was between
7 $40,000 and $50,000. See Ex. A to Glowney Decl. (docket no. 38-1). Plaintiff proposes,
8 and the Court agrees, to use the midpoint of this range ($45,000) in calculating the
9 deficiency owed by Nehring. Plaintiff, however, has computed the deficiency by
10 beginning with a different balance (i) than was stated in the partial default judgment
11 pursuant to which the M/Y FANTA SEAS was sold, and (ii) that is based in part on fees
12 and charges for which no documentary support has been provided. See Ex. C to Nichols
13 Decl. (docket no. 34).1 The Court is not persuaded that plaintiff has accurately recited the
14 deficiency owed by Nehring.
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The Court calculates the amount of the deficiency by subtracting from the amount

16 remaining due at the time the Preferred Mortgage was foreclosed ($120,417.27) the
17 estimated fair market value of the vessel at the time of its sale ($45,000), and adding the
18 fees and costs associated with the public auction ($3,523.13), see Minute Order at 1 n.1
19 (docket no. 26). Plaintiff will be awarded $78,940.40, together with attorney’s fees in the
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Moreover,
21 Exhibit C of the total stated in Paragraph 9 of Nichols’s declaration does not match the total shown in is
Nichols’s declaration, and the amount listed in Exhibit C for moorage expenses ($11,258)
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substantially more than the amount disclosed to the Court ($1,458) in connection with plaintiff’s motion

22 for disbursement of the net proceeds of the auction.
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ORDER - 2

1 amount of $20,595.00 and costs to be taxed in the manner set forth in Local Civil
2 Rule 54(d). Interest shall accrue at the annual rate set forth in 28 U.S.C. § 1961 from the
3 date on which plaintiff’s renewed motion for default judgment was filed, March 4, 2016,
4 until paid in full. The Clerk is DIRECTED to enter default judgment consistent with this
5 Order in favor of plaintiff and against Nehring, to send a copy of this Order to all counsel
6 of record, as well as to Robert Nehring at 4727 136th Place SW, Edmonds, Washington
7 98026, and to close this case.
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IT IS SO ORDERED.

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Dated this 6th day of April, 2016.

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A

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Thomas S. Zilly
United States District Judge

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ORDER - 3