Luo v. Kaiyi Inc.

Background

Quan Luo brought the case against Kaiyi Inc., Xiang Zhuang Chen, and Hang Ying Li, also known as Jenny Li, alleging violations of the Fair Labor Standards Act and New York law. After the defendants did not appear or answer, the court entered a default judgment holding them jointly and individually responsible for damages, penalties, prejudgment interest, post-judgment interest, attorney’s fees, and costs.

Nearly six years later, Li, who was representing herself, moved to set aside the default judgment. The court granted that motion as to Li and vacated the default judgment against her. The judgment remained enforceable against Li’s husband and the business at issue, according to this order. Li then continued litigating without a lawyer despite limited legal experience and limited English-language skills. At a conference, a friend tried to translate for her, but communication remained difficult, so the court ended the conference and issued this scheduling order.

Request for Volunteer Counsel

Under 28 U.S.C. § 1915(e)(1), a court may ask a lawyer to volunteer to represent a person who cannot afford counsel. In a civil case, a person does not have an automatic right to a free lawyer, and the court cannot require or pay a lawyer to take the case. It may only request volunteer representation.

The court accepted Li’s statement that she had not sought counsel because she could not afford one and found that she was unable to pay for counsel. Applying the factors used to evaluate requests for volunteer counsel, the court found that representation could produce a quicker and fairer result by clarifying the issues and helping with questioning. The court also considered the dispute over whether Li could be an employer under the wage laws even though she said she did not own the business, her difficulty communicating with the court, the complicated procedural history, the ongoing default judgment against others, her apparent difficulty understanding that the default judgment against her had already been vacated, and the fact that the case was in its seventh year.

The court therefore directed the Clerk of Court to try to locate pro bono counsel for Li, ideally a lawyer able to communicate with her in Mandarin Chinese. The requested representation would cover all purposes, including settlement, discovery, and trial. The order stated that a volunteer lawyer might not be found and that Li should be prepared to continue without counsel. The court did not decide the merits of whether Li was liable under the Fair Labor Standards Act or New York Labor Law, although it stated that ownership of a business is not required for someone to qualify as an employer under those laws.

Scheduling Directions

The court ordered that all discovery—including interrogatories, depositions, and document production—be completed within six months of the order. Any summary-judgment motion had to be filed and served within 30 days after discovery closed. An opposition would be due within 30 days after the motion, and any reply would be due within two weeks after the opposition.

Within seven days after discovery closed, each party also had to file a letter stating whether the party intended to seek summary judgment. The order allowed either party to request an extension of the discovery or pretrial-motion deadlines if the party had litigated diligently and had a good reason for an extension. Unless an extension was granted, discovery and pretrial motions would not be allowed after the specified deadlines. The court warned that violating the order could support denial of requested relief, dismissal of the action, or another appropriate response.