Flores v. Furniture Industry Service, Inc.

CourtDistrict Court, W.D. Texas
DecidedJuly 10, 2025
Docket7:24-cv-00195
StatusUnknown

This text of Flores v. Furniture Industry Service, Inc. (Flores v. Furniture Industry Service, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flores v. Furniture Industry Service, Inc., (W.D. Tex. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS MIDLAND/ODESSA DIVISION

KEVAN FLORES and EVELYN MUNGIA, § As Next Friend of I.M., Minor Child, § Plaintiffs, § § v. § § MO:24-CV-00195-DC-RCG FURNITURE INDUSTRY SERVICE, INC., § Defendant. § § §

REPORT AND RECOMMENDATION OF THE U.S. MAGISTRATE JUDGE BEFORE THE COURT is Plaintiffs Kevan Flores and Evelyn Mungia’s, as next friend of I.M., Minor Child, (“Plaintiffs”) Motion for Default Judgment against Defendant Furniture Industry Service, Inc. (“Defendant FIS”). (Doc. 64).1 This matter is before the undersigned United States Magistrate Judge through a standing order of referral pursuant to 28 U.S.C. § 636 and Appendix C of the Local Court Rules for the Assignment of Duties to United States Magistrate Judges. After due consideration, the Court RECOMMENDS Plaintiffs’ Motion for Default Judgment be GRANTED IN PART and DENIED IN PART. (Doc. 64). I. BACKGROUND This is a products liability case that initiated when a bunk bed collapsed, resulting in the injury of two young boys who were asleep in the beds. (Doc. 1 at 17). Defendant FIS is the manufacturer, producer, and designer of the bunk bed. Id. at 19. Plaintiffs filed their Original Petition against Defendants Bob Mills Furniture Co. of Texas LP a/k/a Bob Mills Furniture; BMF Texas LP Holdings, LLC; BMF Texas GP Holdings, LLC; Wilshire Furniture Group, LLC; Speedy Delivery, LLC; and Furniture Industry Service, Inc. (collectively, “Defendants”) in the 238th District Court, Midland County, Texas, on July 21, 2022. (Doc. 1). Defendants removed

1. All page number citations are to CM/ECF generated pagination unless otherwise noted. this action on September 21, 2022. Id. Plaintiffs bring seven causes of action: (1) strict liability, (2) negligence, (3) breach of implied warranty of fitness for a particular purpose, (4) breach of warranty of merchant ability, (5) misrepresentation, (6) deceptive trade practice violations (“DTPA”), and (7) res ipsa loquitur. Id. at 19–26. Once removed to federal court, the Court ordered service on two unserved defendants—

Speedy Delivery, LLC and Defendant FIS. (Doc. 9). Plaintiffs successfully served Speedy Delivery, LLC, and requested an extension to serve Defendant FIS. (Doc. 21). The Court granted the extension, and summons were issued as to Defendant FIS on April 17, 2023. (Docs. 23, 24). Plaintiffs filed proof that Defendant FIS’s CEO, Gustavo Pedroza Esparza, was personally served on May 1, 2023. (Doc. 30). On June 1, 2023, once Defendant FIS’s answer deadline passed, the Court issued an Order for Defendant FIS to show cause as to why it was not in default and why Plaintiffs’ requested relief should not be granted. (Doc. 31). To date Defendant FIS has failed to answer Plaintiffs’ Complaint or otherwise make an appearance in this lawsuit. Thus, Plaintiffs filed a Motion for Clerk’s Entry of Default (Doc. 56); the Clerk of the Court

entered default against Defendant FIS on June 17, 2024 (Doc. 57). Subsequently, Plaintiffs filed an unopposed Motion to Sever their claims against Defendant FIS, so they may pursue a default judgment against Defendant FIS, while continuing to litigate their case against all other Defendants. (Doc. 59). The Court granted this Motion. (Docs. 60, 62). Then, on October 25, 2024, Plaintiffs filed the instant Motion for Default Judgment, requesting the Court hold an evidentiary hearing after the original case is finalized. (Doc. 64). By a supplemental submission to the Motion for Default Judgment, Plaintiff seeks an award of $500,000 in favor of Plaintiff Kevan Flores and $60,000 in favor of Plaintiff I.M. against Defendant FIS.2 An evidentiary hearing was held on June 17, 2025. (Doc. 67). Accordingly, this matter is now ready for disposition. II. LEGAL STANDARD After entry of default and upon a motion by the plaintiff, Federal Rule of Civil Procedure 55 authorizes the Court to enter a default judgment against a defendant who fails to

plead or otherwise defend the suit. FED. R. CIV. P. 55(b). However, “[d]efault judgments are a drastic remedy, not favored by the Federal Rules and resorted to by courts only in extreme situations.” Sun Bank of Ocala v. Pelican Homestead & Savs. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989). Accordingly, “[a] party is not entitled to a default judgment as a matter of right, even where the defendant is technically in default.” Ganther v. Ingle, 75 F.3d 207, 212 (5th Cir. 1996). Instead, the district court “has the discretion to decline to enter a default judgment.” Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998). In determining whether to enter a default judgment, courts utilize a three-part test. See United States v. 1998 Freightliner Vin #: 1FUYCZYB3WP886986, 548 F. Supp. 2d 381, 384

(W.D. Tex. 2008). First, courts considers whether the entry of default judgment is procedurally warranted. Id. The factors relevant to this inquiry include: (1) whether material issues of fact exist; (2) whether there has been substantial prejudice; (3) whether the grounds for default are clearly established; (4) whether the default was caused by a good faith mistake or excusable neglect; (5) the harshness of a default judgment; and (6) whether the court would think itself obliged to set aside the default on the defendant’s motion.

Lindsey, 161 F.3d at 893. Second, courts assesses the substantive merits of the plaintiff’s claims, determining whether the plaintiff set forth sufficient facts to establish his entitlement to relief. See 1998 Freightliner, 548 F. Supp. 2d at 384. In doing so, courts assume that, due to its default,

2. Plaintiffs’ do not provide in their Motion, nor did they provide at the hearing, that they are seeking attorney fees. Plaintiffs do make a conclusory request for “costs and interest” in their Motion. (Doc. 64 at 3). the defendant admits all well-pleaded facts in the plaintiff’s complaint. See Nishimatsu Constr. Co., Ltd. v. Hous. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975). Third, courts determines what form of relief, if any, the plaintiff should receive in the case. Id.; 1998 Freightliner, 548 F. Supp. 2d at 384. Generally, damages are not to be awarded without a hearing or a demonstration by detailed affidavits establishing the necessary facts.

See United Artists Corp. v. Freeman, 605 F.2d 854, 857 (5th Cir. 1979). III. DISCUSSION Applying the three-part analysis detailed above, the Court finds Plaintiffs are entitled to a default judgment, in part, against Defendant FIS. A. Default Judgment is Procedurally Warranted In light of the six Lindsey factors enumerated above, the Court finds default judgment is procedurally warranted. First, Defendant FIS has not filed any responsive pleadings or otherwise appeared in this case. Consequently, there are no material facts in dispute. Lindsey, 161 F.3d at 893; Nishimatsu Constr., 515 F.2d at 1206 (noting that “[t]he defendant, by his

default, admits the plaintiff’s well-pleaded allegations of fact”). Second, Defendant FIS’s total failure to respond has brought the adversarial process to a halt, effectively prejudicing Plaintiffs’ interests. Lindsey, 161 F.3d at 893.

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Flores v. Furniture Industry Service, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/flores-v-furniture-industry-service-inc-txwd-2025.