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Tabb v. Mentor Protection Service LLC

United States District Court, W.D. Oklahoma

June 29, 2018

ROLAND TABB, individually and on behalf of others similarly situated, Plaintiffs,
v.
MENTOR PROTECTION SERVICE LLC and MARIO GOGGINS, Defendants.

          ORDER

          TIMOTHY D. DEGIUSTI UNITED STATES DISTRICT JUDGE

         This matter comes before the Court on Plaintiffs' Motion for Entry of Final Default Judgment [Doc. No. 7]. On February 7, 2018, the Court Clerk entered default against Defendants Mentor Protection Service LLC and Mario Goggins [Doc. No. 6], and Defendants have not responded to the present motion. For the reasons stated below, the Court finds Plaintiffs' motion should be granted.

         BACKGROUND

         Plaintiff Roland Tabb brought this putative collective action on behalf of himself and a class to recover unpaid overtime wages and other damages under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (“FLSA” or “the Act”). Defendants were served with the Summons and Complaint on October 20, 2017 [Doc. No. 4]. To date, neither defendant has answered nor otherwise responded to the Complaint. On February 7, 2018, the Court Clerk entered default against Defendants for failing to plead or otherwise defend the present action [Doc. No. 6]. Accordingly, pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure, Plaintiff, individually, moves for an entry of default judgment consisting of statutory and liquidated damages totaling $20, 448.00, post judgment interest in the amount of $345.57, attorney's fees in the amount of $2, 425.00 and $1, 681.49 in costs.

         STANDARD OF DECISION

         The entry of default judgment is committed to the sound discretion of the Court. Tripodi v. Welch, 810 F.3d 761, 764 (10th Cir. 2016). The Court may consider a variety of factors in the exercise of such discretion, including:

(1) the degree of actual prejudice to the defendant; (2) the amount of interference with the judicial process; (3) the culpability of the litigant; (4) whether the court warned the party in advance that dismissal of the action would be a likely sanction for noncompliance; and (5) the efficacy of lesser sanctions.

Ehrenhaus v. Reynolds, 965 F.2d 916, 921 (10th Cir. 1992) (internal citations omitted).[1] Default judgments are generally disfavored in light of the policy that cases should be tried upon their merits whenever reasonably possible. In re Rains, 946 F.2d 731, 732 (10th Cir. 1991). Nonetheless, default judgment is viewed as a reasonable remedy when the adversary process has been halted because of an essentially unresponsive party. Id.

         DISCUSSION

         When a defendant fails to answer or otherwise defend against an action, Rule 55 of the Federal Rules of Civil Procedure provides two distinct sequential steps: the entry of default and the entry of default judgment. See Fed. R. Civ. P. 55(a), (b); Guttman v. Silverberg, 167 Fed.Appx. 1, 2 n. 1 (10th Cir. 2005) (unpublished) (“The entry of default and the entry of a judgment by default are two separate procedures.”). Initially, a party must ask the Clerk of the Court to enter default. Fed.R.Civ.P. 55(a). Only when the Clerk has complied may a party seek default judgment. Garrett v. Seymour, 217 Fed.Appx. 835, 838 (10th Cir. 2007) (unpublished) (holding that entry of default is a prerequisite for the entry of a default judgment under Rule 55(b)(1)). The procedural requirements for grant of default judgment by the Court is that the application be accompanied by an affidavit in compliance with LCvR 55.1, which states “[n]o application for a default judgment shall be entertained absent an affidavit in compliance with the Servicemembers Civil Relief Act, [50 U.S.C. § 3931].” To this end, it is undisputed Defendant has failed to answer or plead, default was entered by the Clerk, and Plaintiff has satisfied the Court's procedural requirements. See Pl.'s Mot. for Default Judgment and supporting Affidavit [Doc. Nos. 5, 5.1].

         Upon an entry of default, the Court takes all the well-pleaded facts in a complaint as true. See Tripodi v. Welch, 810 F.3d 761, 765 (10th Cir. 2016) (noting that after default is entered, “a defendant admits to a complaint's well-pleaded facts and forfeits his or her ability to contest those facts.”) (citation omitted); United States v. Craighead, 176 Fed.Appx. 922, 924 (10th Cir. 2006) (“The defendant, by his default, admits the plaintiff's well-pleaded allegations of fact, is concluded on those facts by the judgment, and is barred from contesting on appeal the facts thus established.”) (unpublished, citation omitted). However, the Court need not accept the moving party's legal conclusions or factual allegations relating to the amount of damages sought.

         Therefore, before granting a default judgment, the Court must first ascertain whether the uncontested facts constitute a legitimate cause of action, since a party in default does not admit mere conclusions of law. See, e.g., Mathiason v. Aquinas Home Health Care, Inc., 187 F.Supp.3d 1269, 1274-75 (D. Kan. 2016) (“Even after default, it remains for the court to consider whether the unchallenged facts constitute a legitimate basis for the entry of a judgment since a party in default does not admit conclusions of law. Furthermore, a default judgment does not establish the amount of damages. Plaintiff must establish that the amount requested is reasonable under the circumstances.”) (internal citations omitted); Gunawan v. Sake Sushi Restaurant, 897 F.Supp.2d 76, 83 (E.D.N.Y. 2012) (“[A] default does not establish conclusory allegations, nor does it excuse any defects in the plaintiff's pleading. Thus, with respect to liability, a defendant's default does no more than concede the complaint's factual allegations; it remains the plaintiff's burden to demonstrate that those uncontroverted allegations, without more, establish the defendant's liability on each asserted cause of action.”) (citations omitted).[2]

         “If [a] defendant does not contest the amount prayed for in the complaint [by failing to answer] and the claim is for a sum certain or a sum that can be made certain by computation, the judgment generally will be entered for that amount without any further hearing.” Craighead, 176 Fed.Appx. at 925 (citation omitted); H.B. Hunt v. Inter-Globe Energy, Inc., 770 F.2d 145, 148 (10th Cir. 1985) (“[A] court may enter a default judgment without a hearing only if the amount claimed is a ...


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