Michael Gulisano v. Burlington, Inc.

34 F.4th 935
CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 12, 2022
Docket20-12660
StatusPublished
Cited by25 cases

This text of 34 F.4th 935 (Michael Gulisano v. Burlington, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael Gulisano v. Burlington, Inc., 34 F.4th 935 (11th Cir. 2022).

Opinion

USCA11 Case: 20-12660 Date Filed: 05/12/2022 Page: 1 of 18

[PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 20-12660 ____________________

MICHAEL GULISANO, Interested Party-Appellant, CATHY COHEN, Plaintiff, versus BURLINGTON, INC.,

Defendant-Appellee. USCA11 Case: 20-12660 Date Filed: 05/12/2022 Page: 2 of 18

2 Opinion of the Court 20-12660

Appeal from the United States District Court for the Southern District of Florida D.C. Docket No. 9:18-cv-81420-BB ____________________

Before JORDAN, JILL PRYOR, and MARCUS, Circuit Judges. JILL PRYOR, Circuit Judge: When attorney Michael Gulisano represented a client in a negligence action in the Southern District of Florida, he obtained a default judgment against a non-existent entity, “Burlington, Inc.” He added an unrelated entity, Burlington Coat Factory Direct Cor- poration, as a judgment debtor on the resulting writ of execution. He used the writ of execution to levy funds from another entity, Burlington Stores, Inc. After Burlington Stores, Inc. and Burlington Coat Factory Warehouse Corporation protested and sought to quash the writ, Gulisano asked the district court in the Southern District of Florida to amend its default judgment order and name Burlington Stores, Inc. and Burlington Coat Factory Warehouse Corporation as judgment debtors. The district court denied the motion and, finding it to be legally and factually frivolous, imposed sanctions under Federal Rule of Civil Procedure 11. It also denied Gulisano’s motion for reconsideration of the sanctions order. After careful review and with the benefit of oral argument, we affirm. USCA11 Case: 20-12660 Date Filed: 05/12/2022 Page: 3 of 18

20-12660 Opinion of the Court 3

I. FACTS1 While Cathy Cohen was shopping at a Burlington Coat Fac- tory store in Royal Palm Beach, Florida, she looked at a set of tables on display. When Cohen attempted to inspect the tables, they fell on her knee. Cohen jumped back to avoid the falling tables, injur- ing her neck and back. Cohen hired Gulisano as her attorney. He filed a civil action on her behalf in federal court in the Southern District of Florida. The complaint Gulisano drafted alleged that defendant “Burling- ton, Inc.”2 had been negligent and was liable for damages to Cohen. Gulisano served a summons and a copy of the complaint on CT Corporation System, ostensibly the registered agent of “Burling- ton, Inc.” After “Burlington, Inc.” failed to file an answer or other- wise respond to the lawsuit, the district court clerk entered a de- fault. Following a hearing on damages, the district court entered a default judgment, awarding Cohen $677,774.75. The district court’s final judgment named “Burlington, Inc.” as the sole defend- ant. To collect on the default judgment, Gulisano requested that the court issue a writ of execution naming “Burlington, Inc. a/k/a

1Because we write for the parties, we recount only the facts necessary to ex- plain our decision. 2 Gulisano referred to the defendant as both “Burlington Inc.” and “Burling- ton, Inc.” For the sake of consistency, this opinion will use “Burlington, Inc.” USCA11 Case: 20-12660 Date Filed: 05/12/2022 Page: 4 of 18

4 Opinion of the Court 20-12660

Burlington Coat Factory Direct Corporation” as the judgment debtor. The court issued the writ. Seeking to execute the writ, Gulisano used employer identi- fication numbers (“EIN”) 3 to perform an asset search to find bank accounts from which he could levy funds. But, instead of using the EIN number of the judgment debtor, “Burlington, Inc.”—which did not exist—he used the EIN numbers of two other entities: Bur- lington Stores, Inc. (“BSI”) and Burlington Coat Factory Direct Corporation (“BCFDC”). BSI is the parent company of the entities that operate Burlington Coat Factory stores, including BCFDC and Burlington Coat Factory Warehouse Corporation (“BCFWC”), which operates the Florida stores. After locating bank accounts in New Jersey that belonged to BSI, Gulisano registered the judgment in the District of New Jersey. The New Jersey district court then issued a writ of execution against “Burlington, Inc.” The United States Marshals Service delivered the writ to BSI’s bank. The bank withdrew the amount of the judgment award, plus costs, from BSI’s account. Once they discovered the withdrawal, BSI and BCFWC filed a motion in the New Jersey district court to vacate the levy, quash the writ of execution, and vacate the default judgment. They pointed out that the writ of execution was based on a default

3An EIN number is the nine-digit tracking number that the Internal Revenue Service assigns to the tax accounts of businesses. USCA11 Case: 20-12660 Date Filed: 05/12/2022 Page: 5 of 18

20-12660 Opinion of the Court 5

judgment entered against “Burlington, Inc.,” but the judgment was levied on BSI, an unrelated entity not named in the Florida action. Gulisano opposed the motion. He asserted that “Burlington, Inc.” was a registered fictitious name or a misnomer that was sim- ilar enough to the correct name that it gave BSI and BCFWC— which he collectively referred to as “Burlington”—notice of the ac- tion. The day after he filed his response in the New Jersey district court, Gulisano filed in the Florida district court a “Motion to Amend Final Default Judgment to Remove Any Ambiguity of the Correct Defendant’s Identity.” In this motion, Gulisano asked the district court to amend the default judgment so that all references to the defendant “Burlington, Inc.” would become “Burlington, Inc. a/k/a Burlington Stores, Inc. a/k/a Burlington Coat Factory Warehouse Corporation.” Doc. 33 at 6 (internal quotation marks omitted). 4 Gulisano requested this change in order to “remove any alleged ambiguity that ‘Burlington, Inc.’ is not the same entity as” BSI and BCFWC. Id. (emphasis in original). He contended that “Burlington, Inc.” properly referred to BSI and BCFWC because the company went by multiple names, all of which included the word “Burlington.” He argued that BSI and BCFWC were the same entity, operating under the fictitious name “Burlington, Inc.” He also argued that he had served “Burlington” via its registered

4 “Doc.” numbers refer to the district court’s docket entries. USCA11 Case: 20-12660 Date Filed: 05/12/2022 Page: 6 of 18

6 Opinion of the Court 20-12660

agent, and that service on “Burlington, Inc.” was effective service on BSI. BSI and BCFWC opposed the motion to amend. They acknowledged that there were multiple entities that together owned and operated the retail stores known as Burlington Coat Factory, but stated that “Burlington, Inc.” was not one of those en- tities. Nor was it a fictitious name for BSI or another Burlington Coat Factory entity. Therefore, they argued, the judgment against “Burlington, Inc.,” a completely unrelated entity, was improperly levied on BSI. Noting that the New Jersey district court had granted their motion to quash the writ of execution, BSI and BCFWC asked the Florida district court to deny the motion to amend the judg- ment. In the Florida district court, BSI and BCFWC also moved for sanctions under Federal Rule of Civil Procedure 11, asserting that the motion to amend was frivolous because Gulisano could not have reasonably believed that BSI and BCFWC used the fictitious name “Burlington, Inc.” They also asserted that Gulisano had mis- represented to the court that effective service had been made on “Burlington, Inc.” The district court denied the motion to amend.

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