Guthrie v. Rainbow Fencing Inc

CourtDistrict Court, E.D. New York
DecidedMarch 20, 2025
Docket1:21-cv-05929
StatusUnknown

This text of Guthrie v. Rainbow Fencing Inc (Guthrie v. Rainbow Fencing Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guthrie v. Rainbow Fencing Inc, (E.D.N.Y. 2025).

Opinion

United States District Court Eastern District of New York

-----------------------------------X

Robert Guthrie,

Plaintiff, Memorandum and Order

- against – No. 21-cv-05929 (KAM) (RML)

Rainbow Fencing Inc. et al,

Defendants.

Kiyo A. Matsumoto, United States District Judge:

By motion filed on March 27, 2024 (ECF No. 21), Rainbow Fencing Inc. and Lawson Burge move to vacate the default judgment entered against them jointly and severally by the Clerk of Court on February 27, 2023, in the amount of $91,243.00, (ECF No. 18). Defendants’ motion is respectfully denied. Background Plaintiff Robert Guthrie filed a Complaint against Rainbow Fencing Inc. (“RFI”) and Lawson Burge (collectively, “Defendants”) on October 25, 2021, alleging violations of the Fair Labor Standards Act (“FLSA”) for unpaid overtime and the New York Labor Law (“NYLL”) for unpaid overtime, unpaid minimum wage, and failure to receive wage notices and statements. (ECF No. 1, ¶¶ 1–3.) On October 27, 2021, RFI was served via service on the New York Secretary of State pursuant to New York Business Corporations Law § 306(b)(1). (ECF No. 5, Aff. of Service on RFI.) On November 18, 2021, Mr. Burge was served by substitute service at 1261 East New York Avenue, Brooklyn, NY, 11212, at RFI’s business address registered with the Secretary of State, by service to “Jane Doe,” a person who the process server identified as a co-worker and

person of suitable age and discretion who did not provide her name. (ECF No. 6 (“Burge Aff. of Serv.”).) The next day, the process server mailed by first class mail a copy of the Summons and Complaint to Mr. Burge at the same address and filed the affidavit of service confirming the service and mailing. (Id.) On January 14, 2022, after Defendants failed to answer or otherwise respond to the Complaint, Magistrate Judge Robert M. Levy ordered Plaintiff to move for default or explain in writing why he had not done so. (January 14, 2022 Order.) On January 28, 2022, Plaintiff requested entry of default of both Defendants. (ECF No. 7.) On February 2, 2022, the Clerk of Court entered a

certificate of default for both Defendants. (ECF No. 8.) On March 7, 2022, Judge Levy ordered Plaintiff to move for default judgment or explain in writing why he had not done so. (March 7, 2022 Order.) On March 14, 2022, Plaintiff moved for an extension of time to file. (ECF No. 9.) In the same letter, Plaintiff informed the Court of “some outreach from Defendants to Plaintiff concerning the case” that Plaintiff was “hoping [would] develop...into formal settlement discussions and for Defendants to retain counsel and formally appear in the case.” (Id.) Ultimately, however, Plaintiff moved for entry of default judgment on April 21, 2022, and served Defendants with the motion papers.1 (ECF Nos. 10-11.) On September 30, 2022, this Court referred the motion to Judge Levy. (September 30, 2022 Order.) On

December 13, 2022, Judge Levy issued a Report and Recommendation (“R&R”) recommending the motion for default judgment be granted against both Defendants, jointly and severally, as to unpaid minimum wages and overtime, and liquidated damages. (ECF No. 12 (“R&R”) at 13-14.) He further recommended no statutory damages be awarded for the alleged wage notice and statement claims under NYLL § 195 for failure to allege sufficient harm and therefore lacking standing. (Id.) Plaintiff served Defendants with the R&R. (ECF No. 13.) On December 27, 2022, Plaintiff objected to the R&R’s recommendation not to award statutory damages due to lack of

standing for the wage and notice claims. (ECF No. 14.) Plaintiff

1 As Judge Levy noted in his Report and Recommendation, “Plaintiff has [] demonstrated that he served the Motion for Default Judgment and accompanying submissions on defendants in compliance with Local Rule 55.2(c).” (ECF No. 12 at 3.) The Court adopted the Report and Recommendation, (ECF No. 17), and again notes that Plaintiff complied with Local Civil Rule 55.2(c)’s mailing requirements in effect at that time: Plaintiff mailed the default judgment motion papers on April 21, 2022, to Mr. Burge at his last known residence and to RFI at its last known business address, and then filed proof of such service. (See ECF No. 11; ECF No. 10-3 at 18 (indicating a search confirming Defendants’ addresses current as of April 19, 2022).) served Defendants with the objections. (ECF No. 15.) On February 24, 2023, this Court overruled Plaintiff’s objections, adopted the R&R as to the claims for unpaid minimum wages, overtime, and liquidated damages, and dismissed the wage notice and statement claims without prejudice. (ECF No. 17.) On February 27, 2023, the Clerk of Court entered default judgment

against the Defendants, jointly and severally, in the amount of $91,423.00, and entered dismissal without prejudice of the wage notice and statement claims.2 (ECF No. 18.) On May 11, 2023, Defendants’ counsel, Samantha Virgo, Esq., moved to appear Pro Hac Vice representing RFI and Mr. Burge. (ECF No. 20.) The motion was granted the next day. (May 12, 2023 Order.) On March 27, 2024, Defendants filed the instant motion to vacate the default judgment pursuant to Federal Rules of Civil Procedure 55(c), 60(b)(1), 60(b)(4), and 60(b)(6). (ECF No. 21 (“Defs. Mot.”).) Plaintiff filed an opposition on May 10, 2024. (ECF No. 24 (“Pl. Resp.”).)

2 Plaintiff appealed the Order adopting the R&R only as to the dismissal of the wage notice and statement claims. (ECF No. 19, Notice of Appeal (noting that plaintiff appeals “from that part of an Order (ECF No. 17) and judgment (ECF No. 18)...that dismissed Plaintiff’s NYLL wage notice and wage statement claims. Plaintiff does not appeal that part of the Court’s judgment granting him judgment and money on his other claims for unpaid overtime wages, minimum wages, etc.”).) The Second Circuit affirmed the dismissal of Plaintiff’s wage notice and statements claims for lack of standing. Guthrie v. Rainbow Fencing Inc., 113 F.4th 300, 303 (2d Cir. 2024) (noting “Guthrie timely appealed the judgment dismissing his claim for statutory damages”). The instant motion to vacate default judgment concerns only the judgment entered against Defendants for $91,423.00. Legal Standard Federal Rule of Civil Procedure (“Rule”) 55(c) states that “[t]he court may set aside an entry of default for good cause, and it may set aside a final default judgment under Rule 60(b).” Fed. R. Civ. P. 55(c). A party may seek relief from a final judgment or order under Rule 60(b)(1) for “mistake, inadvertence, surprise, or

excusable neglect.” Fed. R. Civ. P. 60(b)(1). A party may also seek relief under Rule 60(b)(4) if the judgment is void. Fed. R. Civ. P. 60(b)(4). Finally, a party may seek relief from a judgment under Rule 60(b)(6) for “any other reason that justifies relief.” Fed. R. Civ. P. 60(b)(6). “[I]f the underlying judgment is void for lack of jurisdiction, ‘it is a per se abuse of discretion for a district court to deny a movant's motion to vacate the judgment under Rule 60(b)(4).’” City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 138 (2d Cir. 2011) (citation omitted). Otherwise, when deciding “a motion to vacate a default

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Velez v. Sanchez
693 F.3d 308 (Second Circuit, 2012)
De Curtis v. Ferrandina
529 F. App'x 85 (Second Circuit, 2013)
" R" BEST PRODUCE, INC. v. DiSapio
540 F.3d 115 (Second Circuit, 2008)
Willner v. Thornburgh
738 F. Supp. 1 (District of Columbia, 1990)
City of New York v. Mickalis Pawn Shop, LLC
645 F.3d 114 (Second Circuit, 2011)
Weifang Xinli Plastic Products Co. v. JBM Trading Inc.
553 F. App'x 42 (Second Circuit, 2014)
Weifang Xinli Plastic Products Co. v. JBM Trading Inc.
583 F. App'x 24 (Second Circuit, 2014)
Middleton v. Green Cycle Housing, LLC, Tal Etshtein
689 F. App'x 12 (Second Circuit, 2017)
Marathon Structured Asset Solutions Trust v. Fennell
2017 NY Slip Op 5943 (Appellate Division of the Supreme Court of New York, 2017)
SEC v. Romeril
15 F.4th 166 (Second Circuit, 2021)
Enron Oil Corp. v. Diakuhara
10 F.3d 90 (Second Circuit, 1993)
Baity v. Kralik
51 F. Supp. 3d 414 (S.D. New York, 2014)
Perez v. Posse Comitatus
373 F.3d 321 (Second Circuit, 2004)
Glatt v. Fox Searchlight Pictures, Inc.
811 F.3d 528 (Second Circuit, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
Guthrie v. Rainbow Fencing Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guthrie-v-rainbow-fencing-inc-nyed-2025.