Setting Aside a Default Judgment

Parties in a lawsuit generally have 20-days to file a response to a Complaint after being served.  If the party misses this deadline, they are at risk of their adversary filing a Motion for Default for failure to respond.   However, even if the Motion for Default is filed and granted, the party in default does have an opportunity to file a Motion to Set Aside the Order of Default.  You must act immediately to meet the legally required deadlines, and you should consult and hire counsel to help with this important step. 
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The block quote below explains the standards for how courts review a Motion to Set Aside a Default Order. 
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Washington generally disfavors default judgments because “[w]e prefer to give parties their day in court and have controversies determined on their merits.”7 CR 55 provides that “if a judgment by default has been entered, [the trial court] may likewise set it aside in accordance with rule 60(b).”8 CR 60(b) lists 11 grounds upon which a party may seek relief from judgment. While Era Living did not specifically identify the grounds upon which it sought relief, the relevant basis appears to be CR 60(b)(1) “[m]istakes, inadvertence, surprise, excusable neglect or irregularity in obtaining a judgment or order.”

In general, to vacate a default judgment pursuant to CR 60(b)(1), the moving party must establish that (1) there is substantial evidence to support a prima facie defense to the claims asserted by the opposing party, (2) the moving party’s failure to appear in the action was occasioned by mistake, inadvertence, surprise, or excusable neglect, (3) the moving party acted with due diligence after notice of the entry of default, and (4) no substantial hardship will result to the opposing party. White v. Holm, 73 Wn.2d 348, 352, 438 P.2d 581 (1968). The first two factors above are “primary” and the latter two are “secondary.” Little, 160 Wn.2d at 352. To determine whether the moving party has demonstrated a prima facie defense, the trial court must review the evidence and all reasonable inferences in the light most favorable to the moving party. Rosander v. Nightrunners Transport, Ltd., 147 Wn. App. 392, 404, 196 P.3d 711 (2008).The moving party has presented “a prima facie defense if it produces evidence that, if later believed by the trier of fact, would constitute a defense to the claims presented.” Rosander, 147 Wn. App. at 404-05. In making its determination, the trial court does not weigh the evidence. Pfaff v. State Farm Mut. Auto. Ins. Co., 103 Wn. App. 829, 835-36, 14
P.3d 837 (2000).

When the moving party is able to demonstrate a “strong or virtually conclusive defense,” courts will generally spend little time inquiring into the reasons for the default, “provided the moving party is timely with his application and the failure to properly appear in the action in the first instance was not willful.”White, 73 Wn.2d at 352-53. In other words, the moving party must demonstrate that (1) it has a strong or virtually conclusive defense to the claim asserted against it, (2) it has timely moved to vacate the default judgment, and (3) its failure to timely appear was not willful.TMT Bear Creek Shopping Ctr., Inc. v. PETCO Animal Supplies, Inc., 140 Wn. App. 191, 205, 165 P.3d 1271 (2007). This is because “[i]f a default judgment on a meritless claim is allowed to stand, justice has not been done”. TMT, 140 Wn. App. at 205.  To determine that the moving party’s defense is strong or virtually conclusive, the court must examine all the evidence, not merely that which if believed would support the defense.TMT, 140 Wn. App. at 202-03.

Salazar v. ERA Living LLC d/b/a IDA Cluve43r House Broadvie (06/08/2020; No. 80177-5-I  UNPUBLISED OPINION).

Contact Mark D. Walters