Briones v. Mendocino Cafe, Inc.

Background

Robert Briones alleged that he is a person with a disability under the Americans with Disabilities Act and relies on a service dog. He alleged that Mendocino Cafe, Inc. refused to seat him because of the dog. The complaint was served, but the Cafe did not file an answer by the October 13, 2023 deadline.

The parties told the court they had engaged in settlement discussions and limited informal discovery. Briones later warned that he would seek default if the Cafe did not respond. After no responsive pleading was filed, Briones applied for entry of default, and the clerk entered default on February 15, 2024. The Cafe moved to set aside that entry on March 1, 2024.

Legal standard

Under Federal Rule of Civil Procedure 55(c), a court may set aside a clerk’s entry of default for “good cause.” The court considered three factors: whether the Cafe engaged in culpable conduct that caused the default, whether it had a meritorious defense, and whether setting aside the default would prejudice Briones. The court also emphasized that default is a severe remedy and that cases should generally be decided on their merits when possible.

Culpable conduct

The court found that the Cafe’s late response was not intended to gain a litigation advantage or otherwise act in bad faith. The court attributed the delay to the Cafe’s failure to properly secure counsel and its hope that the parties would resolve the dispute before full litigation. The Cafe also moved quickly to set aside the default. The court therefore found no culpable conduct causing the default.

Meritorious defense

The court held that the Cafe met the relatively light burden of showing a possible meritorious defense. The Cafe asserted that Briones was asked to wait until a table large enough for his party of six and the dog became available, rather than being denied service because of the service dog. The court concluded that, if those facts were true, they could constitute a defense to Briones’s Americans with Disabilities Act and Unruh Civil Rights Act claims. The court did not decide whether the Cafe’s factual allegations were true.

Prejudice

Briones argued that delay would prejudice him and others with disabilities. The court found that he had not shown the kind of prejudice required to deny the motion, such as loss of evidence, increased difficulty conducting discovery, or a greater opportunity for fraud or collusion. The court stated that requiring a plaintiff to litigate the case on its merits is not itself prejudice.

Ruling and case management

Judge Robert M. Illman granted Mendocino Cafe, Inc.’s Motion to Set Aside Clerk’s Default. The Cafe was ordered to respond to the complaint within 28 days of the order. The parties were also ordered to meet and confer about which provisions of General Order 56 remained applicable and whether early mediation would be useful. They were required to file a joint notice concerning early mediation and proposed case-management dates within 21 days of the order.

The order addressed only whether to set aside the clerk’s default; it did not decide the underlying disability-discrimination claims.