United States District Court, D. New Mexico
TRATT INDUSTRIES, LLC; TROY BAKER; and MATTHEW SHEPARD, Plaintiffs,
DWIGHT L. PATTERSON and LAURIE M. PATTERSON, Individually and as Trustees of the PATTERSON REVOCABLE TRUST; SANTA FE BUSINESS BROKERS, LLC, d/b/a SAM GOLDENBERG & ASSOCIATES; SUNBELT NEW MEXICO BUSINESS BROKERAGE, LLC; and MICHAEL GREENE, Defendants, DWIGHT L. PATTERSON and LAURIE M. PATTERSON, Individually and as Trustees of the PATTERSON REVOCABLE TRUST, Third-Party Plaintiffs,
XITECH INSTRUMENTS, INC., Third-Party Defendant.
OPINION AND ORDER (1) DENYING PLAINTIFFS' MOTION FOR
EXTENSION OF TIME (DOC. 23); (2) GRANTING
COUNTERCLAIMANTS' REQUEST FOR ENTRY OF DEFAULT ON
COUNTERCLAIM AGAINST TRATT INDUSTRIES, LLC (DOC. 24) (3)
REFERENCE TO MAGISTRATE JUDGE TO ENTER NEW SCHEDULING ORDER
and (4) ALLOWING PLAINTIFFS BAKER AND SHEPARD TO ANSWER
COUNTERCLAIM (DOC. 17) WITHIN 21 DAYS OF FILING OF THIS
MATTER comes before the Court upon the following:
• Plaintiffs' Motion for Extension of Time to Amend
Scheduling Order filed on September 6, 2019 by Plaintiffs
Troy Baker and Matthew Shepard who are proceeding pro se
(Doc. 23); and
• Request for Clerk's Entry of Default on
Counterclaim against Tratt Industries, LLC, filed by
Counterclaimants Dwight and Laurie Patterson (Doc.
reviewed the parties' briefs and applicable law, the
Court finds that Plaintiffs' motion for extension of time
lacks merit and therefore is DENIED, and that
Counterclaimants' request for entry of default against
Tratt Industries, LLC is meritorious and therefore is
GRANTED. Having entered rulings on these motions, the case is
referred back to the Magistrate Judge to enter a new
scheduling order that resets deadlines in this case. Finally,
Plaintiffs Baker and Shepard are required to file a timely
answer to the Patterson's counterclaims (Doc. 17)
according to the Federal Rules of Civil Procedure.
are suing Defendants for breach of contract, negligent
misrepresentations, fraud and other related state torts
pertaining to their purchase of a company from Defendants.
According to the complaint, Third-Party Defendant Xitech
Instruments, Inc. (“Xitech”) is in the business
of selling groundwater remediation systems which are designed
to treat polluted groundwater. Its primary customers are
environmental consultants who purchase the systems for resale
to and use by their clients.
Tratt Industries, LLC (“Tratt”) is a Wyoming
limited liability company which is in the business to
identify and acquire small manufacturing companies operating
in environmental and/or safety areas, such as Xitech, and
then to operate and profitably grow the companies.
Tratt's managing members are Troy Baker, a citizen of
Nevada and Matthew Shepard, a citizen of Kansas. In March of
2018, Tratt purchased Xitech from the Patterson Revocable
Trust (“Trust”) which owned the stock of Xitech
Instruments, Inc. (“Xitech”). Defendants and
Counter-claimants Dwight and Laurie Patterson are trustees of
Santa Fe Business Brokers, LLC, d/b/a Sam Goldenberg &
Associates is a New Mexico limited liability company.
Defendant Sunbelt New Mexico Business Brokerage
(“Sunbelt”) is a New Mexico limited liability
company that is the affiliate and sister company of Santa Fe
Business Brokers, LLC (collectively, “SGA”).
Defendant Michael Greene (“Greene”) is the
managing member and owner of both affiliated companies that
constitute SGA and is a citizen of New Mexico. SGA and Green
acted as the agents for the Trust in the sale.
Tratt, Baker and Shepard were initially represented by
counsel, but counsel sought to withdraw for unspecified
reasons and the Court granted the request on July 26, 2019.
(Doc. 22, “July 26th Order”). The Court
specifically noted in the order granting withdrawal that:
(1) local rules require Tratt, as a business entity, to be
represented by counsel and that “[a]bsent entry of
appearance by a new attorney, any filings made by Tratt
Industries, LLC may be stricken and default judgment or other
sanctions imposed; and that
(2) Plaintiffs had thirty (30) days after entry of the Order
for new counsel to enter an appearance on behalf of any of
Doc. 22 at 2. On the same day, the Court also entered an
Amended Initial Scheduling Order extending the deadlines for
the parties' preparation of a Joint Status Report and
Provisional Discovery Plan (“JSR”), requiring a
“meet and confer” between the parties by
September 4, 2019. Doc. 21.
this date, no counsel has entered an appearance for either
Tratt, Baker or Shepard. Plaintiffs filed the instant motion
for an extension of time on September 6, 2019, over two weeks