Opinion ID: 440471
Heading Depth: 1
Heading Rank: 4

Heading: the interlocutory default judgment

Text: 20 Once a state court action is removed, it is governed by federal, rather than state, procedure. Aguacate Consolidated Mines, Inc. v. Deeprock, Inc., 566 F.2d 523, 525 (5th Cir.1978); Butner v. Neustadter, 324 F.2d 783, 785 (9th Cir.1963). Federal Rule of Civil Procedure 55(c) allows relief from a default judgment in accordance with the terms of Rule 60(b), which states that a judgment may be set aside for ... mistake, inadvertence, surprise, or excusable neglect ... Rule 60(b) is applied most liberally to judgments of default, since trial on the merits is to be favored over such a truncated proceeding. Seven Elves, Inc. v. Eskenazi, 635 F.2d 396, 403 (5th Cir.1981). Unless it appears that no injustice results from the default, relief should be granted. Absence of injustice is shown when the defendant cannot come forward with a defense of sufficient merit to raise the possibility of a change of outcome on retrial, which he had no fair opportunity to assert below. Id. 21 ODECO's failure to answer was the result of a mistake on the part of its insurer, a mistake which was immediately rectified. The default judgment was entered the day after an answer was due. ODECO removed to federal court and answered within nine days of that time, raising several meritorious defenses. In these circumstances there can be little doubt that the outcome could differ on retrial. Setting aside a default judgment is a matter within the sound discretion of the trial judge, and that discretion was certainly not abused in this case.