Gilbert v. FCA US, LLC ( 2024 )

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 ZACHARY B. GILBERT, Case No. 1:22-cv-01285-NODJ-EPG 12 Plaintiff, 13 v. ORDER RE: REQUEST FOR ENTRY OF JUDGMENT 14 FCA US, LLC et al., (ECF No. 17). 15 Defendants. 16 17 In this removed action, Plaintiff asserts claims relating to an allegedly defective vehicle 18 against Defendants FCA US, LLC; Gill Auto Group; and Does 1 through 10. (ECF No. 1). The 19 Court entered a scheduling order on March 1, 2023. (ECF No. 11). 20 On February 6, 2024, Plaintiff filed a request for entry of judgment (ECF No. 17) pursuant 21 to Federal Rule of Civil Procedure 68(a), which provides as follows: 22 At least 14 days before the date set for trial, a party defending against a claim may serve on an opposing party an offer to allow judgment on specified terms, with the 23 costs then accrued. If, within 14 days after being served, the opposing party serves written notice accepting the offer, either party may then file the offer and notice of 24 acceptance, plus proof of service. The clerk must then enter judgment. 25 Fed. R. Civ. P. 68(a). 26 Attached to Plaintiff’s request is Defendant FCA US LLC’s offer of judgment. Among 27 other things, the offer of judgment provides as follows: (1) $30,000 to Plaintiff “in exchange for a 28 dismissal with prejudice as to the entire action against all defendants; (2) a “dismissal shall be 1 filed within 5 days upon satisfaction of funding” and “FCA will satisfy such funding obligations 2 within 90 days after execution and return of this offer”; and (3) “[i]f the parties are unable to 3 resolve attorney’s fees and costs, Plaintiff may seek reasonable costs, expenses and attorneys’ 4 fees pursuant to a properly noticed motion pursuant to Rule 54 of the Federal Rules of Civil Procedure and Civil Code Section 1794(d).” The offer is dated on January 12, 2024, and Plaintiff 5 accepted the terms of the offer on January 19, 2024. 6 As to Rule 68, the Ninth Circuit has stated as follows: 7 Rule 68 allows no discretion on the part of the district court. If the plaintiff accepts 8 a Rule 68 offer, “it is automatically entered by the clerk of court.” Beauchamp, 816 F.3d at 1223 (quoting Nusom, 122 F.3d at 834). There is broad agreement on 9 this aspect of the rule. See, e.g., Mei Xing Yu v. Hasaki Rest., Inc., 944 F.3d 395, 10 400 (2d Cir. 2019) (“Rule 68(a)’s command that the clerk must enter judgment is mandatory and absolute.”); Ramming v. Nat. Gas Pipeline Co. of Am., 390 F.3d 11 366, 371 (5th Cir. 2004) (“the district court did not have the discretion to refuse to enter the Offer of Judgment” or change its terms); Mallory v. Eyrich, 922 F.2d 12 1273, 1279 (6th Cir. 1991) (the district court's function is “ministerial rather than discretionary”). 13 Under the plain text of Rule 68, the District Court properly entered judgment 14 according to the County’s offer of judgment. Our review of the rule, above, shows that it was designed to function in a mechanical manner. A Rule 68 “offer, once 15 made, is non-negotiable; it is either accepted, in which case it is automatically 16 entered by the clerk of court, or rejected, in which case it stands as the marker by which the plaintiff’s results are ultimately measured.” Nusom, 122 F.3d at 834. 17 Nor does the text of the rule admit of exceptions to the fourteen-day period during which an offer of judgment remains open. Rule 68 simply provides that “[i]f, 18 within 14 days after being served, the [plaintiff] serves written notice accepting the offer,” the acceptance may be filed and judgment must be entered, Fed. R. Civ. P. 19 68(a); “[a]n unaccepted offer is considered withdrawn,” Fed. R. Civ. P. 68(b). 20 Kubiak v. Cnty. of Ravalli, 32 F.4th 1182, 1187–88 (9th Cir. 2022). 21 Given the requirement that a judgment be automatically entered by the Clerk of Court 22 upon the acceptance of a Rule 68 offer, IT IS ORDERED as follows: 23 1. The Clerk of Court is directed to enter judgment in favor of Plaintiff in the amount of 24 $30,000.00 pursuant to the terms of the Rule 68 Offer. 25 2. Given that the offer of judgment requires the filing of a dismissal with prejudice of the 26 entire action, the parties shall file an appropriate dispositional document by no later than 27 May 7, 2024. Alternatively, if the parties are unable to file a dispositional document by 28 ! this date, they shall file a joint status report explaining the reasons for the delay and when they plan to file a dispositional document. 3 3. Also by May 7, 2024, Plaintiff shall file any motion for attorney’s fees and related 4 nontaxable expenses, assuming the parties are unable to resolve this issue. See Fed. R. 5 Civ. P. 54(d)(2)(B)(G) (providing that a motion for attorney’s fees and related nontaxable 6 expenses must be filed no later than 14 days after the entry of judgment unless a court 7 orders otherwise). 8 4. In light of the offer of judgment’s condition that this action be dismissed as to all 9 Defendants, the Court vacates all deadlines and dates in the scheduling order. (ECF No. 10 11). 11 IT IS SO ORDERED. 12 13 | Dated: __February 7, 2024 [sf ey — 4 UNITED STATES MAGISTRATE JUDGE 15 16 17 18 19 20 21 22 23 24 25 26 27 28