Sovereign Capital Resources, LLC v. Armstrong Square Ltd. Partnership
Docket: No. 02-55398; D.C. No. CV-00-02919-MMM
Court: Court of Appeals for the Ninth Circuit; March 9, 2003; Federal Appellate Court
Appellants Armstrong Square Limited Partnership and Pamela Gleichman appealed the default judgment and the denial of their motions to set aside both the default and the judgment. The court affirmed the district court's ruling, citing jurisdiction under 28 U.S.C. 1291. A trial court can deny a Rule 60(b) motion to vacate a default judgment based on three factors: (1) potential prejudice to the plaintiff, (2) lack of a meritorious defense by the defendant, or (3) culpable conduct by the defendant leading to the default. The court clarified that any one of these factors, if true, can justify denial of the motion. The burden lies with the movants to demonstrate that they meet the criteria for relief. The district court found that appellants’ conduct was culpable, as Gleichman failed to comply with court orders regarding the arrangement of new counsel or proceeding pro se, and did not attend a crucial hearing. Additionally, the court ruled that appellants failed to establish a meritorious defense; Gleichman’s assertions in her declaration were deemed insufficient, lacking factual support and consisting primarily of legal conclusions. The court granted the appellee’s request for reasonable attorneys’ fees related to the appeal, assigning the determination of the fee amount to Appellate Commissioner Peter L. Shaw, who will conduct necessary proceedings. The order is subject to reconsideration by the panel. The ruling is affirmed and is not to be published or cited in this circuit, except as allowed by Ninth Circuit Rule 36-3.