Alejandro v. Property Care Solutions LLC

CourtDistrict Court, E.D. Texas
DecidedAugust 9, 2022
Docket4:22-cv-00029
StatusUnknown

This text of Alejandro v. Property Care Solutions LLC (Alejandro v. Property Care Solutions LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alejandro v. Property Care Solutions LLC, (E.D. Tex. 2022).

Opinion

United States District Court EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

MIGUEL DEL ANGEL IZQUIERDO § ALEJANDRO, § § Civil Action No. 4:22-cv-00029 Plaintiff, § Judge Mazzant § v. § § PROPERTY CARE SOLUTIONS LLC, § MARIA G ARANDA, and OSBELIA Y. § URIBE, § § Defendants. § §

MEMORANDUM OPINION AND ORDER

Pending before the Court is Plaintiff’s Motion for Default Judgment Pursuant to Federal Rule of Civil procedure 55 (Dkt. #10). Having considered the Motion, the Court finds it should be GRANTED. BACKGROUND

On January 13, 2022, Plaintiff Miguel Del Angel Izquierdo Alejandro filed suit against Defendants Property Care Solutions LLC (“PCS”), Maria G Aranda (“Aranda”), and Osbelia Y. Uribe (“Uribe”) for violation of the Fair Labor Standards Act, 29 U.S.C. § 201 (the “FLSA”) (Dkt. #1). PCS is a limited liability company providing general contractor services. Aranda and Uribe are managers and/or members of PCS. Plaintiff specifically alleges he provided worked for PCS as a laborer and carpenter from October 2021 to December 2021. According to Plaintiff, he worked, on average, seventy hours each week with a twenty-five-dollar hourly rate. By February 25, 2022, summons was returned executed on all Defendants (Dkts. #5–7). The Clerk of the Court entered default against Defendants on April 14, 2022 (Dkt. #9). On June 30, 2022, Plaintiff filed the present motion seeking an entry of default judgment (Dkt. #10). Defendants have not responded. LEGAL STANDARD

Rule 55 of the Federal Rules of Civil Procedure sets forth certain conditions under which default may be entered against a party, as well as the procedure to seek the entry of default judgment. FED. R. CIV. P. 55. Securing a default judgment involves a three-step procedure: (1) the defendant’s default; (2) the entry of default; and (3) the entry of default judgment. New York Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996). A “default” occurs when the defendant does not plead or otherwise respond to the complaint. Id. An “entry of default” is the notation the clerk makes after the default is established by affidavit. Id. Here, because Defendants have failed to properly answer or otherwise appear to defend against Plaintiff’s claims and Plaintiff has obtained an entry of default, the first two requisites for a default judgment have been met. Thus, the only remaining issue for determination is whether a default judgment is warranted.

Entry of default judgment is within the court’s discretion. Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998). “Default judgments are a drastic remedy, not favored by the Federal Rules and resorted to by courts only in extreme situations.” Lewis v. Lynn, 236 F.3d 766, 767 (5th Cir. 2001) (quoting Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989)). However, though entries of default judgment are generally disfavored in the law, entry of a default judgment is not an abuse of discretion when a defendant fails to answer a complaint. Lacy v. Sitel Corp., 227 F.3d 290, 292 (5th Cir. 2000); Bonanza Int’l, Inc. v. Corceller, 480 F.2d 613, 614 (5th Cir. 1973), cert. denied, 414 U.S. 1073 (1973). ANALYSIS

Courts in the Fifth Circuit utilize a three-part analysis to determine whether default judgment is appropriate: (1) whether the entry of default is procedurally warranted, (2) whether a sufficient basis in the pleadings based on the substantive merits for judgment exists, and (3) what form of relief, if any, a plaintiff should receive. Graham v. Coconut LLC, No. 4:16-CV-606, 2017 WL 2600318, at *1 (E.D. Tex. June 15, 2017) (citations omitted). The Court applies this framework and finds that default judgment is appropriate. I. Default Judgment is Procedurally Warranted

Prevailing law within the Fifth Circuit sets forth factors for courts to weigh when determining whether default judgment is procedurally warranted: (1) whether material issues of fact are at issue; (2) whether there has been substantial prejudice; (3) whether the grounds for default are clearly established; (4) whether the default was caused by a good faith mistake or excusable neglect; (5) the harshness of a default judgment; and (6) whether the court would think itself obliged to set aside the default on the defendant’s motion.

Lindsey, 161 F.3d at 893. Analysis of these factors establishes that default judgment is procedurally warranted. A. No Issues of Material Fact Are Present

Because Defendants failed to answer Plaintiff’s Complaint or otherwise appear, Defendants admit Plaintiff’s well-pleaded allegations of fact, except regarding damages. Nishimatsu Constr. Co., Ltd. v. Hous. Nat. Bank, 515 F.2d 1200, 1206 (5th Cir. 1975). Therefore, there are no issues of material fact. B. Default Judgment Would Not Be Harsh or Result in Substantial Prejudice

Defendants failed to respond to the claims asserted in this matter. Indeed, Defendants have not appeared, filed a pleading, or communicated with Plaintiff’s counsel, and there is no indication that Defendants intend to do so. Further, Defendants received ample notice of the suit, as the Complaint was filed on January 13, 2022 (Dkt. #1), and all summons were returned executed by February 25, 2022 (Dkts. #5–7). Taking the well-pleaded facts as true, Plaintiff has asserted valid causes of action. Plaintiff properly requested entry of judgment in his favor (Dkt. #9). Thus, a default judgment is not unusually harsh in this case as Defendants have had ample opportunity to

respond after receiving notice of this action. See Cunningham v. Crosby Billing Servs., Co., Civ. A. No. 4:18-cv-00043-ALM-CAN, 2018 WL 6424792, at *3 (E.D. Tex. Oct. 14, 2018). Moreover, because Defendants’ failure to file responsive pleadings “threatens to bring the adversary process to a halt,” Plaintiff has experienced prejudice “in pursuing its rights afforded by law.” Ins. Co. of the West v. H & G Contractors, Inc., No. C-10-390, 2011 WL 4738197, at *3 (S.D. Tex. Oct. 5, 2011); John Perez Graphics & Design, LLC v. Green Tree Inv. Grp., Inc., No. 3:12-cv-4194-M, 2013 WL 1828671, at *3 (N.D. Tex. May 1, 2013). Accordingly, the second factor supports a finding that default judgment is procedurally warranted. C. Grounds for Default Judgment Are Clearly Established

The record indicates that Plaintiff successfully perfected service of process on Defendants (Dkt. #1). Nevertheless, Defendants failed to respond to the Complaint, the Request for Entry of Default, and the present motion. When a defendant’s failure to respond is “plainly willful, as reflected by [a defendant’s] failure to respond either to the summons and complaint, the entry of default, or the motion for default,” then grounds for default are clearly established. See Graham, 2017 WL 2600318, at *2 (alteration original). Thus, the Court finds that the grounds for default against Defendants are clearly established. D. Default Is Not Due to Excusable Neglect or Good Faith Mistake

Again, Plaintiff properly served Defendants (Dkt. #1).

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Alejandro v. Property Care Solutions LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alejandro-v-property-care-solutions-llc-txed-2022.