This month, we discuss City of New York v. Mickalis Pawn Shop,1 in which the U.S. Court of Appeals for the Second Circuit upheld the district court’s entry of a default judgment in circumstances where defendants had answered the complaint and litigated extensively before the district court (prior to withdrawing), and where the district court had not determined it had personal jurisdiction over the defendants.
The court’s opinion, written by Judge Robert D. Sack and joined by Judge Richard C. Wesley and Judge Richard K. Eaton of the International Court of Trade (sitting by designation), addressed two issues on which circuits previously have split: first, whether a clerk can properly enter a default against defendants that had answered the complaint and moved to dismiss the claims; and second, whether a court can properly enter a default judgment against defendants without first determining that it has personal jurisdiction over those defendants. The Second Circuit upheld the district court’s entry of a default judgment in these circumstances. Judge Wesley, while joining the panel’s opinion in its entirety, wrote a separate concurrence criticizing the jurisdictional analysis engaged in by the district court.2
Procedural History
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