Coastal Logistics, Inc. v. AIM Steel International, Inc.

Filing 30

ORDER granting in part and denying in part 28 Motion for Entry of Default. Signed by Judge J. Randal Hall on 11/21/2016. (maa)

IN THE UNITED

STATES DISTRICT COURT FOR THE

SOUTHERN DISTRICT OF GEORGIA
SAVANNAH DIVISION

COASTAL LOGISTICS,

INC.,

*

Plaintiff,

*
*

AIM STEEL INTERNATIONAL,

INC.,

Defendant.

CV 415-177

*
*

ORDER

Before
Default.

the

(Doc.

with a copy of
filed

an

(Docs.

Court
28.)

Plaintiff's

Motion

for

6.)

to

On

Entry

Plaintiff's

August

19,

complaint

counsel

on

for

30,

July

2015 and
15,

Defendant

2015.

filed

motion to withdraw from this case as counsel of record.1
On

25.)

September

of

The record shows that Defendant was served

the summons and complaint on June

answer

5,

is

12,

2016,

the

Court

granted

(Doc.

counsel

Defendant's motion to withdraw and directed Defendant

a

for

"to retain

new counsel and to have new counsel file a notice of appearance

in

this

hereof
(Doc.

case

[i.e.,
27.)

by

by

close

of

close

business

of

In its Order,

within

business

on

fourteen

September

(14)

26,

days

2016]."

the Court warned Defendant that,

as a

corporate entity unrepresented by counsel, its failure to timely
obtain substitute

counsel

"may result

in

1 Counsel for Defendant provided the requisite
withdraw as counsel of record on August 4, 2016.
LR 83.7,

SDGa.

the

entry of

default

notice of its intent to
(See Doc. 25-1); see also

against

[Defendant] ."

Plaintiff

filed its present Motion

November 1,

not

(Doc.

of

for Entry of Default.

On

by no later than November 15, 2016, why the Court

strike

29.)

Order

On September 28, 2016,

2016, the Court entered an Order directing Defendant

to show cause,
should

(Doc. 27, at 2.)

To

its

answer

date,

November

and

Defendant

1,

2016

enter

has

and/or

default

failed

to

have

to

against

respond

new counsel

it.

to

the

enter a

notice of appearance in this case.
Under Federal Rule of Civil Procedure 16(f),

issue

"any

just

orders,

including

those

37 (b) (2) (A) (ii) - (vii) ," if a party "fails

or other pretrial order."

authorized

to

obey a

by

Rule

scheduling

Fed. R. Civ. P. 16(f)(1)(C). Such Rule

inter alia,

37 sanctions include,

the Court may

the Court

"striking pleadings

in whole or in part" and "rendering a default judgment against

the disobedient party."

Fed. R. Civ. P. 37(b) (2) (A) (iii) & (vi) .

However, given the severity of this sanction,

the Court should

not order a default judgment unless the noncompliance is "due to

willful or bad faith disregard for
States v.
126

Certain Real

F.3d 1314,

1317

Prop.

[previous]

Located at

(11th Cir.

1997)

orders."

United

Route 1, Bryant,

(quoting Cox v.

Ala.,

Am.

Cast

Iron Pipe Co., 784 F.2d 1546, 1156 (11th Cir. 1986)).
At

this

time,

Defendant's

answer

September 12,
counsel

and

an

2016,

have

is

entry

of

default

appropriate.

As

and

striking

stated

of

above,

on

the Court ordered Defendant to retain new

new

counsel

enter

a

notice

of

appearance

by

September

26,

2016.

Upon

Defendant's

failure

Plaintiff filed its Motion for Entry of Default,

to

do

so,

which in turn

led to the Court's Order directing the Defendant to show cause
why

its

answer

should

not

be

stricken

or

defaulted

entered

against it.

Since then,

Defendant has failed to respond to the

Court's

cause

or

show

order

otherwise

notice of appearance on its behalf.

ample

notice

inaction,

its

of

these

obligations

noncompliance

have

new

counsel

enter

a

Because Defendant received

and

the

exemplifies

consequences

the

willful

of

its

disregard

that warrants the severe sanction of the striking of its answer

and the entry of default against it.2
Upon the foregoing,
(doc.
to

28)

is GRANTED

STRIKE

IN PART and the

Defendant's

against Defendant.

Plaintiff's Motion for Entry of Default

answer

(doc.

identify
default
Nat'l

Within

the

bases

judgment.
Bank,

515

6)

and

Court
to

is

DIRECTED

ENTER

DEFAULT

Plaintiff is DIRECTED to file its motion for

default judgment within thirty (30)
default.

Clerk of

its

in

motion,

days of the Clerk's entry of

Plaintiff

the pleadings

that

shall

support

See Nishimatsu Constr.
F.2d

1200,

1206

(5th

Co.,

specifically

the

Ltd.

Cir.

grant

v.

1975)

of

Houston
(W[A]

2 While Plaintiff's motion is titled as a "Motion for Entry of Default,"
Plaintiff appears to be requesting the entry of default judgment against
Defendant.
(Doc. 28, at 2.)
A default judgment and an entry of default are

not identical procedural devices.

An entry of default is a prerequisite to
obtaining a default judgment.
See 10A Charles Alan Wright, Arthur R. Miller,
& Mary Kay Kane, Federal Practice and Procedure § 2682 (3d ed. 1998) ("Prior
to obtaining a default judgment under either Rule 55(b)(1) or 55(b)(2), there
must be an entry of default as provided by Rule 55(a).").
Because Plaintiff
has not yet received an entry of default, any request by Plaintiff for the
entry of a default judgment against Defendant is premature.
3

defendant's

default

does

not

in

itself

warrant

the

court

in

entering a default judgment. There must be a sufficient basis in

the pleadings for the judgment entered.")

Plaintiff shall also

include all supporting documentation and affidavits establishing
the amount of Plaintiff's damages.
Ass'n v.

See Wells Fargo Bank,

Columbia Hardwoods & Floors,

WL 85243,

at

plaintiff1s
certain,

*3

(S.D.

Ga.

claim against

the

law

Jan.

a

requires

evidentiary hearing to

7,

Inc.,

2013)

defaulting
the

No.

CV 112-004,

("Ordinarily,

defendant

district

fix the amount of

Nat'l

court

damages.

is

2013

unless a

for

a

sum

hold

an

However,

no

to

hearing is needed when the district court already has a wealth
of evidence from the party requesting the hearing,
additional

evidence

would

be

truly

informed determination of damages."
F.3d 1225,

1231,

1232 n.13

(11th Cir.

ORDER ENTERED at Augusta,
November,

unnecessary

such that any
to

a

fully

(citing S.E.C. v. Smyth,

420

2005))).

Georgia,

this J2J

day of

2016.

HALL

UNITEp/STATES DISTRICT JUDGE
IERN DISTRICT OF GEORGIA