Gonzalez v. H.K. Second Ave Restaurant Inc.
1:20-cv-04271-MKV
S.D.N.Y.Feb 20, 2024Background
- Plaintiffs Luis Gonzalez and Julio Sanchez Espinoza sued their former employers (H.K. Second Ave Restaurant Inc., Shaheen Khan, and Maha Khondoker) for alleged wage and hour violations under the FLSA and NYLL.
- The defendants never appeared or answered the complaint, and the court dismissed the action twice for failure to prosecute before letting Plaintiffs reopen it.
- Plaintiffs made three separate attempts to obtain a default judgment; each was denied for procedural defects, chiefly improper service of process.
- Plaintiffs conceded in hearings and filings that they could not confirm the existence of the business and could not properly serve any defendant.
- The court repeatedly gave Plaintiffs guidance and opportunities to cure service issues, but Plaintiffs failed to address the deficiencies or provide proof of proper service.
- The case was ultimately dismissed with prejudice following the court's previous warnings that continued procedural failures would result in dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper service of process | Plaintiffs claimed they served defendants but admitted doubts about business and personal service. | No appearance/argument | Service was deficient; default judgment denied. |
| Entitlement to default judgment | Entitled to default for lack of response | No appearance/argument | Not entitled without proof of proper service. |
| Adequacy of attempts to prosecute | Plaintiffs requested guidance after failed attempts | No appearance/argument | Plaintiffs failed to prosecute adequately; case dismissed. |
| Court’s discretion in entering default | Sought default judgment solely for lack of response | No appearance/argument | Court retains discretion; prefers resolution on merits. |
Key Cases Cited
- Enron Oil Corp. v. Diakuhara, 10 F.3d 90 (2d Cir. 1993) (preference for resolving disputes on the merits and need for proper service)
- City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114 (2d Cir. 2011) (two-step process for default judgment and court discretion)
- Guggenheim Cap., LLC v. Birnbaum, 722 F.3d 444 (2d Cir. 2013) (entry of default judgment is within trial court’s discretion)