SHARUM v. SUPERIOR BOILER WORKS, INC.

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA TERRE HAUTE DIVISION

STEPHEN SHARUM, ) ) Plaintiff, ) ) v. ) No. 2:20-cv-00276-JPH-MJD ) SUPERIOR BOILER WORKS, INC., ) MG SALES, INC, ) HUNT CONSTRUCTION GROUP, INC., ) BSA LIFESTRUCTURES, INC., ) HSB GLOBAL STANDARDS, ) ) Defendants. )

ORDER GRANTING PLAINTIFF'S MOTION TO SET ASIDE DEFAULT AND FOR VOLUNTARY DISMISSAL OF DEFENDANT

On September 2, 2020, Plaintiff Stephen Sharum filed an amended complaint against MG Sales, Inc., and other defendants, seeking damages for negligence and products liability. Dkt. 32. Defendant MG Sales never received a copy of that complaint and did not respond. Dkt. 69; dkt. 80. On December 1, 2020, the Clerk entered default against it. Dkt. 69. MG Sales appeared on January 27, 2021, dkt. 79, and on February 2 Mr. Sharum filed a motion to set aside the default and for voluntary dismissal of MG Sales, Inc. without prejudice. Dkt. [80]. Because Plaintiff moved to set aside the entry of default before the Court entered default final judgment, the Court evaluates Plaintiff's motion under Federal Rule of Civil Procedure 55(c)'s "lenient standards." Cracco v. Vitran Exp., Inc., 559 F.3d 625, 631 (7th Cir. 2009); see Parker v. Scheck Mech. Corp., 772 F.3d 502, 505 (7th Cir. 2014). "A party seeking to vacate an entry of default prior to the entry of final judgment must show: (1) good cause for the default; (2) quick action to correct it; and (3) a meritorious defense to the complaint." Cracco, 559 F.3d at 630. The Seventh Circuit "has a well-established policy favoring a trial on the merits over default judgment." Sun v. Bd. of Trustees of Univ. of IL, 473 F.3d 799, 811 (7th Cir. 2007). As "a weapon of last resort, [default judgment is] appropriate only when a party willfully disregards a pending litigation." Id. A defendant may show good cause through "mistake, inadvertence, excusable neglect, newly discovered evidence, fraud, ...or any other reason that justifies relief." Arwa Chiropractic, 961 F.3d at 948. Here, MG Sales did not receive the complaint against it and—once it did—"acted in a timely fashion," Cracco, 559 F.3d at 630-31, by promptly filing an appearance through counsel. Dkt. 79; dkt. 80. Moreover, Plaintiff has moved to dismiss MG Sales as a defendant in this case. See Cracco, 559 F.3d at 630-31 (requiring a "meritorious defense"). Plaintiff's motion to set aside is therefore GRANTED. Dkt. [80]. The Clerk's Entry of Default, dkt. [69], is set aside and MG Sales, Inc., is dismissed without prejudice under Federal Rule of Civil Procedure 41(a)(2). SO ORDERED. Date: 3/3/2021

S\amnu Patruck lanl James Patrick Hanlon United States District Judge Southern District of Indiana

Distribution:

Joseph Beutel EPSTEIN COHEN SEIF & PORTER joe@beutellaw.com

John W. Borkowski HUSCH BLACKWELL LLP john.borkowski@huschblackwell.com

Jennifer L. Dlugosz HUSCH BLACKWELL LLP jen.dlugosz@huschblackwell.com

Robert David Epstein EPSTEIN COHEN SEIF & PORTER rdepstein@aol.com

Jeffrey B. Fecht RILEY BENNETT EGLOFF LLP jfecht@rbelaw.com

Edward W. Gleason SENAK KEEGAN GLEASON & SMITH , LTD. egleason@skgsmlaw.com

Timothy P. Larkin HUSCH BLACKWELL LLP tim.larkin@huschblackwell.com

Tyler Scott Lemen DREWRY SIMMONS VORNEHM, LLP (Carmel) tlemen@dsvlaw.com

Joseph M. Leone DREWRY SIMMONS VORNEHM, LLP (Carmel) jleone@DSVlaw.com

James Alexander Tanford EPSTEIN COHEN SEIF & PORTER tanfordlegal@gmail.com

James E. Zoccola LEWIS & KAPPES PC jzoccola@lewis-kappes.com