UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF INDIANA

SOUTH BEND DIVISION

UNITED STATES OF AMERICA, )

)

Plaintiff, ) CASE NO. 3:13-CV-279

v. )

)

SUSAN L. GAGNE, )

Defendant. )

OPINION AND ORDER

Before this Court is Plaintiff’s Motion for Judgment on the Pleadings. [DE 5] This is an

action brought by the United States, on behalf of the United States Department of Agriculture,

for in rem relief to foreclose a mortgaged real estate in Starke County, Indiana. The defendant

answered the complaint and admitted each of the allegations in it, and admitted that the judgment

asked for by the United States was appropriate [DE 3]. For the reasons set forth below, this

Court GRANTS Plaintiff’s Motion for Judgment on the Pleadings and all additional relief

requested in Plaintiff’s Complaint.

BACKGROUND

On July 9, 2009, Defendant, Susan L. Gagne, executed a promissory note in favor of the

United States Department of Agriculture in the principal amount of $56,000.00 [DE 1-1]. The

note calls for payment of interest and advances [Id.]. To secure the note, Gagne executed a

mortgage on real estate commonly known as 10851 E. Seneca, Walkerton, Indiana 46574 [DE 1-

2]. The mortgage was recorded on September 23, 2009, in the Office of the Recorder of Starke

County as Document 2009003264 [Id.]. 

On the same day the promissory note was executed, Gagne and the Department of

Agriculture executed a Subsidy Repayment Agreement. [DE 1-3] The agreement allowed some
of the interest under the note to be credited so long as the property was occupied and no default

existed, but in the event of default or abandonment, the credited interest had to be recaptured as a

charge against the real estate [Id.] The United States is the holder of the aforementioned note and

mortgages. [Id.]

There is due under the note and mortgage the sum of $56,050.66 in principal, $2,366.50

in interest and $2,032.44 in recaptured interest, totaling $60,449.60, plus accruing interest from

September 17, 2012, to date of judgment at $7.09 per day [DE 1 at 2]. The amount due as of

October 18, 2013, was $62,257.24; however, Gagne was discharged from personal liability on

the note by reason of a discharge entered following a petition for bankruptcy relief under Chapter

7 of the Bankruptcy Act [Id.].

On April 8, 2013, Plaintiff filed a Complaint requesting an in rem judgment against the

real estate, an order declaring that the mortgage of the United States have priority over the

interests of all parties to the case, and an order for the Marshal to sell the real estate at a

foreclosure sale and to pay the proceeds of the sale toward payment of the Plaintiff’s judgment

[Id.]. One month later, on May 8, 2013, Defendant filed an Answer to Plaintiff’s Complaint,

admitting each and every allegation laid out in the Complaint [DE 3]. As a result, Plaintiff filed a

Motion for Judgment on the Pleadings on October 18, 2013 [DE 5]. 

DISCUSSION

Plaintiff moves for judgment on the pleadings pursuant to Federal Rule of Civil

Procedure 12(c). Rule 12(c) permits a party to move for judgment on the pleadings after the

parties have filed a complaint and answer. In considering such a motion, the Court must apply

the same legal standards that govern motions to dismiss under Rule 12(b)(6) for failure to state a

claim on which relief can be granted. R.J. Corman Derailment Servs., LLC v. Int’l Union of
Operating Eng’rs, Local Union 150, AFL-CIO, 335 F.3d 643, 647 (7th Cir 2003). A motion

under Rule 12(c) is not granted “unless it appears beyond a doubt that the non-moving party

cannot prove any facts that would support his claim for relief.” Id. (citations and alterations

omitted). When ruling on a Rule 12(c) motion, the Court must “accept all well-pleaded

allegations in the complaint as true and draw all reasonable inferences in favor of the plaintiff.” 

Forseth v. Vill. of Sussex, 199 F.3d 363, 368 (7th Cir. 2000). 

It should be noted that paragraphs 3 through 9 of the Defendant’s Answer repetitiously

read, “Defendant admits the allegation in rhetorical Paragraph 3 of Plaintiff’s Complaint” [DE 3

at ¶ 3-9], instead of admitting to each sequentially numbered paragraph of the Complaint. 

However, this appears to be a simple typographical error and the time for Gagne, who is

represented by counsel, to dispute the United States’ assertion that she has admitted each of the

averments in the Complaint, has passed. Moreover, the final paragraph in Defendant’s Answer

admits that an in rem judgment against the real estate, is appropriate, so this Court construes

Paragraphs 1 through 9 of Defendant’s Answer as being admissions of each corresponding

allegation in Plaintiff’s complaint. 

Seeing that Plaintiff’s allegations are uncontested by Defendant, and because this Court is

to accept as true all well-pleaded allegations in Plaintiff’s complaint, it is clear that Plaintiff is

entitled to the relief requested in its Complaint and that Plaintiff’s Motion for Judgment on the

Pleadings should be GRANTED. 

CONCLUSION

For the foregoing reasons, the Court ORDERS the following:

1. That Plaintiff is entitled to the relief requested in its complaint; accordingly, Plaintiff’s

Motion for Judgment on the Pleadings is GRANTED.
2. That Plaintiff have and recover from Defendant judgment in rem in the amount of

$60,449.60.

3. That Plaintiff is entitled to foreclose its mortgage on the real property described in

paragraph 4 below.

4. That the equity of redemption, and any and all interest of the Defendant and all

persons claiming by, through or under her in and to the real estate described below is forever

barred and foreclosed: 

LOT NUMBER EIGHT (8), BLOCK 16 IN SIMPSON AND FROST’S ADDITION

TO KOONTZ LAKE, AS PER PLAT THEREOF RECORDED IN PLAT BOOK 1,

PAGE 232 AND 233 IN THE OFFICE OF THE RECORDER OF STARKE

COUNTY, INDIANA.

ALSO A PARCEL OF LAND LOCATED IN BLOCK 16 OF SIMPSON & FROST

ADDITION TO KOONTZ LAKE AS RECORDED IN PLAT BOOK 1, PAGES 232

AND 233, OREGON TOWNSHIP, STARKE COUNTY INDIANA, MORE

PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHEAST CORNER OF THE WEST 10 FEET OF LOT

9, IN BLOCK 16, SIMPSON & FROST ADDITION TO KOONTZ LAKE;

THENCE SOUTH 89 31’15” EAST (BASIS OF BEARINGS) ON THE NORTH

TINE OF SAID BLOCK 16, A DISTANCE OF 5.16 FEET TO A MAGNETIC

MASONRY NAIL; THENCE SOUTH 00 02’16” WEST, A DISTANCE OF

61.84 FEET TO A CAPPED 5/8 INCH IRON REINFORCING ROD; THENCE

SOUTH 04 53’22” WEST A DISTANCE OF 13.71 FEET TO A MAGNETIC

MASONRY NAIL; THENCE SOUTH 01 26’28” EAST, A DISTANCE OF

24.55 FEET TO A CAPPED 5/8 INCH IRON REINFORCING ROD ON THE

SOUTH LINE OF SAID LOT 9; THENCE NORTH 89 31’15” WEST ON SAID

SOUTH LINE, A DISTANCE OF 4.57 FEET TO THE SOUTHEAST CORNER OF

SAID WEST 10 FEET OF LOT 9; THENCE NORTH 00 00’00” EAST ON THE

EAST LINE OF SAID WEST 10 FEET OF LOT 9, A DISTANCE OF 100.04

FEET TO THE POINT OF BEGINNING.

Commonly known as: 10851 E. Seneca, Walkerton, Indiana 46574.

5. That the aforementioned real estate and all right, title and interest and claim of the

Defendant and of all persons claiming by, through or under her in and to the same, be sold by the
United States Marshal for the Northern District of Indiana, in accordance with the laws

governing foreclosure of real estate mortgages, without relief from valuation and appraisement

laws; and that the Marshal, after the Court's confirmation of sale, shall issue a Marshal's Deed to

the purchaser or purchasers thereof.

6. That the United States of America may become a purchaser at such sale of any part of

or all of the mortgaged property and may make payment therefor with such part of its judgment

which was secured by the subject real estate. That the United States of America may submit a

sealed written bid to the United States Marshal at any time prior to the Marshal=s sale. The

Marshal shall unseal and publicly announce the United States= bid prior to receiving bids from

persons present at the Marshal=s sale. The public announcement of the United States= written bid

shall have the same effect as if a representative of the United States were present and submitted

its bid at the Marshal=s sale.

7. That the proceeds from the sale of the real estate described above shall be applied as

follows: 

(a) First, to the payment of all costs and accruing costs herein;

(b) Next, to the payment of the judgment in favor of the Plaintiff as specified

in paragraph 2 above;

(c) Next, the overplus, if any, remaining after the payment of the foregoing,

shall be paid to the Clerk of the Court to be disposed of as the Court shall

thereafter direct.

8. That the purchaser or purchasers at said sale shall be entitled to receive the deed to

said real estate from the United States Marshal upon confirmation of said sale by the Court; and

the said deed or conveyance shall forever bar and foreclose all of the right, title and interest of

each and all of the defendants, and of all persons claiming by, under or through them in and to

said real estate.
9. In addition to issuing a deed or conveyance to the purchaser(s) the United States

Marshal, following Court confirmation of the sale, shall be authorized, if required for clear title,

to provide the purchaser(s) with an appropriately completed disclosure form showing the United

States Marshal as the "Seller" of the foreclosed property.

SO ORDERED.

ENTERED: March 6, 2014

s/ Philip P. Simon

PHILIP P. SIMON, CHIEF JUDGE

UNITED STATES DISTRICT COURT