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Federal Trade v. Hope For Car Owners

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA


August 28, 2012

FEDERAL TRADE COMMISSION, PLAINTIFF,
v.
HOPE FOR CAR OWNERS, LLC; PATRICK FREEMAN,
DEFENDANTS.

ORDER

Presently pending for hearing before the undersigned on September 5, 2012 is plaintiff's motion for default judgment against defendant Hope for Car Owners, LLC ("HCO"). Dckt. No. 31. Plaintiff indicates that the motion for default judgment can be heard without oral argument since no opposition to the motion has been filed. Dckt. No. 34; see also Dckt. No. 31 at 1, n.1. However, a review of the motion reveals that plaintiff has not explained why default judgment should be entered against HCO even though defendant Freeman is not in default*fn1 and even though the preferred practice when default is entered against one defendant in a multi-defendant case is for the court to withhold granting default judgment until trial of the action on the merits against the remaining defendant. See Fed. R. Civ. P. 54(b) ("When an action presents more than one claim for relief--whether as a claim, counterclaim, cross-claim, or third-party claim--or when multiple parties are involved, the court may direct entry of a final judgment as to one or more, but fewer than all, claims or parties only if the court expressly determines that there is no just reason for delay.").

Accordingly, IT IS HEREBY ORDERED that:

1. The September 5, 2012 hearing on plaintiff's motion for default judgment against HCO is continued to September 26, 2012 at 10:00 a.m. in Courtroom No. 24.

2. On or before September 12, 2012, plaintiff shall either withdraw the motion for default judgment or file a supplemental brief indicating why there is no just reason to delay the entry of default judgment as to HCO until plaintiff's claims against defendant Freeman have been resolved.


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