Rrpix, Inc. v. Victoria A. Int'l LLC

Background

Rrpix, Inc. brought a copyright-infringement action against Victoria A. Int’l LLC, doing business as “Makari de Suisse” and “Shop Makari,” and Does 1–10. On September 15, 2023, the Clerk issued a certificate of default against Victoria A. A certificate of default is a formal entry recognizing that a party had not responded as required.

On February 16, 2024, counsel for Victoria A. appeared and filed an answer. Victoria A. then moved to vacate, or set aside, the certificate of default. It argued that the default was not willful, that setting it aside would not prejudice Rrpix, and that it had meritorious defenses. Victoria A. also represented that its delay resulted from improper service and that its counsel appeared promptly after being contacted by Rrpix’s counsel.

Court’s Analysis

The court explained that defaults are generally disfavored and reserved for rare situations. When there is doubt about whether a default should be entered or vacated, that doubt should favor the party facing the default. The court emphasized the Second Circuit’s preference for deciding cases on their merits.

Rrpix did not oppose Victoria A.’s motion. The court also found that Rrpix had not shown that the delay caused the loss of evidence, increased the difficulty of discovery, or created a greater opportunity for fraud or collusion.

Ruling

The court VACATED the certificate of default at ECF No. 11. It ordered the parties to file a joint letter by September 5, 2024, updating the court on settlement efforts. The Clerk was directed to terminate the motion at ECF No. 17.

The order addressed the default-related procedural issue; it did not decide the copyright-infringement claims on their merits.