Kristan Clark v. Dollar Tree Stores, Inc., Family Dollar Stores, Inc., Family Dollar, Inc., Revolent Capital Solutions, doing business as “The Facilities Group,” RCS IWC Holdings, LLC, MTC Facility Maintenance, LLC and Puresan Holdings, LLC, doing business as “National Janitorial Services”

Summary

The United States District Court for the Eastern District of Pennsylvania grants MTC Facility Maintenance, LLC’s motion to set aside the Clerk’s entry of default in a slip-and-fall negligence action. The court finds no material prejudice to the plaintiff, identifies facially meritorious defenses, and concludes that MTC’s failure to respond was negligent but not willful or reckless.

Holdings

1. The court granted MTC's motion and set aside the Clerk's entry of default because Clark showed no cognizable prejudice, MTC presented facially meritorious defenses, and MTC's failure to respond was negligent but not reckless or willful.

Questions Presented

1. Whether MTC established good cause under Federal Rule of Civil Procedure 55(c) to set aside the Clerk's entry of default.
2. Whether Clark would suffer cognizable prejudice if the entry of default were set aside.
3. Whether MTC presented a meritorious defense.
4. Whether MTC's failure to respond constituted culpable conduct through willfulness or bad faith.

Disposition

vacated