Green v. Southfield et al

Filing 55

ORDER Setting Aside Second 53 Clerks Entry of Default as to Defendant Geico. Signed by District Judge Sean F. Cox. (KJac)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
Dawn Green,
Plaintiff,
v.

Case No. 15-13479

City of Southfield, et al.,

Sean F. Cox
United States District Court Judge

Defendant.
____________________________________/
ORDER SETTING ASIDE
SECOND CLERK’S ENTRY OF DEFAULT
AS TO DEFENDANT GEICO
Plaintiff obtained a clerk’s entry of default against Defendant Geico Indemnity Company
(“Geico”) on January 1, 2016, that was later set aside by this Court because Plaintiff had not
properly served Geico.
Thereafter, on June 2, 2016, Plaintiff’s Counsel obtained a second clerk’s entry of default
against Geico. On that same day, Geico filed a motion seeking to set aside the June 2, 2016
clerk’s entry of default. The Court finds that oral argument would not aid the decisional
process. See Local Rule 7.1(f)(2), U.S. District Court, Eastern District of Michigan. The Court
therefore orders that the motion will be decided without oral argument – and without awaiting a
response from Plaintiff.
As explained below, the Court shall GRANT the motion.
“Rule 55(c) leaves to the discretion of the trial judge the decision whether to set aside an
entry of default. However, a strong preference for trials on the merits in federal courts had led to
the adoption of a somewhat modified standard of review where defaults are involved.” Shepard
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Claims Service, Inc. v. William Darrah & Associates, 796 F.2d 190, 193 (6th Cir. 1986). In
practice, Courts employ a “lenient standard” in evaluating a request to set aside a default that has
not yet reached a default judgment. Id. Federal courts favor trials on the merits; therefore, “any
doubt should be resolved in favor of the petition to set aside the judgment.” United Coin Meter
Co., 705 F.2d at 846.
Pursuant to Federal Rule of Civil Procedure 55(c), “[f]or good cause shown” the Court
may set aside an entry of default. When evaluating either a motion to set aside a proper entry of
default or a default judgment, the court considers three factors: 1) whether the default was the
result of the defendant’s willful or culpable conduct; 2) whether the plaintiff would be prejudiced
if the default is set aside; and 3) whether the defendant asserts any meritorious defenses to the
claims. United Coin Meter Co., Inc. v. Seaboard Coastline R.R., 705 F.2d 839, 844–45 (6th Cir.
1989).
Here, the default was not the result of willful or culpable conduct and Defendant Geico
has stated potentially meritorious defenses. Plaintiff will not be prejudiced if the default is set
aside, as this case is still at a very early stage of the litigation and the Court not yet even held the
initial scheduling conference and has not issued a scheduling order.
The Court hereby ORDERS that Defendant Geico’s motion seeking to set aside the June
2, 2016 clerk’s entry of default is GRANTED and the June 2, 2016 Clerk’s Entry of Default
(Docket Entry No. 53) is hereby SET ASIDE.
IT IS SO ORDERED.
S/Sean F. Cox
Sean F. Cox
United States District Judge
Dated: June 14, 2016
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I hereby certify that a copy of the foregoing document was served upon counsel of record on
June 14, 2016, by electronic and/or ordinary mail.
S/Keisha Jackson
Case Manager

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