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Choice Hotels International, Inc. v. Grover

United States Court of Appeals for the Seventh Circuit
792 F.3d 753 (2015)


Facts

Choice Hotels International, Inc. (plaintiff), sued Grover and other managers of and investors in (defendants) a Choice franchise. Tarranpaul Chawla, an attorney and one of the defendants, represented the defendants in the lawsuit. The defendants failed to answer Choice’s complaint, and the district court entered a default against the defendants. Chawla found a new attorney for the defendants, Elton Johnson, but Johnson also failed to answer the original complaint and failed to file a motion to vacate the default. The district court entered a default judgment for Choice. After the judgment, the defendants hired another new attorney and filed a motion to set aside the judgment on account of Chawla’s and Johnson’s inadequate representation. The district court denied the motion. The defendants appealed.

Rule of Law

Issue

Holding and Reasoning (Easterbrook, J.)

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