Alberts, Trustee v. Healthcare Management Resources

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
GREATER SOUTHEAST COMMUNITY
HOSPITAL CORP. I, et al.,
Debtors.
____________________________
SAM J. ALBERTS, TRUSTEE FOR
THE DCHC LIQUIDATING TRUST,
Plaintiff,
v.
HEALTHCARE MANAGEMENT
RESOURCES,
Defendant.
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Case No. 02-02250
(Chapter 11)
(Jointly Administered)
Adversary Proceeding No.
05-10025
DECISION AND ORDER GRANTING MOTION
FOR ENTRY OF DEFAULT AND FOR DEFAULT JUDGMENT
The plaintiff has moved without opposition for entry of
default and a default judgment against the defendant. The
complaint in this proceeding requested pre-judgment interest.
Prejudgment interest is generally at the prime rate, not at the
rate specified by 28 U.S.C. § 1961. See Webster v. Harris Corp.
(In re NETtel Corp.), 327 B.R. 8 (Bankr. D.D.C. 2005).
The decision below is hereby signed. Dated: May 3,
2006.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
Case 05-10025 Doc 16 Filed 05/03/06 Entered 05/03/06 11:04:10 Desc Main
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1 The calculation of the amount owed is:
.0625 x $436,364.13 x 306/365 = $22,864.28 in interest from
July 1, 2005, to May 3, 2006.
2 Failure of the plaintiff to provide the court with a
calculation of prejudgment interest in other adversary
proceedings may result in the court's denying prejudgment
interest in the exercise of its discretion. The prime rates of
interest to be employed for the starting month and for each
succeeding anniversary are found on the Federal Reserve website
at www.federalreserve.gov/releases/h15/data.htm under the
category of “Bank prime loan” and the subcategory “monthly.”
2	O:\JUDGTEMP\Alberts vs Healthcare Decision re Prejudgment Interest.wpd
Prejudgment interest should be calculated from the date of
service of the complaint, July 1, 2005. Given the short-term
nature of the loans to which the prime rate applies and for
simplicity of calculation, it is appropriate to use the monthly
bank prime rate for July 2005 for the period of less than a year
that the proceeding has been pending (6.25%). The plaintiff
seeks a recovery of $436,364.13, plus prejudgment interest of
$22,864.28 as of May 3, 2006,1 plus costs, for a total judgment
amount of $459,228.41 plus costs.2 It is thus
ORDERED that the clerk shall enter a default as to the
defendant and enter the default judgment that follows.
[Signed and dated above.]
Copies to: Office of the United States Trustee; all counsel of
record; and:
John C. Wilson
Chief Financial Officer
Healthcare Management Resources
500 West Street
Hendersonville, TN 37075
Case 05-10025 Doc 16 Filed 05/03/06 Entered 05/03/06 11:04:10 Desc Main
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