CAMOFI Master LDC et al v. Jerrold Pressman et al

Filing 388

ORDER ACCEPTING REPORT AND RECOMMENDATION Judge by Judge Josephine L. Staton: Pursuant to 28 U.S.C. § 636, the Court has reviewed the records on file and the Report and Recommendation 348 of the United States Magistrate Judge on Plaint iffs Motion for Sanctions. IT IS THEREFORE ORDERED that: (1) Plaintiffs Motion for Sanctions 324 is granted; and (2) default be entered pursuant to Rule 37(b)(2)(A) against defendants Michael Goldberg, Kenneth Koock, Charles Arnold, John C. Kirkland, ADI, Richard Berkshire, TUSA, Daisy Rodriguez, KC-X, and the Estate of Richard Fixaris. See Order for details. (jtil)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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6 CAMOFI MASTER LDC, et al.,
Plaintiffs,
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CASE NO. CV 11-4574-JLS (SPx)

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ORDER ACCEPTING REPORT
AND RECOMMENDATION OF
UNITED STATES MAGISTRATE
JUDGE AND DIRECTING THAT
DEFAULT BE ENTERED AGAINST
CERTAIN DEFENDANTS

vs.

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10 Jerrold Pressman, et al.,
Defendants.
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and
U.S. Aerospace, Inc.,
Nominal Defendant.

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Pursuant to 28 U.S.C. § 636, the Court has reviewed the records on file and

18 the Report and Recommendation of the United States Magistrate Judge on
19 Plaintiffs’ Motion for Sanctions. (Doc. 348.) Further, the Court has engaged in a de
20 novo review of those portions of the Report to which certain Defendants have
21 objected. Specifically, Defendants Charles Arnold, Daisy Rodriguez, KC-X
22 American Aerospace, LLC, and TUSA Acquisition Corp. argue that as innocent
23 clients kept “in the dark” from their attorney’s misconduct, they should not be
24 subject to terminating sanctions. (See Doc. 365.) For the following reasons, these
25 objections do nothing to invalidate the Magistrate Judge’s determination that such
26 sanctions are warranted here.
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First, the Ninth Circuit has made clear “[t]here is certainly no merit to the

2 contention that dismissal of [a party’s] claim because of his counsel’s unexcused
3 conduct imposes an unjust penalty on the client.” See Toth v. Trans World Airlines,
4 Inc., 862 F.2d 1381, 1387 (9th Cir. 1988) (quoting Link v. Wabash Railroad Co.,
5 370 U.S. 626, 633 (1962)). The Defendants here “voluntarily chose [their] attorney
6 as [their] representative in th[is] action, and [they] cannot now avoid the
7 consequences of the acts or omissions of this freely selected agent.” Id. (quoting
8 Link, 370 U.S. at 633-34). Second, upon reviewing the records on file, it appears
9 that these Defendants were aware of their attorney’s misconduct before Plaintiffs
10 filed their motion for sanctions. The Court therefore finds no reason to challenge
11 the Magistrate Judge’s determination. Nor do the objections of the other affected
12 Defendants, which speak to the five-factor framework of terminating sanctions,
13 (Doc. 367), alter the Court’s conclusion. Accordingly, the Court accepts the
14 findings and recommendation of the Magistrate Judge.
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IT IS THEREFORE ORDERED that: (1) Plaintiffs’ Motion for Sanctions

16 (Doc. 324) is granted; and (2) default be entered pursuant to Rule 37(b)(2)(A)
17 against defendants Michael Goldberg, Kenneth Koock, Charles Arnold, John C.
18 Kirkland, ADI, Richard Berkshire, TUSA, Daisy Rodriguez, KC-X, and the Estate
19 of Richard Fixaris.
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23 DATED: January 26, 2016
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___________________________________
HONORABLE JOSEPHINE L. STATON
UNITED STATES DISTRICT JUDGE

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