Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_19-cv-00017/USCOURTS-caed-1_19-cv-00017-2/pdf.json

Nature of Suit Code: 891
Nature of Suit: Agricultural Acts
Cause of Action: 07:499 Agricultural Commodities Act

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UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

FRESHKO PRODUCE SERVICES, INC.,

Plaintiff,

v.

ILA PRODUCTS, INC., et al.,

Defendants.

No. 1:19-cv-00017-DAD-BAM

ORDER ADOPTING FINDINGS AND 

RECOMMENDATIONS AND DENYING 

THE PARTIES’ PROPOSED STIPULATIONS

(Doc. Nos. 13, 14, 15, 16, 17, 26, 28, 29)

Plaintiff Freshko Produce Services, Inc. filed this action on January 4, 2019, against

defendants ILA Products, Inc. (“ILA”); HFN CA, Inc. (“HFN”); Jamie Gibson; and Kathy Gibson 

pursuant to the Perishable Agricultural Commodities Act, 7 U.S.C. § 499a et seq., and related 

claims. (Doc. No. 1.) Defendants failed to timely respond to the complaint and the Clerk of the 

Court therefore entered default against them on February 21, 2019. (Doc. No. 13). 

On February 28, 2019, defendant Jamie Gibson, appearing pro se, filed an answer to 

plaintiff’s complaint. (Doc. No. 14.) On March 1, 2019, defendant Kathy Gibson, appearing pro 

se, also filed an answer to the complaint. (Doc. No. 16.) On that same date plaintiff filed a 

motion for the entry of default judgment against all defendants in the amount of $181,674.72. 

(Doc. No. 15.) On March 4, 2019, the court issued an order construing defendants Jamie Gibson 

and Kathy Gibson’s answers as motions to set aside the Clerk’s entry of default against them and 

Case 1:19-cv-00017-DAD-BAM Document 40 Filed 02/24/20 Page 1 of 3
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requiring the parties to file supplemental briefing. (Doc. No. 17.) On April 22, 2019, the 

assigned magistrate judge issued findings and recommendations recommending that defendants’ 

motions to set aside default be granted and that plaintiff’s motion for default judgment be denied 

without prejudice. (Doc. No. 26.) The parties were provided fourteen days in which to file 

objections to the findings and recommendations. (Id.) To date, no objections to the findings and 

recommendations have been filed, and the time in which to do so has now passed. 

In accordance with the provisions of 28 U.S.C. § 636 (b)(1)(c), the court has conducted a 

de novo review of this case. Having carefully reviewed the entire file, the court finds the findings 

and recommendations to be supported by the record and by proper analysis.

The court notes that the parties filed two stipulations with the court on June 5, 2019. 

(Doc. Nos. 28, 29.) The first stipulation seeks to enter judgment in favor of plaintiff and against 

all defendants pursuant to a settlement agreement. (Doc. Nos. 28, 28-1.) The second stipulation 

seeks to dismiss defendant Kathy Gibson without prejudice from this action and enter judgment 

against all other defendants. (Doc. No. 29.) The stipulations are signed by plaintiff and 

defendants Jamie Gibson and Kathy Gibson. However, defendants Jamie Gibson and Kathy 

Gibson stated in their motions to set aside default that (1) neither of them have ever been an 

owner, officer, director or shareholder of ILA, and (2) HFN and ILA are separate business 

entities. (Doc. Nos. 14 at ¶¶ 6,7; 16 at ¶ 8.) Moreover, defendant Jamie Gibson’s reply brief 

notes that ILA has not had an agent of service since October 2018. (Doc. No. 25 at 2.) Thus, it 

appears that no appearance in this action has been entered by defendant ILA to date. As such, the

parties cannot stipulate to entry of judgment against defendant ILA pursuant to a settlement

reached between plaintiff and the other remaining defendants. However, if they still wish to do 

so, the parties may stipulate to the dismissal of defendant Kathy Gibson from this action without 

entry of judgment in favor of plaintiff against all other defendants.

Accordingly:

1. The findings and recommendations issued on April 22, 2019 (Doc. No. 26) are 

adopted in full; 

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2. Defendants Jamie Gibson and Kathy Gibson’s motions to set aside the Clerk of the 

Court’s entry of default against them (Doc. Nos. 14, 16) are granted;

3. The Clerk of the Court is directed to set aside default as to defendants Jamie 

Gibson and Kathy Gibson (Doc. No. 13);

4. Plaintiff’s motion for entry of default judgment (Doc. No. 15) is denied without 

prejudice; and

5. The parties’ proposed stipulations (Doc. Nos. 28, 29) are denied.

IT IS SO ORDERED.

Dated: February 22, 2020 

UNITED STATES DISTRICT JUDGE

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