JULIE A. ROBINSON, Chief District Judge.
Plaintiff Tawana M. Beecham filed this action against Defendants XPO Logistics ("XPO"), Tony Dillon, and Staffmark, alleging discrimination based on sex, race, and age, and retaliation, in violation of Title VII and the Kansas Human Rights Act. Amidst a rash of filings on April 30, 2018, the Court granted a Clerks Entry of Default against XPO (Doc. 22) per its typical practice when an answer has not been filed within twenty-one days of service.
Before the Court is XPO's Motion to Set Aside Clerks Entry of Default and Leave to File Answer Out of Time (Doc. 24). Plaintiff takes "no position" with regard to the relief sought in this motion and does not plan to file a response.
XPO moves to set aside the Clerks Entry of Default pursuant to Fed. R. Civ. P. 55(c), which allows the Court to "set aside an entry of default judgment for good cause." Under Rule 55(c), courts principally consider the following factors in determining whether good cause exists: (1) whether the default was the result of culpable conduct by the defendant; (2) whether the plaintiff would be prejudiced by setting aside the default; and (3) whether the defendant presents a meritorious defense.
XPO also moves for leave to file its answer out of time under Fed. R. Civ. P. 6(b)(1)(B). Under Rule 6(b)(1)(B), a court may excuse a party's failure to act within a specified time "if the party failed to act because of excusable neglect." In determining whether the failure to act was the product of excusable neglect, courts consider the following non-exhaustive list of factors: "[1] the danger of prejudice to the [nonmoving party], [2] the length of the delay and its potential impact on judicial proceedings, [3] the reason for the delay, including whether it was within the reasonable control of the movant, and [4] whether the movant acted in good faith."
The first factor the Court evaluates in determining whether the defendant's failure to answer was the result of excusable neglect is the degree of prejudice to Plaintiff. As XPO notes, discovery has not yet begun in this case, no scheduling order has been filed, and Plaintiff must litigate this case on the merits against the other Defendants because Plaintiff has alleged that Defendants are jointly and severally liable to her. XPO's failure to timely answer did prejudice Plaintiff insofar as Plaintiff was compelled to file a motion for default judgment. The Court finds, however, that the total effect of the prejudice on Plaintiff as a result of XPO's default is light at this stage of the litigation. Thus, this factor weighs in favor of granting XPO leave to answer out of time.
The Court next considers the length of the delay. XPO's deadline to file an answer was April 2, 2019. XPO did not file an answer, Plaintiff filed a Motion for Default Judgment on April 25, 2019,
The third factor the Court analyzes is the reason for the delay and whether it was within XPO's reasonable control. XPO contends that at the time of service, it was in the process of permanently closing its facility in Gardner, Kansas, the office where XPO was served. The individual who was served in this case, Omar Torres, was laid-off soon after the Complaint was served, and for reasons unknown to XPO, he did not communicate the service to XPO or its counsel. XPO and its counsel were actively engaged in the defense of this case during its administrative phase, including settlement discussions, but they were never contacted regarding XPO's failure to answer. When XPO learned it had been served, it promptly took steps to litigate the case. The Court finds that XPO did not knowingly disregard its deadline to answer, and finds this factor also weighs in favor of granting XPO leave to file its answer out of time.
In weighing the final factor, the Court looks to whether XPO acted in good faith. As discussed above, once XPO learned it had been served, it promptly took steps to enter appearance in the case, participated in a hearing, and took steps to set aside the default. Accordingly, the Court finds that XPO has acted in good faith following its failure to timely answer. This factor therefore weighs in favor of granting XPO leave to answer out of time.
In sum, all four factors discussed above weigh in favor of granting XPO leave to file its answer out of time. The Court grants XPO's motion for leave to file its answer out of time.
As explained above, the standard for "good cause" for setting aside default under Rule 55(c) is lower than the threshold for "excusable neglect" under Rule 6(b). Because the Court finds that XPO has met the required showing of "excusable neglect" for failing to timely answer, the Court concludes that XPO meets the "good cause" standard required under Rule 55(c).