452 F.Supp.3d 794
M.D. Tenn.2020Background
- Angie M. Mullin sued under the Fair Labor Standards Act on July 13, 2018, naming Senior Lifestyles, LLC and SPB LLC (Victoria Gardens) and their owners Edward M. Butler II and Stephanie L. Butler; defendants were served.
- Clerk entered defaults against institutional defendants (Senior Lifestyles and SPB) on January 28, 2019; defaults against the individual Butlers were denied because supporting affidavits failed to satisfy the Service Members Civil Relief Act and did not address infancy/incompetence.
- The case lay largely dormant for about a year while Mullin’s counsel obtained additional affidavits and military-status checks; during that interval the Butlers divorced and Stephanie Butler pleaded guilty to multiple crimes in unrelated proceedings.
- Mullin moved for default judgment in January 2020; Edward Butler later moved to dismiss under Fed. R. Civ. P. 41(b) and laches, and Butler and Senior Lifestyles moved to set aside the default against Senior Lifestyles.
- The Court denied dismissal under Rule 41(b) and laches, granted the motion to set aside the entry of default as to Senior Lifestyles, and denied Mullin’s motion to reconsider the magistrate’s allowance of late answers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether case should be dismissed for failure to prosecute under Rule 41(b) or laches | Mullin: delays were inadvertent; counsel was working to comply with default-entry requirements and responded to show-cause order | Butler: Mullin’s long inaction and procedural sloppiness warrant dismissal; laches due to "inexplicable delays" | Denied — dismissal is a harsh sanction; record shows attorney neglect not contumaciousness, no demonstrated prejudice, plaintiff responded to show-cause, and lesser sanctions suffice (Rule 41 factors) |
| Whether to set aside the clerk’s entry of default against Senior Lifestyles | Mullin: default should stand and default judgment pursued | Butler/Senior Lifestyles: set aside because default may have been based on reasonable belief the matter was resolved (NLRB settlement); meritorious defenses exist | Granted — motion unopposed under local rules; court finds potential meritorious defense and lack of prejudice to Mullin; defaults set aside in exercise of discretion |
| Whether magistrate abused discretion by allowing late answers (motion to reconsider) | Mullin: Rule 6(b)(1)(B) requires "excusable neglect," a strict standard that was not met | Defendants: late answers were reasonable; court has discretion under Pioneer factors | Denied — magistrate did not abuse discretion; equitable Pioneer factors support allowing late answers |
Key Cases Cited
- Knoll v. AT&T, 176 F.3d 359 (6th Cir. 1999) (dismissal for failure to prosecute is a docket-management tool but is a harsh sanction)
- Schafer v. City of Defiance Police Dep’t, 529 F.3d 731 (6th Cir. 2008) (requirements for finding willfulness/bad faith and for Rule 41(b) analysis)
- Wu v. T. W. Wang, Inc., 420 F.3d 641 (6th Cir. 2005) (standard for dismissal for failure to prosecute and attorney conduct)
- Dassault Systemes, SA v. Childress, 663 F.3d 832 (6th Cir. 2011) (standards for setting aside clerk’s entry of default)
- United Coin Meter Co. v. Seaboard Coastline R.R., 705 F.2d 839 (6th Cir. 1983) (factors for setting aside a default)
- United States v. $22,050.00 U.S. Currency, 595 F.3d 318 (6th Cir. 2010) (prejudice and meritorious-defense weight in default-set-aside analysis)
- Pioneer Inv. Servs. v. Brunswick Assocs. Ltd. P’ship, 507 U.S. 380 (1993) (equitable test for excusable neglect under Rule 6)