AF Holdings, LLC v. Chowdhury (12-cv-12105).

Judge Talwani denied defendant’s motion to join or substitute two alleged real parties in interest. AF Holdings brought the case in 2012, accusing Chowdhury of copyright infringement relating to a pornographic film, but failed to show at a hearing, resulting in dismissal of AF’s claims against Chowhurdy and denial of AF’s motion to dismiss Chowhurdy’s counterclaims. When AF failed to answer Chowhurdy’s counterclaims, the Court entered default judgment against AF, as well as AF aliases/alter egos AF Holdings, Inc., Prenda Law, Inc., John L. Steele, Paul A. Duffy, Paul R. Hansmeier and Mark Lutz. Several of these alter egos appealed, asserting that they were not properly named or served, and the First Circuit vacated default judgment against them, noting that even where an alter ego is alleged to be liable for a judgment, they must be hailed into court. Chowhurdy in response filed the instant motion. Judge Talwani noted, however, that a party can be substituted only where an interest is transferred to the new party during pendency of the lawsuit, which was not alleged here. Noting that the proposed new counterclaim defendants would be stuck with a default against them, rather than a judgment following adjudication on the merits, she refused to substitute them in the instant case. Judge Talwani did note that the claim that the proposed new defendants may well be the real parties in interest and subject to a new claim for relief. Accordingly, she made the denial was without prejudice to defendant seeking leave to file an amended counterclaim adding the new parties.

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