Case Information
*1 L I NA R E S , D i s t r i c t J udg e
I T A PP E A R I NG T HA T :
This is an action to collect the allegedly delinquent contributions that are 1. owed by the defendant to certain employee benefit funds pursuant to the Employee Retirement Income Security Act. (See dkt. 1 .)1 Currently pending before the Court is the plaintiffs’ motion pursuant to
2. Federal Rule o f Civil Procedure (hereinafter, “Rule”) 55(b)(2) to enter default j udg m e n t against the defendant for an amount that is in excess o f $102,000 (hereinafter, “the Plaintiffs’ Motion”), and the defendant’s cross motion pursuant to Rule 55(c) to set aside the default that has been entered against it (hereinafter, “the Defendant’s Cross Motion”).
The Court will refer to documents by the docket entry numbers and the page numbers imposed by the Electronic Case Filing System. *2 ( S ee dk t . 5 t h r ough dk t . 5 - 3 ; dk t . 6 t h r ough dk t . 6 - 3 ; dk t . 7 t h r ough dk t . 7 - 6 ; dk t . 12 t h r ough dk t . 12 - 3 ; dk t . 14 t h r ough dk t . 14 - 3 ; dk t . 15 . )
T h e C ou r t r e s o l v e s t h e P l a i n ti ff s ’ M o ti on a nd t h e D e f e nd a n t ’ s C r o ss 3 . M o ti on upon a r e v i e w o f t h e p a p e r s a nd w it hou t o r a l a r gu m e n t . S L . C i v . R . 78 . 1 ( b ) . F o r t h e f o ll o w i ng r ea s on s , t h e C ou r t: d e n i e s t h e P l a i n ti ff s ’ M o ti on ;
a ) g r a n t s t h e D e f e nd a n t ’ s C r o ss M o ti on ; b ) v aca t e s t h e d e f a u lt t h a t h a s b ee n e n t e r e d a g a i n s t t h e d e f e nd a n t; a nd c ) d i r ec t s t h e d e f e nd a n t t o f il e e it h e r a n a n s w e r o r a d i s po s iti v e m o ti on w it h i n d ) 21 d a y s , i f no t s oon e r . S ee g e n e r a ll y F e d . R . C i v . P . 12 ( a )( 1 )( A )( i ) . T h e d ec i s i on w h e t h e r o r no t t o s e t a s i d e t h e e n t r y o f a d e f a u lt i s w it h i n t h e 4 . d i s c r e ti on o f t h e C ou r t . S ee F a m e s e v . B a gn a s c o , 687 F . 2d 761 , 763 — 64 ( 3d C i r . 1982 ) . T h e e n t r y o f a d e f a u lt j udg m e n t i s d i s f a vo r e d , a nd d ec i s i on s on t h e m e r it s a r e t o b e e n c ou r a g e d . S ee i d . a t 764 ; s ee a l s o N a ti on w i d e M u t . I n s . C o . v . S t a r li gh t B a ll r oo m D a n c e C l ub , I n c . , 175 F e d . A ppx . 519 , 52 1 — 22 ( 3d C i r . 2006 ) .
T h e C ou r t f i nd s t h a t t h e p l a i n ti ff s w ill no t b e p r e j ud i ce d i f t h e d e f a u lt i s s e t 5 . a s i d e . S ee F a r n e s e , 687 F . 2d a t 764 . E v e n t hough t h e p l a i n ti ff s a r gu e t h a t t h e d e f e nd a n t h a s no t m e t it s c on t r i bu ti on ob li g a ti on s , t h e p l a i n ti ff s h a v e no t a r gu e d t h a t t h e i r a b ilit y t o p u r s u e t h e i r c l a i m s a g a i n s t t h e d e f e n d a n t w i l l n o w b e h a m p e r e d . f u r t h e r m o r e , a r e v i e w o f t h e do c k e t r e v ea l s t h a t d i s c ov e r y h a s y e t t o b e c ondu c t e d .
*3 T h e C ou r t a l s o f i nd s t h a t t h e d e f e nd a n t h a s p r e s e n t e d a liti g a b l e d e f e n s e i n 6 . t h e ac ti on . S ee F a m e s e , 687 F . 2d a t 764 . I nd ee d , t h e d e f e nd a n t ce r ti f i e s t h a t it i s ac t u a ll y no t d e li nqu e n t i n m a k i ng it s c on t r i bu ti on s . ( S ee dk t . 12 - 1 a t 6—9; dk t . 12 - 2 a t 3 ; dk t . 14 - 1 a t 6—9; dk t . 14 - 2 a t 3 . )
T h e C ou r t a l s o f i nd s t h a t t h e e n t r y o f d e f a u lt w a s no t ca u s e d by t h e 7 . c u l p a b l e c ondu c t o f t h e d e f e nd a n t o r it s c oun s e l , bu t w a s du e t o e x c u s a b l e n e g l ec t . S cc F a m e s e , 687 F . 2d a t 764 . T h e d e f e nd a n t ce r ti f i e s t h a t t h e d e l a y w a s ca u s e d by a f a il u r e t o c onn ec t w it h it s c oun s e l i n a ti m e l y f a s h i on du e t o m i s c o mm un i ca ti on , v aca ti on s , a nd s c h e du li ng c on f li c t s . ( S ee dk t . 12 - 1 a t 9—10; dk t . 12 - 2 a t 2 ; dk t . 14 - 1 a t 4—5, 9—10; dk t . 14 - 2 a t 2 . ) I n a dd iti on , t h e d e f e nd a n t a pp ea r e d i n t h e ac ti on w it h i n t w e l v e d a y s o f t h e e n t r y o f t h e d e f a u lt a g a i n s t it . ( C o m p a r e unnu m b e r e d do c k e t e n t r y f o ll o w i ng dk t . 4 ( t h e e n t r y o f d e f a u lt , d a t e d F e b r u a r y 24 , 2017 ) , w it h dk t . $ ( t h e no ti ce o f a pp ea r a n ce f il e d by c oun s e l f o r t h e d e f e nd a n t , d a t e d M a r c h 8 , 2017 ) . ) F u r t h e r m o r e , i n s uppo r t o f t h e D e f e nd a n t ’ s C r o ss M o ti on , t h e d e f e nd a n t h a s s ub m itt e d a p r opo s e d a n s w e r t o t h e p l a i n ti f f s ’ c o m p l a i n t . ( S ee dk t . 12 - 2 a t 10—20; dk t . 14 - 2 a t 10—20.) T h e r e f o r e , t h e C ou r t f i nd s t h a t t h e d e f e nd a n t ’ s ea r li e r f a il u r e t o a pp ea r i n t h e ac ti on w a s n e it h e r w ill f u l no r i n b a d f a it h .
F O R GOOD C AU S E A PP E A R I NG : *4 9 / 1 . d a y o f M a y , 2017 , O R D E R E D t h a t I T I S T H E R E F O R E on t h i s t h e p l a i n ti ff s ’ m o ti on t o e n t e r d e f a u lt j udg m e n t a g a i n s t t h e d e f e nd a n t ( dk t . 5 ) i s D E N I E D ; a nd it i s f u r t h e r
O R D E R E D t h a t t h e d e f e nd a n t ’ s c r o ss m o ti on t o s e t a s i d e t h e d e f a u lt t h a t h a s b ee n e n t e r e d a g a i n s t it ( dk t . 14 ) i s G R AN TE D ; a nd it i s f u r t h e r O R D E R E D t h a t t h e d e f a u lt t h a t h a s b ee n e n t e r e d a g a i n s t t h e d e f e nd a n t ( unnu m b e r e d do c k e t e n t r y f o ll o w i ng dk t . 4 ) i s S ET A S I D E ; a nd it i s f u r t h e r O R D E R E D t h a t t h e d e f e nd a n t i s g r a n t e d l ea v e , a nd d i r ec t e d , t o s e p a r a t e l y f il e e it h e r a n a n s w e r t o t h e c o m p l a i n t o r a d i s po s iti v e m o ti on w it h i n 21 d a y s o f t h e e n t r y o f t h i s o r d e r .
S t a t e s D i s t r i c t J u dg e