Filed: Apr. 06, 2016
Latest Update: Apr. 06, 2016
Summary: ORDER THOMAS S. ZILLY , District Judge . THIS MATTER comes before the Court on plaintiff Umpqua Bank's renewed motion, docket no. 37, for default judgment against in personam defendant Robert Nehring. Plaintiff was previously granted partial default judgment, docket no. 19, pursuant to which the Preferred Mortgage on in rem defendant M/Y FANTA SEAS, Official No. 1166172, was foreclosed and the vessel was ordered to be sold at public auction. At the time such partial default judgment
Summary: ORDER THOMAS S. ZILLY , District Judge . THIS MATTER comes before the Court on plaintiff Umpqua Bank's renewed motion, docket no. 37, for default judgment against in personam defendant Robert Nehring. Plaintiff was previously granted partial default judgment, docket no. 19, pursuant to which the Preferred Mortgage on in rem defendant M/Y FANTA SEAS, Official No. 1166172, was foreclosed and the vessel was ordered to be sold at public auction. At the time such partial default judgment ..
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ORDER
THOMAS S. ZILLY, District Judge.
THIS MATTER comes before the Court on plaintiff Umpqua Bank's renewed motion, docket no. 37, for default judgment against in personam defendant Robert Nehring. Plaintiff was previously granted partial default judgment, docket no. 19, pursuant to which the Preferred Mortgage on in rem defendant M/Y FANTA SEAS, Official No. 1166172, was foreclosed and the vessel was ordered to be sold at public auction. At the time such partial default judgment was entered, the amount remaining due on the Promissory Note underlying the Preferred Mortgage at issue was $120,417.27, inclusive of interest as of December 9, 2014. The vessel was purchased at public auction by a third party for $20,250. See Process Receipt and Return (docket no. 20). Plaintiff previously moved for default judgment against Nehring, seeking to use the net amount of the auction proceeds ($19,911.84) in calculating the deficiency owed by Nehring. The Court denied the earlier motion because the record did not provide a basis for the Court to confirm the public sale. See Minute Order (docket no. 36).
In connection with the renewed motion for default judgment now before the Court, plaintiff has submitted a Marine Survey Report dated February 10, 2015, indicating that the fair market value of the M/Y FANTA SEAS in its then current condition was between $40,000 and $50,000. See Ex. A to Glowney Decl. (docket no. 38-1). Plaintiff proposes, and the Court agrees, to use the midpoint of this range ($45,000) in calculating the deficiency owed by Nehring. Plaintiff, however, has computed the deficiency by beginning with a different balance (i) than was stated in the partial default judgment pursuant to which the M/Y FANTA SEAS was sold, and (ii) that is based in part on fees and charges for which no documentary support has been provided. See Ex. C to Nichols Decl. (docket no. 34).1 The Court is not persuaded that plaintiff has accurately recited the deficiency owed by Nehring.
The Court calculates the amount of the deficiency by subtracting from the amount remaining due at the time the Preferred Mortgage was foreclosed ($120,417.27) the estimated fair market value of the vessel at the time of its sale ($45,000), and adding the fees and costs associated with the public auction ($3,523.13), see Minute Order at 1 n.1 (docket no. 26). Plaintiff will be awarded $78,940.40, together with attorney's fees in the amount of $20,595.00 and costs to be taxed in the manner set forth in Local Civil Rule 54(d). Interest shall accrue at the annual rate set forth in 28 U.S.C. § 1961 from the date on which plaintiff's renewed motion for default judgment was filed, March 4, 2016, until paid in full. The Clerk is DIRECTED to enter default judgment consistent with this Order in favor of plaintiff and against Nehring, to send a copy of this Order to all counsel of record, as well as to Robert Nehring at 4727 136th Place SW, Edmonds, Washington 98026, and to close this case.
IT IS SO ORDERED.