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United States of v. andrew Greenhouse

March 27, 2012

UNITED STATES OF AMERICA, PLAINTIFF,
v.
ANDREW GREENHOUSE, DEFENDANT.



The opinion of the court was delivered by: Mae A. D'Agostino, U.S. District Judge:

MEMORANDUM-DECISION AND ORDER

I. INTRODUCTION

On September 20, 2011, plaintiff United States of America ("plaintiff") commenced the above captioned action alleging that defendant defaulted on a promissory note. Presently before the Court is plaintiff's motion for entry of a default judgment against defendant. (Dkt. No. 6). The Court has jurisdiction over this suit pursuant to 28 U.S.C. § 1345.

II. BACKGROUND

The Court has taken the facts set forth below from plaintiff's complaint and the Certificate of Indebtedness from the United States Department of Education executed on July 21, 2011.*fn1

Defendant Andrew Greenhouse is an individual and resident of New York. On January 21, 2003, defendant executed a promissory note to secure a Direct Consolidation Loan from the U.S. Department of Education through the William D. Ford Federal Direct Loan Program. On August 25, 2003, the loan was disbursed in two payments, $36,988.88 and $49,582.18 with interest accruing at a rate of 4% per annum. On September 17, 2010, the Department demanded payment according to the note and defendant defaulted. The Certificate provides that, as of July 14, 2011, defendant owes the following:

Principal $104,812.40

Interest $6,898.63 Total $111,711.03 The Certificate also provides that, "[i]nterest accrues on the principal shown here at a rate of $11.48 per day".

On September 20, 2011, plaintiff filed the complaint (Dkt. No. 1) alleging that defendant owes a debt as follows:

Current Principal $104,812.40

Current Capitalized Interest Balance and Accrued Interest $6,898.63 Administrative Fee, Costs, Penalties $0 Attorneys' Fees $0 Total $111,711.03 Plaintiff seeks the sum above plus prejudgment interest from July 14, 2011 through the date of judgment, filing fees and all administrative costs allowed by law and post-judgment interest pursuant to 28 U.S.C. § 1961.

III. DISCUSSION

A. Default Judgment

"Under Rule 55(b) default judgment shall be entered if a defendant has failed to plead or otherwise defend an action." Parise v. Riccelli Haulers, Inc., 672 F.Supp. 72, 74 (N.D.N.Y.1987). Fed.R.Civ.P. 55(b)(2) and Local Rule 55.2 set forth the procedural prerequisites plaintiffs must meet before a motion for default motion may be granted. Plaintiff must: (1) properly serve defendant with a summons and complaint (to which no response has been made); (2) obtain an entry of default; and (3) provide an affidavit setting forth the facts required by L.R. 55.2(a), including an ...


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