EAN Holdings, LLC v. Ishola et al
Filing
87
MEMORANDUM OPINION & ORDER granting EAN Holdings, LLC's 77 MOTION for Default Judgment against Sedgwick Claims Management, 78 MOTION for Default Judgment against Associated Radiologists, Inc., and 79 MOTION for Default Judgment a gainst Charleston Physical Therapy Specialsts, Inc.; any claims of those defendant-claimants against EAN's self-insurance arising from the accident in issue are forfeited. Signed by Judge John T. Copenhaver, Jr. on 8/4/2015. (cc: counsel of record; any pro se parties) (taq)
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF WEST VIRGINIA
AT CHARLESTON
EAN HOLDINGS, LLC
a limited liability company,
Plaintiff,
v.
Civil Action No. 2:13-26841
JOYCE ISHOLA,
JAMES LENNON PACE,
JAYRON WASHINGTON,
THOMAS CALDWELL,
VERNON CLEMENTS,
DIABLO BROWN,
SEDGWICK CLAIMS MANAGEMENT,
ERIE INSURANCE COMPANY,
ASSOCIATED RADIOLOGISTS, INC.,
CHARLESTON PHYSICAL THERAPY SPECIALISTS, INC.,
and WEST VIRGINIA DEPARTMENT OF
HEALTH AND HUMAN RESOURCES,
Defendants.
MEMORANDUM OPINION & ORDER
Pending are three motions for default judgment filed
by EAN Holdings, LLC (“EAN”) on May 19, 2015.
This case arises out of a two-car motor vehicle
accident.
EAN owned one of the cars involved in the wreck.
It
filed this interpleader action in the Circuit Court of Kanawha
County, West Virginia, seeking to join all parties that might
have a claim to recover against the proceeds of its self-
insurance.
The case was subsequently removed to this court on
October 25, 2013.
The complaint named as defendants several entities
that provided medical care or pharmaceutical services to those
injured in the accident, Compl. ¶¶ 29-33, including Charleston
Physical Therapy Specialists (“Specialists”) and Associated
Radiologists, Inc. (“Associated”).
Sedgewick Claims Management
(“Sedgewick”), the company allegedly responsible for
administering the workers’ compensation fund that may have
compensated some of those involved in the accident was also
named.
All three “were served with process through the West
Virginia Office [of] the Secretary of State,” See Status Report
¶ 7 (ECF No. 19, filed February 3, 2014), but from all that
appears in the record, they have not responded to the
interpleader complaint in any manner, in any court.
EAN now
moves for a default judgment pursuant to Rule 55(b)(2) declaring
that each has waived its right to make a claim arising from the
accident against EAN’s self-insurance.
“When a party against whom a judgment for affirmative
relief is sought has failed to plead or otherwise defend, and
that failure is shown by affidavit or otherwise, the clerk must
enter the party’s default.”
Fed. R. Civ. P. 55(a).
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Once
default has been entered by the Clerk,1 the plaintiff may move
the court to enter a default judgment against the defendant
pursuant to Rule 55(b)(2).
Here, Sedgewick, Associated, and Specialists have
failed to plead or otherwise defend EAN’s complaint, and several
courts have concluded that “[t]he failure of a named
interpleader defendant to answer the interpleader complaint and
assert a claim to the res can be viewed as forfeiting any claim
of entitlement that might have been asserted.”
Amoco Prod. Co.
v. Aspen Grp., 59 F. Supp. 2d 1112, 1116 (D. Colo. 1999)
(quoting Gulf Coast Galvanizing, Inc. v. Steel Sales Co., 826 F.
Supp. 197, 203 (S.D. Miss. 1993) (alteration in the original));
see also Nationwide Mut. Fire Ins. Co. v. Eason, 736 F.2d 130,
133 n.4 (4th Cir. 1984) (“Clearly, if all but one named
interpleader defendant defaulted, the remaining defendant would
be entitled to the fund.”); N.Y. Life Ins. Co. v. Ct. Dev.
Auth., 700 F.2d 91, 95 (2d Cir. 1983) (observing that default by
an interpleader defendant obviates the need to adjudicate
potential adverse claims it may possess); Standard Ins. Co. v.
Asuncion, 43 F. Supp. 3d 1154, 1156-57 (W.D. Wash. 2014) (“A
named interpleader defendant who fails to answer the
1
The Clerk entered the defaults of Sedgewick, Associated, and
Specialists on August 3, 2015.
3
interpleader complaint and assert a claim to the res forfeits
any claim of entitlement that might have been asserted if
service was properly effected upon them.” (internal quotation
marks and citation omitted)).
Accordingly, EAN’s motions for
default judgment against Sedgewick, Associated, and Specialists
are granted, and any claims of those defendant-claimants against
EAN’s self-insurance arising from the accident in issue are
forfeited.
The Clerk is directed to transmit copies of this order
to all counsel of record and any pro se parties.
ENTER: August 4, 2015
John T. Copenhaver, Jr.
United States District Judge
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