Motion to set aside the default judgment; Good cause; Shawl v Spence Bros, Inc; Meritorious defense; Unjust enrichment; Statutory conversion

The court concluded “the district court did not abuse its discretion when it denied defendant’s motion to set aside the default judgment,” which the circuit court affirmed. On appeal, defendant argued it “established both good cause and a meritorious defense to the complaint.” The court held that “the trial court did not abuse its discretion when it did not hold a hearing to establish the veracity of plaintiff’s claims before entering the default judgment.” Concluding “that the trial court’s decision fell within the range of reasonable and principled outcomes,” the court disagreed that “the district court abused its discretion by denying its motion to set aside the default judgment.” The court found that “the district court’s holding that defendant did not establish good cause was within the range of reasonable and principled outcomes.” It also concluded “that defendant failed to present a meritorious defense to all of plaintiff’s claims in the district court, defendant was not entitled to make a lesser showing of good cause and, consequently, was not entitled to set aside the default judgment.” The court found that by “failing to raise absolute meritorious defenses to the claims of unjust enrichment and statutory conversion in the district court, defendant failed to show that it had an absolute meritorious defense to plaintiff’s complaint.” Thus, it saw “no need to address defendant’s remaining arguments regarding the defenses it raised to plaintiff’s claims of breach of contract and fraudulent misrepresentation.” Affirmed.