Jonathan Blecher, et al. v. Choice Hotels International, Inc., et al.

Summary

The United States District Court for the Eastern District of Pennsylvania grants Choice Hotels International, Inc.’s motion to set aside an entry of default under Federal Rule of Civil Procedure 55(c). The court concludes that the plaintiffs will not suffer prejudice, Choice Hotels has asserted potentially meritorious defenses, and the default resulted from negligence rather than culpable or inexcusable conduct. The underlying action concerns claims arising from the theft of the plaintiffs’ vehicle from a franchised hotel parking lot.

Holdings

1. The entry of default should be set aside because the Blechers would not suffer prejudice, Choice Hotels stated potentially meritorious defenses, and its failure to respond was negligent rather than willful or in bad faith.
2. The Blechers would not suffer legally cognizable prejudice from setting aside the default merely because they would have to litigate their claims on the merits.
3. Choice Hotels stated meritorious defenses sufficient to favor setting aside the default.
4. Choice Hotels' failure to respond was not culpable or inexcusable because it resulted from negligence and an inadvertent computer-related communication failure, not willful or bad-faith conduct.

Questions Presented

1. Whether the entry of default against Choice Hotels should be set aside for good cause under Federal Rule of Civil Procedure 55(c).
2. Whether the Blechers would suffer prejudice if the default were set aside.
3. Whether Choice Hotels had stated a meritorious defense.
4. Whether Choice Hotels' failure to plead or otherwise defend resulted from culpable or inexcusable conduct.

Disposition

other