Opinion
Civil No. CCB-99-2883
April 10, 2001
MEMORANDUM
In connection with a dispute arising from the sale of an aircraft, John E. Steigerwald and Worldwide Charters, LLC sued Allen W. Bradley, Bradley Flying Services, Inc., Gibraltar Aviation, Ltd., and Summit Bank. On October 23, 2000, the court granted leave for counsel for Mr. Bradley, Bradley Flying Services, and Gibraltar to withdraw. (CCB-99-2883, Memorandum and Order issued Oct. 23, 2000.) In that Order, the court stated that "the defendants, Bradley Flying Services, Inc., and Gibraltar Aviation, Ltd. shall have until November 13, 2000 to have new counsel enter his appearance. . . ." (Id.) New counsel did not make an appearance and, on November 27, 2000, the plaintiffs moved for an order to show cause why a default should not be entered against the corporate defendants. See D. Md. R. 101.2.b ("In the event that within thirty days of the filing of the motion to withdraw, new counsel has not entered an appearance, the Court may . . . direct the party to show cause why a default should not be entered on claims asserted against it.").
On March 28, 2001, the court granted summary judgment in favor of Summit Bank on all claims. (CCB-99-2883, Memorandum and Order issued March 28, 2001.)
The court granted that motion on December 4, 2000 and ordered Bradley Flying Services and Gibraltar "to show cause in writing within ten (10) days . . . why a default should not be entered against them on claims being asserted against them by the Plaintiffs in Counts I through VI of the Complaint in the captioned case." (CCB-99-2883, Order issued Dec. 4, 2000.) The defendants responded on December 13 with a "Response to Show Cause Request" signed by Mr. Bradley under the caption, "PRO S.E. DEFENDANTS, Allen W. Bradley, Bradley Flying Services, Inc., Gibraltar Aviation, Ltd." In that memorandum, the defendants argued primarily that the court should not enter a default against them because they can no longer afford to pay counsel.
"In all courts of the United States the parties may plead and conduct their own cases personally or by counsel as, by the rules of such courts, respectively, are permitted to manage and conduct causes therein." 28 U.S.C. § 1654 (2000). According to the local rules for the District of Maryland, "[o]nly individuals may represent themselves." D. Md. R. 101.1.a. That rule is in keeping with "the law for the better part of two centuries . . . that a corporation may appear in the federal courts only through licensed counsel." Rowland v. California Men's Colony, 506 U.S. 194, 201-02, 113 S.Ct. 716, 721 (1993) (citations omitted). See also Osborn v. United States Bank, 9 Wheat. 738, 829-30, 22 U.S. 738, 829-30 (1824) ("A corporation, it is true, can appear only by attorney, while a natural person may appear for himself."); Eagle Assocs. v. Bank of Montreal, 926 F.2d 1305, 1310 (2d Cir. 1991) (upholding a default judgment entered against a partnership for failing to "comply with the district court's order directing it to appear with counsel"); Acme Poultry Corp. v. U.S., 146 F.2d 738, 740 (4th Cir. 1945) ("The handling of the case in court for the corporation was a matter for its counsel, not for its officers."); Ashley-Cooper Sales Servs., Inc. v. Brentwood Mfg. Co., 168 F. Supp. 742, 745 (D.Md. 1958) ("[T]he Federal courts, including the Supreme Court and the Fourth Circuit Court of Appeals, have held that a corporation cannot appear in court in proper person, but must appear by attorney authorized to practice before the court.").
Accordingly, the court will grant the plaintiffs' motion and enter a default against defendants Bradley Flying Services, Inc. and Gibraltar Aviation, Ltd. in favor of the plaintiffs on claims asserted in Counts I through VI of the Complaint in this case. A separate Order follows.
ORDER OF DEFAULT
For the reasons stated in the accompanying Memorandum, it is hereby ORDERED that:
1. A default judgment as to liability is entered against defendants Bradley Flying Services, Inc. and Gibraltar Aviation, Ltd. in favor of the plaintiffs on claims asserted in Counts I through VI of the Complaint in this case;
2. Counsel for the plaintiffs may have until April 30, 2001 to submit an appropriate statement and proof by affidavit and documents of the damages sought as to each Count; and
3. Copies of this Order and the accompanying Memorandum shall be mailed to counsel for the plaintiffs as well as the defendants Allen W. Bradley, Bradley Flying Services, Inc., and Gibraltar Aviation, Ltd.