General Electric Capital Corp. v. Osterkamp

In General Electric Capital Corp. v. Osterkamp, 172 Ariz. 185, 189-90, 836 P.2d 398, 403-04 (App. 1992), the court discussed the 1985 amendment to Rule 55(a) that required notice to the defaulting party of the pending entry of default after the expiration of ten days, and noted that prior to the 1985 amendment, other than the summons, a defaulting party would not receive notice that a default judgment was to be entered and that "lack of notice was frequently a basis for motions to set aside the entry of default." Id. at 189, 836 P.2d at 402. The court stated that "the amended rule gives the defaulting party an automatic second chance . . . to prevent the default from becoming effective. Thus, "the amended rule virtually eliminates any claim of lack of notice as a basis for setting aside a default." Id. at 189-90, 836 P.2d at 402-03. Finally, the court opined that "all equitable considerations having been encompassed in the amendment, once the 10-day grace period has passed, . . . the defaulting party who fails to timely answer or otherwise defend after receiving notice provided in the summons, plus the application for entry of default, will have greater difficulty in showing that such failure was the result of excusable neglect." Id. at 190, 836 P.2d at 403.