Westlake Flooring Company, LLC, d/b/a Westlake Flooring Services v. Mormar LLC, d/b/a Better Value Motors, and Amie Morgan Baudoin

Summary

A United States magistrate judge recommends granting Westlake Flooring Company’s motion for default judgment against Mormar LLC and Amie Morgan Baudoin. The recommendation addresses breach of a promissory note and loan and security agreement, breach of a personal guaranty, attorney’s fees and costs, post-judgment interest, and foreclosure and possession of secured collateral. The recommended award is $106,949.09, plus post-judgment interest and related foreclosure relief.

Holdings

1. Default judgment is appropriate where default has been entered, the well-pleaded allegations support the requested relief, and the court has subject-matter and personal jurisdiction over the action and defendants.
2. The complaint sufficiently established breach of the financing agreement by Mormar and breach of the personal guaranty by Baudoin under California law.
3. A secured creditor is entitled to judicial possession and foreclosure relief where it establishes a valid, enforceable, perfected security interest, the defendants took or held the property subject to that interest, and the defendants defaulted.
4. A default judgment may award a liquidated or mathematically calculable amount without an evidentiary hearing, and Westlake established entitlement to $106,949.09, consisting of the $77,420.32 loan balance and $29,528.77 in attorney's fees and costs.
5. Westlake is entitled to post-judgment interest calculated under 28 U.S.C. § 1961.

Questions Presented

1. Whether default judgment should be entered after default was entered and defendants failed to respond.
2. Whether the well-pleaded allegations established liability for breach of the financing agreement and personal guaranty under California law.
3. Whether Westlake established entitlement to possession and foreclosure of the collateral securing the debt.
4. Whether Westlake established the amount of damages, attorney's fees, costs, and post-judgment interest without an evidentiary hearing.

Disposition

other