I'm sure they reacted, but they didn't file an Answer and the plaintiff has filed a motion for entry of default.
Is it possible that GAW could be found in contempt of court for failure to appear? I am not sure how it works with a corporation, but if an individual were to fail to appear at the demand of a court there would likely be failure to appear (contempt of court) charges.
Since the utility specified the LLC as the primary target, it is likely Garza knowingly decided (or his lawyer told him) to walk away without answering - thus, opening the door for a default judgment, which is the next step. A corporate (B2B) civil case that is not acknowledged and/or answered by the defendant does not constitute contempt of the process (on the surface), but it does make the plaintiff and court's job much easier.
What does this mean?
The small LLC will have a sizeable judgment against it, which would basically interfere with any continued attempt to operate and conduct legitimate business under that LLC's name.
Does it matter at this stage?
No... Gaw Miners, LLC, is defunct and no longer operational. Expect it's suspension as a LLC from the state if it already hasn't happened since I doubt Garza will dissolve the LLC properly.
What could/should happen next?
The utility should go after Garza directly; even following him in to the federal bankruptcy court system if needed. Since it can be easily proven that virtually all activity related to GAW Miners, LLC, and Garza directly before and at the time this utility contract was established surrounded fraudulent intent, there is a solid argument that can be made regarding the amount due being the responsibility of the only person listed as the primary/only Managing Member of the LLC - Mr. GARZA... and because his fraudulent conduct would be established, the corporate vial is easily pierced and the amount would be listed as NON-dischargeable under federal law.
What is the take-away from this?
LLC or not, since at least 2002, if you're going to lie, mislead, defraud, steal and/or scam under the guise of a "protected" corporate entity, be prepared to have that protection ripped away from you at some point. In this case, among others, it will happen to Garza and as soon as it does, the popcorn will be free-flowing.
Scott-
