ISA Plus, LLC v. Prehired, LLC

Opinion

ISA PLUS, LLC, a Delaware Limited Case No.: 3:22-cv-01211-JAH-JLB Liability Company, ORDER DIRECTING CLERK TO Plaintiff, v.

PREHIRED, LLC, a Delaware Limited ECF No. 27. Liability Company; JOSHUA K. JORDAN, an individual; and DOES 1 THROUGH 2, inclusive, Defendants. Defendant PREHIRED, LLC, a Delaware Limited Liability Company (“Defendant”) filed a Notice of Automatic Stay based upon the filing of the bankruptcy petition in the United States Bankruptcy Court for the Southern District of New York. (ECF No. 8).1 Pursuant to 11 U.S.C. § 362, Defendant’s bankruptcy petition operates as an automatic stay on the instant action. See 11 U.S.C. § 362(a).

1 The case was transferred on September 27, 2022, from the Southern District of New York to the District of Delaware. In re PREHIRED, LLC, et al., Case No. 22-11007 (JTD), Plaintiff ISA Plus, LLC, a Delaware Limited Liability Company (“Plaintiff”) sought relief from automatic stay from the United States Bankruptcy Court for the District of Delaware, which was subsequently granted in an order dated May 5, 2023. (Ex. A, ECF No. 23). Thereafter, Plaintiff filed a Request for Entry of Default pursuant to Federal Rule l of Civil Procedure 55(a)’ against Prehired, LLC, based upon Defendant’s failure to retain counsel and file a notice of appearance by the Court ordered deadline of March 31, 2023. (ECF No 27 at 1). As a corporation, Defendant must be represented by counsel. See Rowland v. California Men’s Colony, Unit IT Men's Advisory Council, 506 U.S. 194, 201-02 (1993). Accordingly, entry of default is appropriate when a corporation fails to appoint counsel to /act on its behalf and it intentionally fails to participate in the action or comply with court orders. See United States v. High Country Broadcasting Co., Inc., 3 F.3d 1244, 1245 (9th Cir. 1993) (per curiam) (finding entry of default judgment is “perfectly appropriate” when plaintiff failed to obey a court order to retain counsel); see also Price Simms Holdings, v. Candle3, LLC, No. 2:18-cv-1851-WBS-KJN, 2020 WL 4227480 (E.D. Cal. Jul. /30, 2020). As such, based on Defendant’s failure to “otherwise defend” this action by retaining counsel, the Court finds entry of default pursuant to Rule 55(a) is appropriate. Accordingly, IT IS HEREBY ORDERED that the Clerk of Court is directed to enter default against Defendant Prehired, LLC. DATED: June _, 2023

JC A. HOUSTON ITED STATES DISTRICT JUDGE 2oi}o020tti<“i‘< OO! I? Federal Rule of Civil Procedure 55(a) provides that a clerk must enter a default “Tw hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend[.]” Fed. R. Civ. P. 50(a).