Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_07-cv-01897/USCOURTS-casd-3_07-cv-01897-4/pdf.json

Nature of Suit Code: 470
Nature of Suit: Civil (Rico)
Cause of Action: 18:1961 Racketeering (RICO) Act

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07cv1897

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

PACIFIC ROLLFORMING, LLC,

Plaintiff,

v.

TRAKLOC INTERNATIONAL, LLC, et

al.

Defendants. _________________________________

AND RELATED COUNTERCLAIMS.

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Civil No. 07cv1897-L(JMA)

ORDER RE: ORDER TO SHOW

CAUSE

On October 21, 2008, the court granted the defense counsel’s leave to withdraw, and

ordered Defendants Trakloc North America, LLC (“TLNA”), David Jablow (“Jablow”),

Southeast Metals, Inc. (“SEM”), Gary Nelson (“Nelson”) and Thomas Horst (“Horst”) to inform

the court of their address for service if they remained in the case in propria persona or of their

new counsel’s contact information. Because only Mr. Horst timely responded, on November 24,

2008 the court issued an Order to Show cause why default should not be entered against the nonresponsive parties and why Defendant and Counterclaimant TLNA’s counterclaim should not be

dismissed. 

On December 9, 2008, a counsel responded to the order to show cause on behalf of Mr.

Jablow and TLNA. Based on the facts provided in the response, the court finds that the delay in

compliance with the October 21, 2008 order was caused by mistake and excusable neglect. 

Accordingly, the order to show cause is exonerated as to TLNA and Mr. Jablow.

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On December 12, 2008, the court received an affidavit from Mr. Nelson, President of

SEM. The court considers the affidavit in the interests of justice, although it lacked a proof of

service in violation of Rule 5 of Federal Rules of Civil Procedure and Civil Local Rule 5.2 of

this district. Mr. Nelson is not represented by counsel, however, he is hereby admonished that

he is nevertheless bound by the Federal Rules of Civil Procedure and Local Rules of this district. 

Civ. Loc. R. 83.11(a). Accordingly, any of his future filings must comply with all applicable

Federal Rules of Civil Procedure and Local Rules.

 Mr. Nelson asserted he did not receive the October 21 order until December 4, 2008. It

appears that the October 21 order was served at a different address than that currently provided

by Mr. Nelson. However, once he received the order on December 4, Mr. Nelson did not

comply with it because he believed that, as before, the counsel retained by TLNA and Mr.

Jablow would represent SEM and him as well. This understanding was unreasonable because, as

stated in the October 21 order, one of the reasons for granting the defense counsel’s motion for

leave to withdraw was the conflict among his clients. The court finds that Mr. Nelson’s failure

initially to timely respond to the October 21, 2008 order was due to mistake and inadvertence,

and that the subsequent delay in responding was due to mistake. 

Accordingly, Mr. Nelson shall be substituted in propria persona until a counsel makes an

appearance on his behalf. The order to show cause is exonerated as to him. 

The order to show cause cannot be exonerated as to SEM, however. As a corporation,

SEM cannot be represented by Mr. Nelson and can only appear in court though counsel. See

Civ. Local Rule 83.3(k); D-Beam Ltd. P’ship v. Roller Derby Skates, Inc., 366 F.3d 972, 973-74

(9th Cir. 2004). In the interests of justice and for the reasons stated with respect to Mr. Nelson,

the due date for SEM to comply with the order to show cause is extended to January 30, 2009.

For the foregoing reasons, IT IS HEREBY ORDERED as follows:

1. The November 24, 2008 Order to Show cause is exonerated as to Defendant and

Counterclaimant TLNA, and as to Defendants Jablow and Nelson.

2. The Clerk shall substitute Mr. Nelson in propria persona with the service address as

stated in his affidavit received December 12, 2008.

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3. The November 24, 2008 Order to Show Cause is not exonerated as to Defendant SEM.

4. The due date for SEM’s compliance with the November 24, 2008 Order to Show

Cause is extended until January 30, 2009. No later than January 30, 2009, SEM, though

counsel, shall show cause why its answer should not be stricken and a default entered against it

for failure to comply with the October 21, 2008 order and the applicable Civil Local Rules. 

Failure to timely comply with this order shall result in the striking of SEM’s answer and entry of

default against SEM.

5. The Clerk shall serve this order, as well as the October 21 and November 24, 2008

orders, on Mr. Nelson on behalf of SEM.

IT IS SO ORDERED.

DATED: December 17, 2008

M. James Lorenz

United States District Court Judge

COPY TO: 

HON. JAN M. ADLER

UNITED STATES MAGISTRATE JUDGE

ALL PARTIES/COUNSEL

GARY NELSON, PRESIDENT

SOUTHEASTERN METAL, INC.

117 N. COUNTRY CLUB DRIVE

HENDERSONVILLE, TN 37075 

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