Rullan v. Cheyenne Heavy Equipment Rentals, LLC
IN THE DISTRICT COURT OF THE VIRGIN ISLANDS DIVISION OF ST. THOMAS AND ST. JOHN NESTER RULLAN, ) ) Plaintiff, ) ) vs. ) ) CIVIL NO. 08-154 CHEYENNE HEAVY EQUIPMENT ) RENTALS, LLC, ) ) Defendant. ) ____________________________________) MEMORANDUM AND ORDER This matter is before the Court on defendant’s Motion to Set Aside the Entry of Default and plaintiff’s opposition thereto. Rule 55 (c) of the Federal Rules of Civil Procedure provides that a court may set aside an entry of default for good cause. Fed. R. Civ. P. 55 (c). In determining whether “good cause” exists to set aside an entry of default, a court may consider the following factors: “(1) whether the plaintiff will be prejudiced; (2) whether the defendant has a meritorious defense; and (3) whether the default was the result of the defendant’s culpable conduct.” Mortgage Electronic Registration System, Inc., v. Patock, 51 V.I. 917, 922 (D.V.I. 2009). …
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IN THE DISTRICT COURT OF THE VIRGIN ISLANDS DIVISION OF ST. THOMAS AND ST. JOHN NESTER RULLAN, ) ) Plaintiff, ) ) vs. ) ) CIVIL NO. 08-154 CHEYENNE HEAVY EQUIPMENT ) RENTALS, LLC, ) ) Defendant. ) ____________________________________) MEMORANDUM AND ORDER This matter is before the Court on defendant’s Motion to Set Aside the Entry of Default and plaintiff’s opposition thereto. Rule 55 (c) of the Federal Rules of Civil Procedure provides that a court may set aside an entry of default for good cause. Fed. R. Civ. P. 55 (c). In determining whether “good cause” exists to set aside an entry of default, a court may consider the following factors: “(1) whether the plaintiff will be prejudiced; (2) whether the defendant has a meritorious defense; and (3) whether the default was the result of the defendant’s culpable conduct.” Mortgage Electronic Registration System, Inc., v. Patock, 51 V.I. 917, 922 (D.V.I. 2009). Here, the defendant alleges (1) that it has been making partial payments to the plaintiff since the inception of the action and (2) that the parties had an understanding that the action would be stayed or dismissed so long as defendant continued to make regular payments. In addition, the defendant argues that it has factual and legal defenses to plaintiff’s claims The plaintiff and the defendants are the only parties to this action and the case has not progressed beyond the filing of the complaint and the entry of default. Additionally, the Case: 3:08-cv-00154-CVG-RM Document #: 17 Filed: 05/26/10 Page 1 of 2 Rullan v. Cheyenne Heavy Equipment Rentals, LLC Civil No. 08-154 Memorandum and Order defendant has made payments on the debt since the inception of the action. Finally, it appears that the defendant was under the mistaken impression that defendant did not have to answer the complaint or make an appearance in the lawsuit because it had been making partial payments on the debt. In light of the forgoing, the Court finds: that the plaintiff will not be prejudiced if the entry of default is set aside; that the defendant appears to have a meritorious defense to the action; and that the entry of default was not a result of the defendant’s culpable conduct. Accordingly, it is hereby ORDERED that defendant’s motion is GRANTED and the entry of default vacated; and it is further ORDERED that defendant’s answer shall be deemed filed as of March 9, 2010. DATED: May 26, 2010 S\________________________________ RUTH MILLER United States Magistrate Judge ATTEST: WILFREDO F. MORALES Clerk of Court Case: 3:08-cv-00154-CVG-RM Document #: 17 Filed: 05/26/10 Page 2 of 2