NLRB v. Todd

• Court: District Court, E.D. California
• Decided: July 14, 2025
• Docket: 2:24-cv-01642
• Status: Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 NATIONAL LABOR RELATIONS Case No. 2:24-cv-01642-CSK BOARD, 12 ORDER AND FINDINGS AND Plaintiff, RECOMMENDATIONS GRANTING 13 PLAINTIFF’S MOTION FOR DEFAULT v. JUDGMENT 14 SHARLYN TODD, (ECF No. 14) 15 Defendant. 16 17 Pending before the Court is Plaintiff’s motion for default judgment pursuant to 18 Federal Rules of Civil Procedure 55(b)(2). (ECF No. 14.) This motion was set for hearing 19 for February 4, 2025. (ECF No. 16.) Defendant did not file a response to the motion, nor 20 has she appeared in this case in any way. On January 31, 2025, the undersigned 21 vacated the hearing, granted Defendant additional time to respond to the motion, and 22 cautioned her that failure to respond may result in the imposition of a default judgment 23 against her. (ECF No. 19.) When the time period for briefing was complete, the motion 24 was taken under submission without argument pursuant to Local Rule 230(g). (Id.) For 25 the reasons stated below, the Court recommends Plaintiff’s motion for default judgment 26 be GRANTED, and that judgment be entered in favor of Plaintiff. 27 / / / 28 / / / 1 I. BACKGROUND 2 A. Factual Background 3 Plaintiff National Labor Relations Board (“Board”) commenced this action with an 4 application for enforcement of a subpoena ad testificandum requiring Defendant Todd to 5 appear before an Administrative Law Judge of the Board to testify in a May 21, 2024 6 hearing in Woodland, California. Appl. at 5 (ECF No. 1-2) & Exh. 1. After Defendant did 7 not appear at the hearing or respond to messages requesting her attendance, Plaintiff 8 applied to this Court to enforce the subpoena under the National Labor Relations Act 9 (“Act”), 29 U.S.C. § 151 et al. Appl. at 5, 8. 10 The underlying labor proceeding pending before the Board is EZ Care dba 11 Brightstar Care South Sacramento, Akaza LLC dba EZ Transportation, and Nixon 12 Administration LLC as a Single Employer, Case No. 20-CA-327874. It involves an unfair 13 labor practice charge filed on October 12, 2024 by Ernest Gibson, alleging that EZ Care 14 unlawfully discharged him to discourage its employees’ union activities. Appl. at 5 & Exh. 15 3; see 29 U.S.C. § 158(a)(1) and (3). After a Board official investigated Gibson’s charge 16 and concluded it had merit, the Board issued and served a complaint and notice of 17 hearing upon EZ Care. Appl. at 6 & Exh. 4. The complaint alleged that EZ Care 18 discharged Gibson because he “engaged in concerted activities with other employees 19 for the purposes of mutual aid and protection by talking to other employees about his 20 decision to go to the Labor Board and figure out how to start a union at Respondent’s 21 facility” in violation of Sections 8(a)(1), (3), and (4) of the Act. Appl., Exh. 4; see 29 22 U.S.C. § 158(a). 23 To make a prima facie showing that EZ Care discharged Gibson because of 24 protected union activities, the General Counsel of the Board1 must adduce evidence of 25 the following: (1) union or other protected activity by the employee, (2) employer 26

27 1 Pursuant to 29 U.S.C. § 153(d), the General Counsel of the Board and the General Counsel’s authorized agents have the final authority, on behalf of the Board, to 28 investigate unfair labor practice charges and issue complaints under the Act. 1 knowledge of that activity, and (3) anti-union animus, or animus against protected 2 activity, on the part of the employer. Intertape Polymer Corp., 372 NLRB 133 (2023) 3 (citing Wright Line, 251 NLRB 1083 (1980)). This is known as the Wright Line test. 4 During the investigation phase of the EZ Care matter, Defendant Todd complied 5 with a subpoena ad testificandum and provided the Board’s investigator with a sworn 6 affidavit pertaining to the Wright Line element of employer knowledge. Appl. at 7 & Exh. 7 8. In a declaration in support of the application, the Board attorney handling the case 8 stated that Defendant’s testimony was “[e]ssential to the [Board] Regional Director’s 9 finding of merit” and constituted evidence of “an essential element in proving that 10 Gibson’s discharge was discriminatorily motivated, at least in part, by his protected 11 activities.” Appl., Exh. 7 (Peterson Decl.) at ¶ 5. 12 One month before the May 21, 2024 hearing, the Board attorney emailed 13 Defendant asking her to voluntarily appear and testify. Id. When she did not respond, the 14 Board issued and served a subpoena for her testimony. Id., ¶ 6. According to postal 15 records, the subpoena was delivered to an individual at Defendant’s address on April 29, 16 2024. Id. The hearing commenced as scheduled, and Defendant did not appear. Id., ¶ 8. 17 Based on her failure to appear, the presiding Administrative Law Judge granted the 18 Board’s motion to recess the case indefinitely pending the Board’s application to enforce 19 the subpoena. Id., ¶ 9. As of June 7, 2024, Defendant had failed to respond to the 20 subpoena, impeding the Board’s ability to litigate the alleged unfair labor practices 21 against Gibson. Id., ¶¶ 11, 12. 22 B. Procedural Background 23 Plaintiff filed the application on June 10, 2024 seeking an order requiring 24 Defendant to appear “at such a time and place as [the Board] may designate” and give 25 sworn testimony and answer questions material to the documents set forth in the April 26 26, 2024 subpoena. See ECF No. 1-4 (proposed order). 27 The docket reflects that the summons was returned executed on Defendant at her 28 last known address on July 3, 2024. (ECF No. 5.) 1 On September 3, 2024, the Clerk entered default as to Defendant. (ECF No. 12.) 2 On December 18, 2024, Plaintiff moved for default judgment against Defendant. 3 (ECF No.14.) On January 22, 2025, the undersigned ordered Plaintiff to file a proof or 4 service or a status report as to why service had not been completed, including efforts 5 made to serve Defendant. (ECF No. 17.) After Plaintiff filed a status report (ECF No. 18), 6 the undersigned determined that “[p]laintiff has confirmed Defendant was served with the 7 motion.” (ECF No. 19.) The Court vacated the hearing on the motion set for February 4, 8 2025 and provided Defendant “one additional, final opportunity to respond to the 9 motion.” (Id. at 1.) After the time period for briefing ended with no response from 10 Defendant, Plaintiff’s motion for default judgment was submitted on the papers. (Id. at 2.) 11 II. LEGAL STANDARDS 12 Under Federal Rule of Civil Procedure 55, default may be entered against a party 13 against whom a judgment for affirmative relief is sought who fails to plead or otherwise 14 defend against the action. See Fed. R. Civ. P. 55(a). However, this default does not 15 automatically entitle the plaintiff to a judgment. PepsiCo, Inc. v. Cal. Sec. Cans, 238 F. 16 Supp. 2d 1172, 1174 (C.D. Cal. 2002) (citations omitted). The decision to grant or deny 17 the entry of default judgment is within the district court’s discretion. NewGen, LLC v. 18 Safe Cig, LLC, 840 F.3d 606, 616 (9th Cir. 2016). 19 In determining whether to enter default judgment, courts consider the following 20 factors: 21 1. the possibility of prejudice to the plaintiff; 22 2. the merits of the substantive claim(s); 23 3. the sufficiency of the complaint; 24 4. the amount of money at stake in the lawsuit; 25 5. whether there are any disputes of material fact; 26 6. whether the defendant’s default was due to excusable neglect; and 27 7. the strong policy favoring decisions on the merits. 28 1 Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). The Ninth Circuit has long 2 disfavored default judgments, counseling that cases be decided on the merits “whenever 3 reasonably possible.” Id. at 1472. 4 Once a default is entered, all well-pled allegations in the complaint regarding 5 liability are deemed true. Fair Hous. of Marin v. Combs, 285 F.3d 899, 906 (9th Cir. 6 2002). “On the other hand, a defendant is not held to admit facts that are not well- 7 pleaded or to admit conclusions of law.” United States v. Cathcart, 2010 WL 1048829, at 8 *4 (N.D. Cal. Feb. 12, 2010) (citation omitted). “[I]t follows from this that facts which are 9 not established by the pleadings of the prevailing party, or claims which are not well- 10 pleaded, are not binding and cannot support the judgment.” Danning v. Lavine, 572 F.2d 11 1386, 1388 (9th Cir. 1978). Necessary facts not contained in the pleadings and claims 12 which are legally insufficient are not established by default. DIRECTV, Inc. v. Hoa 13 Huynh, 503 F.3d 847, 854 (9th Cir. 2007). Further, a plaintiff’s allegations regarding 14 damages are not deemed true at default, and the plaintiff bears the burden to prove 15 damages with evidence. See Fed. R. Civ. P. 55(b)(2)(C); Geddes v. United Fin. Grp., 16 559 F.2d 557, 560 (9th Cir. 1977). 17 III. DISCUSSION 18 Plaintiff moves for default judgment seeking an order requiring obedience to 19 Subpoena Ad Testificandum A-1-1LECIRX, such that Defendant must 20 appear before a Board agent designated by the Regional Director of Region 20 of the Board at such time and place as 21 said Regional Director may designate and then and there produce documents and give sworn testimony and answer 22 any and all questions relevant and material to the documents set forth in Subpoena Ad Testificandum A-1-1LECIRX that 23 the board issued on April 26[, 2024]. 24 (ECF No. 1-4 at 2.) 25 A. Jurisdiction and Service 26 As a preliminary matter, a court considering whether to enter default judgment 27 must first determine whether it has jurisdiction over both the subject matter and the 28 parties to the case. In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). 1 The Act authorizes the Board to subpoena documents related “to any matter 2 under investigation or in question.” 29 U.S.C. § 161(1) (2018). Section 11(1) “permits the 3 Board to subp[o]ena records containing information necessary or helpful to carrying out 4 its statutory duties at the investigative, as well as at the hearing stage of its 5 proceedings.” N.L.R.B. v. British Auto Parts, Inc., 266 F. Supp. 368, 372 (C.D. Cal. 6 1967), aff’d, 405 F.2d 1182 (9th Cir. 1968). 7 If a subject fails to obey such a subpoena, the Board may apply to the district 8 court for aid in compelling the production of the documents sought. Id.; 29 U.S.C. 9 § 161(2) (2018). Section 11(2) of the Act states, 10 In case of contumacy refusal to obey a subp[o]ena issued to any persons, any district court of the United States ... within 11 the jurisdiction of which the inquiry is carried on or within the jurisdiction of which said person guilty of contumacy or 12 refusal to obey is found or resides or transacts business, upon application by the Board shall have jurisdiction to issue 13 to such person an order requiring such person to appear before the Board, its member, agent, or agency, there to 14 produce evidence if so ordered, or there to give testimony touching the matter under investigation or in question; and 15 any failure to obey such order of the court may be punished by said court as a contempt thereof. 16 17 29 U.S.C. § 161(2). Here, Defendant resides in Sacramento, California. (ECF Nos. 1-3, 18 18.) The Court has jurisdiction over the subject matter and the parties to this action. 19 B. Eitel Factors 20 For the following reasons, the Court finds that the Eitel factors weigh in favor of 21 granting default judgment against Defendant. 22 1. Factor One: The Possibility of Prejudice to the Plaintiff 23 The first Eitel factor considers whether the plaintiff would suffer prejudice if default 24 judgment were not entered, and such potential prejudice to the plaintiff weighs in favor of 25 granting a default judgment. See PepsiCo, 238 F. Supp. 2d at 1177. Here, the Clerk of 26 Court entered default against Defendant on September 3, 2024 (ECF No. 12), and 27 Defendant has not participated in the litigation despite being served with the Application, 28 1 default judgment motion, and the Court’s January 31, 2015 order. See Docket. Plaintiff 2 would suffer prejudice if the Court did not enter a default judgment because it would be 3 without recourse for recovery. Accordingly, the first Eitel factor favors the entry of default 4 judgment. 5 2. Factors Two and Three: The Merits of the Claims and the 6 Sufficiency of the Complaint 7 The merits of Plaintiff’s substantive claims and the sufficiency of the Complaint 8 are considered together due to the relatedness of the two inquiries. The Court must 9 consider whether the allegations in the Complaint are sufficient to state a claim that 10 supports the relief sought. See Danning, 572 F.2d at 1388; PepsiCo, Inc., 238 F. Supp. 11 2d at 1175. Here, the merits of the claims and the sufficiency of the Application favor 12 entry of default judgment. 13 “The scope of [a district court’s] inquiry in an agency subpoena enforcement 14 proceeding is narrow.” N.L.R.B. v. North Bay Plumbing, Inc., 102 F.3d 1005, 1007 (9th 15 Cir. 1996). The court is limited to reviewing only “(1) whether Congress has granted the 16 authority to investigate; (2) whether procedural requirements have been followed; and 17 (3) whether the evidence is relevant and material to the investigation.” Id. If that test is 18 met, then the subpoena must be enforced unless the responding party can prove that 19 the inquiry is unreasonable because it is unduly burdensome or overly broad. Id. at 20 1007; see also N.L.R.B. v. International Medication Systems, 640 F.2d 1110, 1114 (9th 21 Cir. 1981) (“[I]f the investigation is legitimate, the subpoenas is not needlessly broad, 22 and the records sought are relevant to the inquiry,” the subpoena should be enforced.), 23 cert. denied 455 U.S. 1017 (1982). 24 As to the first factor, Congress has granted the NLRB broad investigatory powers, 25 such that “[t]he Board may issue subpoenas requiring both the production of evidence 26 and testimony during the investigatory stages of an unfair labor practice proceeding.” 27 N.L.R.B. v. North Bay, 102 F.3d at 1008. The subpoena here was issued in the course of 28 the Board’s investigation of Board Case No. 20-CA-327874, under the prosecutorial 1 authority granted to the Board to enable to it to prevent or remedy unfair labor practices 2 under the Act. See 29 U.S.C. § 161(1). 3 Second, the procedural requirements have been followed. Board subpoenas may 4 be served by certified mail, and the return post office receipt serves as proof of service. 5 29 U.S.C. § 161(4). Here, the appropriate Board official duly served the subpoena on 6 Defendant by delivering it via certified mail addressed to Defendant’s home, as 7 confirmed by postal records. Appl., Exh. 2. 8 As to the third factor, Defendant’s evidence is relevant and material to the 9 investigation into alleged unfair labor practices against Gibson. Prior to the Board 10 hearing at which she was subpoenaed to testify, Defendant’s statements concerned a 11 key element of Gibson’s claim that he was terminated for engaging in protected 12 activities. The Court therefore finds the second and third Eitel factors favor the entry of 13 default judgment. 14 3. Factor Four: The Sum of Money at Stake in the Action 15 Under the fourth Eitel factor, the Court considers the amount of money at stake in 16 relation to the seriousness of Defendant’s conduct. PepsiCo, 238 F. Supp. 2d at 1176. 17 Here, Plaintiff seeks injunctive relief only. No money damages are sought. Accordingly, 18 the fourth Eitel factor favors the entry of default judgment. 19 4. Factor Five: The Possibility of Dispute Concerning Material Facts 20 The facts of this case are straightforward, and Plaintiff has provided the Court with 21 well-pleaded allegations and documentation supporting its claims. Here, the Court may 22 assume the truth of well-pleaded facts in the complaint (except as to damages) following 23 the clerk's entry of default, and thus, there is no likelihood that any genuine issue of 24 material fact exists. See, e.g., Elektra Entm't Group Inc. v. Crawford, 226 F.R.D. 388, 25 393 (C.D. Cal. 2005) (“Because all allegations in a well-pleaded complaint are taken as 26 true after the court clerk enters default judgment, there is no likelihood that any genuine 27 issue of material fact exists.”); accord Philip Morris USA, Inc. v. Castworld Prods., Inc., 28 219 F.R.D. 494, 500; PepsiCo, 238 F. Supp. 2d at 1177. Accordingly, the fifth Eitel factor 1 favors the entry of default judgment. 2 5. Factor Six: Whether Default was Due to Excusable Neglect 3 Upon review of the record before the Court, there is no indication that the default 4 was the result of excusable neglect. See PepsiCo, 238 F. Supp. 2d at 1177. Plaintiff 5 served Defendant with the summons and the Application. (ECF Nos. 4 & 5.) Plaintiff also 6 served Defendant with notice of its motion for default judgment. (ECF Nos. 18 & 19.) 7 Despite ample notice of this lawsuit and Plaintiff’s intention to seek a default judgment, 8 Defendant has failed to participate in this action or to defend herself. Accordingly, the 9 sixth Eitel factor favors the entry of default judgment. 10 6. Factor Seven: The Strong Policy Favoring Decisions on the Merits 11 “Cases should be decided upon their merits whenever reasonably possible.” Eitel, 12 782 F.2d at 1472. Although the Court is cognizant of the policy favoring decisions on the 13 merits, that policy does not, by itself, preclude the entry of default judgment where a 14 defendant fails to appear or defend itself in an action. See PepsiCo, 238 F. Supp. 2d at 15 1177; see also Craigslist, Inc. v. Naturemarket, Inc., 694 F. Supp. 2d 1039, 1061 (N.D. 16 Cal. 2010). 17 7. Conclusion 18 Upon consideration of the Eitel factors, the Court concludes that Plaintiff is 19 entitled to the entry of default judgment against Defendants. The Court next determines 20 the terms of judgment. 21 C. Terms of Judgment 22 Plaintiff seeks injunctive relief only. (ECF No. 1-4.) The Court determines this 23 relief is appropriate. 24 IV. CONCLUSION 25 For the reasons set forth above, it is HEREBY ORDERED that the Clerk of Court 26 assign a district judge to this action. 27 / / / 28 / / / 1 IT IS HEREBY RECOMMENDED that: 2 1. Plaintiffs motion for default judgment (ECF No. 14) be GRANTED; 3 2. The court issue a finding that Defendant must appear before a Board agent 4 designated by the Board Regional Director of Region 20 at such time and 5 place as said Regional Director may designate; then and there produce 6 documents; and give sworn testimony and answer any and all questions 7 relevant and material to the documents set forth in Subpoena Ad 8 Testificandum A-1-1LECIRX that the board issued on April 26, 2024; and 9 3. The Clerk of the Court close this action. 10 These findings and recommendations are submitted to the United States District 11 || Judge assigned to the case, pursuant to the provisions of 28 U.S.C. § 636(b)(1). Within 12 | 14 days after being served with these findings and recommendations, any party may file 13 | written objections with the Court and serve a copy on all parties. This document should 14 | be captioned “Objections to Magistrate Judge’s Findings and Recommendations.” Any 15 || reply to the objections shall be served on all parties and filed with the Court within 14 16 | days after service of the objections. Failure to file objections within the specified time 17 || may waive the right to appeal the District Court’s order. Turner v. Duncan, 158 F.3d 449, 18 | 455 (9th Cir. 1998); Martinez v. Yist, 951 F.2d 1153, 1156-57 (9th Cir. 1991). 19 20 | Dated: July 11, 2025 Cc (i s □□ a1 CHI SOO KIM 99 UNITED STATES MAGISTRATE JUDGE 23 24 25 || 6/nirb1642.default.grant.f&r 26 27 28 10