Acosta v. Parra Perez

District Court, E.D. California·Decided September 1, 2021·No. 1:19-cv-01224·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 JOSE ACOSTA, Case No. 1:19-cv-01224-AWI-EPG 12 Plaintiff, FINDINGS AND RECOMMENDATIONS RECOMMENDING THAT PLAINTIFF’S 13 v. MOTION FOR DEFAULT JUDGMENT BE GRANTED IN PART 14 MARIA DEL CARMEN PARRA PEREZ, et al., (ECF No. 58) 15 Defendants. FOURTEEN (14) DAY DEADLINE 16

17 Currently before the Court is Plaintiff Jose Acosta’s (“Plaintiff”) motion for default 18 judgment against Defendants Thu Huynh, Ngoc Tran, and THNBT LLC (“Defendants”). The 19 matter was referred to the undersigned pursuant to 28 U.S.C. § 636(b)(1)(B) and Local Rule 20 302(c)(19). For the following reasons, the Court recommends granting the motion in part, with a 21 reduction in the amount of attorneys’ fees awarded. 22 I. BACKGROUND 23 a. Procedural History 24 Plaintiff filed this action on September 5, 2019, alleging violations of the Americans with 25 Disabilities Act (the “ADA”), 42 U.S.C. §§ 12101 et seq. and related California law, against 26 Defendants Maria Del Carmen Parra Perez, doing business as Lesly’s Gifts and More, Thu 27 Huynh, and Ngoc Tran. (ECF. No. 1) Plaintiff filed a First Amended Complaint as a matter of 28 1 course pursuant to Federal Rule of Civil Procedure 15(a)(1) on October 16, 2019. (ECF No. 6.) 2 On November 6, 2019, Defendant Perez filed a motion to dismiss the First Amended Complaint 3 for lack of subject matter jurisdiction. (ECF No. 10.) 4 On November 18, 2019, Plaintiff filed proofs of service stating that Defendants Huynh 5 and Tran were served by substituted service on “Ann Nguyen, Co-Occupant” and copies of the 6 summons and complaint were mailed to them at 2586 Greenrock Road, Milpitas, CA 95035. 7 (ECF Nos. 14, 15.) On December 23, 2019, Defendants Huynh and Tran, appearing through 8 counsel, filed a notice of joinder in Defendant Perez’s motion to dismiss. (ECF No. 22.) On May 9 6, 2020, District Judge Anthony W. Ishii entered an order denying the motion to dismiss. (ECF 10 No. 28.) 11 On June 16, 2020, after Defendants Huynh and Tran did not file a response to the First 12 Amended Complaint, Plaintiff requested entry of default against them. (ECF No. 32.) On June 22, 13 2020, the Clerk of Court entered default against Defendants Huynh and Tran. (ECF No. 33.) 14 On July 16, 2020, Plaintiff and Defendant Perez filed a stipulated request to allow 15 Plaintiff leave to file a Second Amended Complaint, which the Court approved by order entered 16 on July 17, 2020. (ECF Nos. 36, 37.) The Clerk of Court again entered default against Defendants 17 Huynh and Tran on June 22, 2020, pursuant to Plaintiff’s request. (ECF Nos. 39, 40.) Plaintiff 18 and Defendant Perez filed a stipulation of dismissal as to Defendant Perez only on August 20, 19 2020. (ECF Nos. 41, 42.) 20 On October 20, 2020, Plaintiff filed a motion seeking leave to file a Third Amended 21 Complaint (“TAC”) in order to name THNBT LLC (“THNBT”) as a defendant. (ECF No. 45.) 22 According to the motion, THNBT is an alter ego of Defendants Huynh and Tran and was created 23 during the pendency of this litigation in an attempt to evade collection on a default judgment by 24 transferring ownership of the property at issue from Defendants Huynh and Tran to THNBT. (Id.; 25 see also ECF Nos. 45-2, 45-4.) On February 2, 2021, the Court entered an order granting 26 Plaintiff’s motion. (ECF No. 49.) 27 Plaintiff filed the TAC on February 9, 2021. (ECF No. 50.) On February 18, 2021, 28 Plaintiff filed a proof of service indicating that Defendant THNBT was served through its 1 registered agent, Defendant Huynh. (ECF No. 52.) On March 26, 2021, at Plaintiff’s request, the 2 Clerk of Court entered default against Defendant THNBT. (ECF No. 53, 54.) 3 Plaintiff filed the instant motion for default judgment on April 30, 2021. (ECF No. 58.) 4 Plaintiff argues that he is entitled to default judgment against Defendants because the complaint 5 adequately alleges that he is entitled to relief under the ADA. (ECF No. 58-1 at 8-10.) 6 Additionally, Defendants are jointly and severally liable for the ADA violations. (Id. at 10.) 7 Plaintiff is entitled to an injunction requiring Defendants to remove all architectural barriers, 8 $4,000.00 in statutory damages, and attorneys’ fees and costs in the amount of $25,114.06. (Id. at 9 12-20.) Plaintiff argues that this amount should be offset by $4,000.00 to reflect Plaintiff’s 10 settlement with Defendant Perez. (Id. at 10-12.) 11 Defendants were served with the motion for default judgment but did not file an 12 opposition or otherwise respond to the motion. (See ECF No. 58-7.) 13 The Court held a hearing on the motion on June 11, 2021. (ECF Nos. 61, 62.) Counsel 14 Tanya Moore appeared at the hearing on behalf of Plaintiff. (ECF No. 61.) Defendants did not 15 appear at the hearing. (Id.) At the hearing, Plaintiff was granted leave to file a supplemental brief 16 addressing issues regarding service of the operative complaint on Defendants Huynh and Tran. 17 (ECF No. 62.) 18 On June 11, 2021, Plaintiff filed a request for entry of default as to Defendants Huynh and 19 Tran due to their failure to respond to the TAC. (ECF No. 60.) On June 15, 2021, pursuant to 20 Plaintiff’s request, the Clerk of Court again entered default against Defendants Huynh and Tran. 21 (ECF Nos. 60, 63.) 22 On June 16, 2021, Plaintiff filed supplemental briefing in support of the motion. (ECF No. 23 64.) In his supplemental briefing, Plaintiff argued that Defendants Huynh and Tran were not 24 required to be served with the TAC but were electronically served through their counsel of 25 record. (Id. at 1-3.) Defendants Huynh and Tran were also served with the motion for default 26 judgment. (Id.) Plaintiff requests an additional $465.50 in attorneys’ fees incurred in attending the 27 hearing on the motion and preparing the supplemental briefing. (Id.) 28 On July 28, 2021, the Court entered an order permitting Plaintiff to file further 1 supplemental briefing in support of the motion. (ECF No. 65.) Specifically, the Court allowed 2 Plaintiff to file supplemental briefing addressing the factors under Eitel v. McCool, 782 F.2d 3 1470, 1471-72 as well as the adequacy of service and the Court’s jurisdiction over the subject 4 matter and the parties. (Id.) Plaintiff filed further supplemental briefing on August 11, 2021. (ECF 5 No. 66.) Plaintiff requested an additional $909.50 in attorneys’ fees incurred in preparing the 6 second supplemental brief, bringing the total amount of attorneys’ fees and costs sought to 7 $26,489.06, less an offset of $4,000.00 paid by Defendant Perez. (Id.) 8 II. LEGAL STANDARDS 9 Federal Rule of Civil Procedure 55 permits the Court to enter default judgment following 10 a defendant’s default. See Fed. R. Civ. P. 55(b). Rule 55 specifically provides that:

11 (b) Entering a Default Judgment (1) By the Clerk. If the plaintiff’s claim is for a sum certain or a sum that can 12 be made certain by computation, the clerk—on the plaintiff’s request, with an 13 affidavit showing the amount due—must enter judgment for that amount and costs against a defendant who has been defaulted for not appearing and who is 14 neither a minor nor an incompetent person. (2) By the Court. In all other cases, the party must apply to the court for a 15 default judgement.

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