Marsh v. Bottoms Up Gentlemen's Club, LLC

CourtDistrict Court, D. Maryland
DecidedMarch 7, 2025
Docket1:23-cv-01157
StatusUnknown

This text of Marsh v. Bottoms Up Gentlemen's Club, LLC (Marsh v. Bottoms Up Gentlemen's Club, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marsh v. Bottoms Up Gentlemen's Club, LLC, (D. Md. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

JENNIFER MARSH, et al., *

Plaintiffs, *

v. * Civil Action No. EA-23-1157

BOTTOMS UP GENTLEMEN’S * CLUB, LLC, et al., * Defendants. *

MEMORANDUM OPINION

Plaintiff Jennifer Marsh initiated the above-captioned action on May 1, 2023, asserting violations of the Fair Labor Standards Act of 1938, 29 U.S.C. § 201 et seq. (FLSA), and Maryland state law based on the allegation that Defendants Bottoms Up Gentlemen’s Club, LLC (Bottoms Up) and Chez Joey, LLC (Chez Joey) failed to pay direct wage compensation for all hours worked, and seeking damages, attorney’s fees, and costs. ECF No. 1. On October 17, 2023, Ms. Marsh filed an Amended Complaint that added Plaintiff Lakiea Williams as a party. ECF No. 10. Pending before the Court is Plaintiffs’ renewed motion for sanctions. ECF No. 46. Defendants declined to file a response; thus, the motion is fully briefed. No hearing is necessary. Local Rule 105.6 (D. Md. 2023). For the reasons set forth below, the motion is granted. I. BACKGROUND A. Factual Background1 Bottoms Up and Chez Joey are Maryland limited liability companies with their principal place of business in Baltimore, Maryland, which were operated as strip clubs at a single business location in Baltimore during the relevant timeframe (May 2020 through February 2, 2023). ECF

1 The factual background is drawn from the salient allegations in the First Amended Complaint (ECF No. 10). No. 10 ¶¶ 2, 8–10, 17. During the relevant timeframe, Defendants employed Ms. Marsh as a manager and bartender and Ms. Williams as a bartender and dancer at Bottoms Up and Chez Joey. Id. at ¶¶ 22–23. Ms. Marsh customarily worked about five shifts per week for an average total of 35 hours per week, and Ms. Williams customarily worked about five shifts per week as a bartender and about five shifts per week as a dancer for an average total of 70 hours per week.2 Id. at ¶¶ 24, 26. Defendants had knowledge of all of the hours Plaintiffs worked and the requirement under federal and state law to pay Plaintiffs wages for hours worked, but did not pay

Plaintiffs direct wages. Id. at ¶¶ 27, 32, 39. Plaintiffs received compensation exclusively through tips. Id. at ¶ 33. B. Procedural History After Defendants did not timely file a response to the Amended Complaint, Plaintiffs moved for Clerk’s Entry of Default (ECF No. 16), which was entered on January 3, 2024 (ECF Nos. 17–20). Defendants then filed a motion to set aside the default (ECF No. 21), which the Court granted (ECF Nos. 23, 24). Thereafter, the Court entered a Scheduling Order, which was amended following the parties’ joint request. ECF Nos. 29-1, 32–33. Under the Amended Scheduling Order, discovery was set to close on December 13, 2024. ECF No. 33. The Court also entered an Order on Discovery Dispute Procedure, which explained the parties’ duties to

read and comply with the Federal Rules of Civil Procedure and the Local Rules of this Court, including the Discovery Guidelines of the Court. ECF No. 30 at 1.3

2 The First Amended Complaint outlines discrete periods of unemployment and accounts for weeks with no or less work, as well as discrete periods of time when Ms. Marsh would work overtime. ECF No. 10 ¶¶ 24–26.

3 Page numbers refer to the pagination of the Court’s Case Management/Electronic Case Files system printed at the top of the cited document. On August 12, 2024, Plaintiffs requested a conference with the Court to discuss Defendants’ failure to respond to written discovery requests and defense counsel’s failure to engage with plaintiffs’ counsel to resolve the discovery dispute. ECF No. 35. In response, the Court ordered defense counsel to, among other things, respond to plaintiffs’ counsel’s request for a conference regarding the status of discovery and file a report outlining the status of discovery by August 16, 2024. ECF No. 36. Defendants did not file the report as directed. On August 16, 2024, Plaintiffs again requested a conference with the Court, representing that defense counsel

had not responded to plaintiffs’ counsel’s multiple attempts at contact. ECF No. 38. On August 20, 2024, the undersigned held a discovery conference with counsel for the parties (ECF No. 44), at which time defense counsel indicated that he believed Defendants would be filing a bankruptcy petition, but they had not yet done so (ECF Nos. 41 ¶ 1; 42 ¶ 1). Defense counsel agreed that if Defendants had not filed for bankruptcy, they would respond to Plaintiffs’ written discovery requests by August 27, 2024. On October 17, 2024, Plaintiffs filed a motion for sanctions seeking entry of a default judgment against Defendants for failing to respond the discovery requests. ECF No. 40. Defendants responded by alleging that they would be filing for bankruptcy imminently. ECF Nos. 41–42. The Court denied Plaintiffs’ motion for sanctions without prejudice and provided

Defendants until November 27, 2024, to respond to the pending discovery requests. ECF No. 45. The Court also warned that “failure to comply with a discovery order such as this one may result in the imposition of sanctions, including rendering a default judgment against the disobedient party.” Id. at 4. When Defendants again failed to respond to Plaintiffs’ discovery requests, Plaintiffs renewed their motion for sanctions. ECF No. 46. To date, Defendants have not responded to this motion, which has been pending for more than 14 days. See Local Rule 105.2(a). II. DISCUSSION Plaintiffs seek to have the Court enter a default judgment against Defendants as a sanction pursuant to Federal Rule of Civil Procedure 37 and the Court’s inherent authority. ECF No. 46 at 1. In support of this motion, Plaintiffs assert that Defendants still have not responded to written discovery requests or filed a bankruptcy petition notwithstanding the Court’s directives during the discovery conference and November 20, 2024 Order. Id. at ¶¶ 7–15. A. Default Judgment as a Sanction

Under Federal Rule of Civil Procedure 37(b)(2)(A), the Court has wide discretion to issue an order imposing sanctions for violation of a discovery order. Mutual Fed. Sav. & Loan Ass’n v. Richards & Assocs., Inc., 872 F.2d 88, 92 (4th Cir. 1989). Available sanctions under this rule include “rendering a default judgment against the disobedient party.” Fed. R. Civ. P. 37(b)(2)(A)(vi). This Court has previously found that a party’s failure to respond to discovery can properly result in dismissal or default. E.g., Proctor v. Charlestown Cmty., Inc., Civil Action No. GLR-22-1365, 2023 WL 8478903, at *3 (D. Md. Dec. 7, 2023); Franklin v. Tri-Cnty. Council for the Lower E. Shore of Md., Civil Action No. ELH-15-786, 2016 WL 3653966, at *3 (D. Md. July 8, 2016). When invoking the sanction of dismissal or default, the Court’s “range of discretion is more narrow” because of the competing need to enforce discovery orders and to

protect “the party’s rights to a trial by jury and a fair day in court.” Mutual Fed. Sav. & Loan Ass’n, 872 F.2d at 92.

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