J & J Sports Productions, Inc. v. Chico et al

Filing 29

ORDER REGARDING NOTICE OF TENTATIVE RULING ON MOTION TO SET ASIDE ENTRY OF DEFAULT. Signed by Judge Yvonne Gonzalez Rogers on 3/29/12. (fs, COURT STAFF) (Filed on 3/29/2012)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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J & J SPORTS PRODUCTIONS, INC.,

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Plaintiff,

Northern District of California

NOTICE OF TENTATIVE RULING ON MOTION
TO SET ASIDE ENTRY OF DEFAULT

v.
HILARIO CHICO CHICO et al.,

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United States District Court

Case No.: C-11-03722 YGR

Defendants.

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TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD, PLEASE TAKE NOTICE OF THE

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FOLLOWING TENTATIVE RULING ON DEFENDANT’S MOTION TO SET ASIDE ENTRY OF

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DEFAULT, SCHEDULED FOR HEARING ON APRIL 3, 2012 AT 2:00 P.M.

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The Court has reviewed the parties’ papers and is inclined to grant the motion to set aside the

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clerk’s default. This is a tentative ruling and the parties still have an opportunity to present oral

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argument. Alternatively, if the parties JOINTLY stipulate in writing to entry of the tentative ruling,

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the hearing shall be taken off calendar, and the tentative ruling shall become the order of the Court.

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The Court TENTATIVELY GRANTS the Defendant’s Motion to Set Aside Entry of Default, Dkt.
No. 17, as follows:
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Under Rule 55(c), a “court may set aside an entry of default for good cause.” Fed. R.

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Civ. Pro. 55(c). To determine “good cause,” a court must consider three factors: (1) whether the

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defendant engaged in culpable conduct that led to the default; (2) whether reopening the default

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judgment would prejudice the plaintiff; or (3) whether the defendant has no meritorious defense.

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United States v. Signed Personal Check No. 730 of Yubran S. Mesle, 615 F.3d 1085 (9th Cir. 2010).

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The standard is in the disjunctive, which means a finding that any one of these factors is true is

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sufficient reason to refuse to set aside the default. Id. Due to the strong policy in favor of deciding

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cases on the merits, a court’s refusal to relieve a party of a default is considered a harsh sanction and

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appropriate only in extreme circumstances. Defendant sets forth facts to support a finding that all

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three factors for setting aside a default under Rule 55(c) are satisfied. Thus, Defendant has

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established good cause to set aside the default.

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2.

No Culpable Conduct – Defendant’s failure to answer was the result of a mistake, not

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culpable conduct. He states that when he was served with the complaint, he was not aware he was

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being sued and did not know he needed to take any action. This does not evince bad faith intent.

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3.

No Prejudice – Plaintiff will not be prejudiced if the default is set aside. Delaying

standard here is whether the Plaintiff’s ability to prosecute its claims will be hindered. The Court can

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Northern District of California

resolution of the case or forcing Plaintiff to litigate on the merits does not constitute prejudice. The

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United States District Court

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accept as true Defendant’s assertion that no documents have been lost and that setting aside the

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default will not risk fraud or collusion.

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4.

Meritorious defense – “A defendant seeking to vacate a default judgment must present

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specific facts that would constitute a defense. But the burden on a party seeking to vacate a default

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judgment is not extraordinarily heavy.” See TCI Group Life Ins. Plan v. Knoebber, 244 F.3d 691, 700

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(9th Cir. 2001) (citations omitted). This is an action for alleged copyright infringement. Plaintiff

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claims that it had distribution rights to a sporting event that Defendant exhibited at his restaurant

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without Plaintiff’s permission. In his reply brief, Defendant asserts that he did not display the

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sporting event at his restaurant. This constitutes a defense to the action.

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5.

Based on the foregoing, the Court finds that Defendant has established good cause to

set aside the default entered against him.
Therefore, the Court tentatively Orders the following:

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1) Defendant’s Motion to Set Aside Entry of Default is GRANTED.

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2) The Clerk’s Entry of Default, Docket Number 12, is VACATED and SET ASIDE.

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3) Defendant shall have 21 days from the date of this Order to respond to the

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Complaint.

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4) The parties are REFERRED to a Magistrate Judge for an Early Settlement

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Conference to be completed within 60 days of the date of this Order.

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5) This Order Terminates Docket Number 17.
No later than 5:00 p.m. on Monday, April 2, 2012, the parties may JOINTLY stipulate in

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writing to entry of this tentative ruling. If the parties so stipulate, then the hearing shall be taken off

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calendar, and the tentative ruling shall become the order of the Court. Otherwise, the hearing will

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take place as scheduled.

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IT IS SO ORDERED.
Dated: March 29, 2012
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YVONNE GONZALEZ ROGERS
UNITED STATES DISTRICT COURT JUDGE

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Northern District of California

United States District Court

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