Dorgan v. First Klass Breakfast, LLC

Background

Ryan Dorgan filed the complaint on June 3, 2020. After the Court directed him to file proof of service, an affidavit stated that service had been made. Dorgan later moved for default judgment, but the Court denied that motion without prejudice because he had not followed the Court’s Individual Rules. After Dorgan took no action for four months, the Court dismissed the case for failure to prosecute. Dorgan then timely asked to reopen the matter, and the Court granted that request.

Dorgan later obtained a certificate of default from the Clerk and again moved for default judgment. At the February 9, 2022 hearing, James Freeman appeared as Dorgan’s lawyer. First Klass Breakfast LLC did not appear. Freeman told the Court that the summons and complaint had been served on the wrong party: First Klass Media Group LLC, rather than First Klass Breakfast LLC. He requested that the motion for default judgment be vacated.

Court’s Analysis

Federal Rule of Civil Procedure 55(c) allows a court to set aside an entry of default for “good cause.” The Court explained that defaults are disfavored and that disputes are generally preferred to be resolved on their merits. It also explained that doubts about vacating a default should be resolved in favor of the party facing the default, and that “good cause” is interpreted generously.

Federal Rule of Civil Procedure 4(m) generally requires service within 90 days after a complaint is filed. If service is not made within that period, the court must dismiss the action without prejudice or order service within a specified time. If the plaintiff shows good cause for the failure, the court must extend the service period for an appropriate time.

The Court found good cause both for the failure to serve First Klass Breakfast LLC and for vacating the default. The Court relied on Freeman’s representation that Dorgan had inadvertently served First Klass Media Group LLC instead.

Disposition

The Court ordered the Clerk to vacate the entry of default against First Klass Breakfast LLC. It granted Dorgan leave to serve the initial summons and complaint on that defendant and required him to serve the documents and file proof of service by March 9, 2022. The Court denied Dorgan’s motion for default judgment.