Bon Worth, Inc. v. Runway 7 Fashions, Inc.

Background

On February 19, 2021, Runway 7 notified the court that Bonworth’s bankruptcy proceedings were likely to conclude by March 17, 2021, which would lift the automatic stay in this case. The court directed the parties to file a joint status report about the bankruptcy proceedings and the next steps in the case by March 24, 2021.

Bonworth’s lawyers renewed their request to withdraw from the case on February 23, 2021. The court granted that request on February 24, 2021. Because Bonworth is a corporation and corporations cannot represent themselves in federal court, the court stated that it would consider a motion for default judgment from Runway 7 if successor counsel for Bonworth did not appear by March 10, 2021.

Order

The court did not receive the required status report by March 24, 2021. Successor counsel for Bonworth had not appeared, but Runway 7 had not filed a motion for default judgment.

The court ordered Runway 7 to show cause by April 12, 2021, meaning to explain why the action should not be dismissed for failure to prosecute under Rule 41 of the Federal Rules of Civil Procedure. The court stated that Runway 7 could show cause by properly submitting a motion for default judgment under the court’s individual rules. The court further ordered that failure to submit a timely and proper motion for default judgment would result in dismissal of the case under Rule 41.

Disposition

The court issued an order to show cause; it did not dismiss the case in this order. Judge Paul A. Engelmayer set the April 12, 2021 deadline and identified the consequence of failing to file a proper and timely motion for default judgment.