Momentum Funding, LLC v. Nova Funding Corporation

Background

Momentum Funding, LLC is the plaintiff. The defendants are Nova Funding Corporation and Wellworth Lawsuit Funding LLC, doing business as Nova Legal Funding and Ally Lawsuit Loans. The excerpt identifies a notice of motion for default judgment filed by Momentum under Federal Rule of Civil Procedure 55(b)(2) and Local Rule 55.2(b). It does not describe the underlying claims.

A default occurs when a party does not respond as required. A default judgment is a judgment entered because of that failure to respond. The excerpt refers to a certificate of default at ECF No. 20.

Court’s Analysis

The order states that, after considering the parties’ arguments at ECF Nos. 28, 34, and 38, the defendants’ default was not willful; the defendants had presented a potentially meritorious defense; Momentum would not suffer significant prejudice; and there is a strong preference for resolving cases on their merits. The court also excused counsel’s filing of the defendants’ opposition two days before seeking permission to appear in the case.

Ruling

The court denied the defendants’ motion for default judgment and vacated the certificate of default. It ordered the defendants to respond to the complaint by March 15, 2024. The Clerk of Court was directed to terminate the motions at ECF Nos. 26 and 34. The excerpt is internally inconsistent because it begins with a plaintiff-filed notice of motion for default judgment but states that the defendants’ motion for default judgment was denied. It does not otherwise explain the nature of the defendants’ motion.