Castaneda v. Maxim Healthcare Services, Inc.

District Court, W.D. Texas·Decided April 23, 2024·No. 5:23-cv-00807·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION

RUDY CASTANEDA,

Plaintiff,

v. Case No. SA-23-CV-00807-JKP

MAXIM HEALTHCARE SERVICES, INC.,

Defendant.

MEMORANDUM OPINION AND ORDER Before the Court is Plaintiff Rudy Castaneda’s Motion for Default Judgment and Defendant Maxim Healthcare Services, Inc.’s Motion to Dismiss. See ECF Nos. 17, 19. The parties have filed responsive briefings and the motions are ripe for ruling. See ECF Nos. 20, 21, 22, 24. After due consideration of the parties’ arguments and the applicable law, the Court DENIES Castaneda’s Motion for Default Judgment (ECF No. 17), GRANTS Maxim’s Motion to Dismiss (ECF No. 19), and DISMISSES this case pursuant to Rule 12(b)(6). Final judgment will be entered by separate order. BACKGROUND Castaneda, who appears pro se, brings this action against Maxim Healthcare Services, Inc., a healthcare staffing provider with offices across the country. Castaneda alleges that he was contacted by Defendant between 2018 and 2019 because Castaneda is bilingual and holds a master’s degree in counseling. Castaneda alleges he applied for a number of positions with Maxim, was never hired, and was a victim of discrimination on the basis of age and race. Castaneda further claims he attempted to inform Maxim of the discrimination, and Maxim did nothing in response. Castaneda also argues that following his report of the discrimination, he was not called back for an interview or hired for any other positions, suggesting this constitutes unlawful retaliation. In his Motion for Default Judgment, Castaneda seeks the Court’s entry of default

judgment because Maxim failed to timely appear in the case. Maxim avers, and the Court agrees, Maxim is not subject to default judgment because it was not properly served. Furthermore, Maxim has now appeared in the case and is not in default. In its Motion to Dismiss, Maxim argues the complaint should be dismissed under Rule 12(b)(6) because Castaneda’s claims are time-barred, Castaneda failed to exhaust administrative remedies, res judicata applies, and Castaneda failed to state a claim upon which relief can be granted. For the reasons discussed below, the Court agrees. The Court will first address Castaneda’s Motion for Default Judgment and will then turn its attention to Maxim’s Motion to Dismiss. I. Castaneda’s Motion for Default Judgment

Castaneda requests the Court enter default judgment pursuant to Rule 55(b)(2) based on his belief that Maxim failed to respond to the complaint in a timely manner. In federal court, a three-step process applies for a plaintiff to obtain a default judgment. Fed. R. Civ. P. 55; N.Y. Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996). As an initial matter, there must be an actual default, which “occurs when a defendant has failed to plead or otherwise respond to the complaint within the time required by the Federal Rules.” Fed. R. Civ. P. 55(a); N.Y. Life Ins. Co. v. Brown, 84 F.3d at 141. In general, a defendant must serve an answer or otherwise respond “within 21 days after being served with the summons or complaint.” Fed. R. Civ. P. 12(a)(1)(A)(i). However, courts may, with good cause, extend the time to respond. Fed. R. Civ. P. 6(b). Next, if the defendant is in default, the clerk must enter default under Rule 55(a), which occurs “when the default is established by affidavit or otherwise.” N.Y. Life Ins. Co. v. Brown, 84 F.3d at 141. And finally, once there is an entry of default, a “plaintiff may apply for a judgment based on such default.” Id. Parties are “not entitled to a default judgment as a matter of right, even where the

defendant is technically in default.” Lewis v. Lynn, 236 F.3d 766, 767 (5th Cir. 2001) (citation omitted). Whether a court enters default judgment is committed to its sound discretion. Id. Entry of a default judgment is “a drastic remedy, not favored by the Federal Rules and resorted to by the courts only in extreme situations.” Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989). A defendant does not become “susceptible to default” until the plaintiff effects service upon that defendant. Rogers v. Hartford Life & Acc. Ins. Co., 167 F.3d 933, 937 (5th Cir. 1999); Thompson v. Johnson, 348 F. App’x 919, 923 (5th Cir. 2009) (per curiam). Therefore, the first showing a plaintiff must make is he properly served the defendant with a summons and the complaint prior to moving for entry of default. See Williams v. Waste

Mgmt., Inc., No. 3:16-CV-2943-L-BN, 2017 WL 4570717, at *2 (N.D. Tex. Sept. 7, 2017) (recommendation of Mag. J.) accepted by 2017 WL 4548474 (N.D. Tex. Oct. 12, 2017). In this case, default judgment is not appropriate for two reasons. First, Maxim is not actually in default. Though Castaneda is correct that Maxim did not respond to the complaint within the 21-day timeframe set forth under Rule 12, United States Magistrate Judge Elizabeth S. Chestney, to whom this case was referred for pretrial matters, extended Maxim’s deadline with her text order of December 28, 2023. Under Rule 6(b)(1)(B), courts may, with good cause, extend the time to respond “on motion made after the time has expired if the party failed to act because of excusable neglect.” Fed. R. Civ. P. 6(b)(1)(B). Here, Maxim moved for an extension of time to respond because it was not properly served (ECF No. 13) and Judge Chestney granted the motion. Maxim’s Motion to Dismiss was therefore timely filed on the new deadline established by Judge Chestney’s order, January 22, 2024. See ECF No. 19. Furthermore, even if Judge Chestney had not extended the deadline, Castaneda would not be entitled to default judgment because he failed to properly serve Maxim. Maxim is not susceptible to default absent

a showing from Castaneda that he effected service on Maxim. See Rogers v. Hartford Life & Acc. Ins. Co., 167 F.3d at 937; Thompson v. Johnson, 348 F. App’x at 923. For these reasons, the Court denies Castaneda’s Motion for Default Judgment. II. Maxim’s Motion to Dismiss Maxim offers four reasons why Castaneda’s complaint should be dismissed under Rule 12(b)(6): (1) Castaneda’s retaliation claim is time-barred because he failed to timely file suit following the receipt of the EEOC’s Notice of Right to Sue; (2) Castaneda failed to exhaust his administrative remedies because he did not allege age and race discrimination in his Charge of Discrimination; (3) Castaneda’s discrimination claims are precluded by the doctrine of res

judicata because those claims were previously dismissed by this Court in a prior lawsuit; and (4) Castaneda failed to meet the pleading standard for his age discrimination, race discrimination, and retaliation claims. A finding that one of these reasons applies would be sufficient to dismiss Castaneda’s complaint. The Court finds all of them apply.

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