Case Explained: Cheryl Roberts; William Chambers Plaintiffs— v. KJ Win, Incorporated Defendant—

Court: United States Court of Appeals for the Fifth Circuit

Filed: 2026-06-24

The Fifth Circuit affirmed the district court’s denial of KJ Win, Incorporated’s motion to set aside a $2.8 million default judgment entered against it following a multi-vehicle crash. The court held that the district court did not abuse its discretion in finding KJ Win’s failure to respond to the lawsuit was willful under Federal Rule of Civil Procedure 60(b)(1), thereby ending the inquiry without requiring separate analysis of prejudice or meritorious defenses. Under the standard of review for factual findings, the appellate court determined that KJ Win failed to meet its burden of proving excusable neglect by offering no explanation for its non-appearance or evidence showing it was unaware of the suit. Additionally, the court ruled that KJ Win forfeited arguments challenging the validity of substituted service under Rule 60(b)(4) and claims regarding statutory damages caps and comparative fault offsets because these issues were not raised in the district court. The court rejected KJ Win’s request to consider these unpreserved arguments based on “equity and justice,” concluding that the matters involved factual disputes requiring development below and that no miscarriage of justice would result from enforcing forfeiture rules. Consequently, the default judgment remains in full force.

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