Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_07-cv-00955/USCOURTS-azd-2_07-cv-00955-6/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1331 Fed. Question: Breach of Contract

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 Mr. Baxter has not filed a Notice of Appearance or substituted in as counsel for

Defendants Gernak.

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

John Covington, et al.,

Plaintiffs, 

v.

Patriot Motorcycles Corporation, et al.,

Defendants. _________________________________

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No. CV-07-955-PHX-FJM

ORDER

This is the time set for evidentiary hearing regarding default damages

pursuant to the order of reference. (docket # 63) Plaintiffs are present and represented by

counsel, Daniel D. Maynard. Defaulted Defendants are not present despite Plaintiffs’

efforts to give them fair notice and an opportunity to participate in this proceeding.

Defendants Gernak and Simon are not present but are represented by counsel, Todd A.

Baxter1

 and Martin P. Eramo. Court reporter, Elaine Cropper, is present.

The Court and Plaintiffs’ counsel are surprised that attorneys for nondefaulted Defendants Gernak and Simon are present. Neither the Court nor Plaintiffs’

counsel received prior notice of defense counsels’ desire to actively participate in this

hearing. Although defense counsel initially expressed desired to participate in the default

Case 2:07-cv-00955-FJM Document 76 Filed 08/28/08 Page 1 of 3
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damages hearing, counsel subsequently recanted in open court and only wanted to

observe the proceedings. 

All counsel and the Court realize that the non-defaulted Defendants’

participation, or failure to participate if permitted to do so, in the default damages hearing

may have collateral estoppel consequences if the non-defaulted Defendants are liable for

Plaintiffs’ indivisible injuries and damages. Additionally, the possibility exists that there

may be inconsistent judgments if this hearing were to proceed. See, Harvey v. Home

Savers Consulting Corp., 2008 WL 724152, at *1 (E.D.N.Y. 2008) (“[I]n a multidefendant case, where some but not all defendants have defaulted, the courts have

consistently held that it is appropriate to enter judgment solely as to liability and not as to

the amount of damages to be assessed against the defaulting party, since a separate

determination of damages would pose the prospect of inconsistent judgments.”) (citations

omitted); Pfanenstiel Architects, Inc. v. Chouteau Petroleum Co., 978 F.2d 430 (8th Cir.

1992). 

All counsel agree to vacate today’s hearing so that memoranda of law or a

motion to withdraw the reference may be prepared and filed with the assigned District

Judge, the Hon. Frederick J. Martone. Counsel further stipulate to the briefing schedule

set forth hereinafter. If the order of reference is not withdrawn, the undersigned will

determine if the non-defaulted Defendants may actively participate in the default damages

hearing and, if so, the scope of that participation.

Accordingly,

IT IS ORDERED hereby vacating the evidentiary default damages

hearing set for August 27, 2008 and resetting it, if appropriate, for Wednesday, October

22, 2008 at 1:30 p.m. before the undersigned at the Sandra Day O’Connor U.S.

Courthouse, Courtroom 302, 401 W. Washington, Phoenix, Az. Allotted time: 3 hours.

IT IS FURTHER ORDERED that defense counsel for the non-defaulted

parties shall timely file either a memorandum of law on the issues described herein or a

motion to withdraw the reference on or before 5:00 p.m. on Wednesday, September 10,

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2008. Plaintiffs shall timely file either a responsive memorandum of law on the issues

described herein or a motion to withdraw the reference on or before 5:00 p.m. on Friday,

September 19, 2008. Defense counsel may file a reply on or before Wednesday,

September 24, 2008. Untimely response or replies may not be considered.

DATED this 28th day of August, 2008.

Case 2:07-cv-00955-FJM Document 76 Filed 08/28/08 Page 3 of 3