Arrow Enterprise Computing Solutions, Inc. v. BlueAlly, LLC, et al

Filing 36

ORDER granting in part and denying in part 33 Motion for Entry of Default - Arrow's Motion for Entry of Default is ALLOWED solely as to Defendant Net Direct Systems, LLC. The Motion for Entry of Default is DENIED without prejudice as to Defendants Philip Albert Santoni and Crista Marie Santoni. This denial is without prejudice to Arrow to file a renewed motion for entry of default within 30 days. Signed by Julie Richards Johnston, Clerk of Court on 11/10/2015. (Baker, C.)

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NORTH CAROLINA
WESTERN DIVISION
5: 15-CV-37-FL
ARROW ENTERPRISE COMPUTING
SOLUTIONS, INC. , a Delaware corporation,
Plaintiff,
v.

BLUEALLY, LLC, a Delaware limited
liability company, BLUEALLY DIRECT,
LLC, a Virginia limited liability company,
NET DIRECT SYSTEMS, LLC, a North
Carolina limited liability company; PHILIP
ALBERT SANTONI, an individual, and
CRISTA MARIE SANTONI, an individual,
Defendants.

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ORDER

This matter is before the clerk on the Motion for Entry of Default [DE-33] filed by
Plaintiff Arrow Enterprise Computing Solutions, Inc. , ("Arrow"). Therein, Arrow requests that
the undersigned enter default against Defendants Net Direct Systems, LLC ("Net Direct") and
Philip Albert Santoni and Crista Marie Santoni (the "Santonis").
Rule 55 of the Federal Rules of Civil Procedure provides: "When a party against whom a
judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure
is shown by affidavit or otherwise, the clerk must enter the party's default." Fed. R. Civ. P.
55(a). In this case, the undersigned finds that entry of default is appropriate as to Net Direct. The
record shows that Arrow effected service on Net Direct's registered agent via certified mail,
return receipt requested, in accordance with N.C. Gen. Stat.§ lA-1, Rule 4(j).

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The records of North Carolina Department of the Secretary State' s records show that Philip Santoni is the
registered agent for Net Direct. See 2013 Net Direct Limited Liability Company Annual Report (March 27, 2013).
Since the filing of this action , Net Direct has been administratively dissolved. See Certificate of Administrative

The undersigned cannot so find, however, as to the Santonis. Arrow contends that it
properly effected service on the Santonis by sending a copy of the complaint and summonses, via
certified mail, return receipt requested, to attorney James C. White. See Aff. of Service, Ex. B
[DE-21-2] at p. 2 (stating in a cover letter sent with the service of process that White was being
served in his "capacity as counsel for Philip Albert Santoni and Crista Marie Santoni"). Other
than the cover letter Arrow provided as an exhibit to the proof of service, there is no other
evidence before this court that Mr. White is, in fact, counsel for either of the Santonis, nor is
there evidence that he had the authority to accept service on their behalf. See, e. g., Davies v.
Jobs & Adverts Online, Gmbh, 94 F. Supp. 2d 719, 722 (E.D. Va. 2000) (recognizing that

"numerous federal courts have held that ' [t]he mere relationship between a defendant and his
attorney does not, in itself, convey authority to accept service"' (quoting United States v. Ziegler
Bolt & Parts Co., 111 F.3d 878, 881 (Fed. Cir. 1997)). The cover letter itself fails to show that

Mr. White had authority to accept service of process on the behalf of either Santoni defendant.

Id. (explaining that "the party seeking to establish the agency relationship must show 'that the
attorney exercised authority beyond the attorney-client relationship, including the power to
accept service"' and that "even where an attorney has broad power to represent a client, 'these
powers of representation alone do not create a specific authority to receive service"' (quoting
Ziegler, 111 F.3d at 881)). Accordingly, the undersigned cannot at this time enter default against

either Santoni defendant.
For the foregoing reasons, Arrow' s Motion for Entry of Default [DE-33] is ALLOWED
solely as to Defendant Net Direct Systems, LLC. The Motion for Entry of Default [DE-33] is
DENIED without prejudice as to Defendants Philip Albert Santoni and Crista Marie Santoni.

Dissolution, Document ID : C201503613635, (February 5, 2015). UnderN .C. Gen. Stat. § 57D-6-07(f), "dissolution
of the LLC does not . .. terminate the authority of the registered agent of the LLC."

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This denial is without prejudice to Arrow to file a renewed motion for entry of default within 30
days.
SO ORDERED. This the

l6~day ofNovember, 2015.

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cd::::';:;;,hards Johnsto
Clerk of Court

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