Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-arwd-5_06-cv-05109/USCOURTS-arwd-5_06-cv-05109-6/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 28:1441 - Petition for Removal: SEC Act

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AO72A

(Rev. 8/82)

UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF ARKANSAS

FAYETTEVILLE DIVISION

SHIMODA-ATLANTIC, INC. PLAINTIFF

vs. Case No. 06-5109

TALON HOLDINGS, INC., ET AL DEFENDANTS

MEMORANDUM OPINION AND ORDER

Currently before the Court are the Motion for Extension

of Time (Doc. 67) and Motion to Declare Clerk’s Default as

Void or, in the alternative, Enter an Order Vacating Clerk’s

Default (Doc. 59) filed by Separate Defendant Patrick Joseph

Lochrie. Also before the Court are Plaintiff’s Response (Doc.

61) and Lochrie’s Reply (Doc. 69). Based on the reasons

stated below, Separate Defendant Lochrie’s Motions (Docs. 59

& 67) are GRANTED. 

A. Background

Plaintiff filed its Complaint on June 6, 2006, in the

Circuit Court of Benton County, Arkansas. (Doc. 1, Ex. A).

On June 16, 2006, the case was removed to this Court (Doc. 1).

That same day, the United States District Clerk advised

Plaintiff to file affidavits of service for defendants already

served and proof of service for defendants to be served in the

future.

On July 14, 2006, Plaintiff filed its proof of service as

to Lochrie contending Lochrie was served on June 17, 2006 by

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AO72A

(Rev. 8/82)

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certified mail, restricted delivery. (Doc. 21, Ex. B). On

November 9, 2006, Plaintiff filed an affidavit in support of

default certifying that it had served Lochrie by certified

mail and that Lochrie had not filed a responsive pleading or

motion to dismiss (Doc. 33). Accordingly, the Clerk filed its

entry of default against Lochrie (Doc. 34).

On January 11, 2007, Lochrie filed a motion requesting

the Court to set aside the Clerk’s entry of default (Doc. 59)

contending he was never personally served and that the

signature on the proof of service is that of an “R. Parker”

not Lochrie (Doc. 69).

B. Standard of Review

An entry of default may be set aside by the District

Court for good cause shown. Fed. R. Civ. P. 55(c). In

determining whether good cause exists, the Eighth Circuit has

considered “whether the conduct of the defaulting party was

blameworthy or culpable, whether the defaulting party has a

meritorious defense, and whether the other party would be

prejudiced if the default were excused.” Johnson v. Dayton

Elec. Mfg. Co., 140 F.3d 781 (8th Cir. 1998). Judge Loken

wrote that “[o]ur cases have consistently sought to

distinguish between contumacious or intentional delay or

disregard for deadlines and procedural rules, and a ‘marginal

failure’ to meet pleading or other deadlines.” Id. at 784. 

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C. Analysis

Lochrie filed a motion for an extension of time to file

a reply to Plaintiff’s Response (Doc. 67). The Court finds

that this Motion should be GRANTED, and Lochrie’s Reply (Doc.

69) is deemed timely filed.

Lochrie has provided an affidavit to the Court where he

avers that he was not served with the summons and complaint,

the address on the U.S.P.S. Certified Mail Receipt is neither

his home nor work address, the signature on the receipt is not

his signature, and Lochrie does not employ or know an

individual by the name of R. Parker (Doc. 69, Ex. C).

After reviewing the proof of service provided by

Plaintiff, as well as the affidavit of Lochrie, the Court

finds that no prejudice will result from setting aside the

entry of default, nor was Lochrie intentionally delaying these

proceedings. Accordingly, Separate Defendant Patrick Joseph

Lochrie’s Motion to Set Aside the Entry of Default (Doc. 59)

is GRANTED. 

IT IS SO ORDERED this 5th day of February, 2007. 

/s/ Robert T. Dawson 

Honorable Robert T. Dawson

United States District Judge

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