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A bank sued a small importer in federal court for $480,000 due on a line of credit and also sought foreclosure of pledged inventory. The importer was served through its registered agent. Its president emailed the bank's lawyer saying, "We dispute the amount and want to work this out," but no answer was filed. The bank requested entry of default. The clerk entered default. Two weeks later, the bank asked the clerk to enter default judgment for $480,000 plus foreclosure of inventory and attorney's fees.
The importer immediately moved to set aside the default, explaining that its president mistakenly thought settlement talks paused the answer deadline, that it has bank records showing some payments were not credited, and that it acted as soon as it learned of the default. The bank argues that default judgment should be entered because service was valid and the importer missed the deadline.
How should the court proceed? Discuss entry of default, default judgment by clerk or court, notice for an appearing party, setting aside default for good cause, and relief from any default judgment.