9th Circ. Clarifies Default Judgment Set-Aside Standard

Law360, New York (August 10, 2011, 5:43 PM EDT) -- The Ninth Circuit on Wednesday found that a lower court used the correct standard in canceling a $655,500 default judgment against American Bankers Insurance Co. of Florida for excusable neglect in a lawsuit that Washington homeowners brought over a flood damage claim.

A three-judge panel disagreed with homeowners Todd and Karen Brandt that the district court was precluded from setting aside the default judgment for contractual and extra-contractual damages once it found that American Bankers acted culpably in failing to respond to their complaint. American Bankers...
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