R. BROOKE JACKSON, District Judge.
This order addresses three motions: (1) Motion to Enforce Local Rule 5(b), ECF No. 37: GRANTED in part and DENIED in part; (2) Motion for Summary Judgment, ECF No. 39: DENIED; and (3) Motion to Withdraw and Waiver of Jury Demand, ECF No. 42: GRANTED.
This is essentially a collection case. I described the general background in an order issued on March 30, 2018 in which I denied plaintiff's motion to strike three defendants' notice of removal, and I denied the same three defendants' motion to dismiss. ECF No. 26. I will begin this order by repeating, more or less, the same background.
The plaintiff is Gustavson Associates, LLC. To reduce confusion resulting from the appearance in the chronology of many variations on "Skyland Petroleum" in the pleadings, I will bold and capitalize the five named defendants where their names appear unless it is within a direct quote. They are as follows:
The following are either facts alleged by the plaintiff (and for present purposes assumed to be true) or facts established by documents in the record of the case.
1. The plaintiff, Gustavson Associates, LLC, is an engineering and consulting company based in Boulder, Colorado.
2. On April 13, 2016 Skyland Petroleum Limited (previously known as MUI Corporation Limited) ("the Company") issued a press release announcing the completion of its acquisition of
3. An organization chart, undated but apparently taken from a Skyland document at or after the foregoing announcement, shows "MUI Corporation Limited (to be renamed `Skyland Petroleum Limited')" at the top of the chain; then
4. On June 28, 2016 Gustavson entered into a "Professional Services Agreement" with "Skyland Petroleum," an entity with a business address in Dubai, U.A.E, and a billing address of Skyland Petroleum, P.O. Box 388, St. Peter Port, Guernsey GY1 3FG British Isles. ECF No. 10-1. Under this contract Gustavson agreed to evaluate certain assets being considered for acquisition. The estimated fee for the work was $26,770 with a retainer of $10,000. In its amended complaint Gustavson refers to these assets as the "Fund Energy assets." ECF No. 6 at ¶11. Gustavson refers to this contract as the PSA 1 agreement or the PSA 1 contract.
5. On July 11, 2016 Gustavson entered into a second Professional Services Agreement with Skyland Petroleum for evaluation of assets being considered for acquisition. ECF No. 10-2. Plaintiff alleges that "Skyland had suspended further interest in the Fund Energy assets and requested Gustavson to shift its efforts towards evaluating the Mirninsky licenses in the same general area." ECF No. 6 at ¶13. Gustavson refers to this contract as the PSA 2 agreement or the PSA 2 contract. This contract has a stamp over the signature block which says, "Skyland Petroleum Group," and underneath that in smaller letters the words "Skyland Management Consultants" and the Post Office Box address of the Dubai office on the first page of the contract.
6. Gustavson provided a report to Skyland Petroleum entitled Estimate of Reserves and Resources for the Mirninsky License Area, Located in Siberia. ECF Nos. 10-3 and 10-4 at 1-43. This report had a report date of October 12, 2016 and an effective date of January 1, 2017. Gustavson also provided an Addendum to the report with a report date of October 27, 2016 and an effective date of January 1, 2017. ECF No. 10-4 at 44-76.
7. On October 24, 2016
8. On November 2, 2016
9. Gustavson alleges that the total charges for its services and work product pursuant to the PSA 1 and PSA 2 contracts totaled $174,410.95. ECF No. 6 at ¶16. However, Gustavson negotiated with "Skyland management" and reached an agreement upon a compromised amount of $110,000. Id. at ¶17.
10. On November 4, 2016 Gustavson sent an invoice for $110,000 to "Skyland Services Limited" at P.O. Box 144, St. Peter Port, Guernsey GY1 3HX. ECF No. 10-5. This invoice has never been paid.
11. On December 24, 2016 Dr. Robsen, the Chairman and Managing Director of
12. On January 31, 2017 Edwin C. Moritz, President of Gustavson, sent a letter to Skyland Services Limited at P.O. Box 388, St. Peter Port, Guernsey GYI 3FG, requesting payment of the "overdue invoice" dated November 4, 2016. ECF No. 10-12.
13. On February 6, 2017 Mr. Moritz sent an email to Elizabeth Landles of
14. On February 24, 2017
15. On March 6, 2017 Mr. Moritz again emailed Ms. Landles, attaching another copy of the invoice, noting that it was for work on the Mirninsky licenses that were being evaluated by "Skyland," that the results were published on "Skyland's website," and that the invoice was approved by Mark Sarssam. He copied Mr.
16. On April 21, 2017
17. On June 8, 2017
18. Gustavson has submitted several emails between Mr. Moritz and Mr.
19. Gustavson alleges that
20. Gustavson alleges that
21. Gustavson alleges that Skyland Petroleum, Skyland Petroleum Group,
22. This lawsuit was filed in the District Court for Boulder County, Colorado. The Amended Complaint, now the operative pleading, was filed in that court on August 25, 2017. The Amended Complaint names the five defendants.
23. Mr.
24. Plaintiff asserts 10 claims: (1) breach of contract — invoice; (2) quantum meruit — contract implied in law; (3) quantum meruit — contract implied in fact; (4) intentional interference with contract against
25. Plaintiff prays for the following relief: (a) compensatory and consequential damages jointly and severally against all defendants; (b) pre-judgment and post-judgment interest; (c) attorney's fees and costs; (d) punitive damages; (e) treble damages on the CCPA claim; and (f) a declaratory judgment piercing the corporate veil.
26. On December 14, 2017 the three defendants that had been served at that time removed the case to this Court, invoking federal jurisdiction on grounds of diversity of citizenship pursuant to 28 U.S.C. § 1332. ECF No. 1.
Plaintiff requests that this Court (1) enforce D.C.Colo.LCivR 5(b) against the corporate defendants; (2) enter default judgement against the corporate defendants; and (3) enter an order compelling defendants' compliance with plaintiff's request for production of documents. ECF No. 37. Plaintiff further requests that this Court impose a 10-day deadline on defendants to obtain counsel and to reply to its outstanding discovery requests. Id. at 3. In response, Mr.
Local attorney Rule 5(b) provides that, where the client of the withdrawing attorney is a corporation or other legal entity, "absent prompt appearance of substitute counsel, pleadings and papers may be stricken, and default judgment or other sanctions may be imposed against the entity." D.C.COLO.LAttyR 5(b). In this case, I granted defendants' motion to withdraw on June 29, 2018. ECF No. 36. In that minute order, I reminded defendants that entities cannot represent themselves in this case, and that they must retain counsel or face the possibility of a judgment by default. Id. It has now been five months since I granted defendants' motion to withdraw. As such, I grant plaintiff's request to order corporate defendants to obtain counsel. However, because of the holidays, I will not order them to obtain counsel within 10 days of receipt of this order. Rather, corporate defendants must obtain counsel on or before January 15, 2019. If corporate defendants fail to comply with this order, default judgment and other sanctions will be imposed against the entities.
I also grant plaintiff's request to order both corporate defendants and Mr. Martino to reply to plaintiff's outstanding discovery request found in Exhibit A, ECF No. 37-1. Defendants must comply with this order on or before January 25, 2019. The Court will not delay discovery any longer. Accordingly, plaintiff's motion is GRANTED with the exception of its requested 10-day deadlines.
Plaintiff seeks summary judgment on nine of its ten claims for relief. But plaintiff's short motion simply restates this case's facts and procedural history. At no point does plaintiff argue that it satisfies the summary judgment standard found in Fed. R. Civ. P. 56(a). In response, defendants assert that Mr. Moritz's affidavit "contains many factual inaccuracies, mis-representations and groundless implications which we intend to refute formally in a fair trial. . . ." ECF No. 41 at 1.
The Court may grant summary judgment if "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). The moving party has the burden to show that there is an absence of evidence to support the nonmoving party's case. Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986). The nonmoving party must "designate specific facts showing that there is a genuine issue for trial." Id. at 324. The Court will examine the factual record and make reasonable inferences therefrom in the light most favorable to the nonmoving party. Concrete Works of Colorado, Inc. v. City & Cty. of Denver, 36 F.3d 1513, 1517 (10th Cir. 1994).
Plaintiff has not satisfied its burden here. I cannot determine from plaintiff's brief whether there are genuine and material fact disputes, nor did the brief provide defendants with adequate notice of the specific facts or claims on which it should focus its argument. I note that defendants' response, where it states that defendants will refute the factual inaccuracies of Mr. Moritz's affidavit formally at trial, would typically not suffice to defend against a summary judgment motion. However, here, plaintiff's motion is so lacking in substance that I could not grant summary judgment in its favor even if defendants never filed a response. Further, defendants' response does dispute one fact: the meaning of the August 29 communication with Mr. Moritz. ECF No. 41 at 1. Accordingly, plaintiff's summary judgment motion is DENIED.
Plaintiff asks the Court to vacate its demand for jury trial. Instead, plaintiff wishes to try its case to the Court. It has now been over 45 days since plaintiff filed this motion, and defendants have yet to respond. Because defendants have not responded in the allotted time, and because defendants never made an independent demand for a jury trial, plaintiff's request is GRANTED.