Wendell H. Stone Company, Inc. v. Five Star Advertising, LLC

CourtDistrict Court, D. Colorado
DecidedSeptember 7, 2022
Docket1:19-cv-03157
StatusUnknown

This text of Wendell H. Stone Company, Inc. v. Five Star Advertising, LLC (Wendell H. Stone Company, Inc. v. Five Star Advertising, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wendell H. Stone Company, Inc. v. Five Star Advertising, LLC, (D. Colo. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Chief Judge Philip A. Brimmer Civil Action No. 19-cv-03157-PAB-STV WENDELL H. STONE COMPANY, INC, individually and on behalf of all others similarly situated, Plaintiff, v. FIVE STAR ADVERTISING, LLC, and JOHNNY LEE, Defendants. ORDER This matter comes before the Court on Plaintiff’s Motion for Default Judgment [Docket No. 32]. The defendants have not entered an appearance or filed a response.

The Court has jurisdiction pursuant to 28 U.S.C. § 1331. I. BACKGROUND A. Factual Background This case arises out of the receipt of unsolicited facsimile (“fax”) advertisements. Plaintiff alleges that defendants sent unsolicited fax transmissions in violation of the Telephone Consumer Protection Act, as amended by the Junk Fax Prevention Act of 2005 (collectively, the “TCPA”), 47 U.S.C. § 227. Docket No. 1 at 2, ¶ 4; 3, ¶ 8. Plaintiff alleges that defendant Johnny Lee (“Mr. Lee”), a natural person residing in Castle Rock, Colorado, is the only registered member of defendant Five Star Advertising, LLC (“Five Star”), a limited liability company (“LLC”) with its principal office at 6247 El Diente Peak Place, Castle Rock, Colorado. Id. at 2, ¶ 2; 5, ¶ 28. Plaintiff states that on October 1, 2019, defendants transmitted a fax advertisement to plaintiff. Id. at 4, ¶ 18. Plaintiff states that the fax advertised defendants’ goods or products, it was part of defendants’ work or operations in marketing defendants’ goods or products, plaintiff never invited or gave permission to defendants to send the advertisement fax, and the fax did not

contain an opt-out provision as required by 47 U.S.C. § 227. Id. at 4, ¶¶ 20-21, 23; 5, ¶ 27. Plaintiff states “[o]n information and belief” that defendants faxed the same unsolicited advertisement to 40 other recipients without receiving the recipients’ permission or invitation. Id. at 5, ¶ 24. Plaintiff states that Mr. Lee has personal oversight of Five Star and the drafting and implementation of the fax advertisements and Five Stars’ policies regarding the TCPA. Id., ¶¶ 29-30, 32. B. Procedural Background Neither defendant has made an appearance in this case. On January 29, 2020, the Clerk of Court entered default as to Five Star, Docket No. 17, and on February 5,

2020, the Clerk of Court entered default as to Mr. Lee. Docket No. 20. On April 14, 2020, plaintiff filed a motion to certify the class. Docket No. 21. Plaintiff sought to certify a class consisting of [a]ll persons who (1) on or after four years prior to the filing of this action, (2) were sent, by [d]efendants or on [d]efendants’ behalf, (3) a telephone facsimile message substantially similar to Exhibit A, (4) from whom [d]efendants claim they obtained prior express permission or invitation to send those faxes in the same manner as [d]efendants claim they obtained prior express consent to fax the [p]laintiff. Id. at 2. The proposed class excluded judicial officers presiding over this action and their family members; defendants, their subsidiaries, parents, successors, 2 predecessors, and any entity in which defendants or their parents have a controlling interest; defendants’ current or former employees, officers and directors; plaintiff’s attorneys; persons who opt-out from the class; the legal representatives, successors or assigns of any person who opts-out; and persons whose claims against defendants have been fully adjudicated. Docket No. 1 at 6, ¶ 34. Plaintiff estimated that the

number of class members was “in the thousands.” Id. ¶ 37. On March 17, 2021, the Court granted in part and denied in part plaintiff’s motion for class certification. Docket No. 23 at 16. The Court certified the class under Fed. R. Civ. P. 23(b)(2), but declined to certify the class under Fed. R. Civ. P. 23(b)(3) because the class was not ascertainable. Id. at 7. The Court granted plaintiff leave to file an amended motion for class certification under Fed. R. Civ. P. 23(b)(3) within 30 days of March 17, 2021. Id. at 17. The Court then granted plaintiff an extension of 120 days in order to conduct discovery. Docket No. 26. Plaintiff, however, did not file an amended motion, and on November 12, 2021, plaintiff filed a motion for default judgment on its

TCPA claim. Docket No. 32. II. LEGAL STANDARD In order to obtain a judgment by default, a party must follow the two-step process described in Fed. R. Civ. P. 55. First, the party must seek an entry of default from the Clerk of the Court under Rule 55(a). Second, after default has been entered by the Clerk, the party must seek judgment under the strictures of Rule 55(b). See Williams v. Smithson, 57 F.3d 1081, 1995 WL 365988, at *1 (10th Cir. June 20, 1995) (unpublished table decision) (citing Meehan v. Snow, 652 F.2d 274, 276 (2d Cir. 1981)).

3 The decision to enter default judgment is “committed to the district court’s sound discretion.” Olcott v. Del. Flood Co., 327 F.3d 1115, 1124 (10th Cir. 2003) (citation omitted). In exercising that discretion, the Court considers that “[s]trong policies favor resolution of disputes on their merits.” Ruplinger v. Rains, 946 F.2d 731, 732 (10th Cir. 1991) (quotation and citations omitted). “The default judgment must normally be viewed

as available only when the adversary process has been halted because of an essentially unresponsive party.” Id. It serves to protect plaintiffs against “interminable delay and continued uncertainty as to his rights.” Id. at 733. When “ruling on a motion for default judgment, the court may rely on detailed affidavits or documentary evidence to determine the appropriate sum for the default judgment.” Seme v. E&H Prof’l Sec. Co., Inc., No. 08-cv-01569-RPM-KMT, 2010 WL 1553786, at *11 (D. Colo. Mar. 19, 2010). A party may not simply sit out the litigation without consequence. See Cessna Fin. Corp. v. Bielenberg Masonry Contracting, Inc., 715 F.2d 1442, 1444-45 (10th Cir.

1983) (“[A] workable system of justice requires that litigants not be free to appear at their pleasure. We therefore must hold parties and their attorneys to a reasonably high standard of diligence in observing the courts’ rules of procedure. The threat of judgment by default serves as an incentive to meet this standard.”). One such consequence is that, upon the entry of default against a defendant, the well-pleaded allegations in the complaint are deemed admitted. See 10A Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2688.1 (4th ed., 2020 rev.).

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Wendell H. Stone Company, Inc. v. Five Star Advertising, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wendell-h-stone-company-inc-v-five-star-advertising-llc-cod-2022.