Lehman Brothers Holdings Incorporated v. Hamilton Mortgage Company
2:11-cv-01700
D. Ariz.Apr 3, 2012Background
- Lehman Brothers Holdings Inc. filed a breach of contract action against Hamilton Mortgage Company in the District of Arizona.
- Complaint contends Lehman purchased loans from Hamilton under written Loan Purchase Agreements incorporating the Seller’s Guide of Aurora Loan Services.
- Defendant was served; no answer or appearance was made; a Clerk’s Entry of Default was filed January 12, 2012.
- Plaintiff's motion for default judgment is supported by a sworn declaration detailing the amount due under the contractual repurchase formula.
- Damages through the default date are $464,075.14, with prejudgment interest at 9% per annum under New York law totaling $628,367.09; costs were waived; post-judgment interest applies at the legal maximum.
- Magistrate Judge recommends granting default judgment against Hamilton Mortgage for $628,367.09 plus post-judgment interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is warranted against Hamilton. | Well-pleaded facts admitted; service proper; defendant in default; damages definite per contract. | No responsive pleading or defense raised in record. | Yes; default judgment warranted. |
| Whether damages are correctly calculated under the contractual formula. | Damages computed as repurchase price plus interest and expenses, less payments or collateral proceeds. | No argument presented challenging calculation. | Damages fixed at $628,367.09 including prejudgment interest; post-judgment interest to follow. |
Key Cases Cited
- DIRECTV, Inc. v. Hoa Huynh, 503 F.3d 847 (9th Cir. 2007) (notes admissibility of well-pleaded allegations in default posture)
- United States v. Reyna-Tapia, 328 F.3d 1114 (9th Cir. 2003) (procedural warning about objections and review)