Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Loan Funder LLC v. Alex, LLC

United States District Court, D. Hawaii

June 5, 2019

LOAN FUNDER LLC, SERIES 2130 Plaintiff,
v.
ALEX, LLC; DONALD DWIGHT HODGE; ABRAHAM ANTONIO RAMOS, JR., and INFINITY CAPITAL FINANCE CORPORATION, Defendants.

          FINDINGS AND RECOMMENDATION TO GRANT IN PART AND DENY IN PART PLAINTIFF'S MOTION FOR DEFAULT JUDGMENT AND DECREE OF FORECLOSURE AGAINST DEFENDANTS ALEX, LLC, DONALD DWIGHT HODGE, AND INFINITY CAPITAL FINANCE CORPORATION

          ROM A. TRADER UNITED STATES MAGISTRATE JUDGE

         Plaintiff LOAN FUNDER LLC, SERIES 2130 (“Loan Funder”) filed a Motion for Default Judgment and Decree of Foreclosure Against Defendants ALEX, LLC, DONALD DWIGHT HODGE, AND INFINITY CAPITAL FINANCE CORPORATION (individually referred to as “Alex”, “Hodge”, “Infinity” and collectively referred to as “Defendants”), on March 28, 2019 (“Motion”). ECF No. 29.

         Alex, Hodge, and Infinity were served with a copy of the Motion, and did not file an opposition or otherwise respond to the Motion. The Motion came on for hearing on May 9, 2019, before the Honorable Rom Trader. Dana A. Barbata and Janjeera S. Hail appeared on behalf of Loan Funder. Defendant ABRAHAM ANTONIO RAMOS, JR. represented himself pro se. No. other party made an appearance, three calls being made at 9:50 am.

         After careful consideration of the Motion, its supporting declarations and exhibits, and the record established in this action, the Court FINDS AND RECOMMENDS that the Motion be GRANTED IN PART AND DENIED IN PART.

         BACKGROUND

         Loan Funder provided financing to Alex for the purchase and renovation of property located at 3608 Kumulani Street, Honolulu, Hawaii 96822, designated as Tax Map Key No. (1) 2-9-064-049 (the “Property”). Complaint, ¶ 7. To that end, Loan Funder and Alex executed a Promissory Note dated August 16, 2017 in the amount of $917, 681.00 with an annual interest rate of 10.99% or 45% per year in the case of default, and a maturity date of August 15, 2018 (“Promissory Note”). Id. at ¶ 9 and Exhibit “1”. Hodge executed a Commercial Guaranty dated August 16, 2017, unconditionally guaranteeing payment of the Promissory Note (“Guaranty”). Id. at ¶ 10 and Exhibit “2”. The Promissory Note is secured by Alex's interest in the Property pursuant to a Mortgage recorded in the Hawaii Bureau of Conveyances as Document No. A-64510304 (“Mortgage”). Id. at ¶11; see also Motion, Exhibit “3”. Pursuant to the Mortgage, any failure by Alex to pay any installment payment of principal or interest under the Promissory Note within five days after it becomes due and payable constitutes an event of default. Motion, Exhibit “3”, art. 2.01.

         Alex also executed an assignment of leases and rents to Loan Funder, recorded in the Hawaii Bureau of Conveyances as Document No. A-64510305 as security for the repayment of the Promissory Note (“Assignment”). Complaint, ¶ 12; Motion, Exhibit “4”.

         Loan Funder, Alex, and Hodge executed an Extension Agreement dated August 15, 2018 to reconfirm the loan obligations and Guaranty and to extend the maturity of the Promissory Note to November 15, 2018 (“Extension”). Complaint, ¶ 13; Motion, Exhibit “5”.

         The Promissory Note matured and is payable in full. On October 4, 2018, Loan Funder submitted a notice of default to Alex demanding prompt payment in full. Motion, Exhibit “6”. On January 14, 2019, Loan Funder filed its Complaint against Alex, Hodge, and Ramos to recover the full amounts due and owing under the Promissory Note, as secured by the Guaranty, Mortgage, Assignment, and Extension. Despite demand for payment, Alex and Hodge have not responded. The facts stated above are admitted by their default. See ECF No. 18.

         Infinity may have or may claim to have an interest in the Property by virtue of a mortgage dated August 16, 2017, recorded in the Hawaii Bureau of Conveyances on August 30, 2017 as Document No. A-64510307. Complaint, ¶ 20. By reason of its default, Infinity does not dispute Loan Funder's claims. See ECF No. 21.

         The Clerk entered default against Defendants pursuant to Rule 55(a) of the Federal Rules of Civil Procedure on February 13, 2019 and February 28, 2019. ECF Nos. 17 and 21. The present Motion followed.

         ANALYSIS

         The Court may enter default judgment upon application by the party entitled to the judgment. Fed.R.Civ.P. 55(b)(2). State Farm Fire & Cas. Co. v. Tan, No. CV 12-00187 SOM-KSC, 2013 WL 3187933, at *1 (D. Haw. June 21, 2013); see also Carlone v. Lion & The Bull Films, Inc., 861 F.Supp.2d 312, 318 (S.D.N.Y. 2012). Default judgment may be entered for the plaintiff if the defendant has defaulted by failing to appear and the plaintiff's claim is for a “sum certain or for a sum which can by computation be made certain[.]” Hawaii Glaziers Tr. Funds v. Island Glazing, Inc., No. CV 13-00448 SOM-RLP, 2014 WL 819208, at *1 (D. Haw. Mar. 3, 2014) (citing to Fed.R.Civ.P. 55(b)(1), (2)).

         The court should consider the following factors in deciding whether to grant a motion for default judgment:

(1) the possibility of prejudice to the plaintiff;
(2) the merits of plaintiff's substantive claim;
(3) the sufficiency of the complaint;
(4) the sum of money at stake in the action;
(5) the possibility of a dispute concerning material facts;
(6) whether the default was due to excusable neglect; and
(7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.

Hawaii Glaziers, at *2 (citing to Eitel v. McCool, 782 F.2d 1470, 1470-72 (9th Cir. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.