STATE OF NEW JERSEY VS. LUIS HERNANDEZ(04-03-0323, PASSAIC COUNTY AND STATEWIDE), A-3402-15T3

Defendant Ebele Ilogu, a nurse practitioner, entered a two-year employment contract with Linden Medical Associates that included salary, benefits, a 90‑day termination notice, an arbitration clause, and two liquidated‑damage provisions ($20,000 for early resignation; additional $20,000 for less than 90 days' notice).
Ilogu resigned giving about one month’s notice (effective March 31, 2015). Linden sued in August 2015 for breach and sought $40,000 in liquidated damages; process was personally served.
Ilogu did not answer; plaintiff sent follow‑up letters and properly moved for default and default judgment. The Law Division entered default judgment for $44,255.90 (liquidated damages, prejudgment interest, fees, costs).
Ilogu moved to vacate the default judgment, arguing lack of service of default papers, failure to honor arbitration clause, contract breaches by plaintiff (hours/training), and that the liquidated‑damages clause was punitive. She later sought reconsideration asserting inability to retain counsel.
The trial judge found no excusable neglect, criticized inconsistencies in Ilogu’s certifications, found she ignored multiple notices and had no credible reason for failing to answer, and denied the motions. This Court affirmed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Vacatur of default judgment — excusable neglect under R. 4:50‑1	Default proper; defendant was served and ignored notices; no excusable neglect	Failure to answer was excusable (difficulty retaining counsel); justice requires reopening	Denied — defendant failed to show excusable neglect or adequate explanation; trial court’s discretionary denial affirmed
Arbitration clause — requirement to arbitrate dispute	Plaintiff proceeded in court properly by obtaining default after service	Plaintiff should have pursued arbitration per contract; court lacked jurisdiction	Rejected as basis for vacatur; court did not reach arbitration issue since excusable neglect dispositive
Enforceability of liquidated damages clause	Clause is contractual remedy; damages awarded consistent with contract	Clause punitive/unconscionable and void ab initio	Rejected as grounds to vacate default absent excusable neglect; court did not decide unconscionability on merits
Sufficiency of damages proof / need for proof hearing	Judge may exercise discretion; plaintiff submitted proofs to support judgment	Damages not sufficiently proven because no proof hearing was held	Rejected — trial court discretion controls proof hearing; award sustained

US Bank Nat’l Ass’n v. Guillaume, 209 N.J. 449 (discusses standard for vacating default judgment under Rule 4:50‑1)
Morales v. Santiago, 217 N.J. Super. 496 (party seeking to reopen default must show excusable neglect and meritorious defense)
Marder v. Realty Constr. Co., 84 N.J. Super. 313 (default‑vacatur standards affirmed by later cases)
Mancini v. EDS, 132 N.J. 330 (excusable neglect as honest mistake compatible with due diligence)
Baumann v. Marinaro, 95 N.J. 380 (mere carelessness insufficient for vacatur)
DEG, LLC v. Twp. of Fairfield, 198 N.J. 242 (trial‑court determination under Rule 4:50‑1 entitled to substantial deference)
Hous. Auth. of Morristown v. Little, 135 N.J. 274 (standards for appellate review of discretionary trial decisions)
Iliadis v. Wal‑Mart Stores, Inc., 191 N.J. 88 (abuse of discretion standard explained)
Flagg v. Essex Cnty. Prosecutor, 171 N.J. 561 (abuse of discretion defined)
Dynasty Bldg. Corp. v. Ackerman, 376 N.J. Super. 280 (defendant’s lack of prejudice weighs against setting aside default despite notice issues)