Moran v. Ana G. Mendez University, 8:23-cv-01751

Maria Teresa Moran filed a breach of contract suit against Ana G. Mendez University (AGMU) alleging failure to provide required accommodations in its nursing program.
The Court granted Moran leave to proceed in forma pauperis and directed the U.S. Marshals Service to serve AGMU, but initial service attempts were defective.
The Clerk of Court entered default against AGMU following its lack of response after a later, but again questionable, service attempt.
AGMU moved to vacate the entry of default, arguing improper service and lack of notice.
The court evaluated whether to set aside the default under Rule 55(c), which requires good cause and is guided by several factors including a preference for resolving cases on their merits.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Was service of process on AGMU proper?	Default appropriate; AGMU failed to respond	Service was defective: wrong individual/address	Service was improper; default set aside
Should default be vacated under Rule 55(c)?	No prejudice to setting default	Strong policy for merits-based resolution; meritorious defenses; prompt action	Motion to vacate granted
Did AGMU have meritorious defenses?	Contested validity of defenses	Noted both procedural and substantive defenses	AGMU showed meritorious defenses
Was there prejudice or delay caused by AGMU?	Sought to hold AGMU responsible for delay	Delay attributable to plaintiff's defective service	No prejudice to plaintiff shown

United States v. Shaffer Equip. Co., 11 F.3d 450 (4th Cir. 1993) (emphasizes strong policy for cases to be decided on their merits)
Tolson v. Hodge, 411 F.2d 123 (4th Cir. 1969) (motions to vacate default must be liberally construed)
Colleton Preparatory Acad., Inc. v. Hoover Universal, Inc., 616 F.3d 413 (4th Cir. 2010) (lists factors for setting aside default)
Payne ex rel. Estate of Calzada v. Brake, 439 F.3d 198 (4th Cir. 2006) (applies factors for relief from default)