Israel v. Southwest Recovery Services LLC

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WO
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ARIZONA
Eli B Israel,
Plaintiff,
v.
Southwest Recovery Services LLC,
Defendant.
No. CV-26-01789-PHX-KML
ORDER
Plaintiff Eli B. Israel filed this suit against Southwest Recovery Services LLC. (Doc.
1.) On May 1, 2026, an individual named JD Shade filed an answer allegedly on behalf of
Southwest Recovery. (Doc. 8 at 6.) It appears JD Shade is not an attorney. “Corporations
and other unincorporated associations,” such as LLCs, “must appear in court through an
attorney.” In re Am. W. Airlines, 40 F.3d 1058, 1059 (9th Cir. 1994); Rowland v. Cal.
Men’s Colony, Unit II Men’s Advisory Council, 506 U.S. 194, 202 (1993). Southwest
Recovery must obtain counsel if it wishes to defend this suit. The failure to obtain counsel
may result in the entry of default judgment against Southwest Recovery.
The document filed by JD Shade claims the complaint should be dismissed due to
an “agreed upon settlement with plaintiff.” (Doc. 8 at 6.) JD Shade also included emails
between Israel and another employee of Southwest Recovery. Some of those emails may
reflect Israel agreed to a settlement on April 24, 2026. (Doc. 8 at 27-28.) To ensure there
is an ongoing controversy between the parties, Israel must notify the court whether the
parties have settled. If the parties have not settled, Southwest Recovery must retain counsel
Case 2:26-cv-01789-KML Document 9 Filed 05/07/26 Page 1 of 2

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and that counsel must respond to the complaint.
IT IS ORDERED no later than May 20, 2026, plaintiff shall file a statement
indicating if the parties have settled this dispute.
IT IS FURTHER ORDERED if the parties have not settled this dispute, no later
than May 29, 2026, defendant shall obtain counsel and that counsel shall respond to the
complaint.
Dated this 7th day of May, 2026.
Case 2:26-cv-01789-KML Document 9 Filed 05/07/26 Page 2 of 2