Hawks v. Seery

District Court, D. Arizona·Decided November 5, 2021·No. 2:21-cv-00092·Unknown

Opinion

WO Jack Hawks, D.O.; and Sara Hawks, No. CV-21-00092-PHX-DGC Plaintiffs, ORDER v. Sharon Seery, Defendant. Dr. Jack Hawks and his wife Sara have filed a renewed motion for default judgment against Defendant Sharon Seery. Doc. 14. The motion is fully briefed and neither side requests oral argument. For reasons stated below, the Court will deny the motion. I. Background. In January 2021, Plaintiffs filed a complaint against Defendant alleging the following facts. Defendant, a former patient of Dr. Hawks, had a romantic interest in him. Doc. 1 ¶¶ 9-11. Upon discovering that Dr. Hawks was in a relationship with Ms. Hawks – his then-girlfriend – Defendant embarked on a campaign of harassment against the couple. Id. ¶¶ 11-68. Defendant posted false and disparaging messages about Plaintiffs on social media and online review platforms; inundated Plaintiffs with threatening text messages, phone calls, and voicemails; impersonated Ms. Hawks online; reached out to Dr. Hawks’s patients; and made personal visits to Plaintiffs’ home. See id. Defendant’s alleged conduct damaged Dr. Hawks’s professional reputation, forced him to switch to a less lucrative medical practice, and caused Plaintiffs significant emotional distress. See id. In December 2017, Maryvale Justice Court issued a harassment injunction against Defendant, but she ignored the injunction and continued harassing Plaintiffs over the next two years. Id. ¶¶ 72, 83-84. The complaint asserts several state law tort claims based on Defendant’s alleged harassment and defamatory statements – defamation, public disclosure of private facts, false light invasion of privacy, intrusion upon seclusion, and injurious falsehood. Id. ¶¶ 75-116. Plaintiffs seek an injunction against harassment and compensatory and punitive damages. Id. at 16. The summons and complaint were served on Defendant’s father-in-law, with whom Defendant resided, on January 27, 2021. See Doc. 6 at 2. Defendant did not timely answer or otherwise respond to the complaint. See id. at 1; Fed. R. Civ. P. 12(a)-(b). On February 19, the Clerk entered Defendant’s default under Rule 55(a) of the Federal Rules of Civil Procedure. Doc. 9. Plaintiffs moved for default judgment in late March. Doc. 11. The Court denied the motion without prejudice because Plaintiffs: (1) sought default judgment under Rule 55(a), which provides for entry of default by the Clerk; (2) failed to address Rule 55(b) and the relevant default judgment factors, see Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986); and (3) did not provide sufficient information to determine the amount of damages. Doc. 13. Plaintiffs have now filed a renewed motion for default judgment. Doc. 14. Defendant, proceeding pro se, filed a response, which essentially is an answer to the complaint. Doc. 15.1 Plaintiffs filed a reply. Docs. 16. Defendant filed a sur-reply, which Plaintiffs move to strike. Docs. 18, 19. 1 Plaintiff asserts a counterclaim alleging that Plaintiffs have harassed her with abusive litigation in retaliation for her testimony about Dr. Hawks in a disciplinary hearing before the state medical board. Id. ¶ 27. II. Default Judgment Under Rule 55(b) and Plaintiffs’ Renewed Motion. Default judgment under Rule 55 “is a two-step process: an entry of default judgment must be preceded by an entry of default.” Brooke v. Sai Ashish Inc., No. 1:21C-cv-00967- AWI-SAB, 2021 WL 4804220, at *5 (E.D. Cal. Oct. 14, 2021) (citing Eitel, 782 F.2d at 1471). The entry of default by the clerk “does not automatically entitle the plaintiff to a court-ordered judgment.” PepsiCo, Inc. v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 1174 (C.D. Cal. 2002) (citing Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986)); see also Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980) (“The district court’s decision whether to enter a default judgment is a discretionary one.”). The rule in this Circuit is “that default judgments are ordinarily disfavored. Cases should be decided upon their merits whenever reasonably possible.” Eitel, 782 F.2d at 1472 (citing Pena v. Seguros La Comercial, S.A., 770 F.2d 811, 814 (9th Cir. 1985)); see also Westchester Fire Ins. Co. v. Mendez, 585 F.3d 1183, 1189 (9th Cir. 2009) (same); United States v. Signed Pers. Check No. 730 of Yubran S. Mesle, 615 F.3d 1085, 1091 (9th Cir. 2010) (explaining that “judgment by default is a drastic step appropriate only in extreme circumstances”) (quoting Falk v. Allen, 739 F.2d 461, 463 (9th Cir. 1984)); Latshaw v. Trainer Wortham & Co., 452 F.3d 1097, 1103 (9th Cir. 2006) (“Default judgments are disfavored and appropriate only in unique circumstances.”) (citing Falk, 739 F.2d at 463). Because default judgments are disfavored, courts “must apply Rule 55 liberally, and any doubts must be resolved in favor of the [defendant].” Chanel Inc. v. Pacini, No. C 07-05946 CRB, 2008 WL 2128412, at *1 (N.D. Cal. May 20, 2008) (citing Meadows v. Dominican Republic, 817 F.2d 517, 521 (9th Cir. 1987)). In Eitel, the Ninth Circuit enumerated the following factors a court may consider in deciding whether default judgment is appropriate: (1) the possibility of prejudice to the plaintiffs, (2) the merits of the claims, (3) the sufficiency of the complaint, (4) the amount of money at stake, (5) the possibility of a dispute concerning material facts, (6) whether default was due to excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits. 782 F.2d at 1471-72. As the parties seeking default judgment, Plaintiffs “bear[] the burden of demonstrating to the Court that the complaint is sufficient on its face and that the Eitel factors weigh in favor of granting default judgment.” Ronald Norris v. Shenzhen IVPS Tech. Co., No. CV-20-01212-PHX- DWL, 2021 WL 4844116, at *2 (D. Ariz. Oct. 18, 2021). A. Prejudice to Plaintiffs. The first Eitel factor “considers whether the plaintiff will suffer prejudice if default judgment is not entered.” PepsiCo, 238 F. Supp. 2d at 1177. This factor favors default judgment where the defendant fails to answer the complaint because the plaintiff “would be denied the right to judicial resolution of the claims presented, and would be without other recourse for recovery.” Marquez v. Chateau Hosp., Inc., No. CV-20-0107 FMO (RAOx), 2020 WL 5118077, at *2 (C.D. Cal. June 11, 2020); see PepsiCo, 238 F. Supp. 2d at 1177 (same). In this case, Defendant has now appeared and answered the complaint. See Docs. 15, 16 at 2. Given Defendant’s apparent intent to defend the action, Plaintiffs will be able to prosecute their claims on the merits and will not be unfairly prejudiced from the denial of default judgment. The first Eitel factor weighs against default judgment. See Draper, 792 F.2d at 925 (the district court did not abuse its discretion in denying default judgment where the defendant filed a late answer); Epps v. CVS Health Corp., 821 F. App’x 868, 869 (9th Cir. 2020

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