Johnson v. Sevda Inc.

DISCUSSION

25 A district court may set aside the entry of default upon a showing of “good cause.” Fed. R. 26 Civ. P. 55(c). “The ‘good cause’ standard that governs vacating an entry of default under Rule 27 55(c) is the same standard that governs vacating a default judgment under Rule 60(b).” Franchise Holding II, LLC v. Huntington Rests. Grp., Inc., 375 F.3d 922, 925 (9th Cir. 2004). “To determine ‘good cause,’ a court must consider three factors: (1) whether the party seeking to set aside the default engaged in culpable conduct that led to the default; (2) whether it had no meritorious defense; or (3) whether [setting aside the default] judgment would prejudice the other party.” United States v. Signed Pers. Check No. 730 of Yubran S. Mesle, 615 F.3d 1085, 1091 (9th Cir. 2010) (internal quotation marks, citation, and alterations omitted). When considering whether to set aside default, a court must bear in mind that “judgment by default is a drastic step appropriate only in extreme circumstances; a case should, whenever possible, be decided on the merits.” Mesle, 615 F.3d at 1091 (internal quotation marks and citation omitted); see also Falk…