Hispanic Federation v. Uriarte Otheguy

District Court, D. Puerto Rico·Decided July 11, 2024·No. 3:21-cv-01573·Unknown

Opinion

1 IN THE UNITED STATES DISTRICT COURT 2 FOR THE DISTRICT OF PUERTO RICO

4 HISPANIC FEDERATION and THE SOLAR FOUNDATION, 5

6 Plaintiffs,

7 CIVIL NO. 21-1573 (HRV) v. 8 ALEJANDRO J. URIARTE-OTHEGUY, 9 10 Defendant.

12 MEMORANDUM AND ORDER 13 I. INTRODUCTION 14 Pending before the court is “Plaintiffs’ Motion to Strike Defendant’s Answer to 15 16 Plaintiffs’ Complaint and for Default Judgment.” (Docket No. 72). Defendant Alejandro 17 J. Uriarte-Otheguy, who has failed to announce new legal representation after the Court 18 granted his former counsel leave to withdraw, and who has disobeyed several orders of 19 the court, had until July 2, 2024, to respond to Plaintiffs’ motion. As of the filing of this 20 Memorandum and Order, Plaintiffs’ motion remains unopposed. 21 22 For the reasons set forth below, the motion to strike and for the entry of a default 23 judgment is GRANTED. 24 II. FACTUAL AND PROCEDURAL BACKGROUND 25 Plaintiffs are two nonprofit corporations that funded the construction of a solar 26 energy station in San Juan, Puerto Rico, after two hurricanes devasted the island’s energy 27 28 1 1 infrastructure in 2017. The complaint, filed on November 30, 2021, alleges that Plaintiffs 2 contracted with the Defendant to build the station, but defendant never completed the 3 project despite having been paid more than $800,000. (Docket No. 1). Plaintiffs bring 4 causes of action for fraudulent inducement (Dolo), fraud and unjust enrichment. (Id.) 5 They seek compensation for the alleged injuries suffered due to Defendant’s conduct. 6 7 (Id.). 8 On July 21, 2023, the Court issued a Case Management Order (“CMO”) that set 9 September 6, 2023, as the deadline for serving written discovery requests. (Docket No. 10 31). The CMO required the parties to answer the written discovery requests within 30 11 days of service, that is, no later than October 5, 2023. (Id.). 12 13 The Plaintiffs complied by serving on Defendant their written discovery requests 14 on September 5, 2023. (See Docket No. 47-1). On October 5, 2023, Defendant filed a 15 motion informing that he had provided his answers to the Plaintiffs’ written discovery 16 requests via email. (Docket No. 33). Then, on November 7, 2023, more than two months 17 after the established deadline, Defendant informed the Court that it had served, also via 18 19 email, his “First Set of Interrogatories and First Request for Admission[s].” (Docket No. 20 37). 21 Plaintiffs filed motions for protective order and to compel on December 7, 2023. 22 (Docket Nos. 41 and 42). Plaintiffs sought a protective order arguing that the discovery 23 requests submitted by the Defendant on November 7, 2023, were untimely because they 24 were served two months after the deadline set by the Court in the CMO. The Plaintiffs 25 26 also averred that Defendant neither moved the Court for good cause to extend the 27 deadline, nor showed excusable neglect for his noncompliance. Plaintiffs asked the Court 28 2 1 to strike the Defendant’s discovery requests and to protect them from having to answer 2 them. 3 In their motion to compel (Docket No. 42), Plaintiffs alerted the Court that in 4 answering their discovery requests, Defendant failed to produce documents and 5 information in his possession that were responsive to said requests and lodged improper 6 7 objections. Plaintiffs asked the Court to order Defendant to remove said objections and 8 to supplement his answers and produce all pertinent documents. Plaintiffs also moved 9 for an award of the costs associated with the filing of the motion to compel. 10 After seeking an extension of time, Defendant responded to the Plaintiffs’ 11 motions. (Docket No. 47). While acknowledging that there was a delay in meeting the 12 13 deadline, the Defendant maintained, without further elaboration, that the delay was due 14 to “inadvertence and human error.” (Docket No. 47 at 2). Defendant characterized his 15 failure to comply with the deadline as an oversight and faulted the Plaintiffs for serving 16 an excessive discovery request that “arguably” was beyond the scope of the Federal Rules 17 of Civil Procedure and imposed an undue burden on him. Defendant asked the Court to 18 19 consider the unintentional delay as an isolated incident. 20 With respect to the motion to compel, the Defendant argued that the answers to 21 the first set of interrogatories were provided in good faith and in accordance with the 22 information available to him. He further contended that he lacks knowledge of the 23 specific matters in question. 24 On January 22, 2024, I issued an Opinion and Order granting Plaintiffs’ motion 25 26 for a protective order and granting in part and denying in part their motion to compel. 27 (Docket No. 51). I ruled that the Plaintiffs did not have to answer the belated discovery 28 3 1 request because the Defendant had not timely moved for a good cause extension of the 2 deadline under Fed. R. Civ. P. 16 and had failed to show excusable neglect. (Id. at 4-6). I 3 granted in part the motion to compel, ordering the Defendant to answer interrogatories 4 18 to 25 within 10 days. (Id. at 10). I also gave the Plaintiffs 10 days to request costs and 5 attorney’s fees under Fed. R. Civ. P. 37(a)(5) and 10 days thereafter to the Defendant to 6 7 show cause why he should not have to pay. (Id. at 11). 8 On February 20, 2024, the Defendant moved for reconsideration of the January 9 22, 2024, Opinion and Order granting Plaintiffs’ motion for a protective order. (Docket 10 No. 56). The Plaintiffs in turn opposed the motion for reconsideration, renewed their 11 request to compel the Defendant to answer the written discovery requests, and moved 12 13 for the imposition of attorney’s fees. (Docket No. 57). The Plaintiffs averred that 14 Defendant once again failed to provide meaningful responses to the interrogatories by 15 lodging new but still improper objections. 16 By way of order dated April 8, 2024, I partially reconsidered and allowed a limited 17 opportunity to the Defendant to conduct discovery. (Docket No. 61). I specifically ruled 18 19 that the Defendant would be allowed to conduct written discovery. However, I imposed 20 a condition. Plaintiffs did not have to answer the Defendant’s written discovery until he 21 first removed his improperly lodged objections and fully answered the interrogatories 22 submitted by plaintiffs. As a lesser sanction, I precluded Defendant from conducting any 23 depositions. In addition, I ordered the Defendant to pay $7,375 in attorney’s fees. The 24 Defendant was specifically warned that “[t]he Court will not tolerate any further non- 25 26 compliance, evasion, or delays. Additional sanctions may include striking answers to the 27 allegations in the complaint or affirmative defenses.” (Id. at 4). 28 4 1 The Defendant moved twice to extend the time to pay the monetary sanction and 2 I obliged. (Docket Nos. 62, 63, 66, 67). However, on May 8, 2024, and again on May 10, 3 2024, counsel for the Defendant requested leave to withdraw from the legal 4 representation. (Docket Nos. 68 and 70). In the motions to withdraw, it was represented 5 that the Defendant had decided to file for personal bankruptcy, and this created a conflict 6 7 of interest. Defendant, through counsel, requested that the orders for payment of 8 attorney’s fees and to answer discovery be held in abeyance until new legal 9 representation was announced. 10 On May 14, 2024, I granted the request for leave to withdraw as counsel and gave 11 the Defendant 21 days, that is, until June 3, 2024, “to announce new legal representation 12 13 and/or inform as to the status of compliance with court orders.” (Docket No. 72).

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