Banner Life Insurance Company v. Bonney et al

Filing 118

OPINION AND ORDER that the Court finds in the interests of justice and for good cause shown, the Equity Trust Claimants' request for removal of default is hereby GRANTED and the answer submitted by the Equity Trust Claimants on September 21,2011, is hereby ordered filed. Signed by District Judge Robert G. Doumar on 10/14/2011 and filed on 10/17/2011. (rsim)

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINJA.

Norfolk Division

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OCT 1 7 2C:i
BANNER LIFE INSURANCE COMPANY,
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Plaintiff,

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Civil Action No. 2:llcvl98

JOHN W. BONNEY
as Administrator of

the ESTATE OF CLYDE B. PITCHFORD, JR., et al.
Defendants.

OPINION AND ORDER

On April 5,2011, plaintiff Banner Life Insurance Company ("Banner") filed a Complaint

for Interpleader naming a number of defendants in this case. On May 31,2011, Banner filed an
Amended Complaint for Interpleader ("Amended Complaint") adding several defendants to this
case. Equity Trust Custodian FBO Howard Lewin IRA, Equity Trust Custodian FBO Gary B.

Kahn Roth IRA, and Equity Trust Custodian FBO Roberto M. Aguinaga Roth IRA (collectively,
"Equity Trust Claimants") were named as Defendants in both the Complaint and the Amended
Complaint. The Court issued a summons on the Complaint for the Equity Trust Claimants,

through Defendants Lewin IRA, Kahn IRA, and Aguinaga IRA on April 18,2011. Defendant
Lewin IRA was served with the Complaint on May 12,2011. Defendants Kahn IRA and
Aguinaga IRA were served with the Complaint on June 13, 2011.

Defendant Lewin IRA did not file any responsive pleadings by the June 3,2011, deadline
imposed by Federal Rule of Civil Procedure 12(a)(l)(A). Neither Defendant Kahn IRA nor

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Defendant Aguinaga IRA filed any responsive pleadings by the July 5,2011 deadline imposed
by Federal Rule of Civil Procedure 12(a)(l)(A). Accordingly, on August 24,2011, pursuant to
Banner's request, the Clerk of Court entered a default judgment against the Equity Trust
Claimants, pursuant to Federal Rule of Civil Procedure 55(a).

On September 21, the Equity Trust Claimants filed an Answer to the Amended
Complaint and Crossclaims against Defendants. On September 26, 2011, the Equity Trust
Claimants filed a Response to Banner's Request for Entry of Default. In their Response,

Claimants assert that, in failing to timely respond to Banner's Complaint for Interpleader, they
did not conduct themselves in bad faith or intend to delay the proceedings. Banner does not

oppose the Equity Trust Claimants' request that the Court set aside the Clerk's Entry of Default.
The Court finds in the interests of justice and for good cause shown, the Equity Trust

Claimants' request for removal of default is hereby GRANTED and the answer submitted by the

Equity Trust Claimants on September 21,2011, is hereby ordered filed. The Clerk of Court is
DIRECTED to send a copy of this Order to all Counsel of Record.
IT IS SO ORDERED.

Robert G.:

Senior Unit^d^tesbistrict Judge
Norfolk, Virginia

October ' 1,2011