Chapman v. Ramada Inn Vallejo
2:16-cv-02415
| E.D. Cal. | Feb 6, 2018Background
- Plaintiff Byron Chapman moved for default judgment against some, but not all, defendants; the motion lacked proof of service on the defaulted defendants.
- Plaintiff’s counsel later filed a declaration stating that courtesy copies of the motion materials were mailed to the defaulted defendants.
- The amended complaint alleges joint and several liability of all defendants and asserts each cause of action against every defendant.
- The court identified a potential conflict between entering default judgment against some defendants while others remain active given the risk of inconsistent or absurd results under Frow.
- Plaintiff did not address the Rule 54(b) and Frow issues in the original motion for default judgment.
- The court continued the hearing, ordered plaintiff to serve the order on the defaulted defendants and file proof of service, and required a supplemental brief explaining the effect of Frow and Rule 54(b).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court may enter default judgment as to fewer than all defendants when complaint alleges joint and several liability | Chapman seeks default judgment against the defaulting defendants (did not address joint-liability problem) | No argument on record from defaulted defendants (no opposition) | Court did not grant judgment; continued hearing and ordered supplemental briefing on Frow and Rule 54(b) |
| Whether plaintiff provided adequate service or proof of service for the defaulted defendants | Plaintiff asserts courtesy copies were mailed to defaulted defendants | Defaulted defendants have not appeared to contest service | Court ordered plaintiff to serve this order on the defaulted defendants and to file proof of that service within five days |
| Whether entry of partial final judgment requires explicit Rule 54(b) findings | Plaintiff did not address the Rule 54(b) requirement | N/A | Court required plaintiff to file a supplemental memorandum explaining how Rule 54(b) affects the motion |
| Risk of inconsistent judgments if some defendants default and others proceed to judgment on merits | Plaintiff did not rebut risk; did not analyze Frow precedent | N/A | Court ordered plaintiff to address Frow and the potential for inconsistent or absurd judgments in supplemental filing |
Key Cases Cited
- Curtiss-Wright Corp. v. Gen. Elec. Co., 446 U.S. 1 (discretion to enter judgment as to fewer than all defendants)
- Frow v. De La Vega, 82 U.S. 552 (warning against final decree against one defendant while cause proceeds against others)
- In re First T.D. & Investment, 253 F.3d 520 (9th Cir.) (explaining Frow standard regarding jointly liable defendants)
- Gulf Coast Fans, Inc. v. Midwest Elecs. Imp., Inc., 740 F.2d 1499 (11th Cir.) (cautioning against default judgment that could conflict with merits judgment for co-defendants)
- Shanghai Automation Instrument Co. v. Kuei, 194 F. Supp. 2d 995 (N.D. Cal. 2001) (discussing entry of differing judgments against some defendants)
