Arroyo-Bey v. Modern Orthodontics

Background

Noel Arroyo-Bey filed this action without a lawyer on April 26, 2023. The court allowed Arroyo-Bey to proceed without paying the filing fee and authorized service through the U.S. Marshals Service. The Marshals Service served Modern Orthodontics and Kenneth Cooperman on August 1, 2023.

After defendants did not appear, answer, or otherwise respond, Arroyo-Bey requested a Clerk’s Certificate of Default. The Clerk entered the certificate on October 26, 2023. Arroyo-Bey later moved for default judgment.

On February 29, 2024, defendants moved to vacate, or cancel, the Clerk’s Certificate of Default. Cooperman stated that he was a licensed dentist and the sole owner of Modern Orthodontics. He said he believed the summons and complaint had to be handed to him personally and therefore did not understand that he needed to respond. After his lawyer explained that service had been proper, he promptly filed the motion.

Legal standard

Because no default judgment had yet been entered, the court applied the more flexible “good cause” standard under Federal Rule of Civil Procedure 55(c). Courts consider whether the default was willful, whether the defendant has a potentially valid defense, and whether setting aside the default would prejudice the other party. Courts may also consider good-faith mistakes and whether leaving the default in place would produce an unfair result. The court noted that default judgments are disfavored and that cases generally should be decided on their merits.

Analysis and ruling

The court found good cause to vacate the default. It determined that defendants’ failure to respond was not willful because they had not deliberately avoided service or the lawsuit. Instead, Cooperman misunderstood his obligations. After learning that service was proper, he acted quickly and sought to defend himself and his medical practice.

The court also found that vacating the default would not prejudice Arroyo-Bey. The case could continue on the merits, and the discovery process might provide answers to questions Arroyo-Bey had raised about video evidence. Judge Wang therefore vacated the Clerk’s Certificate of Default and directed defendants to file an answer or other responsive pleading by Friday, April 26, 2024. The Clerk was also directed to close the docket entries for Arroyo-Bey’s default-judgment motion and defendants’ motion to vacate. The opinion did not decide the underlying claims.