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DEFAULT, DEFAULT JUDGEMENT

Rule No: 
7055-1
Effective Date: 
12/01/2023

(a)   Entry of Default. Upon motion by a party and supported by affidavit or otherwise, the court shall enter the default of any party against whom a judgment for affirmative relief is sought in an Adversary Proceeding but who has failed to plead or otherwise defend. The affidavit shall specifically show that the defaulting party was served in a manner authorized by Fed. R. Bankr. P. 7004. A motion for entry of default need not be served on the defaulting party. However, in the case of a defaulting party who has entered an appearance, the moving party must note the motion for an order of default in compliance with Local Bankruptcy Rule 9013-1.

(b)   Judgment on Default.

        (1)   No Default Judgment Absent a Default. No motion for judgment by default should be filed against any party unless the court has previously granted a motion for default against that party pursuant to subsection (a). A party may seek the entry of both an order of default and default judgment in the same motion, provided that the order of default and the default judgment are submitted as separate documents for entry.

        (2)   Supporting Evidence Required. The party seeking a default judgment must support a motion for default judgment with a declaration and other evidence establishing that party’s entitlement to a sum certain and/or to any nonmonetary relief sought.

               (A) The party shall provide a concise explanation of how all amounts were calculated and shall support this explanation with evidence establishing the entitlement to and amount of the principal claim, and, if applicable, any liquidated damages, interest, attorney’s fees, or other amounts sought. If the claim is based on a contract, plaintiff shall provide the court with a copy of the contract and cite the relevant provisions.

               (B) If the party is seeking interest and claims that an interest rate other than that provided by 28 U.S.C. § 1961 applies, plaintiff shall state the rate and the reasons for applying it. For prejudgment interest, the party shall state the date on which prejudgment interest began to accrue and the basis for selecting that date.

               (C) If the party seeks attorney’s fees, the party must state the basis for an award of fees and include a declaration from the party’s counsel establishing the reasonable amount of fees to be awarded, including, if applicable, counsel’s hourly rate, the number of hours worked, and the tasks performed.

        (3)   When Appearance Has Been Received. Where a defaulting party has entered an appearance, is an infant or incompetent, or is or may be in the military service, a motion for entry of a judgment by default shall be noted in accordance with Local Bankruptcy Rule 9013-1.

        (4)   When Appearance Has Not Been Received. Where a defaulting party has not made an appearance, is not an infant or an incompetent, and is not in military service, a motion for the entry of an order of default and for the entry of judgment by default may be made pursuant to Local Bankruptcy Rule 9013-1(g). The court may conduct such hearing or inquiry upon a motion for entry of judgment by default as it deems necessary under the circumstances of the particular case.