B & M Linen, Corp. v. Kannegiesser USA, Corp. et al

Filing 32

MEMORANDUM OPINION AND ORDER re: 24 MOTION for Default Judgment as to Plaintiff's Default on the Counterclaims filed by Kannegiesser USA, Corp. Plaintiff's counsel has averred that she intended to electronically file an answer to Kannegiesser's counterclaims on March 6, 2010, and believed that she had done so. Evidently she made a technical error that made the electronic filing ineffective. Taking plaintiff's counsel at her word, the Court finds that her error does not justify an entry of default judgment. The Court also notes that Kannegiesser will suffer no prejudice from this ruling, and that the ruling comports with the principle that ''judgments by default are not favored as strong public polic y considerations counsel that courts should, when possible, resolve disputes on the merits rather than on technical pleading deficiencies." For these reasons, defendant/counterclaim plaintiff's motion 24 is denied. (Signed by Judge Richard J. Holwell on 4/15/2010) (jar)

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

B&M LINEN, CORP. 08 Civ. 10093 Plaintiff, -againstKANNEGIESSER, USA, CORP., MICHAEL H. DREHER, MARTIN KANNEGIESSER, and HERBERT KANNEGIESSER GMBH & CO., Defendants. MEMORANDUM OPINION AND ORDER

Richard J. Holwell, U.S. District Judge: Now before the Court is a motion for default judgment filed by defendant/counterclaim plaintiff Passat Laundry Systems, Inc. d/b/a Kannegiesser USA, Inc., and s/h/a Kannegiesser USA, Corp. ("Kannegiesser"). In its answer to the amended complaint, dated February 9, 2010, Kannegiesser asserted counterclaims against B&M Linen. B&M Linen was served a copy of the answer on February 9, 2010. When it failed to timely answer or otherwise respond to the counterclaims, Kannegiesser obtained a certificate of default signed by the Clerk of the Court on March 25, 2010. On March 30, B&M Linen filed an answer to Kannegiesser's counterclaims. Under Rule 55 of the Federal Rules of Civil Procedure, a plaintiff must first obtain a default and must then "seek a judgment by default under Rule 55(b)." New York v. Green, 420 F.3d 99, 104 (2d Cir. 2005). "The dispositions of motions for entries of defaults and default judgments . . . are left to the sound discretion of a district court because it is in the best position to assess the individual circumstances of a given case and to evaluate the credibility and good faith of the parties." Shah v. New York State Dep't of Civil Service, 168 F.3d 610, 615 (2d Cir.

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