How do I set aside a default judgment in North Carolina?

1. Governing Rule. N.C. R. Civ. P. 55(d) governs setting aside entry of default; N.C. R. Civ. P. 60(b) governs relief from a default judgment. Both are codified at N.C. Gen. Stat. § 1A-1.

2. Grounds. Rule 60(b): (1) mistake, inadvertence, surprise, or excusable neglect; (2) newly discovered evidence; (3) fraud, misrepresentation, or other misconduct; (4) void judgment; (5) judgment satisfied, released, or no longer equitable; (6) any other reason justifying relief. Rule 55(d) requires only 'good cause shown.'

3. Deadline. Rule 60(b)(1)-(3): reasonable time and not more than one year after entry. Rule 60(b)(4)-(6): reasonable time. Rule 55(d) motions before entry of judgment: any time before final judgment.

4. Mandatory vs Discretionary. Discretionary, but Rule 55(d) is applied liberally because the policy favors trial on the merits (Peebles v. Moore, 302 N.C. 351).

5. Required Showing. Affidavits showing excusable neglect (acts a reasonably prudent person would have taken) and a meritorious defense (specific facts, not conclusions).

6. Filing Procedure. Motion + supporting affidavits + proposed answer; serve all parties; calendar for hearing in the county of judgment.

7. Bond / Conditions. Court may condition relief on payment of costs and reasonable attorney fees.

8. Appeal of Denial. Order denying a Rule 60(b) motion is appealable under N.C. Gen. Stat. § 1-277.

9. Collateral Attack. A judgment void for lack of jurisdiction may be challenged collaterally at any time.

This is legal information, not legal advice.