Legal Points on Mississippi Default Judgments

Below is some random points on Default Judgments in Mississippi.

The Mississippi Supreme Court has been clear that " default judgments are not favored." McCain, 791 So.2d at 843 (¶ 10); Guar. Nat'l Ins. Co. v. Pittman, 501 So.2d 377, 387-88 (Miss. 1987). " [T]rial courts should not be grudging in . . . vacating such judgment where showings within the rules have arguably been made." Guar. Nat'l Ins. Co., 501 So.2d at 387-88 (citing Bell v. City of Bay St. Louis, 467 So.2d 657, 666 (Miss. 1985)). The Court has instructed that a trial court's discretion in deciding whether to vacate a default judgment " must be exercised in accordance with the provisions of Rules 55(c) and 60(b) as well as the supplementary criteria given validity in the decisions of this Court." Guar. Nat'l Ins. Co., 501 So.2d at 388. ¶23. According to Rule 55(c), a default judgment may be set aside " [f]or good cause shown" and in accordance with Rule 60(b). Miss. R. Civ. P. 55(c). The Court has articulated a three-pronged balancing test to apply in deciding whether to set aside a judgment pursuant to Rule 60(b): the trial court must consider " (1) the nature and legitimacy of the defendant's reasons for his default, i.e. whether the defendant has good cause for default, (2) whether the defendant in fact has a colorable defense to the merits of the claim, and (3) the nature and extent of prejudice which may be suffered by the plaintiff if the default judgment is set aside." Rogillio, 10 So.3d at 468 (¶ 10) (citations omitted).

The Mississippi Supreme Court has unequivocally that " the second factor, the presence of a colorable defense, outweighs the other two, and we have encouraged trial courts to vacate a default judgment where 'the defendant has shown that he has a meritorious defense.'" Allstate Ins. Co. v. Green, 794 So.2d 170, 174 (¶ 9) (Miss. 2001) (citing Bailey v. Georgia Cotton Goods Co., 543 So.2d 180, 182 (Miss. 1989)). See also Flagstar Bank, FSB v. Danos, 46 So.3d 298, 307 (¶ 32) (Miss. 2010) (" colorable-defense prong is the most important factor" ) (citing Rogillio, 10 So.3d at 469 (¶ 16)). Regarding a trial court's discretion in setting aside default judgments, the Court has held: " [T]he importance of litigants having a trial on the merits should always be a serious consideration by a trial judge in such matters. Thus, any error made by a trial judge should be in the direction of setting aside a default judgment and proceeding with trial." Green, 794 So.2d at 174 (¶ 9) (quoting Clark v. City of Pascagoula, 507 So.2d 70, 77 (Miss. 1987)).

To satisfy the colorable defense prong, " a party must show facts, not conclusions, and must do so by affidavit or other sworn form of evidence.'" Capital One Servs., Inc. v. Rawls, 904 So.2d 1010, 1016 (¶ 19) (Miss. 2004) (quoting Rush v. North Am. Van Lines, Inc., 608 So.2d 1205, 1210 (Miss. 1992)). In Rush, the Court wrote: " Next is the matter of a defense on the merits. Here the law demands more than a mere wish and a prayer. To show a creditable [sic] defense in the present setting, a party must show facts, not conclusions, and must do so by affidavit or other sworn form of evidence." Rush, 608 So.2d at 1210.

The fact that the plaintiffs would be required to litigate their case and prove their claims is not " cognizable prejudice." Kumar, 80 So.3d at 816 (¶ 29) (citing Bailey, 543 So.2d at 183). " The mere fact [that] the plaintiff may have to try and prove his case does not stay the judicial hand. That is not the sort of prejudice the rule contemplates." Rush v. North American Van Lines, 608 So.2d 1205, 1211 (Miss. 1992). Prejudice does not result from " the loss of rights that were obtainable only by default." In re Estates of Gates, 876 So.2d 1059, 1065 (¶ 18) (Miss. Ct. App. 2004).