Louisiana Counseling and Family v. Makrygialos

• Decision Date: 27 February 2008
• Docket Number: Civil No. 06-747 (RBK).
• Citation: 543 F.Supp.2d 359
• Parties: LOUISIANA COUNSELING AND FAMILY SERVICES, INC., et al., Plaintiffs, v. MAKRYGIALOS, LLC, et al., Defendants.
• Court: U.S. District Court — District of New Jersey

543 F.Supp.2d 359

LOUISIANA COUNSELING AND FAMILY SERVICES, INC., et al., Plaintiffs, v. MAKRYGIALOS, LLC, et al., Defendants.

Civil No. 06-747 (RBK).

United States District Court, D. New Jersey, Camden Vicinage.

February 27, 2008.

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COPYRIGHT MATERIAL OMITTED

Jamie Epstein, Cherry Hill, NJ, for Plaintiffs.

Peter George Mylonas, Law Offices of Peter George Mylonas, PC, Turnersville, NJ, for Defendants.

OPINION

KUGLER, District Judge.

This matter comes before the Court on motion by Louisiana Counseling and Family Services, Inc. ("LCFS"), Access to All, and Lucille Danford (collectively "Plaintiffs") for default judgment against Makrygialos, LLC ("Makrygialos" or "Defendant"). Plaintiffs' claims, brought pursuant to the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 12181 et seq., and the New Jersey Law Against Discrimination ("NJLAD"), N.J. Stat. Ann. 10:5-1 et seq., arise from Defendant's alleged failure to make its property accessible to the disabled. For the reasons set forth below, the Court will deny Plaintiffs' motion.

I. BACKGROUND

LCFS is a nonprofit organization with operations in Louisiana and New Jersey. (Am.Compl.¶ 1.) Its affiliate group Access to All advocates on behalf of the disabled in areas of public access and employment. (Id. ¶ 2.) Lucille Danford is a disabled resident of Camden, New Jersey, who is a member of Access to All. (Id. ¶ 3.) Plaintiffs filed an initial complaint against Gaetano's Steaks & Subs, Inc.; Taco House, Inc.; George Mylonas; and Franco Celia Men's Hair Artist on February 17, 2006. In that complaint, Plaintiffs allege that the commercial property at 5245 Marlton Pike, Pennsauken, New Jersey — which they believed Mr. Mylonas owned and where Defendants operate businesses — fails to comply with the ADA's and NJLAD's mandates for accessibility. (Compl.¶¶ 4-8.) The alleged violations include deficiencies in the ramp leading to the building, an insufficient number of handicapped parking spaces and access ramps, inadequate condition of the pavement, and failure to remove architectural barriers. (Id. ¶ 20.) Defendants were served with summonses on or about March 2, 2006.

Beginning on March 7, 2006, Mr. Mylonas made several attempts to inform Plaintiffs that he did own the property located at 5245 Marlton Pike. (Def.'s Opp'n Exs. A-C.) In each of these communications, Mr. Mylonas requested that Plaintiffs amend their complaint and substitute the actual owner, Makrygialos, for Mr. Mylonas. (Id.) Additionally, in June of 2006, Makrygialos allegedly voluntarily undertook various remedial measures, some of which included installing handicap ramps with railings and repairing all exterior walkways. (Id. ¶ xvi.) These improvements were purportedly documented in photographs and provided to Plaintiffs. (Id.)

On August 8, 2006, five months after the initial request, Plaintiffs filed an amended complaint and Makrygialos was served shortly thereafter. Also around this time, settlement discussions ensued between Plaintiffs and Makrygialos. (Id. ¶¶ ix, xi, xiii, xiv.) These communications included the exchange of a draft settlement agreement. (Id. ¶¶ ix, xvi, Ex. E.) According to Defendant, the last communication between the parties regarding settlement occurred on August 24, 2006. (Id. ¶ xiv.) During that conversation, the parties allegedly discussed the appropriate allocation of costs and fees among the four named defendants. (Id.) At that stage, Defendant states that Plaintiffs had yet to identify the fees and costs they would be demanding. (Id.) Following that final conversation, Defendant attests that Plaintiffs took no additional affirmative steps toward settlement with it. (Id. ¶ xv.)

Notably, none of the defendants timely answered Plaintiffs' amended complaint, and on October 2, 2006, the Clerk of the Court entered default as to all of them. For the next ten months, the only activity in the case was the stipulation of dismissal as to Defendant Taco House. Finally, on August 12, 2007, Plaintiffs filed a motion for default judgment as to Defendant Gaetano's Steaks & Subs and Makrygialos.¹ On August 31, Plaintiffs dismissed their counts against Gaetano's Steaks & Subs, leaving the motion for default judgment pending only against Makrygialos. On September 4, 2007, Makrygialos filed an answer to Plaintiffs' amended complaint of August 8, 2006 as well as an opposition to Plaintiffs' motion for default judgment. Lastly, on November 16, 2007, Plaintiffs amended their motion for default judgment to reflect Gaetano Steaks & Subs' settlement.

II. STANDARD

Federal Rule of Civil Procedure 55(b)(2) authorizes courts to enter a default judgment against a properly served defendant who fails to file a timely responsive pleading. Anchorage Assoc. v. Virgin Is. Bd. of Tax Rev., 922 F.2d 168, 177 n. 9 (3d Cir.1990) ("When a defendant fails to appear ... the district court or its clerk is authorized to enter a default judgment based solely on the fact that the default has occurred."). The entry of a default judgment is largely a matter of judicial discretion, although the Third Circuit has emphasized that such "discretion is not without limits, however, and we repeatedly state our preference that cases be disposed of on the merits whenever practicable." Hritz v. Woma Corp., 732 F.2d 1178, 1181 (3d Cir.1984) (citations omitted).

Although the Court should accept as true the well-pleaded factual allegations of the complaint, the court need not accept the moving party's legal conclusions or allegations relating to the amount of damages. Comdyne I, Inc. v. Corbin, 908 F.2d 1142, 1149 (3d Cir.1990); Directv, Inc. v. Asher, No. 03-1969, 2006 WL 680533, at *1 (D.N.J. Mar. 14, 2006) (citing Charles A. Wright, Arthur R. Miller and Mary Kay Kaneet, 10A Federal Practice and Procedure § 2688, at 58-59, 63 (3d ed.1998)). Consequently, before granting a default judgment, the Court must first ascertain whether "the unchallenged facts constitute a legitimate cause of action, since a party in default does not admit mere conclusions of law." Asher, 2006 WL 680533, at *1 (citing Wright, et al., § 2688, at 63). The Court must therefore determine if Plaintiffs have stated a legitimate cause of action.

III. DISCUSSION

A. Americans With Disabilities Act

Congress enacted the ADA in 1990 with the purpose of providing "a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities" and "clear, strong, consistent, enforceable standards addressing discrimination against individuals with disabilities." 42 U.S.C. § 12101(b). The ADA focuses on discrimination against disabled individuals in three areas: employment, public services, and public accommodations. Plaintiffs here bring suit under Title III, the public accommodations provisions of the Act. Title III prohibits discrimination "on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation." Id. § 12182(a). The broad prohibitions of the ADA are implemented by regulations found at 28 C.F.R. part 36, which "require[] places of public accommodation and commercial facilities to be designed, constructed, and altered in compliance with the accessibility standards established by this part." 28 C.F.R. § 36.101. The regulations further provide explicit standards and technical specifications for new construction and modifications to existing structures in the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities ("ADAAG"). 28 C.F.R. pt. 36 App. A.

In order to succeed on a claim under Title III of the ADA, a plaintiff must prove that: (1) he was discriminated against on the basis of disability; (2) in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation; (3) by any person who owns or operates a place of public accommodation. 42 U.S.C. § 12182(a); see also Bowers v. Nat'l Collegiate Athletic Ass'n, 118 F.Supp.2d 494, 514 (D.N.J.2000).

B. Cause of Action

Before awarding a default judgment, the Court must determine whether the moving party's complaint establishes a legitimate cause of action. DirecTV v. DeCroce, 332 F.Supp.2d 715, 717 (D.N.J.2004), rev'd on other grounds sub nom. DIRECTV, Inc. v. Pepe, 431 F.3d 162 (3d Cir.2005). Accepting Plaintiffs' allegations as true, the Court finds that they do set forth a legitimate cause of action under the ADA.

i. Defendant Owns a Place of Public Accommodation

Plaintiffs allege in their amended complaint that Makrygialos owns the property located at 5245 Marlton Pike, Pennsauken, New Jersey. (Am.Compl.¶ 4.) Plaintiffs allege further that 5245 Marlton Pike is a place of public accommodation "containing places of public accommodation such as Franco Celia Men's Hair Artist, Taco House, and Gaetano's Steaks & Subs," and that Title III is the pertinent provision of the ADA. (Id. ¶¶ 15, 20.) Therefore, Plaintiffs have alleged facts sufficient to show that Defendant owns a place of public accommodation.

ii. Defendant Discriminated on the Basis of Disability

Plaintiffs state that Plaintiff Lucille Danford qualifies as an individual with disabilities under the ADA. (Id. ¶ 12.) Ms. Danford and other Access to All members have purportedly visited 5245 Marlton Pike and plan to do so again in the future. (Id.) Plaintiffs allege that various structural and architectural features at 5245 Marlton Pike create barriers to the access of disabled individuals to the facility and thus constitute discrimination under the ADA. (Id. ¶¶ 22-23.) Plaintiffs specify seven aspects of the premises that they allege are in violation of 28 C.F.R. part 36-36.304 and the ADAAG. These deficiencies include: unsafe gaps in the ramp on the property; too few...