Also known as:defaults · defaulted · defaulting · nonappearance · nonpayment
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
1
in civil procedure
A notation entered by the clerk when a party against whom affirmative relief is sought has failed to plead or otherwise defend. The entry establishes the fact of nonappearance for purposes of further proceedings including default judgment.
2
in property and contract law
Failure by a party to perform an obligation secured by a mortgage, deed of trust, lease, or similar instrument. The failure authorizes the secured party or landlord to exercise remedies such as foreclosure, acceleration, or recovery of damages.
Each sense below has its own examples, sources, and questions.
Sense 1
1
in civil procedure
A notation entered by the clerk when a party against whom affirmative relief is sought has failed to plead or otherwise defend. The entry establishes the fact of nonappearance for purposes of further proceedings including default judgment.
Examples2
Clerk Enters Default After Missed Deadline
Darrell Duncan was served with a summons and complaint but never filed an answer or any motion. After the twenty-one-day period expired, the plaintiff presented an affidavit showing the failure to respond. The clerk entered default against Duncan on the docket.
Default Judgment Limited by Pleadings
Daphne Doyle sued for a sum certain and obtained entry of default. The court entered judgment but limited recovery to the exact amount demanded in the complaint. Any request for additional relief beyond the pleadings was denied under the rule governing default judgments.
Frequently Asked4
What must a plaintiff show before the clerk will enter default under Rule 55(a)?+
The plaintiff must show by affidavit or otherwise that the defendant has failed to plead or otherwise defend. Once that showing is made the clerk enters the default as a ministerial act.
Can a default judgment award relief different from the amount or kind demanded in the complaint?+
No. Rule 54(c) prohibits a default judgment from differing in kind from or exceeding in amount the relief demanded in the pleadings.
Is internal delay by a registered agent a valid excuse for missing a response deadline that leads to default?+
No. Service on the registered agent starts the twenty-one-day period under Rule 12(a)(1)(B). Internal forwarding delays do not extend the deadline or prevent entry of default.
Sense 2
2
in property and contract law
Failure by a party to perform an obligation secured by a mortgage, deed of trust, lease, or similar instrument. The failure authorizes the secured party or landlord to exercise remedies such as foreclosure, acceleration, or recovery of damages.
Examples4
Mortgage Default Triggers Foreclosure
Dylan Duffy borrowed funds from a bank and pledged his home as security under a mortgage. When Duffy stopped making monthly payments, the bank treated the missed installments as default. The bank then initiated foreclosure proceedings to sell the property and recover the outstanding debt.
Landlord Default Allows Tenant Damages
Derek Douglas leased retail space from a landlord who failed to repair the roof as required. Douglas had made reasonable pre-lease expenditures the landlord could have foreseen. Douglas recovered those losses as damages caused by the landlord's default.
Veil Piercing After Corporate Default
Dwight Dorsey formed a corporation that became insolvent and failed to observe corporate formalities while siphoning funds to himself. When the corporation defaulted on its debts, creditors sought to pierce the veil. The court applied the totality of circumstances test and held Dorsey personally liable.
Default Prompts Acceleration of Debt
David Dawson signed a note secured by real property containing an acceleration clause. After Dawson missed several payments, the lender declared the entire unpaid balance immediately due. The acceleration allowed the lender to proceed directly to foreclosure for the full amount.
Frequently Asked2
Does a mortgage default automatically allow the lender to accelerate the entire debt?+
Acceleration is permitted only when the mortgage or note contains an acceleration clause and the lender exercises the right in good faith. Some jurisdictions also require notice and an opportunity to cure before acceleration.
What damages may a tenant recover when a landlord defaults under a lease?+
Damages may include loss from reasonable pre-default expenditures the landlord could foresee, reasonable costs of substitute premises, and in business leases proven lost profits the landlord could have anticipated.
When does a single answer to the complaint also serve as a timely response to a crossclaim?+
A single filing constitutes a timely answer to the crossclaim when its substantive content directly addresses every allegation in the crossclaim even if the caption refers only to the original complaint.
, acquiesce or contest. The Court has not committed itself to any formula achieving a balance between these interests in a particular proceeding or determining when constructive notice may…
amounted to an impairment of the obligation of its contracts in violation of the Contract Clause. This Court affirmed the dismissal of the suit, despite the fact that the case fell within…
Civil ProcedurePretrial procedures · Pleadings and amended and supplemental pleadingsUBEFoundational