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United States v. Parente

United States District Court, M.D. Pennsylvania

October 8, 2019

UNITED STATES, Plaintiff
v.
ANGELO PARENTE, PARENTE'S RIVERVIEW PIZZERIA, Defendants

          MEMORANDUM

          Malachy E. Mannion, United States District Judge

         Pending before the court is the motion for default judgment, (Doc. 6), filed by plaintiff the United States, on behalf of its agency, the Department of Treasury, against defendants Angelo Parente and Parente's Riverview Pizzeria, pursuant to Fed.R.Civ.P. 55(b)(2). Defendants have not appear or defended in this action seeking to recover an outstanding business disaster loan debt, and they did not file an opposition brief to the government's motion. For the reasons that follow, the court will GRANT the government's motion and, enter default judgment in its favor and against Defendants.

         I. BACKGROUND

         On June 25, 2019, the government filed its complaint with an attached exhibit, namely, Certificate of Indebtedness, indicating that defendant Angelo Parente, d/b/a Parente's Riverview Pizzeria of Hughestown, Pennsylvania, executed a promissory note and unconditional guarantee loan agreement on February 2, 2012 with the U.S. Small Business Administration (“SBA”) Disaster Assistance Processing and Disbursement Center for $29, 900, with interest accruing at a rate of 4.00%. (Doc. 1-2).

         The Certificate of Indebtedness then indicates that on February 21, 2012, the SBA gave defendants a total of $14, 800, and defendants subsequenlty made payments on the loan totaling $3, 742. The SBA applied that defendants' payments as follows, $2, 869 to the principal and $872.82 to the interest.

         On Janaury 8, 2014, defendants became delinquent on their loan obligation and owed a balance of $11, 930.82.

         On March 18, 2014, the SBA referred defendants' outstanding debt for collection purposes to the Treasury Department's Bureau of the Fiscal Service, Debt Management Services (“DMS”). However, DMS was not able to collect the delinquent debt from defendants.

         Thus, on April 26, 2019, DMS referred the debt to the Department of Justice for litigation and collection of the delinquent amount due of $11, 930.82, plus daily interest accruing at $1.31. As of April 26, 2019, defendants are indebted to the United States in the following amounts: Principal $11, 930.82; Interest (@4.00%) $147.75; and Administrative fees $4, 358.25. Thus, the total amount defendants owed the governement as of April 26, 2019 was $16, 436.82. (Doc. 1-2).

         In its complaint, the government avers that demand was made upon defendants for the stated total amount due but this amount was not paid.

         As relief, the government seeks the amount of $16, 436.82, the allowed filing fee of $150, interest from the date of judgment at the legal rate of interest in effect on the date of judgment until paid in full, and costs.

         After the defendants were served with the summons and complaint, (Doc. 4), they failed to answer or defend in a timely manner. Nor did either defendant enter an appearance in this case.

         On August 29, 2019, the government filed a request for entry of default against defendants with an Affidavit in support from government's counsel attached as well as proof that defendants' were served with the summons and complaint. (Docs. 5, 5-1 & 5-2).

         Since defendants failed to timely answer or otherwise plead with respect to the government's complaint, the clerk of court entered default against defendants on August 30, 2019, pursuant to Fed.R.Civ.P. 55(a). (Doc. 8).

         Also, on August 29, 2019, the government filed a motion for default judgment, with attached Affidavits of Service, pursuant to Fed.R.Civ.P. 55(b)(2), seeking the sum certain of $16, 597.95. (Doc. 6; Doc. 1-2). The government also filed a Verification with an attached Defense Military Authorization Verification indicating that defendants are not presently in the military. (Doc. 7). The ...


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