Report and Recommendation

Motion for Judgment

1 Haddad v. Riley; 09-12597

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

TONY HADDAD, Case No. 09-12597

Plaintiff, David M. Lawson

United States District Judge

vs.

Michael Hluchaniuk

CHARLES RILEY & ASSOCIATES, INC., United States Magistrate Judge

CHARLES RILEY, BRIGHTON 

MARKET, INC., and BLUE DIAMOND 

MARKET OF WARREN, INC.,

Defendants.

 /

BRIGHTON MARKET, INC.,

Cross Claimant,

vs.

CHARLES RILEY & ASSOCIATES, INC.,

Cross Defendant.

 /

REPORT AND RECOMMENDATION

PLAINTIFF’S MOTION FOR JUDGMENT (Dkt. 13)

A. Statement of Facts

Plaintiff filed the present cause of action on July 2, 2009, claiming that

defendants Charles Riley and Associates, Inc., Charles Riley, Blue Diamond

Market of Warren, and Brighton Market, Inc. violated his rights under the Fair

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Credit Reporting Act relating to collection efforts that were undertaken by

defendants regarding bad checks that were cashed in the Blue Diamond Market of

Warren and the Brighton Market, Inc. and subsequently assigned to Charles Riley

and Associates for collection from plaintiff. (Dkt. 1). Brighton Market, Inc.

(Brighton) was served on July 14, 2009. (Dkt. 3). Charles Riley and Associates,

Inc. (Riley, Inc.) and Charles Riley (Riley) were served on July 22, 2009. (Dkt. 4). 

Blue Diamond Market of Warren, Inc. (Blue Diamond) was served on August 5,

2009. (Dkt. 8).

Riley, Inc. and Riley filed an answer to the complaint on August 7, 2009. 

(Dkt. 5). On August 11, 2009, Brighton filed an answer to the complaint and a

cross claim against Riley, Inc. (Dkt. 9). On September 9, 2009, plaintiff filed a

request for clerk’s entry of default against Blue Diamond and a default was entered

the same date. (Dkt. 11-12). Plaintiff filed a motion for judgment against Blue

Diamond on September 15, 2009. (Dkt. 13). 

Brighton filed a request for clerk’s entry of default with respect to

Brighton’s cross claim as to Riley, Inc. on October 8, 2009, and a default was

entered on October 9, 2009. (Dkt. 21-22). Brighton filed a motion for judgment

against Riley, Inc. on October 16, 2009. (Dkt. 24). Riley, Inc. has not responded

to the motion. Blue Diamond has never appeared or contacted the court in the

present matter.

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A scheduling conference was held on October 29, 2009, by the undersigned. 

Participating in the conference were counsel for plaintiff, counsel for Brighton and

counsel for Riley, Inc. and Riley. The undersigned inquired about the failure of

Riley, Inc. to respond to the cross claim by Brighton and counsel for Riley, Inc.

stated that a motion to set aside the default would be filed by November 4, 2009. 

Riley, Inc. did file a motion to set aside the default on November 4, 2009. (Dkt.

27). Brighton responded to the motion to set aside the default on November 19,

2009. (Dkt. 29). 

B. Analysis and Recommendation

A hearing on plaintiff’s motion for judgment on the complaint against Blue

Diamond, Brighton’s motion for judgment on its cross claim against Riley, Inc.

and Riley, Inc.’s motion to set aside the default entered against it by Brighton was

scheduled for January 13, 2010. (Dkt. 28). The hearing took place as scheduled,

however counsel, for Riley, Inc. did not participate in the hearing. Counsel for

Riley, Inc. was provided notice of the hearing, which was conducted by conference

call, and unsuccessful attempts were made to contact counsel at his office and on

his cell phone.

Given that Blue Diamond was served with the complaint and failed to

respond in any way to the complaint, plaintiff is entitled to a judgment based on the

default previously entered against Blue Diamond. Therefore, the undersigned

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4 Haddad v. Riley; 09-12597

RECOMMENDS that judgment be entered against Blue Diamond in favor of

plaintiff. The amount of the judgment will be determined based on a hearing

where plaintiff will have the opportunity to establish the amount of damages to

which he is entitled. 

C. Review

The parties to this action may object to and seek review of this Report and

Recommendation, but are required to file any objections within 14 days of service,

as provided for in Federal Rule of Civil Procedure 72(b)(2). Failure to file specific

objections constitutes a waiver of any further right of appeal. Thomas v. Arn, 474

U.S. 140 (1985); Howard v. Sec’y of Health and Human Servs., 932 F.2d 505 (6th

Cir. 1981). Filing objections that raise some issues but fail to raise others with

specificity will not preserve all the objections a party might have to this Report and

Recommendation. Willis v. Sec’y of Health and Human Servs., 931 F.2d 390, 401

(6th Cir. 1991); Smith v. Detroit Fed’n of Teachers Local 231, 829 F.2d 1370,

1373 (6th Cir. 1987). Pursuant to Local Rule 72.1(d)(2), any objections must be

served on this Magistrate Judge.

Any objections must be labeled as “Objection No. 1,” “Objection No. 2,”

etc. Any objection must recite precisely the provision of this Report and

Recommendation to which it pertains. Not later than 14 days after service of an

objection, the opposing party may file a concise response proportionate to the

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5 Haddad v. Riley; 09-12597

objections in length and complexity. Fed.R.Civ.P. 72(b)(2), Administrative Order

09-AO-042. The response must specifically address each issue raised in the

objections, in the same order, and labeled as “Response to Objection No. 1,”

“Response to Objection No. 2,” etc. If the Court determines that any objections are

without merit, it may rule without awaiting the response.

s/Michael Hluchaniuk 

Date: January 20, 2010 Michael Hluchaniuk

United States Magistrate Judge

CERTIFICATE OF SERVICE

I certify that on January 20, 2010, I electronically filed the foregoing paper

with the Clerk of the Court using the ECF system, which will send electronic

notification to the following: Gary D. Nitzkin, Robert A. Kuhr, and Gordon S.

Gold .

s/Tammy Hallwood 

Case Manager

U.S. District Court

600 Church Street

Flint, MI 48502

(810) 341-7887

tammy_hallwood@mied.uscourts.gov

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