B2Gold Corp. v. Christopher

CourtDistrict Court, E.D. Virginia
DecidedMay 28, 2020
Docket1:18-cv-01202
StatusUnknown

This text of B2Gold Corp. v. Christopher (B2Gold Corp. v. Christopher) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B2Gold Corp. v. Christopher, (E.D. Va. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division

B2GOLD CORP., et al., ) ) Plaintiffs, ) ) v. ) Case No. 1:18-cv-1202 ) PHILIP BRYSON CHRISTOPHER, ) ) Defendant. )

MEMORANDUM OPINION Plaintiff B2Gold, Corp., a Canadian corporation that operates gold mines, and plaintiff Dale Craig, B2Gold Corp.’s Vice President of Operations, brought this defamation per se action against defendant Philip Bryson Christopher based on defendant Christopher’s allegedly false and defamatory statements about plaintiffs’ gold mining operations in Nicaragua. At issue now in this matter is the Magistrate Judge’s Report and Recommendation on plaintiffs’ Motion for Default Judgment on plaintiffs’ First Amended Complaint. The Magistrate Judge recommended entering default judgment against defendant Christopher on plaintiffs’ defamation per se claim. The Magistrate Judge recommended relief consisting of $16,050 in compensatory damages, $59,000 in punitive damages, and an injunction forbidding defendant Christopher from continuing to make certain defamatory statements identified in the First Amended Complaint.1 The Magistrate Judge did not recommend an award of attorney’s fees. No objections to the Magistrate Judge’s Report and Recommendation were filed. For the reasons that follow, the Magistrate Judge’s recommendations are adopted as set

1 Specifically, the Magistrate Judge recommended enjoining defendant from repeating the defamatory statements alleged in ¶¶ 92–104 and ¶¶ 111–121 of plaintiffs’ First Amended Complaint. forth in this Memorandum Opinion, and plaintiffs’ Motion for Default Judgment must be granted. I. The Magistrate Judge’s Report accurately sets forth the procedural and factual history of

this case, and the Court adopts as its own the procedural and factual background set forth in the Report. On September 20, 2018, plaintiffs filed the original Complaint in this action, which alleged violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1962(c), conspiracy to violate RICO, 18 U.S.C. § 1962(d), and defamation per se under Virginia law against several defendants, including defendant Christopher. Defendant Christopher was served with the original Complaint in this matter on October 5, 2018, and default was entered against defendant Christopher on November 8, 2018. On January 23, 2019, plaintiffs moved for default judgment on their original Complaint. On July 10, 2019, the Magistrate Judge completed a Report and Recommendation on plaintiffs’ original motion for default judgment. An August 26, 2019 Order denied plaintiffs’ motion for default judgment on plaintiffs’ RICO

claims, and supplemental jurisdiction was not exercised over plaintiffs’ defamation per se claim. On September 16, 2019, plaintiffs filed a First Amended Complaint alleging a single claim for defamation per se under Virginia law against defendant Christopher. Plaintiffs’ First Amended Complaint alleges that defendant Christopher distributed a document, the “Spectre Report,” that purported to describe plaintiffs’ involvement in “a growing conspiracy over the last 10 years to defraud the people and the government of the patrimony of her gold.” Plaintiffs’ First Amended Complaint at ¶ 104. On October 15, 2019, plaintiffs filed a Motion for Default Judgment on their First Amended Complaint, and the Magistrate Judge took plaintiffs’ motion under advisement on November 1, 2019. On December 6, 2019, nearly thirteen months after entry of default, defendant Christopher filed a document entitled “Response to Plaintiff request for a Summary Default Judgement.” The bulk of defendant Christopher’s filing purports to describe defendants’ actions in Nicaragua, but defendant Christopher’s filing also requests “that this entire case be declined

by the court” or, alternatively, that defendant Christopher “be granted a jury trial” because defendant Christopher believes he has “a strong defense.” As the Magistrate Judge correctly noted, defendant Christopher’s filing did not constitute a response to the First Amended Complaint. See Report and Recommendation at 2 n. 1. Nevertheless, defendant Christopher’s filing will be construed liberally as a motion to set aside entry of default pursuant to Rule 55(c), Fed. R. Civ. P. Because defendant Christopher fails to show good cause to set aside the entry of default in this case, defendant Christopher’s motion must be denied. Rule 55(c), Fed. R. Civ. P., provides that a court may set aside an entry of default “[f]or good cause shown.” The Fourth Circuit has not specifically defined “good cause,” but it has

directed that district courts should consider (1) whether the moving party has a meritorious defense; (2) whether the moving party acts with reasonable promptness; (3) the defaulting party’s culpability for the default; (4) the prejudice to the non-moving party; (5) whether there is a history of dilatory action; and (6) the availability and effectiveness of less drastic sanctions. See Payne ex rel. Estate of Calzada v. Brake, 439 F.3d 198, 204–05 (4th Cir. 2006); Davis v. Williams, 588 F.2d 69, 70 (4th Cir. 1978). The Fourth Circuit has also made clear its strong preference that “defaults be avoided and that claims and defenses be disposed of on their merits.” Colleton Preparatory Acad., Inc. v. Hoover Universal, Inc., 616 F.3d 413, 417 (4th Cir. 2010) (citations omitted). Here, the entry of default will not be set aside in this case because none of the six Payne factors weigh in defendant Christopher’s favor, and four of the six factors weigh heavily against defendant Christopher. The first Payne factor, whether defendant Christopher has a meritorious defense, weighs heavily against setting aside the entry of default. At a minimum, the party seeking to set aside a

default must proffer some “evidence” that would “permit a finding for the defaulting party or which would establish a valid counterclaim.” Augusta Fiberglass Coatings, Inc. v. Fodor Contracting Corp., 843 F.2d 808, 812 (4th Cir. 1988) (quotations omitted). Here, defendant Christopher merely makes the conclusory assertion that he believes he has “a strong defense” and does not proffer any evidence that rebuts plaintiffs’ defamation per se claim. The second, third, and fifth Payne factors—whether defendant Christopher has moved with reasonable promptness to set aside default, whether defendant Christopher bears culpability for the default, and whether defendant Christopher has a history of dilatory action in this case— also weigh heavily against setting aside the entry of default here. Far from acting with reasonable promptness, defendant Christopher waited nearly thirteen months after entry of default to request

that default be set aside in this matter. No party other than defendant Christopher is culpable for defendant Christopher’s default. This case’s record is replete with evidence of defendant Christopher’s dilatory action.

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