Today Senior Judge Graham Mullen issued a 5 page Order in which he granted Default Judgement, denied Disner’s Motion to Set Aside and Motion to Strike. Judge Mullen ordered the Clerk to enter a default judgement pursuant to Federal Rule of Civil Procedure 55(b)(1). The Clerk of Court has entered the Ordered judgment against Disner which will cost him about $2,079,757.88.
In his ORDER, Judge Mullen states the following:
The Court finds that Disner has failed to act with reasonable promptness. He was personally served with the Summons and Complaint three months before he finally filed a substantive document in this lawsuit, which was a request to set aside the default. Moreover, it is clear that he had notice of the action and claims against him and the knowledge to act on his own behalf because he filed a Notice of Appearance to appear pro se nearly a month before the answer was due. Disner states that he “had not received any responsive pleadings from any of his co-Defendants” as an excuse for his failure to file an answer. (Doc. No. 49 at 2). He further suggests in a general fashion that he was seeking to obtain counsel. However, Disner never contacted the Court or the Receiver to request additional time. His assertions fall short of excusing his failure to act with reasonable promptness.
Furthermore, Disner fails to assert a meritorious defense. He does nothing more that state in a conclusory fashion that he “believes that he has a valid defense to the Plaintiff’s complaint . . . .” (Doc. No. 49 at 3, ¶ 8). This vague statement falls well short of asserting a meritorious defense. See Consolidated Masonry, 383 F.2d at 251.
Disner is personally responsible for his failure to plead. He has had previous experience with Ponzi scheme litigation and filed a twenty-nine page pro se Complaint for Declaratory Relief against the federal government in late 2011 claiming wrongful seizure of his Ponzi scheme winnings in another Ponzi scheme.
[The other Ponzi scheme mentioned above was AdSurfDaily (ASD)]
Judge Mullen also was not pleased with Disner’s lack of expedience:
To allow a single, unresponsive Defendant to proceed on a different track than the rest of the Defendants, or to delay the entire proceeding as to all parties due to Mr. Disner’s dilatory filings, would cause additional costs and burdens upon the Receivership Estate, including increased legal fees.
You can read the Order and Clerk’s Order here.