Denison v. Horsey Denison Landscaping LLC
1:25-cv-00448
| D. Maryland | May 2, 2025Background
- Donna Denison filed suit to confirm an arbitration award in her favor against Horsey Denison Landscaping LLC (HDL) and its principals, the Horseys.
- The dispute stems from HDL’s purchase of Denison Landscaping & Nursery, Inc., and Denison Farms, LLC, and involves a Stock and Membership Interest Purchase Agreement and an accompanying Note.
- HDL had previously initiated related litigation against Denison for breach of contract and declaratory judgment, in which Denison counterclaimed and added the Horseys as third-party defendants.
- Respondents failed to answer Denison’s petition by the deadline, leading to a Clerk’s entry of default.
- Respondents moved to vacate the default 14 days later, citing lack of initial counsel engagement and settlement efforts as their reason for delay.
- Denison did not oppose the motion to vacate, and no scheduling order had been set in the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default should be set aside under Rule 55(c) | Silence on post-default response; presumably favors upholding default | Prompt motion to vacate, meritorious defenses, delay due to counsel and settlement | Default vacated |
| Whether Respondents had a meritorious defense | Seeks enforcement of award, no express argument against meritorious defense | Proffered multiple defenses and referenced related ongoing litigation | Found sufficient for setting aside default |
| Reasonableness of Respondents’ promptness | No argument, did not oppose motion | Acted within 14 days; within local rule time frame | Held reasonably prompt |
| Prejudice to plaintiff by vacating default | No express prejudice asserted | No scheduling, only slight delay | No prejudice found |
Key Cases Cited
- Payne ex rel. Est. of Calzada v. Brake, 439 F.3d 198 (4th Cir. 2006) (articulates factors for vacating default)
- Colleton Preparatory Acad., Inc. v. Hoover Universal, Inc., 616 F.3d 413 (4th Cir. 2010) (preference for resolving cases on merits rather than by default)
- Augusta Fiberglass Coatings, Inc. v. Fodor Contracting Corp., 843 F.2d 808 (4th Cir. 1988) (delay alone is not prejudice sufficient to deny setting aside default)