The opinion of the court was delivered by: Hayes, Judge
The matter before the Court is Plaintiff's Amended Motion for Default Judgment. (Doc. # 11).
On April 24, 2009, Plaintiff initiated this action by filing the complaint. (Doc. # 1). On May 26, 2009, Plaintiff filed an executed summons. (Doc. # 4). The Declaration of the Process Server indicates Defendant's registered agent was served at 2374 E. Camelback Rd. in Pheonix, AZ, 85016. Id. On July 23, 2009, at the request of Plaintiff, the Clerk of the Court entered a default. (Doc. # 7). On August 12, 2009 Plaintiff filed a Motion for Default Judgment seeking $3,364,357.78 in damages. (Doc. # 9). On December 17, 2009, the Court denied the Motion for Default Judgment because Plaintiff failed to establish the amount of damages owed. (Doc. # 10).
Plaintiff submitted a spreadsheet which was "based on business records used during the ordinary course of business which are also attached to the motion," but the spreadsheet contained errors and the data in the spreadsheet did not match the allegations of the complaint.
Id. Four mortgages which were not listed in the complaint were included in the damages calculation. Id. The Court held that "[i]n addition to the discrepancies between the mortgages listed in the complaint and on the spreadsheet, Plaintiff has also failed to fully explain the calculations used to arrive at an amount of damages for each mortgage." Id. at 3-4
The order further stated "[i]n order to establish its damages, Plaintiff must submit a clear statement of the damages that resulted from each loan in Exhibit A of the complaint with evidence to support the damages claimed." Id. at 4. Plaintiff was given thirty days to file an amended motion for default judgment. Id.
On January 19, 2009, Plaintiff filed its Amended Motion for Default Judgment. (Doc. # 11).Plaintiff now seeks $2,655,075.89 in damages on ten of the eleven loans listed in the complaint. (Doc. # 11-1 at 4).
ALLEGATIONS OF THE COMPLAINT
Plaintiff purchased eleven mortgage loans from Defendant. (Compl. ¶ 1). Defendant made several misrepresentations about some of the loans, the properties, and the borrowers. Id. at ¶¶ 12-15. These misrepresentations constitute a breach of the purchase contract which entitles Plaintiff to require Defendant to repurchase the mortgages. Id. at ¶ 18. Some of the loans that Plaintiff purchased immediately went into default. Id. at ¶¶ 20-23. Such "Early Payment Defaults" by the borrowers entitles Plaintiff to require Defendant to repurchase these mortgages. Id. Plaintiff demanded that Defendant comply with its contractual obligation to repurchase these eleven mortgages, but Defendant refused to do so. Id. at ¶ 26. Exhibit A, attached to the complaint, identifies the eleven complaints by their loan numbers. Defendant failed to repurchase loans 1-5, with loan numbers ending in 7323, 8280, 9100, 1196, and 1311, after Plaintiff demanded repurchase due to Defendants misrepresentations. (Doc. # 1, Ex. A). Defendants failed to repurchase loans 6-11, with loan numbers ending in 6454, 3075, 3628, 4979, 0157, and 8822, after Plaintiff demanded repurchase due to the borrowers' Early Payment Default. Id. The complaint states a breach of contract claim and a breach of express warranty claim. Id. at ¶¶ 27-47.
Rule 55(a) of the Federal Rules of Civil Procedure requires that the Clerk of the Court enter default "when a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise." Fed. R. Civ. P. 55(a). Rule 55(b)(2) of the Federal Rules of Civil Procedure provides that the court may grant a default judgment after default has been entered by the Clerk of the Court. Fed. R. Civ. P. 55(b)(2). "The general rule of law is that upon default the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true." TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987) (quotation omitted).
"Plaintiff is required to prove all damages sought in the complaint. In addition, '[a] judgment by default shall not be different in kind [or] exceed in amount that prayed for in the [complaint].' In determining damages, a court can rely on the declarations submitted by the plaintiff or order a full evidentiary hearing.... If proximate cause is properly alleged in the complaint, it is admitted upon default. Injury is established and plaintiff need prove only that the compensation sought relates to the damages that naturally flow from the injuries pled." Phillip Morris USA, Inc. v. Castworld Prods., 219 F.R.D. 494, 498 (C.D. Cal. 2003) (citations omitted).
Plaintiff has demonstrated that Defendants have been duly served and have not filed a responsive pleading. The Clerk of the Court has entered Defendants' default. (Doc. # 7). The Complaint's factual allegations are sufficient to sustain the causes of action alleged in the Complaint. However, Plaintiff has ...