Failure To Hire New Counsel Triggers Default Judgment

Posted on | May 15, 2008 | No Comments

2008-1346 Shuffle Master v. Awada
D/NV 2:04-CV-0980

Defendant Yehia Awada appeals from Judge Brian Sandoval’s refusal to reconsider his order to enter default judgment against Awada and his company/co-defendant Gaming Entertainment.  Awada filed an earlier appeal to the Ninth Circuit on the default judgment order itself.  The CAFC appeal is based on a separate Notice of Appeal, and the Ninth Circuit appeal is still pending there.

Shuffle Master sued for patent infringement, and defendants retained counsel.  After discovery, claims construction, and summary judgment briefing, defendants’ counsel moved for leave to withdraw on the grounds that defendants had not paid a significant portion of the legal bill, were behind in payments, failed to adhere to payment agreements, and offered no plan to satisfy the amount owed.

The court granted the motion, and instructed Gaming Entertainment to find new counsel and Awada to either find new counsel of file a pro se notice.  Despite warnings to do so, neither defendant complied, and the court–adopting the recommendation of the magistrate–ordered default judgment against defendants. 

Awada then tried to appear pro se and on behalf of the company.  However, since he is not a licensed attorney he cannot represent the company and his pro se notice was untimely.

Documents:

2008-1346_Sanctions_Report.pdf

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