URSULA UNGARO, District Judge.
THIS CAUSE is before the Court upon Defendant's Motion to Set Aside Entry of Default and Default Judgment. D.E. 34.
THE COURT has considered the Motion, the pertinent portions of the record, and is otherwise fully advised in the premises.
In their operative complaint, filed on September 12, 2012, Plaintiffs Patrice Baker, a "prominent businessman" in South Florida, and Laurent Lamonthe, the Prime Minister of Haiti, allege that Defendant Leo Joseph published defamatory statements about them in multiple news articles that appeared in a printed periodical and on an Internet website.
Under Federal Rule of Civil Procedure Rule 55(c), a clerk's entry of default may be set aside upon the showing of good cause. But when a default judgment has been entered, Rule 55(c) refers to Rule 60(b), which sets forth six grounds upon which relief may be granted. Here, Defendant seeks relief under subsections (1), (4), and (6) of Rule 60(b). Rule 60(b)(1) provides that relief may be provided where there was "mistake, inadvertence, surprise, or excusable neglect." Rule 60(b)(4) applies where "the judgment is void." Rule 60(b)(6) may be invoked for "any other reason that justifies relief."
Although Defendant's motion begins by seeking relief from the restraint on speech and the finding of actual malice in the default final judgment, the Court will first address Defendant's argument that the default and the default judgment should be set aside under Federal Rule of Civil Procedure 60(b)(4) as void due to insufficient service of process. Accepting Defendant's argument that service was insufficient would require this Court to vacate the entry of default against Defendant. See Varnes v. Glass Bottle Blowers Ass'n, 674 F.2d 1365,
Defendant bears the burden of proving that service of process was insufficient. In re: Worldwide Web Systems, Inc. 328 F.3d at 1299 (11th Cir.2003) (holding that defendant has the burden of proof in a Rule 60(b)(4) motion), citing Hazen Research, Inc. v. Omega Minerals, Inc., 497 F.2d 151, 154 (5th Cir.1974).
Defendant argues that Plaintiffs did not exhibit "due diligence" in attempting to serve him personally or by substitute service prior to affixing the process on the
In response, Plaintiffs make many factual assertions which are unsupported by any record evidence. For example, Plaintiffs claim that their process server made more than one attempt at serving Defendant and that McCoy was, in actuality, the Defendant himself, but submit no proof to support either of these assertions. As to the first claim, Plaintiffs contend that a first attempt to serve Defendant at his home was made on November 30, 2012, but no one was present. D.E. 43 at 5. However, not only is there no supporting evidence for this assertion, it actually is contradicted by the affidavit submitted by the process server, who indicated that service attempts prior to December 1, 2012, were "n/a." D.E. 17-1. As to Plaintiffs' assertion that prior to visiting Defendant's home, the process server had been furnished a photo of Defendant and that he identified McCoy as Defendant, it is likewise not substantiated in the process server's affidavit or elsewhere in the record. And Plaintiffs do not present any evidence rebutting the differences between Defendant's description of himself and the process server's description of John McCoy. Plaintiffs claim, without supplying any evidence, that on December 1, 2012, McCoy "answered the door at Defendant's home." D.E. 43 at 5. However, the process server's affidavit is entirely silent on where the alleged exchange with McCoy occurred. See D.E. 17-1. The affidavit does not indicate that McCoy was present inside Defendant's home or anywhere on Defendant's property. Id. In addition, Plaintiffs assert that the individual who allegedly answered the door "identified himself as John McCoy, a tenant of the residence." D.E. 43 at 5. In support of this claim, Plaintiffs cite "Supp. Aff. of Mladinich," id., but there is no document anywhere in the record that conforms to this description. Finally, Plaintiffs assert that Defendant knew of the lawsuit because he was quoted in a news article as stating he thought the lawsuit was "a joke." 43-6. But the newspaper article from which Plaintiffs cite is inadmissible hearsay evidence. See Fed.R.Evid. 801-2. And even if the Court were to consider the newspaper article, the portion cited by Plaintiffs does not prove that service was sufficient, only that Defendant was dismissive of the lawsuit once he became aware of it. Elsewhere in the same newspaper article, Defendant is reported to have said that he was not properly served with the paperwork notifying him of the litigation. D.E. 43-1. In sum, Defendant has demonstrated
In the interests of judicial economy, the Court addresses here Defendant's argument that the complaint's allegation as to "actual malice" is not well-pleaded. Actual malice, a necessary element in libel actions against public figures, requires that "the defamatory falsehood was made with knowledge of its falsity or with reckless disregard for the truth." Gertz v. Robert Welch, 418 U.S. 323, 342, 94 S.Ct. 2997, 41 L.Ed.2d 789 (1974). Here, the operative complaint asserts only that "Defendants statements were made with actual malice." This statement is a legal conclusion and, as such, does not satisfy the well-pleaded allegation requirement set forth in Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (holding that a plaintiff's grounds for relief must be based on factual allegations, not a formulaic recitation of the elements of a cause of action); see also Ashcroft v. Iqbal, 556 U.S. 662, 667-80, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting and citing Twombly); Mamani v. Berzain, 654 F.3d 1148, 1153 (11th Cir.2011) (quoting and citing Iqbal). In reaching this conclusion, the Court declines to follow LEVY v. STEVEN A. LERMAN & ASSOCIATES, INC., 2011 WL 1153277, 2011 U.S. Dist. LEXIS 79560 (S.D.Fla.2011), the unpublished district court opinion cited by Plaintiffs, in which the court held that actual malice is properly pled when the complaint lists the defamatory statements and then alleges that the statements were made with knowledge of their falsity or with reckless disregard for the truth. Inasmuch as LEVY holds that a plaintiff can plead actual malice without alleging facts substantiating defendant's knowledge of the falsity of the challenged statements or defendant's reckless disregard for the truth, the holding is at odds with Twombly and Iqbal. Finally, Plaintiff's reliance on Dubai World Corp. v. Exomos, 2011 U.S. Dist. LEXIS 12554 (S.D.Fla.2011) is unavailing because the cited holding concerns the presumption of injury where the challenged statement maligns the claimant's professional competence, not the requirements for pleading actual malice. See id. at *47. Because Plaintiffs have failed to properly plead actual malice, they shall file a second amended complaint, setting forth the facts that support this allegation, no later than April 19, 2013.
The final issue that Defendant raises is that the injunctive relief granted in default final judgment amounted to an unconstitutional prior restraint. First, the Court notes that the operative complaint did not ask for an injunction and it should not have been entered for that reason. Second, the Court cautions Plaintiffs that prior restraints on speech are disfavored. See, e.g., Community for Creative Non-Violence v. Pierce, 814 F.2d 663, 672 (D.C.Cir.1987) ("The usual rule is that equity does not enjoin a libel or slander and that the only remedy for defamation is an action for damages"). And in the present case, Plaintiffs sought to enjoin more than just libelous or slanderous speech. The default final judgment permanently restrained Defendant from publishing any "future communications" regarding the Plaintiffs "in either their professional, personal, or political lives." D.E. 32 ¶ 6. Judgments that enjoin the publication of non-defamatory statements are invalid. Crosby v. Bradstreet Co., 312 F.2d 483, 485
Accordingly, it is hereby ORDERED AND ADJUDGED that Defendant's Motion is GRANTED. It is further ORDERED AND ADJUDGED that
(1) D.E. 23 and D.E. 31 are VACATED;
(2) The Clerk of the Court shall administratively re-open the present case. D.E. 32 is VACATED;
(3) Plaintiffs shall file a second amended complaint, alleging facts that support its allegation actual malice, no later than April 19, 2013.