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.