When will a court set aside a judgment in default?

When will a court set aside a judgment in default?

• A. Only when the claimant consents to set aside.
• B. When the defendant can show a real prospect of defending the claim, or other good reasons the judgment should be set aside, varied or the defendant allowed to defend.
• C. When new evidence emerges after judgment.
• D. When the defendant pays the claim in full.

Answer: (B)

The court has discretion to set aside a default judgment when there is a real chance of defending the claim, or when there are other good reasons to reopen the case. “Real prospect of defending” means the defendant’s proposed defence is arguable and not merely speculative. The “other good reasons” catch-all covers situations like procedural faults, service problems, or fairness concerns that justify undoing the default. New evidence emerging after judgment isn’t by itself a standard ground to set aside; it wouldn’t usually justify reopening the judgment unless it demonstrates a viable defence or other compelling fairness reasons. Paying the claim in full doesn’t automatically set aside a default judgment. In short, setting aside hinges on showing an arguable defence or some other good reason, not on consent, post-judgment evidence, or mere payment.

The court has discretion to set aside a default judgment when there is a real chance of defending the claim, or when there are other good reasons to reopen the case. “Real prospect of defending” means the defendant’s proposed defence is arguable and not merely speculative. The “other good reasons” catch-all covers situations like procedural faults, service problems, or fairness concerns that justify undoing the default. New evidence emerging after judgment isn’t by itself a standard ground to set aside; it wouldn’t usually justify reopening the judgment unless it demonstrates a viable defence or other compelling fairness reasons. Paying the claim in full doesn’t automatically set aside a default judgment. In short, setting aside hinges on showing an arguable defence or some other good reason, not on consent, post-judgment evidence, or mere payment.