Johnson v. Rocket Mortgage, LLC

Filing 19

OPINION AND ORDER Granting #14 MOTION to Set Aside Default, and Denying #15 MOTION for Reconsideration re #12 Denial of request for clerk's entry of judgment. Signed by District Judge Sean F. Cox. (JMcC)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
DAVON JOHNSON,
Plaintiff,
v.

Case No. 23-13251

ROCKET MORTGAGE, LLC,

Honorable Sean F. Cox

Defendant.
_________________________________/
OPINION & ORDER
DENYING PLAINTIFF’S MOTION FOR RECONSIDERATION
AND GRANTING DEFENDANT’S
MOTION TO SET ASIDE CLERK’S ENTRY OF DEFAULT
Acting pro se, Plaintiff filed this action against Defendant. Soon thereafter, Plaintiff
obtained a Clerk’s Entry of Default, and then attempted to obtain a twenty-seven million dollar
default judgment from the Clerk of the Court, who denied that request. The matter is now before
the Court on: 1) Plaintiff’s motion seeking reconsideration of the denial of his requested default
judgment from the Clerk of the Court; and 2) Defendant’s motion seeking to set aside the Clerk’s
Entry of Default. The Court concludes that no hearing is necessary as to either motion. For the
reasons that follow, the Court denies Plaintiffs Motion for Reconsideration and grants
Defendant’s Motion to Set Aside Clerk’s Entry of Default.
BACKGROUND
Acting pro se, Plaintiff Davon Johnson filed this action against “Rocket Mortgage,” on
December 21, 2023. (Compl., ECF No. 1). Plaintiff asserts that this Court has federal question
jurisdiction over this action, pursuant to 28 U.S.C. § 1331, and alleges that his claims arise under

12 U.S.C. § 504 and 28 U.S.C. § 373. (Id. at 1-2). In terms of the relief he seeks, Plaintiff’s
Complaint states that Plaintiff seeks twenty-seven million dollars “for breach of fiduciary
duties.” (Id. at 6).
As of January 24, 2024, Defendant had neither appeared in this action or filed an Answer.
On January 24, 2024, Plaintiff requested, and obtained, a Clerk’s Entry of Default. (See ECF
Nos. 9 & 10).
On January 25, 2024, Plaintiff requested that the Clerk of Court enter a default judgment
in his favor, in the amount of twenty-seven million dollars for breach of fiduciary duties. The
Clerk of the Court denied that request, explaining that the amount requested cannot be verified
by the Court. (See ECF No. 12).
Thereafter, on January 30, 2024, Defendant appeared in the case and filed a motion
seeking to set aside the Clerk’s Entry of Default (ECF No. 14). On that same day, Plaintiff filed
a motion for reconsideration, asserting that his requested default judgment should have been
issued.
Defendant’s Motion to Set Aside Clerk’s Entry of Default has been fully briefed by the
parties and is ripe for a decision by this Court.
Pursuant to the Local Rules for the United States District Court for the Eastern District of
Michigan, responses to motions for reconsideration are not allowed, unless the Court orders
otherwise. No response is needed.
ANALYSIS
I.

The Court Denies Plaintiff’s Motion For Reconsideration Because The Clerk Of The
Court Properly Denied His Request For A Default Judgment.
Rule 55 of the Federal Rules of Civil Procedure provides a two-step process for a party to

obtain a default judgment in a civil action. In addition, there are some local rules that relate to

this two-step procedure. In any event, the first step is for the plaintiff to seek and obtain a
Clerk’s Entry of Default from the Clerk’s Office.
The second step is for the plaintiff to seek a default judgment, either from: 1) the Clerk of
the Court; or 2) the judge presiding over the case. Entry of a default judgment by the Clerk of the
Court is permitted in only limited circumstances:
Fed. R. Civ. P. 55(b)(1)
(b) Entering a Default Judgment.
(1) By the Clerk. If the Plaintiff’s claim is for a sum certain or a sum that can be
made certain by computation, the clerk – on the plaintiff’s 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). In all other instances, a default judgment must be directed to the judge
presiding over the case at issue. Fed. R. Civ. P. 55(b)(2).
The Court denies Plaintiff’s motion for reconsideration for lack of merit, because the
Clerk of the Court properly denied Plaintiff’s request for entry of a default judgment by the
Clerk of the Court. A default judgment for the type of claim asserted by Plaintiff, and the
damages requested in his Complaint, may only be issued by the Judge presiding over this case.
II.

The Court Grants Defendant’s Motion To Set Aside Clerk’s Entry Of Default.
The Court shall grant Defendant’s Motion to Set Clerk’s Entry of Default for at least two

reasons.
First, although Defendant became aware of this case and has appeared in it, it does not
appear that Defendant was properly served with the summons and complaint under the
applicable court rules.
Second, even if it had been, Defendant has established that the Clerk’s Entry of Default

should be set aside under the applicable standard.
Federal Rule of Civil Procedure 55© provides that “[f]or good cause shown the court
may set aside an entry of default.” When evaluating either a motion to set aside an 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).
Rule 55 “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
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.
Having reviewed Defendant’s motion seeking to set aside the Clerk’s Entry of Default
entered against it, the Court concludes that it has met that standard.
CONCLUSION & ORDER
Accordingly, IT IS ORDERED that Plaintiff’s Motion for Reconsideration is DENIED.
IT IS FURTHER ORDERED that Defendant’s Motion To Set Aside Clerk’s Entry Of

Default (ECF No. 14) is GRANTED.

IT IS SO ORDERED.
s/Sean F. Cox
Sean F. Cox
United States District Judge
Dated: February 7, 2024
I hereby certify that a copy of the foregoing document was served upon counsel and/or parties of
record on February 7, 2024, by electronic and/or ordinary mail.
s/J. McCoy
Case Manager