John Doe and Jane Roe v. Avi Schwalb

Summary

The United States Bankruptcy Court for the District of Colorado denied Defendant Avi Schwalb’s motion to set aside the clerk’s entry of default in an adversary proceeding seeking a determination that Plaintiffs’ debt was nondischargeable under 11 U.S.C. § 523(a)(6). The court found the default willful, identified prejudice from continued delay, and concluded that Defendant had not presented a sufficiently supported meritorious defense.

Holdings

1. The motion to set aside the clerk's entry of default was denied because Defendant failed to establish good cause.
2. Defendant's default was willful and this factor weighed against vacating the clerk's entry of default.
3. Setting aside the default would cause identifiable prejudice to Plaintiffs, and this factor weighed against relief.
4. Defendant failed to present a meritorious defense because his motion and answer contained only general denials and a conclusory assertion regarding Plaintiffs' burden of proof.

Questions Presented

1. Whether Defendant demonstrated good cause under Federal Rule of Civil Procedure 55(c) to set aside the clerk's entry of default.
2. Whether Defendant's failure to answer was willful.
3. Whether setting aside the default would cause identifiable prejudice to Plaintiffs.
4. Whether Defendant presented facts constituting a meritorious defense to Plaintiffs' nondischargeability claims.

Disposition

other