Hubbard v. Alku, LLC

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UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
____________________________________
)
DARRELL HUBBARD, )
)
Plaintiff, )
)
) Civil Action No. 24-CV-12582-AK
v. )
)
ALKU, LLC, )
L.A. Care Health Plan )
)
Defendants. )
)
MEMORANDUM AND ORDER ON PLAINTIFF’S MOTION TO AMEND
KELLEY, D.J.
On April 4, 2025, this Court ordered the Plaintiff, Darrell Hubbard, “to submit,
within thirty (30) days from the date of th[at] order, evidence that in failing to pay the arbitration
fees, Hubbard both acted with good faith throughout the arbitration proceedings and is
experiencing genuine indigency.” [Dkt. 45]. On April 8, 2025, Hubbard filed a Motion for
Leave to File an Amended Complaint with Notice of Intent to File a Motion for Summary
Judgment [Dkt. 46], along with two declarations: (1) a Declaration of Good-Faith Regarding
Arbitration Conduct and (2) a Declaration of Indigency. [Dkts. 47, 48]. On April 22, 2025, the
Defendants filed an Opposition. [Dkt. 49]. For the following reasons, Plaintiff’s Motion to
Amend [Dkt. 46] is DENIED and the suit is DISMISSED WITH PREJUDICE. Further,
Hubbard’s Motion for Summary Judgment [Dkt. 50] and Third Motion to Expedite [Dkt. 51] are
DENIED AS MOOT.
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I. GOOD FAITH AND INDIGENCY
As stated in the Court’s April 4 Order, “several courts have previously allowed cases to
move forward, despite orders compelling arbitration, when parties show that they are unable to
pay their share of the arbitration fees and have made a good faith effort to participate in
arbitration. . . . Important to the determination, however, is a showing that the party attempting to
litigate in court must show that non-payment of arbitration fees was not the result of ‘failure,
neglect, or refusal to arbitrate.’” [Dkt. 45 at 2] (citations omitted) (quoting CellInfo, LLC v. Am.
Tower Corp., 506 F. Supp. 3d 61, 71 (D. Mass. 2020)).
In CellInfo, the Court found that “only upon a satisfactory showing that the non-paying
party acted in good faith and under a genuine indigency—inadvertently causing the premature
termination of the arbitration proceedings—would lifting a stay and adjudicating in court be
appropriate.” 506 F. Supp. 3d at 67. A showing of indigency requires more than “empty
pockets.” Id. “Rather, [the party] must show that it diligently arbitrated, that it sought alternative
funds but failed, that it attempted to adjust payment, get a discount or delay from the AAA, that
it did not drag foot without action, that it made reasonable efforts to arbitrate in good faith.” Id.;
see also Pre-Paid Legal Servs., Inc. v. Cahill, 786 F.3d 1287, 1294 (10th Cir. 2015) (“In the
arbitration proceeding, Mr. Cahill did not show he was unable to afford payment, ask the
arbitrators to modify his payment schedule, or move for an order requiring Pre-Paid to pay his
share for him so that arbitration could continue. Instead, by refusing multiple requests to pay, he
allowed arbitration to terminate.”).
Despite the Court’s Order, Hubbard has failed to offer sufficient evidence that he both
acted with good faith and is currently experiencing genuine indigency. As to good faith,
Hubbard’s declaration, without more, does not provide satisfactory evidence to rebut the
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Defendants’ showing of bad faith in the arbitration process. Hubbard claims that the evidence of
his inappropriate statements directed towards the other party, the appointed arbitrator, and the
American Arbitration Association, Inc. (“AAA”) is a “mischaracterization of [his] conduct[
]based on selective emails or procedural attacks.” [Dkt. 47 at 2]. Yet, he fails to offer
documentary evidence to the contrary other than conclusory statements in his declaration. All
that remains before the Court is evidence produced by defense counsel, which shows that
Hubbard intended to use arbitration as “preparation” for litigation and failed to make reasonable
efforts to arbitrate in good faith.
Similarly, Hubbard’s claim of genuine indigency is insufficient. Hubbard’s declaration
[Dkt. 48] only purports to show “empty pockets,” which is inadequate. As stated by the
Defendants, “H[ubbard] has presented no evidence that he sought alternative funds but failed,
that he attempted to adjust payment, or that he attempted to get a discount or appropriate delay
from AAA. He has also presented no evidence of any efforts to obtain unemployment benefits
or other assistance.” [Dkt. 49 at 5]. In light of the above, Hubbard has failed to comply with this
Court’s Order that he show that he “both acted with good faith throughout the arbitration
proceedings and is experiencing genuine indigency.” [Dkt. 45].
II. THE COMPLAINT
Finally, this Court further found that Hubbard’s original Complaint failed to comply with
Rules 8 and 10 of the Federal Rules of Civil Procedure. [Id. at 4]. Along with a showing of good
faith and indigency, Hubbard was ordered to file an amended complaint that complied with both
rules. A review of the Amended Complaint [Dkt. 46] shows that, despite removing language
related to summary judgment, no other substantive changes were made to the complaint. The
Amended Complaint still “violate[s] Fed. R. Civ. P. 8(a)(2)’s requirement of a ‘short and plain
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statement,’ as well as Fed. R. Civ. P. 10(b)’s demand that ‘[a] party must state its claims or
defenses in numbered paragraphs, each limited as far as practicable to a single set of
circumstances.’” [Dkt. 45 at 4] (first quoting Fed. R. Civ. P. 8(a)(2); then Fed. R. Civ. P. 10(b)).
Again, Hubbard failed to comply with this Court’s April 4 Order. [Id.].
III. CONCLUSION
For the foregoing reasons, Plaintiff’s Motion to Amend [Dkt. 46] is DENIED and the suit
is DISMISSED WITH PREJUDICE for failure to comply with this Court’s April 4, 2025
Order. [Dkt. 45]. Further, Hubbard’s Motion for Summary Judgment [Dkt. 50] and Third
Motion to Expedite [Dkt. 51] are DENIED AS MOOT.
SO ORDERED.
Dated: January 21, 2026 /s/ Angel Kelley
Hon. Angel Kelley
United States District Judge
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