Vick v. Wong

263 F.R.D. 325, 2009 U.S. Dist. LEXIS 95597, 2009 WL 3319357
CourtDistrict Court, E.D. Virginia
DecidedAugust 5, 2009
DocketCivil Action No. 2:09cv30
StatusPublished
Cited by26 cases

This text of 263 F.R.D. 325 (Vick v. Wong) 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
Vick v. Wong, 263 F.R.D. 325, 2009 U.S. Dist. LEXIS 95597, 2009 WL 3319357 (E.D. Va. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

MARK S. DAVIS, District Judge.

This matter is before the Court on plaintiff Michael D. Vick’s (“Plaintiff’) motion for entry of default judgment, and defendant Mary Roy Wong’s (“Wong”) motion to set aside entry of default. After examining the motions, associated briefs, and the Complaint, the Court finds that oral argument is unnecessary because the facts and legal contentions are adequately presented and oral argument would not aid in the decisional process. E.D. Va. Loc. Civ. R. 7(J). For the reasons set forth in detail below, Plaintiffs motion is DENIED, and Wong’s motion is GRANTED.

I. Factual & Procedural History

On January 22, 2009, Plaintiff filed a fifteen count complaint, alleging violations of various federal securities laws, common law fraud, breach of contract, breach of fiduciary duty, conversion, and negligence. Neither defendant Williams and Bullocks, L.L.C. (“W & B”) nor Wong (collectively “Defendants”) filed an answer to the Complaint by the deadline of February 23, 2009, and pursuant to Federal Rule of Civil Procedure (“Fed. R.Civ.P.”) 55(a), the clerk of the court entered default against Defendants on March 24, 2009. Almost two months later, on May 22, 2009, Plaintiff filed his motion for entry of default judgment. Shortly thereafter, on June 5, 2009, Wong filed an affidavit disputing several of Plaintiffs claims. In her letter attached to the affidavit, Wong asked that her affidavit be considered an opposition brief to Plaintiffs motion and that the entry of default be “vacated.” For the reasons stated below, the Court treats the affidavit submitted by Wong as a motion to set aside default as to Wong, and as an opposition brief to Plaintiffs motion for entry of default judgment as to Wong.1 On July 24, 2009, Plaintiff submitted a reply brief, which the Court will not consider because it was untimely and Plaintiff did not seek leave of court before submission of such reply brief. This matter is now ripe for review.

II. Standard of Review

Rule 55(a) provides that “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” Fed.R.Civ.P. 55(a). Once such “default” is entered, the next step is entry of a “default judgment” resulting from such “default.” Rule 55(b)(1) states that “[i]f the plaintiffs claim is for a sum certain or a sum that can be made certain by computation, the clerk — on the plaintiffs request, with an affidavit showing the amount due — must enter judgment for that amount and costs against a defendant who has been defaulted for not appearing and who is neither a minor nor an incompetent person.” Fed.R.Civ.P. 55(b)(1). Rule 55(b)(2) states that in all other cases, including the matter currently before this Court, the plaintiff must apply to the court for entry of default judgment, and the court may hold a hearing to conduct an accounting, determine damages, establish the truth of allegations, or investigate other matters in order to help it enter the judgment. Fed. R.Civ.P. 55(b)(2).

Rule 55(c) allows the court to “set aside an entry of default for good cause.” Fed.R.Civ.P. 55(c). In construing Rule 55(c), the Fourth Circuit Court of Appeals has found that “[t]he disposition of motions made under Rule 55(c) [] is a matter which lies largely within the discretion of the trial [329]*329judge.” Consol. Masonry & Fireproofing, Inc. v. Wagman Const. Co., 383 F.2d 249, 251 (4th Cir.1967). Even where a defendant does not explicitly ask for default to be set aside, a brief in opposition to default judgment will be treated as a request to have default set aside, and will be analyzed under the “good cause” standard. See FDIC v. Danzig, 10 F.3d 806, 1993 WL 478842, at *2 (4th Cir.1993) (unpublished table decision) (‘Where, as here, a court is ruling upon a plaintiff’s application for a default judgment, it properly treats the defendant’s opposition as a motion to set aside the entry of default, which is assessed under Rule 55(c)’s good cause standard.”) (citing Meehan v. Snow, 652 F.2d 274, 276 (2d Cir.1981) (holding that “in considering the appellants’ opposition to the motion for a default judgment, [it is proper] to apply the Rule 55(c) standard for setting aside the entry of a default”)). Therefore, as stated above, Wong’s submission will be considered as an opposition brief to Plaintiffs motion for entry of default judgment and as a freestanding motion to set aside default, and will be assessed under the Rule 55(e) “good cause” standard.

Although it has not specifically defined “good cause” in the Rule 55(c) context, the Fourth Circuit has noted that district courts should consider (1) whether the defendant has a meritorious defense or counterclaim; (2) the defaulting party’s culpability for the default; (3) the prejudice to the non-moving party; and (4) the availability and effectiveness of sanctions less drastic than default. Payne ex rel. Estate of Calzada v. Brake, 439 F.3d 198, 204-05 (4th Cir.2006). The Fourth Circuit has also directed that the four criteria above be “liberally construed in order to provide relief from the onerous consequences of defaults and default judgments.” Lolatchy v. Arthur Murray, Inc., 816 F.2d 951, 954 (4th Cir.1987).

“Any doubts about whether relief should be granted should be resolved in favor of setting aside the default so that the case may be heard on the merits.” Tolson v. Hodge, 411 F.2d 123, 130 (4th Cir.1969). In addition, “the extreme sanction of judgment by default is reserved only for cases where the party’s noncompliance represents bad faith or a complete disregard for the mandates of procedure and the authority of the trial court.” Mobil Oil Co. De Venez. v. Parada Jimenez, 989 F.2d 494, 1993 WL 61863, at *3 (4th Cir.1993) (unpublished table decision).

III. Discussion

A. Setting Aside Entry of Default Against Wong

The Court first turns to Wong’s request that the entry of default be “vacated,” which is construed as a motion to set aside entry of default. “Good cause” must exist before such a motion is granted. Fed.R.Civ.P. 55(c).

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Cite This Page — Counsel Stack

Bluebook (online)
263 F.R.D. 325, 2009 U.S. Dist. LEXIS 95597, 2009 WL 3319357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vick-v-wong-vaed-2009.