Estrada

In this appeal, we must decide whether the district court abused its discretion by ordering default judgment against a party on the basis of the party’s repeated, persistent refusal to follow court orders. Our jurisdiction over this appeal derives from 28 U.S.C. § 1291 . Under the egregious circumstances presented in this case, we conclude that the district court did not abuse its discretion, and therefore affirm.

I

Background

Appellee Douglas Estrada (“Estrada”) was the president and sole shareholder of Allstate Mortgage Company (“Allstate”), a California corporation. In September of 1997, another company, Norwest Mortgage Company (“Norwest”), sued Allstate and Estrada personally in the Los Angeles County Superior Court asserting several fraud causes of action. Estrada hired New York attorneys Sarah Speno (“Spe-no”) and David Cohen (“Cohen”) (collectively “Speno and Cohen”) of Speno & Cohen, LLP to represent him and Allstate in the Norwest civil action and in any other matter arising out of the operation of *1053 Allstate. In two separate installments, Estrada paid Speno and Cohen $325,000 as a retainer.

Because Speno and Cohen were New York attorneys, they could not…