THE GALLEON GUILD LTD v. The Partnerships, Unincorporated Associations Identified on Schedule A

PAPERLESS ORDER granting [37] Defendant Cozy Corner Creations' Motion to Set Aside Default. On February 4, 2026, the Clerk of Court entered a Clerk's Default against Defendants for failure to answer Plaintiff's Complaint. See [ECF No. 31]. On February 17, 2026, Defendant Cozy Corner Creations filed a Motion to Set Aside Default ("Motion"). See [ECF No. 37]. The Court "may set aside an entry of default for good cause." Fed. R. Civ. P. 55(c). Although good cause is "not susceptible to a precise formula," Courts may consider factors including "whether the default was culpable or willful, whether setting it aside would prejudice the adversary. whether the defaulting party presents a meritorious defense[, and] whether the defaulting party acted promptly to correct the default." Sherrard v. Macy's Sys. & Tech. Inc., 724 F. App'x 736, 738 (11th Cir. 2018) (cleaned up). The Eleventh Circuit has made clear that defaults are disfavored given the "strong policy of determining cases on their merits." Id. (quoting In re Worldwide Web Sys., Inc., 328 F.3d 1291, 1295 (11th Cir. 2003)). Here, Defendant Cozy Corner Creations has represented credibly that the default was not willful or culpable as it stemmed from the fact that Defendant is a "small, out-of-the-jurisdiction, storefront with limited ability to procure counsel and local counsel on such short notice." See Mot. at ¶ 3. There is no indication that setting aside the Default will cause Plaintiff any prejudice. See Sherrard, 724 F. App'x at 738-739 (setting aside default where there was no indication that a "brief delay" would cause prejudice such as "a loss of evidence," "increased difficulties in discovery," or "opportunities for fraud or collusion."). Accordingly, the Court finds good cause under Federal Rule of Civil Procedure 55(c) to set aside the Clerk's Entry of Default as to Defendant Cozy Corner Creations. The Clerk's Entry of Default as to Cozy Corner Creations, [ECF No. 31], is hereby VACATED. Defendant Cozy Corner Creations shall file a response to Plaintiff's Complaint, [ECF No. 1], on or before March 3, 2026. Signed by Judge Rodolfo A. Ruiz, II on 2/17/2026.

Plaintiff's MOTION for Clerk's Entry of Default as to CLHDSJ, Cozy Corner Creations, HTB Trading, Huadu Shop, KEGUI Co., Tanataa, Visit the BearlyGifts Store, YUN LANG, miin7gbn by The Galleon Guild Ltd. Responses due by 2/18/2026.