Opinion ID: 212688
Heading Depth: 2
Heading Rank: 1

Heading: Setting Aside the Default

Text: First, we hold the district court did not abuse its discretion in setting aside the default entered against the defendants pursuant to Federal Rule of Civil Procedure 55(c), which rule permits a district court to set aside an entry of default for good cause. See also Jackson, 636 F.2d at 836 (strong policies favor resolution of disputes on their merits). In exercising its discretion, the district court is supposed to consider whether (1) the default was willful, (2) a set-aside would prejudice plaintiff, and (3) the alleged defense was meritorious. Keegel v. Key West & Caribbean Trading Co., 627 F.2d 372, 373 (D.C.Cir.1980). In this case, the district court did not say why it granted the defendants' motion to vacate but, as it happens, we need not remand the case because the Rahims' only argument against setting aside the default is that the defendants presented no meritorious defense to this action. As the defendants note, allegations are meritorious if they contain even a hint of a suggestion which, proven at trial, would constitute a complete defense. Id. at 374 (internal quotation marks and citations omitted). The defendants far surpassed this standard, as will be seen in what follows.