Judge Ezra Explains the Impact of an Amended Complaint on a Default Judgment

Freilich v. Green Energy Resources, Inc., No. SA:12-CV-577-DAE, slip op. (W.D. Tex. Jan. 16, 2014)(Ezra, J.)

Much of this opinion is devoted to the humdrum details of default judgments. The District Court, however, also addressed the impact of an amended complaint on a prior default judgment. In this case, the District Court entered a default judgment against the corporate defendant, Green Energy Resources, Inc., after an extended period passed without its securing counsel. Slip op. at 2-4. The Freilich’s then sought to amend their complaint to add an alter ego theory against the individual defendants. Id. at 4, 8-9. The District Court pointed out that “courts routinely set aside entries of defaults when plaintiffs file amended complaints.” Id. at 14 (citing Rossignol v. Tillman, No. 10-3044, 2011 WL 1193017, at *2 (E.D. La. Mar. 25, 2011)). When the Freilich’s flinched at the prospect of losing their default judgment, the District Court denied the motion to amend without prejudice. Id. at 15.