When a party files a civil lawsuit in federal court, there is an expectation that the defendant will respond to the complaint. If the defendant fails to answer or otherwise defend themselves within the designated timeframe, the plaintiff can seek a default judgment. A default judgment can resolve the case in favor of the plaintiff without the need for a trial. This post explains the concept of a civil default judgment, when to file for it, what happens after filing, and how it can be reversed.
What is a Civil Default Judgment?
A civil default judgment is a legal ruling entered by the court in favor of one party when the opposing party fails to respond to a complaint. Under the Federal Rules of Civil Procedure (FRCP), a defendant must answer a complaint within 21 days after being served (FRCP 12). If the defendant does not meet this deadline, they are at risk of a default judgment being entered against them.
A default judgment effectively means that the court has decided the case in favor of the plaintiff due to the defendant’s failure to engage in the legal process. This outcome can result in significant consequences for the defendant, including monetary damages, injunctive relief, or other remedies sought by the plaintiff.
When Should a Request For a Civil Default Judgment Be Filed?
Default judgment is not automatic the plaintiff must follow a two-step process to request it. First, the plaintiff must request an entry of default from the court clerk under FRCP 55(a). Once the entry of default is recorded, the plaintiff may move for a default judgment under FRCP 55(b).
Step 1: Entry of Default
To initiate the process, the plaintiff files a request for an entry of default after the defendant fails to respond within the prescribed time. The court clerk will review the request to ensure the defendant was properly served and has not answered. If these conditions are met, the court clerk will enter a default on the docket. this action acknowledges the defendant’s failure to defend, but does not yet result in a final judgment.
Step 2: Motion For Default Judgment
Once the clerk has entered the default, the plaintiff may file a motion for default judgment. The motion must specify the relief sought, including any monetary damages or other remedies. If the defendant has appeared in the case but failed to defend themselves, the court will usually require a hearing to determine damages before granting the motion. In cases where the defendant has not appeared at all, the court may issue the default judgment without a hearing if the damages are ascertainable from the complaint.
In Northland Ins. Co. v. Cailu Title Corp., 204 F.R.D. 327 (W.D. Mich. 2000), the court noted that the entry of default and entry of default judgment are distinct concepts that must be treated separately.
What Happens After Filing for a Civil Default Judgment?
Once a motion for default judgment is filed, the court will review the motion and determine whether the relief requested is appropriate. Several outcomes can follow:
Entry of Default Judgment
If the court finds that the plaintiff has adequately stated their claim and the damages can be easily determined, the court may grant the default judgment. This grants the plaintiff the relief requested in the complaint, which could include monetary awards or injunctive relief. The default judgment is binding, and the plaintiff may begin enforcement actions, such as garnishing wages or levying property, to collect any awarded damages. The entry of a default judgment is discretionary and various factors are weighed by the court before its entry.
In Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986), several factors were identified for courts to consider when weighing a default judgment motion including: 1) the possibility of prejudice to the plaintiff 2) the merits of plaintiff’s substantive claim 3) the sufficiency of the complaint 4) the sum of money at stake in the action 5) the possibility of a dispute concerning material facts 6) whether the default was due to excusable neglect and, 7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.
Hearing on Damages
In cases where the damages sought are not clearly ascertainable from the complaint, the court may hold a hearing to determine the appropriate amount. This is especially common when the plaintiff is requesting non-monetary relief or when punitive damages are sought.
In Comdyne I, Inc. v. Corbin, 908 F.2d 1142 (3rd Cir. N.J. 1990), the court stated the the only allegations in a complaint that are not treated as true upon consideration of a motion for default judgment are those pertaining to the amount of damages. Under FRCP 55(b), a district court may conduct such hearings or order such references as it deems necessary and proper in order to determine the amount of damages.
Denial of Civil Default Judgment
The court has discretion to deny a motion for default judgment if it determines that the plaintiff has not adequately stated a claim or if there are other procedural defects. The court may also refuse to grant default judgment if the plaintiff has failed to properly serve the defendant or if the complaint does not specify a legitimate basis for relief.
In Abney v. Alameida, 334 F.Supp.2d 1221 (S.D. Cal. 2004), the court denied an inmates motion for a default judgment where he had not adequately stated a legally sufficient claim regarding the violation of his federal constitutional rights. Additionally, the Director of the state corrections department filed a motion to dismiss nearly two months before the plaintiff filed his motion for entry of default judgment.
How Can a Civil Default Judgment Be Reversed?
Default judgments are not necessarily final. In some instances, the defendant may be able to have the judgment set aside or vacated under FRCP 55(c) or FRCP 60(b). These rules allow the court to relieve a party from a final judgment under certain circumstances.
Setting Aside Entry of Default (FRCP 55(c))
Before a default judgment is entered, a defendant can file a motion to set aside the entry of default. To succeed, the defendant must show “good cause” for their failure to respond. Good cause may include excusable neglect, a failure to receive notice, or other reasonable explanations for not timely answering the complaint. Courts typically prefer to resolve disputes on the merits, so they may be inclined to set aside an entry of default if the defendant acts promptly and can provide a valid explanation for their failure to respond.
In Edwards v. Eastman Outdoors, Inc. (In re Game Tracker, Inc.), 746 F.Supp.2d 207 (D. Me. 2010), the court said that “good cause” sets a liberal standard and there is no mechanical formula for determining whether good cause exists. Several factors that are typically considered include: 1) whether the default was willful 2) whether setting it aside would prejudice the adversary 3) whether a meritorious defense is presented 4) the nature of the defendant’s explanation for the default 5) the good faith of the parties 6) the amount of money involved and, 7) the timing of the motion to set aside the entry of default.
Relief From Default Judgment (FRCP 60 (b))
Once a default judgment is entered, the defendant can still seek relief under FRCP 60(b). This rule provides several grounds for relief, including:
- Mistake, inadvertence, surprise or excusable neglect
- Newly discovered evidence that could not have been discovered in time for a new trial
- Fraud, misrepresentation, or misconduct by the plaintiff
- The judgment is void (e.g., due to lack of jurisdiction)
- The judgment has been satisfied, released, or discharged
- Any other reason that justifies relief.
Courts may be more reluctant to set aside a default judgment compared to setting aside an entry of default. The defendant must provide a compelling reason why the judgment should be vacated and demonstrate that they have a meritorious defense to the plaintiff’s claims.
As acknowledged in Canfield v. VSH Restaurant Corp., 162 F.R.D. 431 (N.D.N.Y. 1995), after an entry of default, the defaulting party may move to set entry aside for “good cause” shown pursuant to FRCP 55(c). However, default judgments are set aside only in accordance with more stringent standard contemplated by FRCP 60(b).
My Final Thoughts
Default judgment is a powerful tool for plaintiffs in federal civil lawsuits when a defendant fails to respond. However, the process is not automatic, and the court must carefully evaluate the plaintiff’s claims before granting default judgment. While it can provide swift resolution for plaintiffs, default judgments can also be set aside or vacated under certain conditions. Defendants who fail to respond in a timely manner should act quickly to avoid the potentially severe consequences of default judgment. Ultimately, both plaintiffs and defendants must understand the rules governing default judgment to navigate the legal system effectively.
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