Under what circumstances can a default judgment be set aside?

A default judgment can be set aside when a party presents a new defence that was not previously available or considered during the original proceedings. This option is significant because it ensures that a party is not unfairly prejudiced by a judgment made without their input. For instance, if a defendant can show that they were unable to respond to the claim due to a legitimate issue, such as being unaware of the proceeding or having new evidence that substantiates their case, the court may decide it is in the interest of justice to allow the defense to be heard and set aside the default judgment. This protects the fundamental right to a fair trial.

In contrast, alternatives like being persuaded by a judge, reaching a settlement after the judgment, or situations where neither party appears in court do not adequately reflect the conditions under which a default judgment can typically be set aside. The settling of a case post-judgment does not retroactively alter the judgment itself, while the absence of parties does not provide grounds for setting aside unless specific procedural issues are raised that warrant reconsideration of the judgment.