Equal Employment Opportunity Commission v. Limenos Corporation

CourtDistrict Court, D. Puerto Rico
DecidedSeptember 9, 2021
Docket3:20-cv-01143
StatusUnknown

This text of Equal Employment Opportunity Commission v. Limenos Corporation (Equal Employment Opportunity Commission v. Limenos Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Equal Employment Opportunity Commission v. Limenos Corporation, (prd 2021).

Opinion

IN THE UNITED STATES COURT FOR THE DISTRICT OF PUERTO RICO

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

Plaintiff,

ALEXANDRA MARTÍNEZ- OTERO

Intervenor-Plaintiff,

v. CIV. NO.: 20-1143 (SCC) LIMEÑOS CORPORATION D/B/A “CEVICHE HOUSE”

Defendant

OMNIBUS OPINION AND ORDER

Pending before the Court are Attorney Marcelle D. Martell Jovet’s (“Attorney Martell-Jovet”) twofold request to withdraw as counsel of record for Defendant Limeños Corporation (“Defendant Limeños) and for this Court to set aside the entry of default judgment (“Motion to Withdraw and Set Aside Entry of Default Judgment”), see Docket No. 39, EEOC et al., v. Page 2 LIMEÑOS CORP.

as well as Defendant Limeños’s Motion for Reconsideration to Vacate Entry of Default and Default Judgment (“Motion for Reconsideration”), see Docket No. 40, and Defendant Limeños’s Motion to Vacate Default Final Judgment and Request for Acceptance of the Answer to the Complaint (“Motion to Vacate”), see Docket No. 45. For the reasons set for the below, Attorney Martell-Jovet’s Motion to Withdraw and Set Aside Entry of Default Judgment is GRANTED in part and DENIED in part. Defendant Limeños’s Motion for Reconsideration is DENIED in part and GRANTED in part. Lastly, Defendant Limeños’s Motion to Vacate is DENIED. We consider each motion in turn. I. Analysis A. Attorney Martell-Jovet’s Motion to Withdraw and to Set Aside Entry of Default Judgment at Docket Number 39 1. Request to Withdraw as Attorney for Defendant Limeños In her motion, Attorney Martell-Jovet informs that, Defendant Limeños has requested that she withdraw as EEOC et al., v. Page 3 LIMEÑOS CORP.

attorney of record in this case. See Docket No. 39 at ¶ 17. She further adds that, Defendant Limeños intends to hire the legal services of Attorney Jesús Morales (“Attorney Morales”) for purposes of the instant litigation. Id. On July 29, 2021, Attorney Morales filed his notice of appearance before this Court. Docket No. 42. There, he specified that Attorney Nelson Robles would remain as Defendant Limeños legal representative in the bankruptcy case but that he, and his law firm, Bufete Morales Cordero, PSC, would be handling the instant case. Id. at ¶¶ 1-3. Therefore, it is clear from the record that, if the Court grants Attorney Martell-Jovet’s request to withdraw from this case, Defendant Limeños would not be left without legal representation here. As such, not much is left for this Court to consider or say regarding this request other than to GRANT the same. EEOC et al., v. Page 4 LIMEÑOS CORP.

2. Request for the Entry of Default Judgment to be Set Aside Federal Rule of Civil Procedure 55(c) (“Rule 55(c)”) instructs that a party wishing to have a final default judgment set aside must file a motion pursuant to Federal Rule of Civil Procedure 60(b) (“Rule 60(b)”). See Fed. R. Civ. P. 55(c). Generally speaking, a party’s motion under Rule 60(b) must show that “[the] motion is timely; that exceptional circumstances exist, favoring extraordinary relief; that if the judgment is set aside, [the party] has the right stuff to mount a potentially meritorious claim or defense; and that no unfair prejudice will accrue to the opposing parties should the motion be granted.” Karak v. Bursaw Oil Corp., 288 F.3d 15, 19 (1st Cir. 2002). While Rule 60(b) provides six distinct avenues for relief, here, Attorney Martell-Jovet anchors her request for this Court to set aside the default judgment entered at Docket Number 38, to Federal Rule of Civil Procedure 60(b)(1) (“Rule EEOC et al., v. Page 5 LIMEÑOS CORP.

60(b)(1)”).1 See Docket No. 39 at ¶ 18. That rule “provides that ‘mistake, inadvertence, surprise, [and] excusable neglect’ are grounds for relief from a final judgment.” U.S. v. $29,373.00 in U.S. Currency, 86 F.Supp.3d 95, 99 (D.P.R. 2015) (quoting Fed. R. Civ. P. 60(b)(1)). In her motion, Attorney Martell-Jovet relies on the “excusable neglect” component of Rule 60(b)(1). See Docket No. 39 at ¶ 18. Motions relying on “excusable neglect” call for the Court to render “an equitable determination, taking into account the entire facts and circumstances surrounding the party’s omission, including factors such as the danger of prejudice to the non-movant, the length of the delay, the reason for the

1 The Court does not overlook the fact that, in her motion Attorney Martell-Jovet mentions Federal Rule of Civil Procedure 6(b)(1)(B) (“Rule 6(b)(1)(B)”). Docket No. 39 at ¶ 18. Indeed, akin to Rule 60(B)(1), Rule 6(b)(1)(B) includes the term “excusable neglect”. See Fed. R. Civ. P. 6(b)(1)(B). However, the Court need not consider Rule 6(b)(1)(B), for that rule states that the Court may extend the time necessary for a certain act that had to be completed within a specific time “on motion made after the time has expired if the party failed to act because of excusable neglect.” Id. In her motion, Attorney Martell-Jovet does not include a request to extend time. EEOC et al., v. Page 6 LIMEÑOS CORP.

delay, and whether the movant acted in good faith.” Dávila- Álvarez v. Escuela de Medicina Universidad Central del Caribe, 257 F.3d 58, 64 (1st Cir. 2001) (citing Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd. P’ship, 507 U.S. 380, 395 (1993)). And key to the Court’s analysis is the reason for the delay. See Hospital del Maestro v. Nat’l Labor Relations Bd., 263 F.3d 173, 175 (1st Cir. 2001). Attorney Martell-Jovet reasons that the following explanations are enough to satisfy Rule 60(b)(1)’s “excusable neglect” component: (1) she only appeared on behalf of Defendant Limeños on a limited basis, in order to file a motion to stay; (2) she was confused as to whether the attorneys at the helm of the bankruptcy case would take over for her in the instant case; (3) the electronic notification informing that the Equal Employment Opportunity Commission (“EEOC”) moved for the entry of default judgment went to her spam folder instead of to her inbox; (4) there was a COVID-19 outbreak at one of her client’s facilities that she had to tend to; and (5) two of her close friends passed EEOC et al., v. Page 7 LIMEÑOS CORP.

away. Although we are sorry for her loss and are aware of the difficulties brought upon by the COVID-19 pandemic, Attorney Martell-Jovet’s explanations do not amount to the level of “excusable neglect” which would call for the Court to set aside the default judgment entered at Docket Number 38. For starters, Attorney Martell-Jovet’s contention that her engagement with Defendant Limeños was limited to the filing of a motion to stay in the instant case falls flat, for a look at the record paints a different picture. Specifically, the record reveals that Attorney Martell-Jovet sought two extensions of time to file an answer to the complaint in this case. See Docket Nos. 27 and 29.

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