EAST ST. LOUIS – U.S. District Judge Stephen McGlynn awarded $9 million to Southern Illinois Motor Express on Oct. 22, on a damage claim against Tracey Keiser and Robert Frazier of California.
McGlynn had granted default judgment for that amount against their businesses in August, after they skipped a hearing.
They lacked counsel because three lawyers had dropped them as clients.
Keiser and Frazier managed health benefits for employers nationwide through KG Administrative Services and Keiser Group.
Southern Illinois Motor Express, a trucker with about 170 employees in Cutler, filed a fraud and defamation complaint against them in 2018.
Southern Illinois Motor Express counsel Giles Howard of St. Louis claimed Keiser and Frazier failed to process claims of more than 20 employees.
The lawsuit also claimed Southern Illinois Motor Express terminated them but Frazier stated he wouldn’t process pending claims until it paid runoff fees.
When Southern Illinois Motor Express asked for the amount of the fees and their contractual basis, Frazier allegedly stopped communicating.
Frazier and Keiser allegedly told employees their claims weren’t paid because their employer hadn’t paid amounts it owed.
Keiser and Tracey retained Daniel Watkins and Michael Long of Santa Ana, Calif., but they withdrew in 2019.
Watkins asserted communication breakdown and advised the court that their clients didn’t pay their bills.
Keiser and Tracey retained Michael Feenberg and Vikram Sohal of Encino, Calif., but they withdrew last November.
They asserted communication breakdown and advised the court that their clients didn’t pay their bills.
McGlynn set a deadline for Keiser and Frazier to retain counsel.
When they missed it, Southern Illinois Motor Express moved for entry of default.
The court clerk entered it but McGlynn granted Keiser and Frazier another chance when George Ripplinger of Belleville appeared for them.
In March, McGlynn set trial this October.
In May, Chief Judge Nancy Rosenstengel suspended Ripplinger for failure to report that the Missouri Supreme Court suspended him.
Southern Illinois Motor Express moved to enter default against KG Administrative Services and Keiser Group.
At proceedings on June 24, Keiser and Frazier represented themselves and McGlynn gave them 14 days to appear as their own counsel.
He granted entry of default against KG and Keiser Group a day later.
Southern Illinois Motor Express moved for default judgment, and McGlynn granted it on June 28.
He set an evidentiary hearing on damages July 22.
Keiser and Frazier entered appearances as counsel on July 7, but didn’t show up for the hearing.
Howard filed an affidavit of damages, and McGlynn granted default judgment against KG and Keiser Group in August.
He awarded $3,139,337.86 for defamation, $2 million for conversion, $580,561.77 for fraud, $324,919.49 in attorney fees and expenses.
He added $3 million in punitive damages.
He set trial Oct. 4, with a conference about it on Sept 14.
Keiser and Frazier missed the conference, and Southern Illinois Motor Express moved for entry of default against them a day later.
The clerk entered it.
McGlynn gave Keiser and Frazier two weeks to respond and when they didn’t, he vacated the trial date.
In his final default order he found there was no just reason for delay, “especially since other parties are also pursuing recoveries against KG Administrative Services, Keiser Group, Tracey Keiser, and Robert Frazier.”