Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_10-cv-01118/USCOURTS-azd-2_10-cv-01118-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

National Bank of Arizona,

Plaintiff, 

vs.

Shannon R. Munn, 

Defendant. 

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No. CV10-1118-PHX-NVW

ORDER

Pending before the Court is Plaintiff’s Rule 55(b)(2) Motion for Entry of Default

Judgment (Doc. 19) and Plaintiff’s Application in Support of an Award of Attorneys’ Fees,

Taxable Costs and Related Expenses (Doc. 20).

I. Background

This action arises out of a Home Equity Credit Line Agreement between Plaintiff

National Bank of Arizona and Defendant Shannon Munn. After Defendant failed to repay

the money borrowed from Plaintiff, Plaintiff filed a complaint for breach of contract in

Maricopa County Superior Court in October 2008. Plaintiff voluntarily dismissed that state

court action because Defendant could not be located for service of process. Plaintiff filed its

complaint in this Court on May 24, 2010 (Doc. 1), and Defendant was served with process

on June 21, 2010 (Doc. 10). Defendant has failed to appear or otherwise defend this action

and the Clerk of the Court has entered Defendant’s default pursuant to Rule 55(a). (Doc. 17.)

Case 2:10-cv-01118-NVW Document 21 Filed 12/07/10 Page 1 of 3
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 Plaintiff’s previous application for entry of default judgment (Doc. 13) was denied without

prejudice in this Court’s October 19, 2010 order. (Doc. 18.)

II. Motion for Entry of Default Judgment

After entry of default by the Clerk of the Court pursuant to Rule 55(a), the Court has

discretion to enter default judgment. See Fed. R. Civ. P. 55(b)(2); Aldabe v. Aldabe, 616

F.2d 1089, 1092 (9th Cir. 1980). The Court considers several factors in deciding whether

to grant default judgment, including: 1) the possibility of prejudice to the plaintiff; 2) the

merits of plaintiff’s substantive claim; 3) the sufficiency of the complaint; 4) the amount of

money at stake; 5) the possibility of a dispute concerning material facts; 6) whether default

was due to excusable neglect; and 7) the policy favoring a decision on the merits. See Eitel

v. McCool, 782 F.2d 1470, 1471-72 (9th Cir.1986).

Plaintiff seeks a default judgment award of $75,348.88: $70,630.99 as the principal

amount due on the loan on May 12, 2008; an appraisal and title search fee of $550.00;

attorney’s fees of $3,867.00; and a $301.00 filing fee for the prior lawsuit against Defendant

in Maricopa County Superior Court. Having reviewed Plaintiff’s motion and supporting

memorandum (Doc. 19), which addresses each of the Eitel factors, and having reviewed the

well-pled factual allegations of the complaint and the record as a whole, the Court concludes

that default judgment in the amount requested, $75,348.88, is appropriate. Accordingly,

Plaintiff’s Rule 55(b)(2) Motion for Entry of Default Judgment (Doc. 19) will be granted.

 III. Motion for Attorney’s Fees

Plaintiff has requested in a separate motion an award of attorney’s fees in the amount

of $3,867.00 and costs in the amount of $709.00. (Doc. 20.) Where a contract provides for

an award of fees to the prevailing party, Arizona law requires the Court to honor that

provision and award fees as stipulated in the agreement. See McDowell Mountain Ranch

Comm. Assoc. v. Simons, 216 Ariz. 266, 269, 165 P.3d 667, 670 (Ariz. App. Ct. 2007)

(noting that it is “well-settled in Arizona that ‘[c]ontracts for payment of attorneys’ fees are

enforced in accordance with the terms of the contract’” (citations omitted)); see also Dorn

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v. Robinson, 158 Ariz. 279, 287, 762 P.2d 566, 574 (Ariz. App. Ct. 1988) (awarding

prevailing party attorneys’ fees where they were provided for by contract). Here, the Home

Equity Credit Line Agreement signed by Defendant provides that she will pay for costs

expended by Plaintiff in collecting under the agreement, including attorneys’ fees. (Doc. 1-

1.) Accordingly, Plaintiff is entitled to its attorney’s fees and costs. Further, the Court finds

the amount of fees requested by Plaintiff to be reasonable. However, as Plaintiff has already

requested, and will recover, its attorney’s fees and the filing fee for the state court action as

part of the default judgment award, it would be duplicative to also grant Plaintiff’s separate

motion requesting its attorney’s fees and the state court filing fee cost. Similarly, the other

costs requested in Plaintiff’s motion for attorney’s fees and costs are already claimed in

Plaintiff’s Statement of Costs (Doc. 16) submitted to the Clerk of the Court. Because the

total amount of fees and costs requested in this motion are already otherwise recovered by

Plaintiff, Plaintiff’s Application in Support of an Award of Attorneys’ Fees, Taxable Costs

and Related Expenses (Doc. 20) will be denied as unnecessary.

IT IS THEREFORE ORDERED that Plaintiff’s Rule 55(b)(2) Motion for Entry of

Default Judgment (Doc. 19) is granted.

IT IS FURTHER ORDERED that default judgment is entered in favor of Plaintiff and

against Defendant Shannon Munn in the amount of $75,348.88, plus interest on the principal

sum of $70,630.88 at the default interest rate of 7.25% per annum from May 12, 2008 until

paid, plus interest on the $3,867.00 in attorneys’ fees at the federal interest rate pursuant to

28 U.S.C. § 1961 from the date of judgment until paid.

IT IS FURTHER ORDERED that Plaintiff’s Application in Support of an Award of

Attorneys’ Fees, Taxable Costs and Related Expenses (Doc. 20) is denied.

DATED this 7th day of December, 2010.

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