Phoceene Sous-Marine, S. A. v. U. S. Phosmarine, Inc., and Samuel G. Lecocq

This appeal requires a determination whether a district court may enter a default judgment against a defendant as a sanction for the defendant’s deceiving the court on a matter wholly unrelated to the merits of the defendant’s case. We conclude that the entry of default under such circumstances is inconsistent with the requirements of due process and therefore reverse the judgment of the District Court and remand the case for further proceedings.

I. FACTS

On October 20, 1978, appellee Phoceene Sous-Marine (“Phoceene”) brought this action against appellants U. S. Phosmarine, Inc. and Samuel G. Lecocq for patent and trademark infringement, wrongful disclosure and appropriation of trade secrets, unfair competition, and failure to pay an account stated. Trial was originally scheduled for February of 1979 but, because of the complexity of the case, was continued until August of that year. Approximately one week prior to the August trial date, appellants’ attorney requested an additional continuance until October of 1979. The basis asserted for this continuance was that a conflict existed between the attorney’s vacation schedule and the scheduled trial date. The District Court granted…