Securities & Exchange Commission v. Craig

Filing 34

ORDER by Judge Breyer denying 21 Motion to Set Aside Default; denying 22 Motion for Stay. (crblc2S, COURT STAFF) (Filed on 8/21/2018)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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SECURITIES & EXCHANGE
COMMISSION,
Plaintiff,

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v.
United States District Court
Northern District of California

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Case No. 15-cv-05076-CRB
ORDER DENYING [21] SECOND
MOTION TO SET ASIDE DEFAULT,
[22] MOTION TO STAY CASE

JAMES ALAN CRAIG,
Defendant.

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Defendant James Alan Craig moves for a second time to set aside the entry of
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default in this case. The Court denied his first motion, finding that Craig had failed to
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address the Falk factors, which govern such motions. First Denial Order (dkt. 18). In his
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second motion, Craig raises issues regarding his mental competency. See Second Mot. to
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Set Aside (dkt. 21). Given the Federal Rules’ prohibition on entering default judgment
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against an incompetent person unless represented by a guardian who has made an
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appearance, Fed. R. Civ. P. 55(b)(2), the Court requested additional evidence (dkt. 23).
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While this may seem to present something of a Catch-22, Craig’s apparent affliction—
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depression—has not appeared to affect his ability to submit evidence regarding his
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competency. Cf. Sirkin by Albies v. Phillips Colleges, Inc., 779 F. Supp. 751, 757 (D.N.J.
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1991) (quoting Seabra v. Puritan Life Ins. Co., 117 R.I. 488, 492, 369 A.2d 652, 656
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(1977)) (“The insured is not bound to give notice of his disability when he is unable to do
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so by reason of the very disability insured against.”).
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If credited, the evidence Craig submitted would establish that: (1) his depression
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was such that his doctors believed he was unable to participate in certain legal proceedings
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in 2012; (2) he continues to be treated for depression; and (3) he granted power of attorney

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to another in 2008 under Scottish law, and the attorney resigned on Feb. 15, 2018. See

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Evidentiary Submissions (dkts. 24, 32).

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The evidence tends to establish that Craig suffered from untreated depression in

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2012, for which he was then prescribed medication. There is no evidence that he continues

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to suffer from depression (i.e., that the medications have not been effective), or that he was

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for any reason unable to respond to the complaint. Nor is there evidence regarding the

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reasons he granted power of attorney to another, or the scope of the power of attorney.

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Accordingly, the motions are DENIED. Should Craig wish to re-file his motions with
additional evidence regarding the issue of his competency for the Court’s consideration, he

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United States District Court
Northern District of California

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must do so by Sept. 21, 2018.

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Craig is advised: (1) to please simply type any further motions in this case on a

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blank sheet of paper, as the Court cannot read the forms he is using; and (2) that any

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further evidence he submits must be accompanied by a sworn declaration attesting to their

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veracity under penalty of perjury.

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IT IS SO ORDERED.

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Dated: Aug. 21, 2018
CHARLES R. BREYER
United States District Judge

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