Howell Management Services v. Vashisht-Rota CA4/1

I.

BACKGROUND

A. Utah Judgment HMS is a Utah-based entity that contracts with colleges and universities to recruit mostly international students for enrollment. Starting in 2015 and continuing into 2017, HMS entered a series of contracts with August Education Group, LLC (AEG), an entity of which Rota was the managing member, to perform services for HMS as an independent contractor. A dispute about compensation arose, and in November 2017, HMS sued AEG and Rota in the First Judicial District of the State of Utah (the Utah court) for a declaration it owed them no money and an injunction enforcing posttermination obligations of the operative contract. HMS later amended its complaint to add claims for defamation and related torts. As a sanction for persistent discovery misconduct by AEG and Rota, the Utah court struck their answer and counterclaim (which alleged counts for breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment), and entered their default. Rota’s interlocutory appeal of the order striking her pleadings and entering her default was dismissed as a sanction for abusive filings.

2 The Utah court held an evidentiary…