Colleton Preparatory Academy, Inc. v. Hoover Universal, Inc.
United States Court of Appeals for the Fourth Circuit
616 F.3d 413 (4th Cir. 2010)
Colleton Preparatory Academy (plaintiff) initially sued the wrong corporate entity and then served an amended complaint naming Hoover Universal (defendant) on a registered agent who negligently forwarded the summons to an unrelated company instead; Hoover Universal, unaware of the suit, failed to answer, resulting in an entry of default and, ultimately, a judgment of over $1.1 million against it. Hoover Universal moved to quash service and set aside the default once it learned of the error; both motions were denied, and it appealed the refusal to set aside the default.
Whether a federal district court may set aside an entry of default against a party on a showing of good cause.