Lee v. Road Runner Auto Sales, Inc.

District Court, E.D. Michigan

Lee v. Road Runner Auto Sales, Inc.

Trial Court Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION JAYLEN S. LEE, Plaintiff, v. Case No. 24-10258 ROAD RUNNER AUTO SALES, INC., Sean F. Cox United States District Court Judge Defendant. _________________________________/ OPINION & ORDER GRANTING DEFENDANT’S MOTION TO SET ASIDE CLERK’S ENTRY OF DEFAULT Acting pro se, Plaintiff filed this action against Defendant. Soon thereafter, Plaintiff obtained a Clerk’s Entry of Default. The matter is now before the Court on Defendant’s motion seeking to set aside the Clerk’s Entry of Default. The Court concludes that oral argument is not necessary. Local Rule 7.1. For the reasons that follow, the Court grants Defendant’s Motion to Set Aside Clerk’s Entry of Default. BACKGROUND Acting pro se, and proceeding in forma pauperis, Plaintiff Jaylen S. Lee filed this action against Defendant Road Runner Auto Sales, Inc. on January 31, 2024. Plaintiff filed an Amended Complaint on February 9, 2024. On March 13, 2024, Plaintiff sought, and obtained, a Clerk’s Entry of Default as to Defendant Road Runner Auto Sales, Inc. (See ECF Nos. 11 & 12). On March 27, 2024, Defendant filed a motion asking this Court to set aside the Clerk’s Entry of Default. (ECF No. 13). Plaintiff filed a response in opposition to the motion. The motion is ripe for a decision by this Court. ANALYSIS I. The Court Grants Defendant’s Motion To Set Aside Clerk’s Entry Of Default. The Court shall grant Defendant’s Motion to Set Clerk’s Entry of Default.

Rule 55 of the Federal Rules of Civil Procedures provides, in pertinent that, that“[f]or good cause shown the court may set aside an entry of default.” Fed. R. Civ. P. 55(c). When evaluating either a motion to set aside an entry of default or a default judgment, the court considers three factors: 1) whether the default was the result of the defendant’s willful or culpable conduct; 2) whether the plaintiff would be prejudiced if the default is set aside; and 3) whether the defendant asserts any meritorious defenses to the claims. United Coin Meter Co., Inc. v. Seaboard Coastline R.R.,

705 F.2d 839

, 844–45 (6th Cir. 1989). Rule 55 “leaves to the discretion of the trial judge the decision whether to set aside an

entry of default. However, a strong preference for trials on the merits in federal courts had led to the adoption of a somewhat modified standard of review where defaults are involved.” Shepard Claims Service, Inc. v. William Darrah & Associates,

796 F.2d 190, 193

(6th Cir. 1986). In practice, Courts employ a “lenient standard” in evaluating a request to set aside a default that has not yet reached a default judgment.

Id.

Federal courts favor trials on the merits; therefore, “any doubt should be resolved in favor of the petition to set aside the judgment.” United Coin Meter Co.,

705 F.2d at 846

. Having reviewed Defendant’s motion seeking to set aside the Clerk’s Entry of Default entered against it, the Court concludes that it has met that standard.

CONCLUSION & ORDER Accordingly, IT IS ORDERED that Defendant’s Motion to set aside the Clerk’s Entry Of Default is GRANTED. IT IS SO ORDERED. s/Sean F. Cox Sean F. Cox United States District Judge Dated: April 22, 2024

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