United States v. Knapp

CourtDistrict Court, N.D. New York
DecidedJuly 20, 2022
Docket3:19-cv-01338
StatusUnknown

This text of United States v. Knapp (United States v. Knapp) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Knapp, (N.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA,

Plaintiff, 3:19-cv-01338 (BKS/ML)

v.

LEANNE KNAPP a/k/a LEANNE M. KNAPP a/k/a LEANNE M. BROWNING, DELAWARE OPPORTUNITIES, INC., DELAWARE COUNTY DEPARTMENT OF SOCIAL SERVICES, PORTFOLIO RECOVERY ASSOCIATES LLC, BARCLAYS BANK DELAWARE, and WILLIAM BROWNING,

Defendants.

Appearances: For Plaintiff: Cynthia Malone Sherri Jennifer Smith Pincus Law Group, PLLC 425 RXR Plaza Uniondale, NY 11556

Hon. Brenda K. Sannes, United States District Judge:

MEMORANDUM-DECISION AND ORDER

I. INTRODUCTION Plaintiff United States of America brings this action under Article 13 of the New York Real Property Actions and Proceedings Law, (“RPAPL”), N.Y. Real Prop. Acts. Law §§ 1301- 1391, seeking to foreclose a mortgage encumbering 13 Liberty Street, Walton, NY (“the Property”). (Dkt. No. 1).1 Plaintiff has named as Defendants the owner and mortgagor of the Property, LeAnne Knapp, as well as Delaware Opportunities, Inc. (“Delaware”), Delaware

1 This Court has jurisdiction under 28 U.S.C. § 1345 as the United States is the Plaintiff in this action. County Department of Social Services (“the Department”), Portfolio Recovery Associates LLC (“Portfolio”), Barclays Bank Delaware (“Barclays”), and William Browning (“Browning”).2 All of the Defendants have failed to file an Answer to the Complaint. Presently before the Court is Plaintiff’s motion for default judgment under Rule 55(b) of the Federal Rules of Civil Procedure.

(Dkt. No. 41). For the reasons stated below, Plaintiff’s motion for default judgment is denied without prejudice. II. BACKGROUND According to the Complaint, on or about June 26, 2009, the United States of America, through the Rural Housing Service or its successor agency, the United States Department of Agriculture, (“USDA”), loaned Defendant LeAnne Knapp $67,800.00, which was secured by a mortgage on the property known as 13 Liberty Street, Walton, New York, in Delaware County. (Dkt. No. 1, at 2). The mortgage was recorded on July 1, 2009, at the Delaware County Clerk’s Office. (Id.). Defendant Knapp executed a promissory note. (Id.). Plaintiff is the owner and holder of the promissory note and mortgage. (Id.). Defendant Knapp breached the provisions of the promissory note and mortgage by failing

to pay the installments of principal and interest, and the real property tax payments when due, and Plaintiff now seeks to accelerate the payments and declare due the entire amount owed on the note and mortgage. (Id.). The Complaint further alleges that: There is now justly due and payable to the plaintiff, as of Oct. 30, 2019, on the Promissory Note and Mortgage the following sums:

Unpaid Principal $51,898.31

2 Although not originally named, William Browning was added as a Defendant after default was entered when Plaintiff discovered that he resided at the subject property. (See Dkt. No. 1, at 1 (originally naming fictitious defendants “John Doe, Mary Roe, and XYZ Corporation . . . to designate tenants, occupants or other persons, if any, having or claiming any estate or interest in possession upon [the Property] or any portion thereof”); Dkt. No. 9 (Plaintiff’s motion to correct “John Doe” in the caption to Browning); Dkt. No. 13 (order to amend the Complaint caption to replace John Doe with Browning, issue a summons to Browning, and dismiss defendants Mary Roe and XYZ Corporation)). Unpaid Interest $3,629.99 Subsidy to Be Recaptured $12,680.46 Escrow $411.33 Late Charges $12.09 Other Fees $4,737.47 TOTAL: $73,369.65

[] together with interest at the rate of 4.625% per annum on principal and all advances from 10/31/19.

(Id. at 3). With respect to the other Defendants, Plaintiff alleges that they “have or may claim to have some interest in or lien upon the mortgaged premises or some part thereof, which interest or lien, if any accrued subsequently to the lien of the United States mortgage and is subsequent thereto.”3 (Id.). III. DISCUSSION A. Standard of Review “Rule 55 of the Federal Rules of Civil Procedure provides a two-step process for obtaining a default judgment.” Priestly v. Headminer, Inc., 647 F.3d 497, 504 (2d Cir. 2011). First, under Rule 55(a), the plaintiff must obtain a clerk’s entry of default. Fed. R. Civ. P. 55(a) (“When a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.”); see also Local Rule 55.1 (requiring a party seeking a clerk’s entry of default to “submit an affidavit showing that (1) the party against whom it seeks a judgment . . . is not an infant, in the military, or an incompetent person (2) a party against whom it seeks a judgment for affirmative relief has failed to plead or otherwise defend the action . . . and (3) it has properly served the pleading to which the opposing party has not responded.”). Second, under Rule

3 According to the documents attached to the Complaint, the Department holds a $0.00 mortgage on the Property that was recorded on February 20, 2014; Delaware holds a $10,000.00 mortgage on the Property that was recorded on July 1, 2009; Barclays holds a $3,892.31 judgment on the Property that was recorded on July 24, 2015; and Portfolio holds a $2,882.67 judgment on the Property that was recorded on June 4, 2015. (Dkt. No. 1, at 21–22). 55(b)(2), the plaintiff must “apply to the court for entry of a default judgment.” Priestly, 647 F.3d at 505; see also Local Rule 55.2(b) (“A party shall accompany a motion to the Court for the entry of a default judgment, pursuant to Fed. R. Civ. P. 55(b)(2), with a clerk’s certificate of entry of default . . . a proposed form of default judgment, and a copy of the pleading to which no

response has been made.”). B. Entry of Default Judgment On March 4, 2020, Plaintiff requested a clerk’s entry of default under Rule 55(a) and, as required by Local Rule 55.1, Plaintiff submitted an affidavit showing that: none of the Defendants are infants, in the military, or incompetent persons; Defendants failed to file an answer or otherwise defend this action; and Plaintiff properly served the Complaint. (Dkt. No. 19, at 3–5). Plaintiff properly served Defendant Knapp under Fed. R. Civ. P. 4(e)(2)(A) by personally delivering a copy of the Summons and Complaint to Knapp. (Dkt. No. 4, at 9). Plaintiff properly served Defendant Browning under Fed. R. Civ. P. 4(e)(2)(B) by leaving a copy of the Summons and Complaint at his residence or usual place of abode with his spouse, Defendant Knapp. (Dkt. No. 16, at 2–3). Plaintiff properly served the Department under Fed. R.

Civ. P. 4(j)(2)(B) and N.Y. C.P.L.R. § 311(a)(4) by delivering a copy of the Summons and Complaint to Assistant County Attorney Erin Neale. (Dkt. No. 4, at 3, 8).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Priestley v. Headminder, Inc.
647 F.3d 497 (Second Circuit, 2011)
Finkel v. Romanowicz
577 F.3d 79 (Second Circuit, 2009)
City of New York v. Mickalis Pawn Shop, LLC
645 F.3d 114 (Second Circuit, 2011)
HSBC Bank USA, N.A. v. Cardona
2021 NY Slip Op 02138 (Appellate Division of the Supreme Court of New York, 2021)
MLB Sub I, LLC v. Mathew
202 A.D.3d 1078 (Appellate Division of the Supreme Court of New York, 2022)
Nationstar Mortg. LLC v. Atanas
315 F. Supp. 3d 700 (W.D. New York, 2018)
Nationstar Mortg. LLC v. Nedza
315 F. Supp. 3d 707 (W.D. New York, 2018)
Greathouse v. JHS Security Inc.
784 F.3d 105 (Second Circuit, 2015)
Onewest Bank, N.A. v. Conklin
310 F.R.D. 40 (N.D. New York, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
United States v. Knapp, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-knapp-nynd-2022.