Hounddog Productions, L.L.C. v. Empire Film Group, Inc., 767 F. Supp. 2d 480

Plaintiffs Hounddog Productions L.L.C. and The Motion Picture Group, Inc. sue Empire Film Group, Inc., Bornstein, and Parkinson for copyright infringement and breach of contract relating to a March 7, 2008 distribution agreement.
Empire allegedly breached obligations under the distribution agreement by continuing exploitation of Hounddog after notice of termination.
Magistrate Judge Cott ordered discovery production and later required appearance of counsel for Empire and notice of representation status for Parkinson and Bornstein; Defendants failed to comply.
Plaintiffs moved to strike Defendants' answer and for default judgment; Magistrate Judge recommended default against Empire, denial against Parkinson, and a stay as to Bornstein due to bankruptcy.
The Court adopted the Report: stay against Bornstein; default against Empire; Parkinson denied default but warned re future noncompliance; proceedings to continue for damages against Empire and for other pretrial steps.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Empire should be defaulted for failure to retain counsel and comply with orders	Empire failed to appear through counsel and ignored orders.	No merit; Empire should be excused due to possible later retention of counsel and lack of prejudice to plaintiffs.	Default against Empire granted; stay for Bornstein and proceeding with Parkinson; damages to be determined by inquest.
Whether Bornstein should be stayed due to bankruptcy	Bankruptcy stay should pause action against Bornstein.	Bankruptcy applies to Bornstein only, not co-defendants.	Stay ordered against Bornstein pending bankruptcy resolution.
Whether Parkinson should face default or be allowed to proceed pro se	Parkinson's delays and noncompliance justify default and harsh sanctions.	Parkinson seeks to litigate and has shown intent to comply; merits should control.	Default denied for Parkinson; allowed to proceed with safeguards and potential swift sanctions if noncompliance continues.

Mergent Services v. Flaherty, 540 F.3d 89 (2d Cir. 2008) (corporation may only appear through counsel)
Jones v. Niagara Frontier Trans. Auth., 722 F.2d 20 (2d Cir. 1983) (corporation cannot appear pro se; need licensed attorney)
Grace v. Bank Leumi, 443 F.3d 180 (2d Cir. 2006) (reiterates default standards and prejudice considerations)
Pecarsky v. Galaxiworld.com, Ltd., 249 F.3d 167 (2d Cir. 2001) (sanctions considerations and preference for merits)
Teachers Ins. & Annuity Ass'n v. Butler, 803 F.2d 61 (2d Cir. 1986) (automatic stay and non-debtor co-defendant context)