Schatz v. Binary Bits L.L.C.

Background

The plaintiffs moved to strike ECF No. 14, a filing that purported to be Binary Bits LLC’s answer to the complaint. The filing was submitted by the company’s managing director, Antonio Evans. The opinion states that, on August 16, 2023, Judge Paul A. Engelmayer referred the case to Magistrate Judge Sarah Netburn for general pretrial supervision.

Court’s analysis

Federal Rule of Civil Procedure 12(f) permits a court to strike material from a pleading when it is an insufficient defense or is redundant, immaterial, impertinent, or scandalous. The court stated that a motion to strike is generally appropriate when no evidence supporting an allegation would be admissible or when the allegations lack a factual basis.

The court found the plaintiffs’ motion premature. It explained that a corporate defendant must appear in federal court through licensed counsel. The court stated that Binary Bits LLC had not appeared through counsel and that Evans did not appear to be a licensed attorney.

Ruling and directives

The court denied the plaintiffs’ motion to strike. It directed Binary Bits LLC to obtain counsel by September 15, 2023, and to respond to the complaint by October 15, 2023. The court encouraged Binary Bits LLC to contact the NYLAG Legal Clinic for free legal assistance.

The court directed the plaintiffs’ counsel to serve the order on the pro se defendant and file proof of service. It also encouraged the parties to engage in good-faith settlement discussions. Finally, the clerk was directed to close ECF No. 15, the motion to strike.