G & G Closed Circuit Events, LLC v. Lopez

Background

G&G Closed Circuit Events, LLC sued Orlando Brian Lopez, individually doing business as Cositas Ricas Mexican Grill, and Cositas Ricas Mexican Grill under 47 U.S.C. §§ 605 and 553. The complaint alleged that defendants aired a boxing match without obtaining the proper license.

Lopez’s answer was due September 23, 2021, and Cositas’s answer was due September 24, 2021. On September 30, the plaintiff requested certificates of default, which the Clerk’s Office issued that day. On October 1, defendants jointly submitted a filing labeled an “Answer.” Because defendants were representing themselves, the court interpreted that filing as a motion to set aside the certificates of default.

The plaintiff later submitted a proposed default judgment and supporting materials, including a damages statement.

Court’s Analysis

Federal Rule of Civil Procedure 55(c) permits a court to set aside an entry of default for “good cause.” Courts consider whether the default was willful, whether setting it aside would prejudice the opposing party, and whether the defendant has presented a potentially valid defense.

The court found that the first two factors strongly favored setting aside the defaults. Defendants responded only a few days late and the day after the plaintiff sought the certificates of default. The court concluded that this was not deliberate or extreme conduct, particularly given defendants’ self-represented status. The court also found that the plaintiff was not prejudiced because defendants filed their answer only about a week after the deadlines.

Disposition

The court would not enter default judgment for G&G Closed Circuit Events, LLC and granted defendants’ motion to set aside the certificates of default. Judge Kenneth M. Karas gave defendants 30 days from the date of the order to answer the complaint and ordered the plaintiff’s counsel to mail defendants a copy of the opinion and order.