Colleton Preparatory Acad. Inc. v. Hoover Universal. Inc., 09-1480, concerned a challenge to the district court's entry of default judgment against defendant, in plaintiff's suit for negligence and for violation of the South Carolina Unfair Trade Practices Act, arising from alleged damages to the roof on several of plaintiff's buildings allegedly caused by fire-retardant substances produced and sold by the defendants or their predecessors in interest.
The court affirmed in part the district court's order that service of process was proper. However, the court vacated in part, as the district court abused its discretion when it denied the motion filed by defendant to set aside the entry of default, as under the circumstances, the entire course of the district court proceedings, resting on the district court's flawed view that liability against defendant had been reliably established by the entry of default, is undermined.