Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_18-cv-01472/USCOURTS-azd-2_18-cv-01472-3/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1441 Petition for Removal- Injunctive/Declaratory Relief

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

True Freight Logistics LLC, et al.,

Plaintiffs,

v. 

Global Tranz Enterprises Incorporated, et 

al.,

Defendants.

No. CV-18-01472-PHX-JGZ

AMENDED ORDER1

Global Tranz Enterprises Incorporated, 

Counterclaimant, 

v. 

True Freight Logistics, LLC, et. al.,

Counter-Defendants.

On February 5, 2020, the Court dismissed Counter-Defendant True Freight 

Logistics LLC’s (TFL) Second Amended Complaint for failure to prosecute and failure to 

comply with the Court’s orders directing TFL to obtain counsel. (Doc. 90.) The February

5, 2020 Order also directed Global Tranz Enterprises Incorporated (GlobalTranz) to file a 

notice indicating how it wanted to proceed on its counterclaims, which it did. (Doc. 91.) 

Upon consideration of GlobalTranz’s Notice, the Court takes the actions set forth in this 

order.

1 This Order amends Doc. 94 at page 3, line 8 to correct the description of the 

dismissed counterclaim.

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GlobalTranz has alleged three pending counterclaims: (1) breach of contract against 

TFL; (2) breach of the implied covenant of good faith and fair dealing against TFL; and 

(3) tortious interference with contract against TFL and Joshua Goldstein. Pursuant to Rule 

41(a)(2), Fed. R. Civ. P., GlobalTranz seeks to voluntarily dismiss its counterclaim for 

tortious interference with contract against TFL and Goldstein. GlobalTranz also requests

entry of default against TFL on the two remaining counterclaims based on TFL’s failure to 

defend. The Court will grant GlobalTranz’s requests. 

The Court will dismiss GlobalTranz’s counterclaim for tortious interference with 

contract against TFL and Goldstein without prejudice pursuant to Rule 41(a)(2). Rule 

41(a)(2) permits the Court to grant a request for dismissal “on terms the court considers 

proper.” Dismissal without prejudice is appropriate here given that the Court previously 

dismissed TFL’s claims against GlobalTranz without prejudice.

The Court will also direct entry of default pursuant to Rule 55(a), Fed. R. Civ. P., 

against TFL as to GlobalTranz’s remaining counterclaims. Rule 55(a) permits entry of 

default “[w]hen 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.”

2

“A 

corporation’s failure to comply with a court order to secure legal counsel has been 

characterized as a failure to ‘otherwise defend’ the action pursuant to Rule 55(a).” First 

Tech. Capital, Inc. v. Airborne, Inc., 378 F. Supp. 3d 212, 216 (W.D.N.Y. 2019) (citations 

omitted).

As discussed in the Court’s previous orders, TFL cannot represent itself. The Court

advised TFL that failure to obtain counsel could result in entry of default judgment against 

TFL. Nonetheless, TFL failed to comply with the Court’s orders directing it to obtain 

counsel. “A corporation may not appear pro se, but must retain counsel to avoid default.” 

Carlone v. Lion & the Bull Films, Inc., 861 F. Supp. 2d 312, 318 (S.D.N.Y. 2012) (citing 

2

“Although Rule 55(a) contemplates that entry of default is a ministerial step to be 

performed by the clerk of court, . . . a district judge also possesses the inherent power to 

enter a default.” City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 128 (2d 

Cir. 2011) (citation omitted). 

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Rowland v. California Men’s Colony, 506 U.S. 194, 201–02 (1993)); see also United States 

v. High Country Broadcasting, 3 F.3d 1244, 1245 (9th Cir. 1993) (affirming entry of 

default judgment where corporate defendant failed to comply with court’s orders to retain 

counsel). Because, the instant record establishes that TFL “is in default for its failure to 

‘otherwise defend’ against” GlobalTranz’s counterclaims, First Tech. Capital, Inc., 378 

F.Supp.3d at 217, entry of default is appropriate. 

Accordingly,

IT IS ORDERED:

1. GlobalTranz Enterprise, Inc’s counterclaim against Joshua Goldstein and 

True Freight Logistics, LLC for tortious interference with contract is DISMISSED 

WITHOUT PREJUDICE pursuant to Rule 41(a)(2) of the Federal Rules of Civil 

Procedure.

2. The Clerk of Court is directed to enter default against True Freight Logistics 

LLC as to GlobalTranz Enterprise, Inc.’s remaining counterclaims for breach of contract 

and breach of the implied covenant of good faith and fair dealing.

IT IS FURTHER ORDERED:

1. GlobalTranz Enterprise Inc. shall file and serve a motion for default 

judgment no later than thirty (30) days from the filing date of this Order. The motion shall 

address: (a) procedural history of the action, (b) the default judgment factors set forth in 

Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986); (c) the legal authority that sets out the 

elements of the causes of action upon which GlobalTranz seeks default judgment; (d) the 

legal basis—with specific citations to statutes and case law—for the requested damages

claims and any requested attorney’s fees, which must be supported by admissible evidence 

and detailed calculations; (e) any other information necessary for the Court to make a 

determination as to any issue or damages calculation; and (f) any other matter GlobalTranz 

deems necessary for resolution of the motion.

//

//

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2. GlobalTranz is advised that failure to file its motion for default judgment by 

the deadline set forth above may result in dismissal of this action pursuant to Rule 41(b), 

Fed. R. Civ. P., for failure to prosecute and/or failure to comply with a court order.

Dated this 4th day of March, 2020.

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