Egypt Department of Defense v. Alboghdady

CourtDistrict Court, District of Columbia
DecidedAugust 24, 2021
DocketCivil Action No. 2021-1144
StatusPublished

This text of Egypt Department of Defense v. Alboghdady (Egypt Department of Defense v. Alboghdady) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Egypt Department of Defense v. Alboghdady, (D.D.C. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

EGYPT DEPARTMENT OF DEFENSE,

Plaintiff, Civil Action No. 21-1144 (BAH) v. Chief Judge Beryl A. Howell MAHMOUD ALBOGHDADY, et al.,

Defendants.

MEMORANDUM OPINION

In July 2014, plaintiff Egypt Department of Defense and defendant Mahmoud

Alboghdady entered into a commercial lease agreement for Alboghdady to operate a hotel on the

leased premises in Washington, D.C. Compl. ¶ 6, ECF No. 1. Alboghdady incorporated

defendant Joud LLC in the District of Columbia to operate the hotel. Id. ¶ 10. Since February

2020, Alboghdady has paid no rent and previously breached the lease by failing to pay timely

late fees associated with other payments. Id. ¶¶ 15, 26. In April 2021, plaintiff brought this

lawsuit seeking to eject defendants from the leased property and to recover unpaid rent, among

other relief, and defendants failed to timely answer, leading to the entry of default against them.

Plaintiff has now moved for entry of default judgment on the ejectment claim, Pl.’s Mot.

for Entry of Default Judgment Pursuant to Rule 55(b) on Pl.’s Ejectment Claim (“Pl.’s Mot.”),

ECF No. 10, and defendants belatedly appeared to move for vacatur of the Clerk’s entries of

default, Defs.’ Second Mot. to Vacate Entry of Default (“Defs.’ Mot.”), ECF No. 11. Plaintiff

has shown prejudice from defendants’ willful default, and defendants have presented no

meritorious defense to, nor even seriously contested, plaintiff’s civil ejectment claim under D.C.

1 Code § 16-1124. Accordingly, for the reasons set forth below, partial judgment is entered in

favor of plaintiff.

I. BACKGROUND

The relevant factual and procedural history of this matter are described below.

A. Factual Background

The core factual allegations in plaintiff’s complaint are not disputed, as defendants have

filed no answer or affidavit with their motion, nor contested in their motion plaintiff’s assertions

regarding their failure to pay rent.

In July 2014, plaintiff and Alboghdady entered into a seven-year contract to lease

plaintiff’s building at 2590 L Street, N.W., to defendant. 1 Compl. ¶¶ 6-7; id., Ex. 1, Lease

Agreement § 1, ECF No. 1-1. Under the lease, Alboghdady was required to pay increasing

monthly rent—from $45,000 in the first year, to $50,648 in the final year—due on the first day

of each month. Compl. ¶¶ 12–13 (citing Lease Agreement § 3.1(a), (c)). Alboghdady

incorporated defendant Joud LLC, id. ¶ 10, to operate a hotel on the premises, id. ¶¶ 9–10; see

also Lease Agreement § 3 (“Tenant shall use the Premises as hotel accommodations.”).

Alboghdady has not paid any rent for any month since February 2020, id. ¶ 15; Pl.’s

Mem. Supp. Mot. for Entry of Default Judgment Pursuant to Rule 55(b) (“Pl.’s Mem.”) at 2,

ECF No. 10-1, and is therefore in breach of the lease agreement. Alboghdady has also breached

the lease by failing to pay late fees for earlier months. Compl. ¶ 26; see also Lease Agreement

§ 3.8 (establishing a 10 percent late fee).

Plaintiff’s efforts in “good faith” to resolve this matter, recoup overdue rent, and

negotiate the return of the premises have been unsuccessful. Compl. ¶ 33. On March 30, 2021,

1 The District of Columbia later changed the address for the building to 1005 26th Street, N.W. Compl. ¶ 6.

2 plaintiff used Alboghdady’s $180,000 security deposit to offset his overdue March 2020 rent, as

well as some of his outstanding late fees, and provided notice to Alboghdady’s counsel. Id.

¶¶ 38–41. After this offset, the outstanding rent and late fees totaled $797,644.99. Id. ¶ 42. The

next day, plaintiff offered Alboghdady a payment plan on his back rent, id. ¶ 34; Pl.’s Mot., Ex.

1, Decl. of Haig V. Kalbian (“Kelbian Decl.”) ¶ 7, ECF No. 10-2, but received no response,

Compl. ¶ 35. The lease ends on August 31, 2021. Lease Agreement § 1.

B. Procedural Background

Over a year after Alboghdady stopped paying rent, plaintiff filed its Complaint on April

27, 2021, bringing eight claims. The first count, against both defendants, seeks to eject them

from the premises under D.C. Code § 16-1124 on the grounds that more than six months of rent

have not been paid. Compl ¶¶ 66–72. The remaining seven counts—two against both

defendants and five against only Alboghdady—seek damages, back rent, and disgorgement

under various provisions of the D.C. Code, see id. ¶¶ 73–94, as well as common law causes of

action, see id. ¶¶ 95–112.

Service was effected on Alboghdady on May 17, 2021, in his capacity as the registered

agent of Joud LLC, Return of Service Affidavit (Joud LLC), ECF No. 5, and on May 20, 2021,

in his individual capacity, Return of Service Affidavit (Alboghdady), ECF No. 4. On June 15,

2021, three days after Alboghdady’s answer was due, plaintiff filed a request for entry of default,

see Pl.’s Request for Entry of Default, ECF No. 6, and, on June 21, 2021, the Clerk of the Court

entered default against each of the defendants. Clerk’s Entry of Default as to Joud LLC, ECF

No. 7; Clerk’s Entry of Default as to Mahmoud Alboghdady, ECF No. 8.

Over two weeks later, on July 9, 2021, defendants moved to vacate the entries of default.

Defs.’ First Mot. to Vacate Entry of Default, ECF No. 9. This motion was stricken for failing to

comply with D.D.C. Local Civil Rule (7)(m) and paragraph 5(d) of the Court’s Standing Order, 3 both of which require counsel to consult with the opposing party before the filing of any non-

dispositive motion, and to state in the motion whether the motion is opposed. Min. Order (July

9, 2021) (citing D.D.C. LCvR 7(m)); Standing Order ¶ 5(d), ECF No. 3). Defendants did not

promptly cure the defect by re-filing their motion after conferring with plaintiff.

Then, on July 19, 2021, plaintiff moved for default judgment on the civil ejectment count

of the complaint, seeking an order requiring defendants to vacate the premises. Pl.’s Mot. The

following day, defendants re-filed a slightly modified version of their original motion to vacate

the entry of default. Defs.’ Mot. This barebones, conclusory, three-page motion was also filed

in slightly modified form as a memorandum in opposition to plaintiff’s motion for default

judgment, Defs.’ Opp’n to Pl.’s Mot. Default Judgment, ECF No. 12, but both only briefly

acknowledge, and do not confront the substance of, plaintiff’s motion. On July 23, 2021,

plaintiff filed a combined reply in support of its motion for default judgment and opposition to

defendants’ motion to vacate default, Pl.’s Reply Supp. Mot. for Entry of Default Judgment and

Opp’n to Defs.’ Mot. to Vacate Default, ECF No. 13, and defendants have filed no reply of their

own in support of their motion to vacate entry of default, see D.D.C. LCvR 7(d) (“Within seven

days after service of the memorandum in opposition the moving party may serve and file a reply

memorandum.”). Accordingly, the parties’ motions are ripe for resolution.

II. LEGAL STANDARD

The relevant legal standards are described below.

A. Entry of Default and Default Judgment

“[T]he Federal Rules of Civil Procedure provide for default judgments . . . [to] safeguard

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Egypt Department of Defense v. Alboghdady, Counsel Stack Legal Research, https://law.counselstack.com/opinion/egypt-department-of-defense-v-alboghdady-dcd-2021.