Mendoza v. Cavallo's of Chelsea, Inc.

Background

The court had previously awarded Plaintiff Serveriano Mendoza default judgment and referred the case to Magistrate Judge Debra Freeman to determine damages. Judge Freeman issued an unchallenged Report and Recommendation stating that Defendants should be held jointly and severally liable to Mendoza for $70,515.86. Joint and several liability means that the liable defendants may each be responsible for the full amount, subject to applicable rules about collection. The recommendation also included $2,253.18 in prejudgment interest, additional prejudgment interest to be calculated by the Clerk, $2,935.00 in attorneys’ fees, and $400.00 in costs.

Review of the Recommendation

Because no defendant appeared or objected to the Report and Recommendation, Judge Broderick reviewed it for clear error, meaning an obvious mistake in the magistrate judge’s findings or recommendations. He found none.

After the Report was issued, Mendoza filed a suggestion of bankruptcy concerning Defendant Salvatore Naimo. Mendoza stated that he would “cease pursuing his claims” against Naimo because of the automatic bankruptcy stay. The court concluded that the stay did not extend to Naimo’s co-defendants, Cavallo’s of Chelsea, Inc. and Antonio Coppola. However, the court concluded that adopting the Report as to Naimo would continue a judicial proceeding against a debtor, which the automatic stay prohibits.

Disposition

The court adopted Judge Freeman’s Report and Recommendation as against Cavallo’s of Chelsea, Inc. and Antonio Coppola, referred to as the “Non-Naimo Defendants.” It directed the Clerk of Court to enter judgment against those defendants under the Report’s terms and to terminate the action. The court did not adopt the Report as to Naimo. It stated that Mendoza may move to reopen the action and seek adoption of the Report as to Naimo if and when Naimo’s bankruptcy concludes.