Edgar v. Westchester Parkway Consulting LLC
2:21-cv-00533
| S.D. Ohio | Sep 11, 2023Background
- Plaintiff James Edgar sued multiple LLC defendants (ten named LLCs and John Doe Corporations 1–10) in the Southern District of Ohio.
- The Court ordered the named corporate/LLC defendants to obtain licensed counsel by August 11, 2023, because corporations/LLCs cannot appear pro se.
- No counsel appeared for any named defendant by the deadline; the Court issued a show-cause order on August 23, 2023 giving the defendants 14 days to respond.
- The defendants failed to respond to the show-cause order; the order was returned as undeliverable as to PGN MGMT Echo LLC.
- The magistrate judge concluded lesser sanctions were inappropriate given repeated opportunities to secure counsel and recommended default judgment against the ten named LLCs; recommended dismissal without prejudice of the John Doe Corporations.
- The Report and Recommendation advised parties of the 14-day objection period and warned that failure to timely object waives de novo review and appellate rights.
Issues
| Issue | Edgar's Argument | Defendants' Argument | Held |
|---|---|---|---|
| Whether corporations/LLCs may proceed pro se | Corporations must be represented by counsel; therefore defendants should not proceed pro se | Defendants made no response or argument | Court held corporations/LLCs may appear only through licensed counsel and cannot proceed pro se |
| Whether lesser sanctions are appropriate before default | Edgar implicitly sought judgment/default for lack of representation and failure to follow orders | Defendants offered no basis to justify continued pro se participation or alternative sanctions | Court found lesser sanctions inappropriate given repeated opportunities and absence of counsel; recommended default |
| Whether default judgment or dismissal is proper for unidentified John Doe Corporations | Edgar sought relief as to all defendants | No response from unidentified John Does; insufficient identification/service | Court recommended dismissal without prejudice of John Doe Corporations (default judgment improper for unidentified defendants) |
Key Cases Cited
- Nat’l Labor Relations Bd. v. Consol. Food Servs., Inc., [citation="81 F. App'x 13"] (6th Cir. 2003) (corporations may appear in federal court only through licensed counsel)
- Thomas v. Arn, 474 U.S. 140 (1985) (failure to object to a magistrate judge’s report waives de novo review)
- United States v. Walters, 638 F.2d 947 (6th Cir. 1981) (same waiver principle for objections to magistrate judge recommendations)