Diedhiou v. The Republic of Senegal

Background

Pape M. Diedhiou sued the Republic of Senegal and Teranga, LLC. Diedhiou requested a proposed clerk’s certificate of default against Senegal. After the initial request was denied, Diedhiou moved for reconsideration. The court granted that motion, and the Clerk issued a certificate of default.

Later the same day, Senegal filed a letter seeking a pre-motion conference before moving to vacate the certificate of default. The opinion states that the request for a pre-motion conference was denied as moot.

Legal standard

Under Federal Rule of Civil Procedure 55(c), a court deciding whether to set aside a clerk’s certificate of default considers whether the default was willful, whether setting it aside would prejudice the opposing party, and whether the party seeking relief has presented a potentially meritorious defense. The court noted that this standard is less demanding than the standard for setting aside a default judgment under Rule 60(b). It also cited the preference for resolving disputes on their merits and the special disfavor toward default judgments against foreign sovereigns.

Senegal’s arguments

Senegal argued that the service package was not delivered to the new Minister of Foreign Affairs because of a mailroom error. Senegal also said it intended to assert defenses based on the statute of frauds, the statute of limitations, and the asserted unavailability of quasi-contract relief. In addition, Senegal said that, after its lawyer filed a notice of appearance, counsel tried in good faith to negotiate an extension of time to respond to the complaint.

Ruling

The court granted Senegal’s motion to vacate the Clerk’s certificate of default. It relied on the court’s preference for deciding disputes on the merits, Senegal’s explanation for its initial delay, Senegal’s prompt effort to seek vacatur, and the early stage of the case. The court also stated that Diedhiou was unlikely to suffer significant prejudice because Senegal sought vacatur on the same day the certificate was issued and before any order to show cause was issued.

The Clerk of Court was instructed to vacate the certificate of default. The parties were instructed to confer and jointly stipulate to a date by which Senegal must answer, move, or otherwise respond to the complaint, and to file that stipulation by January 22, 2021. The order did not decide the merits of Diedhiou’s claims or Senegal’s proposed defenses.