PHILLIPS, GOLDMAN, MCLAUGHLIN & HALL, P.A. Plaintiff,
CITY CLUB APARTMENT, LLC, Defendant.
MEMORANDUM ORDER DENYING DEFENDANT CITY CLUB
APARTMENT, LLC'S MOTION TO VACATE DEFAULT
M. Davis, Judge.
consideration of City Club Apartment, LLC's Motion to
Vacate Default Judgment (the "Motion") filed by
City Club Apartments, LLC ("CCA"); Phillips,
Goldman, McLaughlin & Hall, P.A.'s Response in
Opposition to City Club Apartment, LLC's Motion to Vacate
Default Judgment (the "Response") filed by
Phillips, Goldman, McLaughlin & Hall, P.A.
("PGMH"); the Affidavit of Marc Newman; the
affidavit of Jamie Robinson; the April 29, 2019 hearing on
the Motion and Response; the letter, dated May 3, 2019, from
Donald A. Gouge, Esq., to the Honorable Eric M. Davis and
attached proposed answer and counterclaims; the letter, dated
May 10, 2019, from Lisa C. McLaughlin, Esq., to the Honorable
Eric M. Davis; the letter, dated May 14, 2019, from Donald A.
Gouge, Esq., to the Honorable Eric M. Davis; the letter,
dated May 17, 2019, from Donald A. Gouge, Esq., to the
Honorable Eric M. Davis; all exhibits and attachments to the
Motion, the Response and the various letters; the docket in
In re Morrow Park Holding LLC, C.A. No.
2017-0036-TMR; the entire record of this civil proceeding,
the Court has determined that no additional hearing is
necessary on the Motion, the Response or the additional
Court, exercising its discretion on the facts presented here,
finds that CCA has failed to demonstrate that mistake,
inadvertence, surprise or excusable neglect exists to vacate
the default judgment entered on March 8, 2019 (the
"Default Judgment"). Accordingly, the Motion is
commenced this case with the filing of its complaint on
January 16, 2019 (D.I. No. 1). PGMH had CCA served on
February 13, 2019 (D.I. No. 4). CCA needed to file a response
to the complaint by March 5, 2019.
March 8, 2019, PGMH obtained the Default Judgment to the
Plaintiff's Direction for Entry of Default Judgment
Against City Club Apartments, LLP (D.I. No. 5).
parties filed three items with the Court on March 28, 2019.
First, CCA had its attorney file a notice of appearance (D.I.
No. 6). Second, PGMH requested a certified copy of the
Default Judgment from the Prothonotary (D.I. No. 7). Third,
CCA filed the Motion (D.I. No. 8).
a third party defendant in a pending Delaware Court of
Chancery case (the "Chancery
time, PGMH represented CCA in the Chancery Action. On October
16, 2018, PGMH moved to withdraw from its representation of
CCA. The Chancery Court granted PGMH's request to
withdraw on December 18, 2018. The Chancery Court gave CCA
until January 17, 2019 to retain new counsel.
failed to meet the Chancery Court's January 17, 2019
deadline. On January 18, 2019, another party in the Chancery
Action moved for a default judgment (the "Default
Motion") against CCA because CCA had not satisfied the
January 17, 2019 court-ordered deadline. This finally
prompted action from CCA. On February 22, 2019, counsel
entered an appearance on behalf of CCA. In addition, CCA
filed a response to the Default Motion. CCA blamed its
dilatory conduct in the Chancery Court Action on the fact
that it was negotiating payment issues with PGMH and engaging
in "appropriate due diligence and securing the necessary
resources to secure new representation." The Chancery
Court denied the Default Motion.
counsel in the Chancery Action is not CCA's counsel in
this civil proceeding. CCA has not provided any explanation
why counsel in the Chancery Court Action could not appear in
this civil proceeding.