795 F. Supp. 2d 79
D.D.C.2011Background
- Plaintiffs are U.S. citizens or guardians/representatives of U.S. citizens who were victims of the Feb. 16, 2002 Karnei Shomron bombing.
- Defendants include the Palestinian Authority (PA) and the Palestinian Liberation Organization (PLO); Syria-related defendants were dismissed/related.
- Plaintiffs allege wrongful death, personal injury, and related torts under the Anti-Terrorism Act (ATA), 18 U.S.C. § 2333.
- A Clerk’s Entry of Default against PA and PLO was entered on April 12, 2005; default judgment proceedings followed but were stayed pending a motion to vacate.
- Defendants moved to vacate the default; the court granted the motion and vacated the default after considering good-cause factors under Rule 55(c).
- Court emphasizes preference for merits resolution and considers prejudice, meritorious defense, and willfulness in vacatur decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there is good cause to vacate the default under Rule 55(c). | Plaintiffs argue default should stand due to willfulness and prejudice. | Defendants argue lack of prejudice, meritorious defense, and that merits justify vacatur. | Yes; court vacates default for good cause. |
| Whether the default was willful and thus precludes vacatur. | Willfulness supports default; prejudicial impact. | Default was willful but may be excused given merits and prejudice absence. | Willfulness present but not dispositive; merits and prejudice considered.”},{ |
| Whether plaintiffs would be prejudiced by proceeding to merits. | Delays risk loss of evidence and PA dissolution. | Prejudice speculative; discovery can be controlled; PA dissolution uncertain. | No substantial prejudice; vacatur granted. |
| Whether defendants have a meritorious defense to liability under ATA. | PA/PLO liable under broad conspiracy claims. | PFLP militant wing acted independently; PA/PLO not responsible. | Defendants present a non-frivolous meritorious defense; supports vacatur. |
Key Cases Cited
- Jackson v. Beech Aircraft Corp., 636 F.2d 831 (D.C. Cir. 1980) (default disfavored; factors used for relief from default under Rule 55(c))
- Keegel v. Key West & Caribbean Trading Co., Inc., 627 F.2d 372 (D.C. Cir. 1980) (good-cause standard for vacating default; prejudice, merit, willfulness factors)
- Knox v. Palestine Liberation Org., 248 F.R.D. 420 (S.D.N.Y. 2008) (default was willful; discussions on discovery/merit in similar ATA cases)
- Gilmore v. Palestinian Interim Self-Gov't Auth., 675 F. Supp. 2d 104 (D.D.C. 2009) (vacatur analysis; merits and prejudice considerations in default relief)
- Biton v. Palestinian Interim Self-Gov't Auth., 252 F.R.D. 1 (D.D.C. 2008) (willfulness; public-interest considerations in vacatur)