Barton v. Real Innovation Inc

District Court, W.D. Washington·Decided September 30, 2025·No. 3:24-cv-05194·Unknown

Opinion

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5 6 7 UNITED STATES DISTRICT COURT 8 WESTERN DISTRICT OF WASHINGTON AT TACOMA 9 10 NATHEN W. BARTON, CASE NO. 3:24-cv-05194-DGE 11 Plaintiff, ORDER GRANTING DEFAULT 12 v. JUDGMENT (DKT. NO. 77) 13 REAL INNOVATION INC. et al., 14 Defendant. 15

16 Before the Court is Defendants Real Innovation, Inc.’s (“RI”) and Peter Reierson’s 17 Motion for Default Judgment (Dkt. No. 77) against Defendant Richardson Marketing Group, 18 LLC (“RMG”). This motion arises on a somewhat unusual posture. Defendant Deryck D. 19 Richardson, who is appearing pro se, accepted service on behalf of RMG and attempted to file an 20 answer on behalf of RMG. (Dkt. No. 41.) This Court previously held that Richardson could not 21 answer for RMG and gave RMG a deadline to retain counsel and file an answer. (Dkt. No. 45.) 22 RMG did not do so. Accordingly, this Court having already given RMG ample opportunity to 23 24 1 defend itself, and RMG having chosen not to, the Court GRANTS Defendants’ motion for 2 default and enters judgment. 3 I BACKGROUND 4 Plaintiff initiated this action in Clark County Superior Court, and RI removed the action

5 to this Court. (See Dkt. No. 1.) Plaintiff brought suit against RI and its founder Reierson 6 (collectively referred to as “RI”), as well as RMG and its owner Richardson, alleging that 7 Defendants violated the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227, and its 8 implementing regulations. (Dkt. No. 1-1 at 6, 39.) RI responded to the lawsuit with an answer 9 and crossclaims against RMG. (Dkt. No. 12.) RI alleged that RMG was obligated to indemnify 10 RI for all damages arising from Plaintiff’s claims, and RMG breached its contract with RI by 11 failing to comply with the TCPA. (Id. at 37-40.) Richardson accepted service on behalf of 12 RMG. (See Dkt. No. 31.) Because RMG did not file an answer to the complaint, Plaintiff 13 moved to hold RMG in default. (Dkt. No. 34.) Richardson, appearing pro se, then filed an 14 answer purportedly on behalf of himself and RMG, denying the claims and crossclaims. (Dkt.

15 No. 41.) This Court (Bryan, J.) held that Richardson could not answer on behalf of RMG, 16 because Local Rule 83.2(b)(4) states that “[a] business entity, except a sole proprietorship, must 17 be represented by counsel.” (Dkt. No. 45 at 3.) The Court deferred ruling on Plaintiff’s motion 18 for default, affording RMG an opportunity to retain counsel and answer the complaint by 19 September 17, 2024. (Id. at 4.) That deadline came and went without any action by RMG. The 20 Court then granted Plaintiff’s motion and ordered the Clerk to enter default against RMG, and 21 the Clerk did so on September 19, 2024. (Dkt. Nos. 47, 48.) 22 Since that time, Plaintiff and RI have reached an agreement and entered a stipulated 23 dismissal of Plaintiff’s claims against RI. (Dkt. Nos. 62, 63.) The Court granted Plaintiff’s

24 1 motion for default judgment against RMG. (Dkt. No. 70.) RI moved for and was granted an 2 order of default against RMG. (Dkt. Nos. 67, 69.) RI has now moved for default judgment 3 against RMG. (Dkt. No. 77.) Although Richardson continues to receive notices in this case (see 4 Dkt. Nos. 37, 38) and is thus presumably aware of the motion for default judgment against his

5 LLC, there has been no movement by RMG to set aside these defaults or otherwise participate in 6 this litigation. 7 II JURISDICTION 8 Jurisdiction over a crossclaim requires an independent basis for subject matter 9 jurisdiction or it must fall under supplemental jurisdiction. 28 U.S.C. §§ 1331, 1332, 1367. 10 Where a federal court has original jurisdiction over a claim, the court may exercise supplemental 11 jurisdiction over “all other claims that are so related to claims in the action within such original 12 jurisdiction that they form part of the same case or controversy.” 28 U.S.C. § 1367(a). In 13 addition, “district courts may decline to exercise supplemental jurisdiction over a claim under 14 subsection (a) if [, among other things,] the claim substantially predominates over the claim or

15 claims over which the district court has original jurisdiction.” 28 U.S.C. § 1367(c). Federal 16 Rule of Civil Procedure 13(g) particularly permits a crossclaim “if the claim arises out of the 17 transaction or occurrence that is the subject matter of the original action [(i.e., there is 18 supplemental jurisdiction)] . . . or if the claim relates to any property that is the subject matter of 19 the original action.” 20 The action which forms the basis of this case is a request to find Defendants liable for 21 violations of the TCPA. (Dkt. No. 1-1.) In its crossclaim, RI specifically seeks a declaration that 22 RMG was required to indemnify them against Plaintiff’s claims and seeks to hold RMG liable 23 for breach of contract for not complying with the TCPA. (Dkt. No. 12 at 37-40.) The Court

24 1 finds that the crossclaims relate to the original complaint and arise out of the same transaction or 2 occurrence as the initial complaint. Therefore, the Court will exercise supplemental jurisdiction 3 over the crossclaims. 4 III DISCUSSION

5 In the Ninth Circuit, entry of default judgment is governed by Eitel v. McCool, 782 F.2d 6 1470 (9th Cir. 1986). Eitel requires the Court to consider the following factors: 7 (1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiff’s substantive claim, (3) the sufficiency of the complaint, (4) the sum of money at stake in the action; 8 (5) the possibility of a dispute concerning material facts; (6) whether the default was due to excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil 9 Procedure favoring decisions on the merits.

10 Id. at 1471–1472. The Court thus considers those factors: 11 Factor 1: Possibility of Prejudice to RI 12 RI will be prejudiced absent entry of default judgment. “On a motion for default 13 judgment, ‘prejudice’ exists where the [moving party] has no ‘recourse for recovery’ other than 14 default judgment.” Curtis v. Illumination Arts, Inc., 33 F. Supp. 3d 1200, 1211 (W.D. Wash. 15 2014) (quoting Philip Morris USA, Inc. v. Castworld Prods., Inc., 219 F.R.D. 494, 499 (C.D. 16 Cal. 2003)). Here, RI filed its crossclaim against RMG in May 2024, over a year ago (see Dkt. 17 No. 12), RMG was served in July 2024 (Dkt. No. 31), and still there has been no substantive 18 movement on RI’s crossclaim against RMG because of the latter’s failure to participate. Absent 19 default, RI will have no way to recover against RMG. 20 Factor 2 and 3: Merits of RI’s Claims and Sufficiency of Crossclaim 21 The second and third factors are frequently analyzed together. Curtis, 33 F. Supp. 3d at 22 1211. The Court will analyze RI’s claims to determine whether it has made out a prima facie 23 case for each. 24 1 1. Breach of Contract and Indemnity 2 “Generally, a plaintiff in a contract action must prove a valid contract between the 3 parties, breach, and resulting damage.” Lehrer v. State, Dep’t of Soc. & Health Servs., 5 P.3d 4 722, 727 (Wash. Ct. App. 2000).

5 RI entered into the record a copy of the Lead Provision Agreement executed between 6 RMG and RI’s chief marketing officer, Chuck Hoskovec. (Dkt. No.

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