Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-3_05-cv-01517/USCOURTS-azd-3_05-cv-01517-0/pdf.json

Nature of Suit Code: 152
Nature of Suit: Recovery of Defaulted Student Loans
Cause of Action: 

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

United States of America, )

)

Plaintiff, ) No. CIV 05-1517-PHX RCB

)

vs. ) O R D E R

)

Susan A. Towne-Nez, )

)

Defendant. ) )

On May 20, 2005, Plaintiff, the United States of America,

filed a complaint in this matter. Complt. (doc. 1). Defendant

Susan A. Towne-Nez answered the complaint on September 15, 2005. 

Answer (doc. 4). Thereafter, on November 18, 2005, the United

States filed a motion for summary judgment. (doc. 6). Towne-Nez

did not file a response to the government's motion.

Under section 104 of the Indian Health Care Improvement Act

(P.L. 94-437), the United States, through the Indian Health Service

Scholarship Program ("IHSSP"), provides stipends, tuition, fees,

and the like for individuals who attend health profession schools

and agree to service requirements upon graduation. PSOF (doc. 7) 

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at ¶ 1. Through the affidavit of Mary E. Mitchell, an accountant

with the United States Department of Health and Human Services, the

United States asserts that Towne-Nez signed IHSSP contracts on

August 31, 1988 and April 2, 1989. Id. at ¶ 2; Exbts. 1-A and 1-B

(doc. 7). She applied for and received IHSSP funds to obtain a

bachelor's degree in nursing, but, according to the government,

failed to complete her course of study for which she received

funds. PSOF (doc. 7) at ¶ 3; Mitchell Aff. (doc. 7) at ¶ 5. After

applying all credits and setoffs, the amount Towne-Nez owes the

United States is $13,308.00 in principal plus interest at the

contractual annual rate of 12.875%. Id. at ¶ 4; Mitchell Aff.

(doc. 7) at ¶ 6. The government asserts that, despite demand,

Towne-Nez has not paid the amount owing to the United States. Id.

at ¶ 5; Mitchell Aff. (doc. 7) at ¶ 7.

Towne-Nez, in her Answer in this matter, maintained that she

completed her degree and worked in a "Native American Health

Facility" until she became disabled. Answer (doc. 3) at 1.

However, to date, she has produced no evidence to support her

assertions.

In its motion for summary judgment, the United States contends

that it has presented admissible evidence indicating that it is

entitled to judgment as a matter of law in the amount of $13,308.00

in principal plus interest. Motion (doc. 6) at 2. Additionally,

the United States asserts that it is entitled to collect a 10%

surcharge under the Federal Debt Collection Procedure Act for the

cost of litigation and collection. Id., citing 28 U.S.C. §

3011(a); United States v. Mastrovito, 830 F. Supp. 1281 (D. Ariz.

1993) (10% surcharge awarded in judgment arising from defaulted

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federal student loan). 

Pursuant to Rule 56.1(b), Rules of Practice of the United

States District Court for the District of Arizona (hereinafter

"Local Rules"), the opposing party to a motion for summary judgment

shall have 30 days after service within which to serve and file a

responsive memorandum. Under Local Rule 7.2(i), “if the opposing

party does not serve and file the required answering memoranda...

such non-compliance may be deemed a consent to the denial or

granting of the motion and the Court may dispose of the motion

summarily.” The Ninth Circuit requires that such motions be

facially meritorious. See Henry v. Gill Indus., 983 F.2d 943, 950

(9th Cir. 1993). 

In light of the fact that over four months have passed since 

the United States filed its motion for summary judgment, and the

motion is facially meritorious, the Court grants the United States'

motion for summary judgment.

IT IS ORDERED that the United States' motion for summary

judgment (doc. 6) is GRANTED.

IT IS FURTHER ORDERED that the clerk is directed to enter

judgment in the amount of $13,308.00, plus a surcharge of $1,330.80

and pre and post-judgment interest at the contractual annual rate

of $12.875%, and terminate this action.

IT IS FURTHER ORDERED denying Plaintiff's Motion To Extend

Time To Make Initial Disclosures (doc. #12), as moot.

DATED this 29th day of March, 2006.

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Copies to counsel of record and Defendant, pro se

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