Marble Bridge Funding Group, Inc v. Natures Own Pharmacy, LLC
5:12-cv-01839
N.D. Cal.Aug 28, 2017Background
- Plaintiff Marble Bridge Funding Group (MBFG) moved for default judgment against defendants Nature’s Own Pharmacy, LLC (NOP) and Annette Zimmerman a.k.a. Marsha/Kay Holloway (Holloway).
- MBFG filed suit in 2012; NOP and Holloway were served, initially responded, then abandoned their defense and failed to oppose the default-judgment motion.
- MBFG seeks $2,823,321.56 in damages arising from alleged extensive fraudulent conduct involving factoring payments.
- The court considered the Eitel factors (Ninth Circuit) to determine whether to enter default judgment under Federal Rule of Civil Procedure 55(b).
- The court found MBFG’s complaint facially sufficient, no material facts were disputed by the nonappearing defendants, and default was unlikely due to excusable neglect.
- The court granted the motion for default judgment against NOP and Holloway but deferred entry of final judgment pending MBFG’s statement about resolution of claims against remaining defendants.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment should be entered under Rule 55(b) | MBFG argued defendants failed to defend, complaint is sufficient, damages are established, and Eitel factors favor judgment | NOP and Holloway did not respond to contest any facts or oppose the motion | Court granted default judgment; Eitel factors weighed in favor of entry, but final entry deferred for case-status statement |
Key Cases Cited
- Aldabe v. Aldabe, 616 F.2d 1089 (9th Cir. 1980) (default judgment is discretionary)
- Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986) (sets seven-factor test for default-judgment decisions)
- Televideo Sys., Inc. v. Heidenthal, 826 F.2d 915 (9th Cir. 1987) (well-pled allegations taken as true except damages)
