Clear View Enterprises, LLC v. Edward Lott, et al.

Summary

The United States District Court for the Eastern District of California recommends denying Clear View Enterprises, LLC’s motion for default judgment against Victory Litigation Fund, LP. The court concludes that the claims against VLF are based on successor liability and are factually and legally intertwined with claims against nondefaulting defendants Edward Lott and ForLawFirmsOnly Marketing, Inc. Applying the Frow doctrine and related Ninth Circuit authority, the court finds that entering judgment before adjudicating the claims against the other defendants could produce inconsistent judgments.

Holdings

1. Default judgment should not be entered at this stage because Victory Litigation Fund's alleged successor liability is factually and legally intertwined with the unresolved liability of ForLawFirmsOnly Marketing, Inc. and Edward Lott.

Questions Presented

1. Whether default judgment may be entered against a defaulting defendant when that defendant's alleged liability is derivative of or otherwise intertwined with the unresolved liability of appearing codefendants.
2. Whether default judgment should be denied or deferred to avoid potentially inconsistent judgments concerning successor liability.

Disposition

other