Jung v. Liberty Mutual Fire Insurance Company

District Court, W.D. Washington·Decided May 2, 2023·No. 3:22-cv-05127·Unknown

Opinion

5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON 7 AT SEATTLE 8 EUN JUNG, et al., Case No. C22-5127RSL 9

10 Plaintiffs, ORDER GRANTING 11 v. DEFENDANT’S MOTION FOR ENTRY OF DEFAULT 12 LIBERTY MUTUAL FIRE INSURANCE, JUDGMENT ON DEFENDANT’S 13 Defendant. COUNTERCLAIM AND 14 JUDGMENT ON AWARD OF ATTORNEY’S FEES 15

16 17 This matter comes before the Court on defendant’s “Motion for Entry of Default 18 Judgment on Defendant’s Counterclaim and Judgment on Award of Attorney’s Fees” (Dkt. 19 # 35). The Court, having reviewed the submissions of the parties and the remainder of the 20 record, finds as follows. 21 I. BACKGROUND 22 Plaintiff Eun Jung filed this lawsuit on February 28, 2022, against her auto insurer, 23 defendant Liberty Mutual. Dkt. # 1. Defendant Liberty Mutual filed its Answer to the Complaint 24 and Counterclaim on May 31, 2022. Dkt. # 8. In its Counterclaim, defendant claimed that 25 plaintiff was “obligated to reimburse Liberty for the medical payment benefits it paid…as 26 provided by the [automobile insurance] Policy.” Dkt. # 8 at 9. Specifically, defendant identified 27 ORDER GRANTING DEFENDANT’S MOTION FOR ENTRY OF DEFAULT JUDGMENT ON 28 1 the following provision from plaintiff’s policy as allowing Liberty Mutual to recover the 2 medical benefits payment it made on plaintiff’s behalf: 3 PART F – GENERAL PROVISIONS 4 OUR RIGHT TO RECOVER PAYMENT 5 6 A. If we make a payment under this policy and the person to or for whom payment was made has a right to recover damages from another we 7 shall be subrogated to that right. That person shall do: 8 1. Whatever is necessary to enable us to exercise our rights; and 9 2. Nothing after loss to prejudice them. 10 However, our rights in this paragraph (A.) do not apply under Part D, 11 against any person using “your covered auto” with a reasonable belief 12 that that person is entitled to do so.

13 B. If we make a payment under this policy and the person to or for whom 14 payment is made recovers damages from another, that person shall:

15 1. Hold in trust for us the proceeds of the recovery; and 16 2. Reimburse us to the extent of our payment.

17 Dkt. # 8 at 9. Plaintiff did not file an answer to defendant’s Counterclaim. Dkt. # 35 at 3. 18 On August 12, 2022, defendant moved for default against plaintiff on defendant’s 19 counterclaim. Dkt. # 13. Defendant noted that plaintiff’s answer to its counterclaim was due on 20 June 21, 2022. Id. at 3. The Clerk of Court entered default against plaintiff on defendant’s 21 counterclaim on August 22, 2022. Dkt. # 15. 22 On December 2, 2022, defendant moved for discovery sanctions, requesting that the 23 Court award defendant attorney’s fees connected with both defendant’s motion to compel and 24 motion for sanctions. Dkt. # 18. Plaintiff filed a response to the motion for sanctions, explaining 25 why she had fallen out of compliance with her discovery obligations and requesting additional 26 time to provide briefing. Dkt. # 20. Although the Court provided plaintiff with additional time to 27 ORDER GRANTING DEFENDANT’S MOTION FOR ENTRY OF DEFAULT JUDGMENT ON 28 1 respond to defendant’s discovery motions, plaintiff failed to file additional briefing in response 2 to either the motion to compel or the motion for sanctions. Dkt. # 30; see also Dkt. # 17. 3 Accordingly, the Court granted defendant’s motion for sanctions and attorney’s fees on 4 February 28, 2023. Dkt. # 34. 5 Defendant now asks the Court to enter default judgment against plaintiff in the amount of 6 $5,965.99 on defendant’s Counterclaim. Dkt. # 35 at 4. Defendant contends that default 7 judgment is appropriate here under Federal Rule of Civil Procedure 55 and Local Civil Rule 55. 8 Id. at 5. Additionally, defendant requests that the Court enter judgment against plaintiff in the 9 amount of $6,534, which reflects the attorney’s fees awarded to defendant in the Court’s Order 10 Granting Defendant’s Motion for Sanctions and Attorney’s Fees. Id. at 4. Plaintiff has not filed a 11 response to this motion. Dkt. # 37 at 2. 12 II. DISCUSSION 13 A. Legal Standards for Default Judgment 14 Federal Rule of Civil Procedure 55 governs both default and default judgment. Where, as 15 here, a party seeking affirmative relief has successfully moved for entry of default, see Fed. R. 16 Civ. P. 55(a); LCR 55(a), it may then seek the entry of default judgment either by the Clerk or 17 by the Court, see Fed. R. Civ. P. 55(b); LCR 55(b). Because plaintiff – the defaulting party in 18 this case – has made an appearance, default judgment must be entered by the Court. Fed. R. Civ. 19 P. 55(b)(2); LCR 55(b)(4). A motion for default judgment must be supported by “a declaration 20 and other evidence establishing [the moving party]’s entitlement to a sum certain,” LCR 21 55(b)(1), and must be served on the opposing party at least “seven days before the hearing,” 22 Fed. R. Civ. P. 55(b)(2). Here, defendant has provided a declaration with its motion for default 23 judgment, and served the motion on plaintiff. See Dkt. # 36 (declaration in support of motion for 24 default judgment); Dkt. # 35 at 11 (certificate of service verifying March 9, 2023 service of 25 motion for default judgment on plaintiff). 26 27 ORDER GRANTING DEFENDANT’S MOTION FOR ENTRY OF DEFAULT JUDGMENT ON 28 1 Upon entry of default, the well-pleaded allegations of the complaint as to defendant’s 2 liability are taken as true, and the defaulting party is deemed to have admitted all such 3 allegations. See TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987) (per 4 curiam); Danning v. Lavine, 572 F.2d 1386, 1389 (9th Cir. 1978); see also Geddes v. United 5 Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977) (“The general rule of law is that upon default the 6 factual allegations of the complaint, except those relating to the amount of damages, will be 7 taken as true.” (citations omitted)). The Court need not make detailed findings of fact as long as 8 the allegations contained in the pleadings are sufficient to establish liability. Fair Hous. of 9 Marin v. Combs, 285 F.3d 899, 906 (9th Cir. 2002). However, “necessary facts not contained in 10 the pleadings, and claims which are legally insufficient, are not established by default.” Cripps 11 v. Life Ins. Co. of N. Am., 980 F.2d 1261, 1267 (9th Cir. 1997) (citations omitted). In order to 12 satisfy itself that the relief requested is warranted, the Court has the power to require additional 13 proof of facts, damages, or “any other matter.” Fed. R. Civ. P. 55(b)(2).

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