Securities and Exchange Commission v. Coddington et al

Filing 245

ORDER Adopting 239 Recommendation of United States Magistrate Judge Kathleen M. Tafoya. Plaintiff Securities and Exchange Commission's Motion to Strike Answer of Coddington Family Trust (Doc. # 234 ) is GRANTED. Coddington Family Trust's Answer (Doc. # 52 ) is hereby STRICKEN. The Clerk of Court is DIRECTED to enter default against Coddington Family Trust, pursuant to Fed. R. Civ. P. 55(a). By Judge Christine M. Arguello on 09/15/2020. (athom, )

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Judge Christine M. Arguello

Civil Action No. 13-cv-03363-CMA-KMT
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
v.
JESSE W. ERWIN, JR.,
SETH A. LEYTON, and
LEWIS P. MALOUF,
Defendants, and
DANIEL SCOTT CODDINGTON, and
CODDINGTON FAMILY TRUST,
Relief Defendants.

ORDER ADOPTING RECOMMENDATION OF UNITED STATES MAGISTRATE
JUDGE KATHLEEN M. TAFOYA

This matter is before the Court on the August 21, 2020 Recommendation of
United States Magistrate Judge (“the Recommendation”) (Doc. # 239), wherein
Magistrate Judge Tafoya recommends that this Court grant Plaintiff Securities and
Exchange Commission’s Motion to Strike Answer of Coddington Family Trust (Doc. #
234), strike Coddington Family Trust’s Answer (Doc. # 52), and direct the Clerk of Court
to enter default against Coddington Family Trust pursuant to Fed. R. Civ. P. 55(a). (Doc.
# 239 at 3.) In the Recommendation, Judge Tafoya found that Coddington Family Trust
has been unrepresented in this matter for over two years—even after being ordered to

retain counsel (Doc. # 191)—and, consequently, that the entry of default against
Coddington Family Trust is appropriate and its answer should be stricken. (Doc. # 239
at 3.) The Recommendation is incorporated herein by reference. See 28 U.S.C. §
636(b)(1)(B); Fed. R. Civ. P. 72(b).
The Recommendation advised the parties that specific written objections were
due within fourteen (14) days after being served with a copy of the Recommendation.
(Doc. # 239 at 3–4.) Despite this advisement, no objection to the Recommendation has
been filed by any party.
“[T]he district court is accorded considerable discretion with respect to the
treatment of unchallenged magistrate reports. In the absence of timely objection, the
district court may review a magistrate [judge’s] report under any standard it deems
appropriate.” Summers v. Utah, 927 F.2d 1165, 1167 (10th Cir. 1991) (citing Thomas v.
Arn, 474 U.S. 140, 150 (1985) (stating that “[i]t does not appear that Congress intended
to require district court review of a magistrate’s factual or legal conclusions, under a de
novo or any other standard, when neither party objects to those findings.”)).
After reviewing the Recommendation of Magistrate Judge Tafoya, in addition to
applicable portions of the record and relevant legal authority, the Court is satisfied that
the Recommendation is sound and not clearly erroneous or contrary to law. See Fed. R.
Civ. P. 72(a). Accordingly, the Court ORDERS that the Recommendation of United
States Magistrate Judge (Doc. # 239) is AFFIRMED and ADOPTED as an Order of this
Court. It is

FURTHER ORDERED that Plaintiff Securities and Exchange Commission’s
Motion to Strike Answer of Coddington Family Trust (Doc. # 234) is GRANTED.
Accordingly, Coddington Family Trust’s Answer (Doc. # 52) is hereby STRICKEN. It is
FURTHER ORDERED that the Clerk of Court is DIRECTED to enter default
against Coddington Family Trust, pursuant to Fed. R. Civ. P. 55(a).
DATED: September 15, 2020
BY THE COURT:

_____________________________
CHRISTINE M. ARGUELLO
United States District Judge