Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_12-cv-02845/USCOURTS-casd-3_12-cv-02845-1/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 28:1331 Fed. Question: Securities Violation

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

JOSEPH SHORTAL; JOHN

STAMATIS; PAUL BARDEN;

KENNETH VAUGHAN; MICHAEL

SIMON, 

Plaintiffs,

 vs. 

HESSGEN, INC.; BRIAN HESS;

ANDY MILLS; DOES 1-10, inclusive,

 Defendants.

CASE NO. 12cv2845 WQH (NLS)

ORDER

HESSGEN, INC.; BRIAN HESS, 

 Cross Claimants,

 vs. 

JACK MOTT; ANDY MILLS; ROES 1-

10, inclusive,

Cross Defendants.

ANDY MILLS, 

 Cross Claimant,

 vs. 

GEORGE MALASEK; DAVID

RUTKOSKE; BRIAN HESS;

HESSGEN, INC.; JACK MOTT,

Cross Defendants.

HAYES, Judge:

The matter before the Court is the Motion for Entry of Default on the Complaint

Against Defendants Hessgen, Inc. and Brian Hess filed by Plaintiffs Joseph Shortal,

John Stamatis, Paul Barden, Kenneth Vaughan, and Michael Simon. (ECF No. 53).

Federal Rule of Civil Procedure 55(a) provides that, “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.” 

Plaintiffs have directed their request for entry of default to the Court, instead of the

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Clerk. “Normally, the clerk of the court will enter default without any action being

taken by the court.” In re Bradford, No. C 12-5999 SBA, 2013 WL 2443259, at *2

(N.D. Cal. June 4, 2013) (citing Fed. R. Civ. P. 55(a)). “However, a default may also

be entered by a court.” Id. (citing See In re Burchell Enterprises, Inc., No. 04-

5193SBA, 2005 WL 1154302, at *1 (N.D. Cal. May 16, 2005)). 

On June 20, 2013, the Court issued an Order permitting counsel for Defendants

Hessgen, Inc. and Brian Hess to withdraw. (ECF No. 41 at 4). The Court ordered that

Brian Hess shall “notify the Court as to whether he will proceed pro se or retain new

counsel” within 60 days of the date of the Order. Id. The Order notified Defendant

Hessgen, Inc. that it had 60 days to obtain new counsel and have counsel file a notice

of appearance. The Order warned that “if [Hessgen, Inc.] fails to obtain new counsel

and have counsel file a notice of appearance, it may be subject to default proceedings.” 

Id. (citing United States v. High Country Broad., 3 F.3d 1244, 1245 (9th Cir. 1993)). 

I. Defendant Brian Hess

Defendant Brian Hess has not notified the Court as to whether he will proceed

pro se or retain new counsel. Within sixty (60) days of the date of this Order, Brian

Hess shall notify the Court as to why he did not comply with the Court’s June 20, 2013

Order, and as to whether he will proceed pro se or retain new counsel. If Brian Hess

fails to notify the Court within sixty (60) days of the date of this Order, he may be

subject to default proceedings. 

II. Defendant Hessgen, Inc. 

Defendant Hessgen, Inc. has not had new counsel file a notice of appearance. 

The Court finds that Defendant Hessgen Inc.’s failure to retain new counsel in violation

of the Court’s June 20, 2013 Order justifies entry of default under Rule 55(a). By

failing to maintain representation by counsel, Defendant has failed to “otherwise

defend” in this action. See Hawkins v. AMA Mgmt, Ltd., No. C06-847P, 2007 WL

869955 at *2-3 (March 20, 2007) (ordering that “default be entered against [d]efendant

... for failure to retain counsel after withdrawal of its counsel of record” as failure to

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“otherwise defend” under Rule 55(a)); see also Empl. Painters’ Trust v. Ethan Enters.,

Inc., 480 F.3d 993, 998 (9th Cir. 2007) (“[W]e have recognized default as a permissible

sanction for failure to comply with local rules requiring representation by counsel.”). 

The Court ORDERS that default be entered against Defendant Hessgen, Inc. under

Rule 55(a). 

III. Conclusion 

IT IS HEREBY ORDERED that the Motion for Entry of Default on the

Complaint Against Defendants Hessgen, Inc. and Brian Hess filed by Plaintiffs Joseph

Shortal, John Stamatis, Paul Barden, Kenneth Vaughan, and Michael Simon (ECF No.

53) is DENIED without prejudice as to Defendant Brian Hess, and GRANTED as to

Defendant Hessgen, Inc. 

The Clerk of Court shall serve this Order on Defendants Brian Hess and Hessgen,

Inc. at the below addresses, which are the addresses provided by Defendants’ former

counsel of record, Stacie L. Rammelsberg (see ECF No. 42):

Brian Hess

Hessgen, Inc. 

5171 Santa Fe St., #I

San Diego, CA 92109

Email: brian@hessgen.com

Hessgen, Inc. 

5171 Santa Fe St., #I

San Diego, CA 92109

Email: brian@hessgen.com

IT IS SO ORDERED. 

DATED: October 15, 2013

WILLIAM Q. HAYES

United States District Judge

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