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UNITED STATES DISTRICT COURT 

FOR THE SOUTHERN DISTRICT OF OHIO 

WESTERN DIVISION AT DAYTON 

GAYLE A. JOHNSON, 

 

 Plaintiff/Counterclaim Defendant/ 

 Third-Party Plaintiff, 

 v. 

UNITED STATES OF AMERICA 

DEPARTMENT OF TREASURY 

(INTERNAL REVENUE SERVICE), 

 Defendant/Counterclaim Plaintiff, 

 v. 

AKIL R. SHARIF, 

 Counterclaim Defendant, 

 and 

DAY-MONT BEHAVIORAL HEALTH 

CARE INC., 

 Third-Party Defendant. 

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Case No. 3:18-cv-185 

Judge Thomas M. Rose 

 

______________________________________________________________________________ 

ENTRY AND ORDER GRANTING THIRD-PARTY PLAINTIFF GAYLE A. 

JOHNSON’S MOTION FOR DEFAULT JUDGMENT AGAINST THIRDPARTY DEFENDANT, DAY-MONT BEHAVIORAL HEALTH CARE INC. 

(DOC. 54); ENTERING DEFAULT JUDGMENT AGAINST THIRD-PARTY 

DEFENDANT DAY-MONT BEHAVIORAL HEALTH CARE INC.; AND 

DIRECTING THE CLERK OF COURT TO TERMINATE THIS CASE 

______________________________________________________________________________ 

This case is before the Court on the Motion for Default Judgment Against Third Party 

Defendant, Day-Mont Behavioral Health Care, Inc. Pursuant to Federal Rule of Civil Procedure 

55 (Doc. 54) (the “Motion”), filed by Third-Party Plaintiff Gayle A. Johnson (“Johnson”). In the 

Motion, Johnson asks the Court to issue a default judgment against Third-Party Defendant DayCase: 3:18-cv-00185-TMR Doc #: 56 Filed: 04/02/21 Page: 1 of 5 PAGEID #: 1821
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Mont Behavioral Health Care Inc. (“Day-Mont”) “for indemnification and/or contribution in 

connection with the Counterclaim filed” against Johnson. (Doc. 54 at PageID 1817.) More 

specifically, Johnson asks the Court to enter a default judgment against Day-Mont in the amount 

of the March 2, 2021 final judgment entered against Johnson on the Counterclaim: “$608,093.84 

as of January 22, 2021 plus statutory additions and interest pursuant to 26 U.S.C. §§ 6601, 6621, 

and 6622 and 28 U.S.C. § 1961(c) from said date.” (Doc. 53 (Final Judgment Against Gayle 

Johnson and Akil Sharif); Doc. 54 at PageID 1818.) Day-Mont did not file a response to the 

Motion, and the time to do so has now passed. See S.D. Ohio Civ. R. 7.2(a). Accordingly, the 

Motion is ripe for decision. For the reasons discussed below, the Court grants the Motion, enters 

a default judgment against Day-Mont as specified below, and directs the Clerk of Court to 

terminate this case. 

I. BACKGROUND 

On May 25, 2018, Johnson filed a Complaint against the United States of America 

Department of Treasury (Internal Revenue Service) (the “IRS”) concerning employment taxes and 

penalties allegedly assessed against Day-Mont but paid by Johnson. (Doc. 1.) In addition to 

answering the Complaint, the IRS filed a Counterclaim against Johnson and another person, Akil 

R. Sharif (“Sharif”). (Doc. 10.) After initially responding to the Counterclaim, Johnson filed a 

joint Amended Reply to the Counterclaim and Third-Party Complaint against Day-Mont on 

September 17, 2019. (Docs. 13, 27.) Despite being served with a summons and copy of the ThirdParty Complaint, Day-Mont failed to file a responsive pleading or otherwise defend against the 

Third-Party Complaint. On February 25, 2021, the Clerk of Court entered a Default against DayMont, in accordance with Federal Rule of Civil Procedure 55(a). (Doc. 50.) 

The Third-Party Complaint states that Day-Mont previously employed Johnson and that 

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Johnson acted as its president until she resigned in August of 2016. (Doc. 27 at PageID 114.) 

During Johnson’s employment with Day-Mont, Day-Mont accrued significant unpaid employment 

tax obligations to the IRS that remained unpaid. (Id. at PageID 115.) In its Counterclaim, the IRS 

alleged that Johnson was a responsible party of Day-Mont with respect to certain unpaid 

employment tax obligations. (Id.; see also Doc. 10.) Johnson and Day-Mont had entered into a 

written agreement—a copy of which is attached to the Third-Party Complaint—on February 3, 

2017, after Day-Mont accrued the unpaid employment tax obligations but prior to commencement 

of this case. (Doc. 27 at PageID 115; Doc. 27-1.) That agreement includes this provision: 

Day-Mont will indemnify and hold Johnson harmless from any and all third-party 

claims, including without limitation, claims by ... the Internal Revenue Service, 

asserted against Johnson in connection with her employment by Day-Mont, 

including costs and expenses, including attorney fees, in connection with such 

claims. 

(Doc. 27-1 at PageID 118.) In the Third-Party Complaint, Johnson’s claim against Day-Mont is 

“for indemnification and/or contribution in connection with the Counterclaim” filed by the IRS, in 

accordance with the written agreement between Johnson and Day-Mont. (Doc. 27 at PageID 116.) 

 On March 2, 2021, the Court entered a Final Judgment against Johnson and Sharif 

regarding the IRS’s Counterclaim. (Doc. 53.) That Final Judgment states: “Counterclaim 

defendant Gayle Johnson is liable to the United States in the amount of $608,093.84 as of January 

22, 2021, plus statutory additions and interest pursuant to 26 U.S.C. § 6601, 6621, 6622 and 28 

U.S.C. § 1961(c) from that date, for the unpaid liabilities assessed pursuant to 26 U.S.C. § 6672 

for the periods ending March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, 

March 31, 2016, June 30, 2016, and September 30, 2016.” (Id. at PageID 1815.) Johnson then 

filed the Motion. (Doc. 54.) 

II. ANALYSIS 

Federal Rule of Civil Procedure 55 addresses defaults and default judgments. Although 

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strong public policy favors resolving disputes on the merits, Rule 55 allows for entry of default 

judgment in certain situations to protect parties from undue delay or harassment. Fed. R. Civ. P. 

55; Shepard Claims Serv., Inc. v. William Darrah & Assocs., 796 F.2d 190, 193 (6th Cir. 1986) 

(trials on the merits are favored in federal courts); Baez v. S.S. Kresge Co., 518 F.2d 349, 350 (5th 

Cir. 1975) (“the basic purpose of the default judgment is to protect parties from undue delayharassment”); see also 10A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal 

Practice and Procedure § 2681 (4th ed.) (explaining that the policy reasons for allowing default 

judgments include that the diligent party should be protected from endless delay and uncertainty 

as to its rights, although trials on the merits are encouraged and defaults are not favored by the 

law). A third-party defendant who has defaulted is deemed to have admitted liability and conceded 

the truth of the well-pleaded factual allegations in the third-party complaint. Fed. R. Civ. P. 8(b)(6) 

(“[a]n allegation—other than one relating to the amount of damages—is admitted if a responsive 

pleading is required and the allegation is not denied”); In re Family Resorts of Am., No. 91-4127, 

972 F.2d 347 (table), 1992 WL 174539, at *4 (6th Cir. July 24, 1992) (“[u]pon entry of default, 

only those well-pleaded allegations relating to liability are taken as true”); Antoine v. Atlas Turner, 

Inc., 66 F.3d 105, 110 (1995) (“[w]here damages are unliquidated a default admits only 

defendant’s liability and the amount of damages must be proved”). After default has been entered 

against a party, the Court may enter default judgment against that party with or without holding a 

hearing. Fed. R. Civ. P. 55(b); Zinganything, LLC v. Import Store, 158 F. Supp. 3d 668, 672 (N.D. 

Ohio 2016).

The Court finds that there is no need for a hearing in this case. Day-Mont defaulted. (Doc. 

50.) Due to the default, Day-Mont conceded that it entered into a written agreement with Johnson 

prior to initiation of this case. (Doc. 27 at PageID 115; Doc. 27-1.) Among the terms of that 

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agreement are that Day-Mont will “indemnify and hold Johnson harmless” from claims made by 

a third-party—specifically including the IRS—against Johnson in connection with her 

employment by Day-Mont. (Doc. 27-1 at PageID 118.) The IRS’s Counterclaim against Johnson 

qualifies as such a claim. (See Doc. 10.) The Court entered final judgment against Johnson on 

that counterclaim on March 2, 2021 through the Final Judgment Against Gayle Johnson and Akil 

Sharif (Doc. 53). Based on documentary evidence, the Court can determine the amount that 

Johnson claims against Day-Mont in the Third-Party Complaint and the Motion. It is the amount 

of the judgment against Johnson contained in the March 2, 2021 Final Judgment Against Gayle 

Johnson and Akil Sharif (Doc. 53): “$608,093.84 as of January 22, 2021 plus statutory additions 

and interest pursuant to 26 U.S.C. §§ 6601, 6621, and 6622 and 28 U.S.C. § 1961(c) from said 

date.” (Doc. 53.) 

III. CONCLUSION 

For the reasons stated above, the Court GRANTS Johnson’s Motion for Default Judgment 

Against Third Party Defendant, Day-Mont Behavioral Health Care, Inc. Pursuant to Federal Rule 

of Civil Procedure 55 (Doc. 54). The Court also ENTERS a default judgment, pursuant to Federal 

Rule of Civil Procedure 55, against Third-Party Defendant Day-Mont Behavioral Health Care Inc. 

on Johnson’s Third-Party Complaint (Doc. 27 at PageID 114-116) in the amount of $608,093.84 

as of January 22, 2021 plus statutory additions and interest pursuant to 26 U.S.C. §§ 6601, 6621, 

and 6622 and 28 U.S.C. § 1961(c) from said date. Finally, because this order disposes of the last 

remaining claim in the case, the Court directs the Clerk of Court to TERMINATE this case. 

DONE and ORDERED in Dayton, Ohio, this Friday, April 2, 2021. 

s/Thomas M. Rose 

 ________________________________ 

THOMAS M. ROSE 

 UNITED STATES DISTRICT JUDGE 

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