Blake Lynch v. Joseph Shrem, et al.

CourtDistrict Court, D. Arizona
DecidedMay 26, 2026
Docket2:25-cv-04481
StatusUnknown

This text of Blake Lynch v. Joseph Shrem, et al. (Blake Lynch v. Joseph Shrem, et al.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blake Lynch v. Joseph Shrem, et al., (D. Ariz. 2026).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Blake Lynch, No. CV-25-04481-PHX-DJH

10 Plaintiff, ORDER

11 v.

12 Joseph Shrem, et al.,

13 Defendants. 14 15 On January 8, 2026, pro se Plaintiff Blake Lynch (“Plaintiff”) filed a Motion for 16 Default Judgment (Doc. 11) against Defendants Select Home Warranty LLC (“Select 17 Home”), Joseph Shrem (“Shrem”), and David Moradi (“Moradi”) (collectively, 18 “Defendants”). United States Magistrate Judge Camille D. Bibles (the “MJ”) issued a 19 Report and Recommendation (“R&R”) (Doc. 17) on Plaintiff’s Motion, recommending its 20 denial. Plaintiff filed an Objection (Doc. 18) to the R&R. However, before any action 21 could be taken on either the Objection or the R&R, Plaintiff filed affidavits of service on 22 all three Defendants (Docs. 19–23). After applying and obtaining entry of default against 23 Defendants on February 24, 2026, Plaintiff then filed two Motions for Default Judgment 24 against Defendants, one on March 4, 2026 (Doc. 26), and another on March 5, 2026 (Doc. 25 27). 26 Defendants Moradi and Select Home have since appeared and moved to vacate the 27 Clerk’s Entries of Default against them and to dismiss this matter for lack of subject matter 28 jurisdiction and for insufficient service of process (Doc. 29). Plaintiff filed a Response in 1 Opposition (Doc. 30), and Moradi and Select Home thereafter filed a Reply (Doc. 31). 2 I. Background 3 The factual allegations underpinning Plaintiff’s Complaint are rather succinct. In 4 June of 2024, Plaintiff purchased a home warranty policy from Select Home. (Doc. 1 at 5 4). After the policy went into effect in July 2024, Plaintiff alleges that he filed a claim with 6 Select Home regarding his air conditioning issues. (Id.) However, he claims that Select 7 Home “refused to send a technician to diagnose and resolve” the issues. (Id.) Therefore, 8 Plaintiff had to pay $7,820.00 “out-of-pocket for a brand-new air conditioner” to “third- 9 party air conditioner technicians.” (Id. at 4, 14). 10 Plaintiff asserts that his attempts to conduct arbitration on the matter were 11 unsuccessful and that “Defendants Joseph Sherm and David Moradi have completely 12 ignored Plaintiff’s multiple requests to settle.” (Id. at 4). Plaintiff “assume[s] Defendants 13 Joseph Shrem and David Moradi are using Defendant Select Home Warranty LLC for the 14 purpose of fraud against consumers.” (Id.) Although not specifically alleged in the 15 Complaint, the attachments identify Defendant Moradi as the Chief Operations Officer of 16 Select Home. (See id. at 50, 59). Defendant Sherm’s role in this matter is not specified, 17 but it can be presumed that he was somehow employed by Select Homes. The Complaint 18 indicates that it is bringing claims for “[Defendants’] acts of Contractual Fraud, Fraudulent 19 Inducement to Contract, Neglect, their Violations of the Magnus-Moss Warranty Act, their 20 violations of the terms and conditions under Contract and for further damages deemed 21 necessary by the Court.” (Id. at 14). Plaintiff now seeks “compensatory and punitive 22 damages” against Defendants in the amount of $300,000.00. (Id. at 4). 23 II. Procedural History 24 Plaintiff’s Complaint was filed on December 4, 2025. On December 8, 2025, 25 Plaintiff filed a “Certificate of Service” (Doc. 6) stating that Plaintiff mailed copies of the 26 Summons and Complaint to Defendants on December 4, 2025. (See id.). Defendants did 27 not appear, and Plaintiff filed his initial Motion for Default Judgment (Doc. 11) on January 28 8, 2026. The Court referred the Motion to the MJ for a report in recommendation. 1 On January 26, 2026, the MJ recommended denying the Motion, reasoning, in large 2 part that: 3 Plaintiff failed to serve the Defendants in a manner consistent with Rule 4 of the Federal Rules of Civil Procedure. Rule 4(b)(c)(2) provides that service 4 on an individual or corporate defendant must be effected by someone other 5 than a party to the action, and pursuant to Rule 4(h) service on a corporation may not be made by mail. In the absence of proper service of process, the 6 Court has no power to render any judgment against the Defendants. See 7 Ross, 504 F.3d at 1138-39.

8 Moreover, on January 8, 2026, at the time that he moved for judgment by 9 default in this matter, Plaintiff was aware that service by mail was not valid and that any entry of default against a defendant served by Plaintiff by mail 10 could be vacated for want of proper service. See Lynch v. American Express, 11 2:25-cv-04671, at ECF No. 7 (D. Ariz. Jan. 6, 2026); Lynch v. Navy Fed. Credit Union, 2:25-cv-4883, at ECF No. 10 (D. Ariz. Jan. 5, 2026). 12 (Doc. 17 at 4). 13 Plaintiff filed an Objection to the R&R on February 4, 2026, noting therein that 14 “Plaintiff admits his error in seeking a Default Judgment in this case for his failure to have 15 Defendants properly served pursuant to Rule 4 of the Federal Rules of Civil Procedure. . . 16 For this error alone, Plaintiff understands this Court’s reasoning as to denying Plaintiff’s 17 Motion for Default Judgment and going so far as to vacate the Clerk’s entry of default 18 against Defendants. Plaintiff has properly served Defendants pursuant to Rule 4 of the 19 FRCP on January 29, 2026 and is prepared to proceed forthwith.” (Doc. 18 at 2). Rather 20 than wait for resolution of his Objection, Plaintiff filed five subsequent Affidavits of 21 Service. (See Docs. 19–23). Each of these Affidavits indicate that a process server mailed 22 documents, including the Complaint and Summons, to Defendants. (See id.). After 23 Defendants did not appear, Plaintiff filed a Motion for Default Judgment on March 4, 2026, 24 then inexplicably filed another Motion for Default Judgment on March 5, 2026. (Docs. 25 26–27). Defendants Select Home and Moradi appeared on March 30, 2026 and now move 26 to vacate the defaults and dismiss this case. 27 III. Plaintiffs’ Motions for Default Judgment 28 At the outset, the Court finds that, by filing successive motions requesting the same 1 relief, Plaintiff has mooted his January 8 and March 4 Motions for Default Judgment 2 (Docs. 11, 26) and therefore these Motions are denied. Although the MJ expended its 3 judicial resources on the R&R, and the Court agrees with her conclusions, Plaintiff’s 4 repetitive Motions have likewise mooted the R&R and Plaintiff’s Objection to it. (Docs. 5 17–18). 6 To determine the viability of Plaintiff’s final Motion for Default Judgment 7 (Doc. 27), the Court will now turn to Defendants’ Motion to Vacate. 8 IV. Defendants’ Motion to Vacate Entries of Default 9 Federal Rule of Civil Procedure 55(c) gives a district court the discretion to set aside 10 entry of default upon a showing of good cause. Fed. R. Civ. P. 55(c). The “good cause” 11 analysis considers three factors: “(1) whether [defendant] engaged in culpable conduct that 12 led to the default; (2) whether [defendant] had a meritorious defense; or (3) whether 13 reopening the [action] would prejudice [plaintiff].” Fran. Holding II, LLC. v. Huntington 14 Restaurants Group, Inc., 375 F.3d 922, 925–26 (9th Cir. 2004). 15 Defendants first argue that they did not engage in any culpable conduct leading to 16 the default as they were not properly served. (Doc. 29 at 4–5).

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Bluebook (online)
Blake Lynch v. Joseph Shrem, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/blake-lynch-v-joseph-shrem-et-al-azd-2026.