Advanced Steel Recovery, LLC v. X-Body Equipment, Inc. et al

Filing 178

ORDER signed by Chief District Judge Kimberly J. Mueller on 3/9/2023 ORDERING that the court partially lifts the stay as to Allstate and directs the Clerk of Court to enter a default against Allstate. The order to show cause 176 is DISCHARGED. The Clerk of Court is also directed to remove James Lin as a defendant from the public docket as Lin is not a party in this case. (Mena-Sanchez, L)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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Advanced Steel Recovery, LLC,

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No. 2:16-cv-00148-KJM-JDP

Plaintiff,

ORDER

v.
X-Body Equipment, Inc., et al.,
Defendants.

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On February 17, 2023, the court ordered plaintiff to show cause within fourteen days why

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the claims against defendants Allstate Paper & Metal Recycling Co., Inc. and James Lin should

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not be dismissed for failure to prosecute. Order to Show Cause, ECF No. 176. Plaintiff timely

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responded to the order to show cause. Response, ECF No. 177.

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In 2016, the court granted the parties’ stipulated request to sever and stay the case as to

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Allstate, pending resolution of the patent infringement claims by plaintiff Advanced Steel

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Recovery, LLC, against defendants X-Body Equipment, Inc. and Jewell Attachments, LLC. In

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2019, the court granted the motion to withdraw by counsel for Allstate and directed Allstate to

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file a substitution of counsel within 30 days. Prior Order at 5, ECF No. 110. To date, Allstate has

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not filed a substitution of counsel and is an unrepresented corporate entity. See E.D. Cal. L.R.

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183(a) (“A corporation or other entity may appear only by an attorney.”). Several of the court’s

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orders have been returned as “undeliverable” to the address of Allstate and its CEO, James Lin.
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The court previously cautioned Allstate that failure to file a substitution of counsel may result in

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an order to show cause or a notice of the potential for default proceedings upon the lifting of the

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stay. Prior Order at 5.

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While the patent infringement claims by Advanced Steel Recovery against X-Body and

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Jewell have not been resolved yet, the court finds entry of default against Allstate is warranted in

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this case for the following reasons. Allstate has not complied with court orders. It has not filed a

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substitution of counsel and has been an unrepresented corporate entity for over three years.

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Allstate has not provided the court with its most current address. See E.D. Cal. L.R. 183(b) (“A

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party appearing in propria persona shall keep the Court and opposing parties advised as to his or

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her current address.”). Failure to comply with the Local Rules may be grounds for judgment by

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default or any other appropriate sanctions. See id. 183(a).

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Accordingly, the court partially lifts the stay as to Allstate and directs the Clerk of

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Court to enter a default against Allstate. The court recognizes Allstate is a customer of

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X-Body, and Allstate’s liability, if any, may depend in part on the resolution of the infringement

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claims by Advanced Steel Recovery against X-Body. See Stip., ECF No. 10. Thus, Allstate, if it

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obtains counsel, may move to set aside the entry of default and reinstate the stay. Any such

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motion shall be filed within fourteen (14) days of the clerk’s entry of default. If Allstate does

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not so move, Advanced Steel Recovery shall move for default judgment against Allstate 30 days

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thereafter in front of the assigned magistrate judge. The order to show cause (ECF No. 176) is

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discharged. The Clerk of Court is also directed to remove James Lin as a defendant from the

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public docket as Lin is not a party in this case.

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IT IS SO ORDERED.
DATED: March 9, 2023.

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