United States District Court, E.D. Virginia, Alexandria Division
REPORT & RECOMMENDATION
Michael S. Nachmanoff United States Magistrate Judge
matter is before the Court on Plaintiff's Motion for
Default Judgment (Dkt. No. 8). Having reviewed the record,
the undersigned Magistrate Judge recommends that the Court
enter default judgment against Defendant in the total amount
of $189, 937.77, plus statutory additions to tax that will
continue to accrue until full payment is made.
14, 2016, Plaintiff United States of America filed this
action to collect federal taxes from Defendant Darius Bly and
Darius Bly d/b/a Settles Turf Farm. See Compl. (Dkt.
No. 1). Defendant was served on July 25, 2016 by a special
process server. See Summons Returned Executed 2
(Dkt. No. 5). Defendant did not enter an appearance or
otherwise respond to the Complaint and, on August 24, 2016,
the Clerk entered default against Defendant. See
Entry of Default (Dkt. No. 7). On October 5, 2016, Plaintiff
filed the instant Motion for Default Judgment (Dkt. No. 8).
Defendant failed to appear at the hearing on this Motion on
November 4, 2016, and the undersigned Magistrate Judge took
the matter under advisement. See Dkt. No. 11.
following facts are established by the Complaint and by the
memorandum, declaration, and exhibits submitted in support of
Plaintiff's Motion for Default Judgment.
filed Employer's Annual Federal Tax Return for
Agricultural Employees (“Form 943”), establishing
the amount of federal income and Federal Insurance
Contribution Act taxes for tax periods ending in 2003 to 2011
and 2013 to 2015. Compl. ¶ 5 (Dkt. No. 1). Despite
notice and demand for payment, as of June 27, 2016, Defendant
owes Plaintiff $143, 926.05, plus statutory additions to tax
that will continue to accrue according to law until full
payment is made. Id. ¶ 6A.
also filed income tax returns (“Form 1040”) for
the years 2010 through 2014. Compl. ¶ 7 (Dkt. No. 1).
Despite notice and demand for payment, as of June 27, 2016,
Defendant owes Plaintiff $47, 116.91, plus statutory
additions to tax that will continue to accrue according to
law until full payment is made. Id. ¶ 8A.
Plaintiff is owed $191, 042.96 in unpaid taxes. Plaintiff
also seeks an award of costs of prosecuting this action.
Compl. ¶¶ 6B, 8B (Dkt. No. 1).
Service of Process, Jurisdiction, and Venue
docket reflects that Defendant was properly served via a
special process server. See Summons Returned
Executed 2 (Dkt. No. 5). The Court has subject matter
jurisdiction pursuant to 28 U.S.C. §§ 1331 and
1340, respectively, as Plaintiff's claims arise under
federal law and from an Act of Congress providing for
internal revenue. Compl. ¶ 1. In addition, the Court has
subject matter jurisdiction pursuant to 26 U.S.C. §
7402(a), as the United States moves for default judgment for
the enforcement of the internal revenue laws. Id.
The Court has personal jurisdiction over Defendant, who
resides within the Eastern District of Virginia. Id.
¶ 4. Venue is proper under 28 U.S.C. §§ 1391
and 1396 because the Defendant's residence and tax
liability, as well as a substantial part of the events or
omissions giving rise to the claims against Defendant,
occurred within the Eastern District of Virginia.
Id. ¶ 2.
judgment is appropriate if the well-pled allegations of the
complaint establish a plaintiff's entitlement to relief
and the defendant has failed to plead or defend within the
time frame contained in the rules. Fed.R.Civ.P. 55; Music
City Music v. Alfa Foods, Ltd., 616 F.Supp. 1001, 1002
(E.D. Va. 1985). By defaulting, a defendant admits the
plaintiff's well-pled allegations of fact, which then
provide the basis for judgment. Ryan v. Homecomings Fin.
Network, 253 F.3d 778, 780 (4th Cir. 2001) (citing
Nishimatsu Constr. Co. v. Houston Nat'l Bank,
515 F.2d 1200, 1206 (5th Cir. 1975)); Partington v. Am.
Int'l Specialty Lines Ins. Co., 443 F.3d 334, 341
(4th Cir. 2006) (default has the effect of admitting the
factual allegations in the complaint). Here, as Defendant has
not answered or otherwise timely responded, it has admitted
the well-pled allegations of fact contained in the Complaint.