THE DEMOCRATIC PARTY OF NJ, INC. v. DEVINE

CourtDistrict Court, D. New Jersey
DecidedMay 16, 2025
Docket2:22-cv-01268
StatusUnknown

This text of THE DEMOCRATIC PARTY OF NJ, INC. v. DEVINE (THE DEMOCRATIC PARTY OF NJ, INC. v. DEVINE) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
THE DEMOCRATIC PARTY OF NJ, INC. v. DEVINE, (D.N.J. 2025).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

: THE DEMOCRATIC PARTY OF NEW : Civil Action No. 22-01268-JXN-AME JERSEY, INC., : : REPORT and RECOMMENDATION Plaintiff, : : v. : : JAMES DEVINE, et al., : : Defendants. :

ESPINOSA, U.S.M.J. This matter is before the Court upon two separate motions by Plaintiff The Democratic Party of New Jersey, Inc., seeking sanctions against the four defendants in this action, pursuant to Federal Rule of Civil Procedure 37. The first motion, filed December 13, 2024, seeks sanctions against pro se Defendant Lisa McCormick; NJDEMS.com; and the New Jersey Democratic Party A New Jersey Nonprofit Corporation. [D.E. 146]. The second motion, filed March 28, 2025, seeks sanctions against pro se Defendant James Devine. [D.E. 151]. Together, the motions seek to strike the Defendants’ Answer and request that default be entered against them. [D.E. 146, 151]. None of the Defendants has filed written opposition or otherwise requested to be heard, despite the Court providing opportunities to appear. This Court has reviewed the record, and for the following reasons, respectfully recommends that the District Court strike Defendants’ Answer and grant Plaintiff leave to seek entry of default and thereafter to file a motion for default judgment pursuant to Federal Rule of Civil Procedure 55. I. BACKGROUND Plaintiff The Democratic Party of New Jersey, Inc. (“Plaintiff”) originally filed this action against Defendants James Devine (“Devine”); Lisa McCormick (“McCormick”); NJDEMS.com; and New Jersey Democratic Party A NJ Nonprofit Corporation (“NJDP”) (together, “Defendants”) in New Jersey Superior Court, asserting various causes of action arising

out of Defendants’ alleged creation and dissemination of mailers that implied Plaintiff endorsed or was affiliated with certain candidates for local political positions. It appears NJDP was a non- profit organization organized under the laws of New Jersey and that Devine was its registered agent and a trustee or officer, but its active status was revoked in October 2012, for failure to file annual reports. [See Declaration of Leonard S. Spinelli, D.E. 146-1 at 2, ¶¶ 4-6]. NJDEMS.com appears to be an “‘unincorporated association’ and/or a trade name of [NJDP]” with Devine being the owner and registrant. [D.E. 146-1 at 2, ¶¶ 4, 7]. On March 8, 2022, Defendants removed the case to federal court. [See D.E. 1]. After a series of motions to dismiss and denial of Defendants’ request to stay discovery, the Court issued

a Pretrial Scheduling Order on January 13, 2023. [D.E. 48]. Defendants again moved for a stay of discovery, [see D.E. 51], which this Court granted. [See D.E. 63]. Then, after the District Court granted in part Defendants’ motion to dismiss, providing Plaintiff an opportunity to file an amended complaint, Plaintiff filed a Fourth Amended Complaint (the “FAC”) on August 24, 2023, which is the operative complaint in this matter. [See D.E. 68, 69, and 84]. Plaintiff seeks relief under the Lanham Act, 15 U.S.C. §§ 1051, et seq., and the New Jersey Nonprofit Corporation Act, N.J.S.A. 15A:1-1, et seq. [See D.E. 84 at 21-27]. Plaintiff also asserts claims for unfair competition under New Jersey statute as well as under common law. [See id. at 23]. Discovery resumed, and the Court entered an amended scheduling order on October 5, 2023. [D.E. 90]. After the District Court denied their fourth motion to dismiss the complaint, Defendants filed their Answer on May 31, 2024. [See D.E. 118 and 120]. Shortly after discovery resumed, the parties encountered several discovery disputes, the first of which they submitted to the Court for resolution on December 18, 2023, and on which the Court held argument on December 19, 2023. [See D.E. 93 and 102]. On December 20, 2023, the

Court compelled Defendants to produce certain documents, including credit card and bank account statements, related to NJDEMS.com and the mailers at issue in this matter. [D.E. 94]. Instead of complying with that Order, Defendants filed a one-page letter, requesting more time to file a motion for its reconsideration and asserting they did not believe they should have to produce certain discovery. [See D.E. 95]. Plaintiff filed a letter on March 7, 2024, detailing Defendants’ “continued failure to comply with their discovery obligations.” [D.E. 103]. After hearing the parties’ respective positions about this dispute, the Court issued another Order on April 23, 2024, again compelling Defendants to produce bank account and credit card records related to the mailers by April 29, 2024. [D.E. 116]. Defendants did not produce these records by

that date. [See Spinelli Decl., D.E. 151-2 at 4, ¶ 14]. In a July 8, 2024 letter to the Court, Plaintiff explained that, in June 2024, it again requested that Defendants cure previously-identified document production deficiencies, which Defendants ignored. [D.E. 121]. Before the Court could address these discovery issues at a status conference, however, then-counsel of record, Desha Jackson, of the Desha Jackson Law Group, LLC (“Former Defense Counsel”), filed a motion to withdraw as attorney on July 15, 2024. [D.E. 126]. The Court granted that motion on August 30, 2024 (the “August 30 Order”) and provided Defendants thirty days for substitute counsel to enter an appearance on their behalf, otherwise Defendants James Devine and Lisa McCormick would be deemed pro se. [D.E. 131]. The August 30 Order also explained that Defendants NJDEMS.com and NJDP (together, the “Corporate Defendants”) were entities that could not represent themselves in federal court and, if substitute counsel did not appear on their behalf, they could face sanctions, including entry of default against them. [Id.]. On September 17, 2024, Former Defense Counsel filed proof of service of the August 30 Order on all Defendants, which also contained information for the next status conference on

October 3, 2024. [See D.E. 131 and 133]. Despite receiving notice, no Defendants appeared at the next two status conferences in this matter, which were held on October 3, 2024, and October 15, 2024. [See D.E. 133, 137, 138, 139]. The Court held another status conference on November 4, 2024, at which Devine appeared pro se but McCormick failed to appear, despite receiving notice. [See D.E. 139 and 142]. The Court held two more status conferences, on December 17, 2024, and on February 19, 2025, and McCormick failed to appear at both. To date, Defendants NJDEMS.com and NJDP (together with McCormick, the “Non-Appearing Defendants”) have not secured counsel. On November 13, 2024, the Court granted Plaintiff leave to pursue any remedies it deemed appropriate against

the Non-Appearing Defendants—who have now failed to appear for five consecutive conferences, but, by then, had failed to appear for three consecutive conferences. [D.E. 142]. After Devine’s pro se appearance at the November 4 status conference, Plaintiff sent letters to Devine that outlined outstanding discovery deficiencies on November 25, 2024, and again on December 4, 2024. [Spinelli Decl., D.E. 151-2 at 5, ¶ 17]. After Devine produced only some of the requested documents, Plaintiff identified continued deficiencies in a letter to the Court on December 12, 2024. [D.E. 144]. In response, Devine asserted he could not produce the requested information “because [he had] been lax in keeping records that are not required” and that “dealing with such minimal amounts of money absolve[d] [him] of rigorous record keeping requirements.” [Id. at 6].

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