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Wells Fargo Bank N.A. v. Restore Care of North Alabama LLC

United States District Court, N.D. Alabama, Southern Division

December 5, 2017

WELLS FARGO BANK, N.A., Plaintiff,
v.
RESTORE CARE OF NORTH ALABAMA, LLC, et al., Defendants.

          MEMORANDUM OPINION

          R. DAVID PROCTOR UNITED STATES DISTRICT JUDGE.

         This matter is before the court on the Motion for Default Judgment (Doc. # 18), filed by Plaintiff Wells Fargo Bank, N.A. (“Plaintiff” or “Wells Fargo”) on September 27, 2017 against Defendants Restore Care of North Alabama, LLC (“RCNA”); Restore Care, Inc. (“RCI”); Celia Turney; and Jessie Turney (collectively “Defendants”). After the Clerk's Entry of Default (Doc. # 17) on September 21, 2017, Plaintiff now seeks a Rule 55(b) default judgment for the full relief sought in the Complaint (Doc. # 1) in the following amounts and against the following Defendants:

1. Against RCNA for (i) $571, 930.52 in unpaid principal, accrued but unpaid interest, and late fees; (ii) per diem interest from September 22, 2017 to the date of judgment in the collective amount of $61.28; (iii) $2, 410.80 in attorneys' fees and costs incurred by Wells Fargo through September 22, 2017; (iv) post-judgment interest at the statutory rate; (v) future attorneys' fees and costs as may be incurred by Wells Fargo in this matter, including post-judgment collection efforts; and (vi) any and all other sums and amounts due and collectible under the respective loan documents;
2. Against RCI for (i) $648, 553.84 in unpaid principal, accrued but unpaid interest, and late fees; (ii) per diem interest from September 22, 2017 to the date of judgment in the collective amount of $71.46; (iii) $3, 616.20 in attorneys' fees and costs incurred by Wells Fargo through September 22, 2017; (iv) post-judgment interest at the statutory rate; (v) future attorneys' fees and costs as may be incurred by Wells Fargo in this matter, including post-judgment collection efforts; and (vi) any and all other sums and amounts due and collectible under the respective loan documents;
3. Against Celia Turney for (i) $648, 553.84 in unpaid principal, accrued but unpaid interest, and late fees; (ii) per diem interest from September 22, 2017 to the date of judgment in the collective amount of $71.46; (iii) $3, 616.20 in attorneys' fees and costs incurred by Wells Fargo through September 22, 2017; (iv) post-judgment interest at the statutory rate; (v) future attorneys' fees and costs as may be incurred by Wells Fargo in this matter, including post-judgment collection efforts; and (vi) any and all other sums and amounts due and collectible under the respective loan documents; and
4. Against Jessie Turney for (i) $571, 930.52 in unpaid principal, accrued but unpaid interest, and late fees; (ii) per diem interest from September 22, 2017 to the date of judgment in the collective amount of $61.28; (iii) $2, 410.80 in attorneys' fees and costs incurred by Wells Fargo through September 22, 2017; (iv) post-judgment interest at the statutory rate; (v) future attorneys' fees and costs as may be incurred by Wells Fargo in this matter, including post-judgment collection efforts; and (vi) any and all other sums and amounts due and collectible under the respective loan documents.

(Doc. # 18). For the reasons outlined below, the current Motion (Doc. # 18) is due to be granted in part.

         I. Background

         In 2013, Wells Fargo loaned RCNA $51, 000.00 (“First RCNA Loan”) and $620, 500.00 (“Second RCNA Loan” and, collectively with the First RCNA Loan, the “RCNA Loans”). (Docs. # 1 at ¶ 9-10; 1-1; 1-2). Under the terms of the RCNA Loans, RCNA is obligated to pay principal, interest, late fees, and attorneys' fees and expenses incurred in collecting the RCNA Loans. (Docs. # 1 at ¶ 11). Celia Turney, Jessie Turney, and RCI (collectively the “RCNA Guarantors”) unconditionally guaranteed payment of the RCNA Loans and are jointly and severally liable to Wells Fargo for all amounts owed by RCNA to Wells Fargo. (Docs. # 1 at ¶ 12; 1-3). On May 1, 2017, after RCNA had defaulted on the RCNA Loans, Wells Fargo gave Defendants written notice of default and a demand for payment. (Docs. # 1 at ¶ 13-14; 1-4). To date, Defendants have failed to pay their respective obligations under the RCNA Loans. (Doc. # 1 at ¶ 16).

         In 2016, Wells Fargo loaned RCI $75, 000.00 (“RCI Loan”). (Docs. # 1 at ¶ 17; 1-5). Under the terms of the RCI Loan, RCI is obligated to pay principal, interest, late fees, and attorneys' fees and expenses incurred in collecting the RCI Loan. (Docs. # 1 at ¶ 18; 1-5). Celia Turney unconditionally guaranteed payment of the RCI Loan and is jointly and severally liable to Wells Fargo for all amounts owed by RCI to Wells Fargo. (Docs. # 1 at ¶ 19; 1-6). On May 1, 2017, after RCI had defaulted on the RCI Loan, Wells Fargo gave RCI and Celia Turney written notice of default and a demand for payment. (Docs. # 1 at ¶ 20-21; 1-7). To date, RCI and Celia Turney have failed to pay their respective obligations under the RCI Loan. (Doc. # 1 at ¶ 23).

         On July 6, 2017, Plaintiff filed a Complaint against Defendants alleging (1) breach of contract by RCNA under the RCNA Loans; (2) breach of contract by the RCNA Guarantors under the RCNA Loans; (3) unjust enrichment due to the RCNA Loans; (4) breach of contract by RCI under the RCI Loan; (5) breach of contract by Celia Turney as the RCI Guarantor under the RCI Loan; and (6) unjust enrichment due to the RCI Loan. (Doc. # 1). Jessie Turney was served on July 9, 2017. (Doc. # 4). RCNA, RCI, and Celia Turney were all served on July 22, 2017. (Docs. # 5, 6, 7). To date, none of the Defendants have answered or otherwise appeared in this case.

         The Clerk of Court issued an Entry of Default against Defendants on September 21, 2017. (Doc. # 17). On September 27, 2017, Plaintiff filed the instant Motion for Default Judgment along with the Affidavit of Eddy Mullinax[1] (Doc. 18-1) and the Affidavit of Glenn E. Glover[2] (Doc. # 18-2). (Doc. # 18). The Affidavit of Eddy Mullinax establishes that, as of September 22, 2017, (i) RCNA owed Plaintiff $571, 930.52[3] in unpaid principal, accrued but unpaid interest, and late fees; (ii) RCI owed Plaintiff $648, 553.84[4] in unpaid principal, accrued but unpaid interest, and late fees; (iii) Celia Turney owed Plaintiff $648, 553.84[5] in unpaid principal, accrued but unpaid interest, and late fees; and (iv) Jessie Turney owed Plaintiff $571, 930.52[6] in unpaid principal, accrued but unpaid interest, and late fees. (Doc. # 18-1). This Affidavit also confirms that interest continues to accrue under the First RCNA Loan at a per diem rate of $4.51, under the Second RCNA Loan at a per diem rate of $56.77, and under the RCI Loan at a per diem rate of $10.18. (Id. at ¶ 24). The Affidavit of Glenn E. Glover verifies that, as of September 22, 2017, Plaintiff had incurred $6, 674.30 in attorney's fees and $691 in costs in attempting to collect indebtedness owed under the RCNA Loans and the RCI Loan. (Doc. # 18-2).

         II. ...


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