DT & C Global Management operated a ground transportation company in Chicago. The company and two of its owners were sued by former employees and the government for violating state and federal wage-payment laws. After the defendants ignored court orders, the district judges entered defauit judgments for the plaintiffs. Eleven months later, the defendants moved to vacate both judgments. See Fed. R. Civ. P. 60(b). Deeming their excuses too little, too late, the judges denied the motions, precipitating this appeal. Because the defendants did not show good cause for the default, did hot act quickly in filing motions to vacate, and failed to articulate any meritorious defenses, we conclude that the district judges did not abuse their discretion. We affirm the judgments.
I. Background
This appeal consolidates two lawsuits.. In the first, drivers sued their former employer, DT & C Global Management, LLC, and John Jansen, an owner, for wage-payment violations. In the second, the Sec-retaiy of Labor sued the company, Jansen, and William Lynch, another owner, for the same violations.
The Employees’ Case
Mark Krantz and William Dunne, two former drivers for' the company, alleged that the defendants failed to pay overtime rates, a violation of the Fair Labor Standards Act, 29 U.S.C. § 201, and the Illinois Minimum Wage Act, 820 ILCS 105/1. The plaintiffs also contended that defendants took unauthorized wage .deductions in violation of Illinois’s Wage Payment and Collection Act, 820 ILCS 115/9. '
Eleven months later, the defendants moved to vacate that judgment under Federal Rule of Civil Procedure 60(b)(1). Jansen offered two excuses. He first asserted that he had received no notices during the last few months of the case. He said he didn’t "get notice of counsel’s motion to withdraw or the judge’s order directing him to appear because his company closed its business in September 2015 and no longer received mail at their office address. Jansen didn’t get any mail sent to his home or e-mail addresses, he thinks, because he had moved to Indiana and his emails were “forwarded to another company.” As a result, he was unaware- of the default judgment against him until “summer 2016.” Second he said he could not keep in contact with his lawyers because of his poor health. He explained that surgeries
The judge denied the motion. He ruled that the default was the result of “inattention to the litigation” rather than illness, and the defendants had not shown that they had a legitimate defense.
The Department of Labor Case
The Secretary of Labor alleged the same Fair Labor Standards Act violations in its suit against DT & C, Jansen, and also William Lynch (minority owner and president of DT & C).
Discovery disputes arose here, too. The Secretary moved to compel defendants to respond to discovery requests. Defendants’ counsel—the same as in the employees’ case—moved to withdraw, again citing an inability to reach defendants. The following month the Secretary asked the court to enter a default for failure to defend. When defendants didn’t respond, the judge entered the default and default judgment.
As with the employees’ case, eleven months passed before the defendants moved to vacate the judgment. This motion was almost identical to the other one, but adds two points. First, Lynch swore that he relied on Jansen to keep him apprised of the case. Second, Lynch and Jansen admitted seeing a press release from the Department of Labor announcing the default judgment in January 2016. They both thought after reading it that they weren’t individually liable, and they weren’t worried about the company’s judgment because they had closed the business.
The judge denied the motion to vacate. She explained that Jansen’s surgeries, which occurred before the litigation started, did not excuse the default or Jansen’s failure to learn about the default judgment. She also found that defendants had failed to show a meritorious defense.
II. Analysis
On appeal, the defendants argue that the district judges abused their discretion by denying the motions to vacate. They repeat that because Jansen did not receive notice of the judgments and suffered from bad health, their neglect of the cases is excusable. See Fed. R. Civ. P. 60(b)(1). For a court to set aside a default judgment under Rule 60(b)(1), the movant must show good cause, quick action to respond to the default, and a meritorious defense to the underlying allegations. See Wehrs v. Wells,
The district judges reasonably concluded that the defendants didn’t establish
The defendants respond with their second excuse: Jansen’s move to Indiana in 2015, combined with problems of mail and email forwarding, also show good cause for losing contact with his lawyers and the court, and the resulting default. The district judges reasonably found this excuse deficient. When Jansen moved away and closed the business, he should have notified the court of his new address. See Soliman v. Johanns,
The district judges also reasonably decided that the defendants did not respond quickly after learning about the default judgment. The defendants argue that they waited only “two, three months” between when Jansen learned of the default judgment in “summer 2016” and when they filed the Rule 60(b) motion in October. (Appellants’ Br. App. at A-12, A-27.) They also point to Jansen’s undocumented hospitalization for “unspecified neurological issues” in April 2016.
The defendants’ account does not reflect quick action. First, they don’t explain how Jansen’s hospital stay in April disabled him from filing a motion to vacate until six months later, in October. Second, the defendants’ “two, three months” delay after “summer 2016” was not quick. In Jones v. Phipps, this court decided that an appellant failed to show quick action when she moved to vacate five weeks after she knew about the judgment and was capable of getting help from a lawyer.
Defendants also failed to proffer a meritorious defense to the complaint. The defense doesn’t need to be a clearly
III. Conclusion
For the foregoing reasons, we AFFIRM the district courts’ grants of Appellees’ motions to dismiss.
Notes
. The press release contains a hyperlink to the judgment, which named Jansen and Lynch as individual defendants. See U.S. Dep't of Labor, Federal judge orders Chicago limo company to pay more than $381K in back wages damages (2016), https://www.dol.gov/ newsroom/releases/whd/whd20160121.)
