Reported / Citable
Background
Rapheal Peterson sued LVNV Funding LLC in the Eastern District of Texas. After an entry of default against LVNV, Peterson moved for default judgment.
LVNV moved to dismiss the action or, alternatively, to set aside the default. A magistrate judge recommended denying Peterson’s default-judgment motion and granting LVNV relief from default while denying dismissal. Neither side timely objected to that recommendation.
The Court’s Holding
District Judge Sean D. Jordan adopted the magistrate judge’s report and recommendation in full. The court denied Peterson’s motion for default judgment.
The court granted LVNV’s motion only insofar as it sought to set aside the entry of default, and denied the request to dismiss the case. The clerk was directed to set aside the default, and Peterson was ordered to properly serve LVNV within 21 days.
Key Takeaways
- The court denied default judgment against LVNV.
- The entry of default against LVNV was set aside.
- The case was not dismissed, but Peterson must properly serve LVNV within 21 days.
Why It Matters
The order restores the case to the service stage rather than resolving it on default or terminating it through dismissal. Peterson must now complete proper service for the litigation to proceed against LVNV.