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MMLU / A company incorporated and headquartered in State A sued a plumber domiciled in…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A company incorporated and headquartered in State A sued a plumber domiciled in State B in a federal court in State A, alleging that the plumber had negligently installed pipes in a manner that resulted in $250,000 in damage to the company's headquarters building. In response to the complaint, the plumber filed a motion to dismiss for lack of personal jurisdiction. The court denied the motion. Thereafter, the plumber did not file an answer or any other response to the company's action. Sixty days after the court's order denying the motion to dismiss, the company asked the clerk to enter default, and the clerk did so. The company applied to the court for the entry of a default judgment and notified the plumber three days before the default judgment hearing. After an ex parte hearing in which the court received evidence on the damages amount, the court entered a default judgment for the full amount sought. Ten days later, the plumber filed a motion to set aside the default judgment. Is the court likely to grant the plumber's motion?

choices

  1. No, because the court could fix the amount of damages even without hearing the plumber's evidence.
  2. No, because the plumber failed to plead or otherwise defend against the company's action.
  3. Yes, because the plumber was not given adequate notice of the hearing on the company's application for the entry of a default judgment.
  4. Yes, because the State A federal court lacked personal jurisdiction over the plumber as a State B citizen.

subject

professional_law

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