Summary Judgment – Good Cause Standard

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7^th Circuit Court of Appeals

Case Name: Arwa Chiropractic, P.C., v. Med-Care Diabetic & Medical Supplies, Inc., et al.,

Case No.: 19-1916

Officials: ROVNER, BRENNAN, and ST. EVE, Circuit Judges.

Focus: Summary Judgment – Good Cause Standard

A medical supply company sent faxes to thousands of medical providers to solicit prescriptions to sell medical equipment to the providers’ patients. One provider received numerous faxes and filed this class action challenging the faxing practices under the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227 et seq.

As the case worked its way through the district court, the supply company failed to appear and had default judgment entered against it as to liability but not damages. Later the supplier’s chief executive officer was granted summary judgment. Concerned with an inconsistency, the district court vacated the default judgment against the supply company and entered judgment for both the executive and the company. The medical provider appeals that decision.

We affirm the judgment for the executive. But because the good cause standard was not applied in vacating the default judgment against the company, and inconsistent judgments between the individual and corporate defendants do not present a problem, we reverse and remand for further proceedings on the claim against the company.

Affirmed

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.