Opinion ID: 773118
Heading Depth: 2
Heading Rank: 3

Heading: Prejudice to Plaintiffs

Text: 21 Plaintiffs indicate that they relied on the defendants' decision, at the district court level, not to challenge the validity of the default judgment entered against them. Plaintiffs argue that in reliance on the defendants' decision they incurred further court costs and counsel fees and that to vacate the default judgment would cause them prejudice. Specifically, plaintiffs point out that they proceeded to execute the default judgment, submitted an expert accountant's report, and moved to compel the individual defendants to produce documents. 2 We find the plaintiffs' argument unpersuasive. Attempting to execute the default judgment and to proceed against the individual defendants was the sensible next step for the plaintiffs at the time that the default judgment was entered, but does not establish that they would be prejudiced now by our decision to vacate the default judgment entered by the district court.