Court of Appeals of North Carolina December 18, 2007, COA06-150. (Decker v. HOMES, INC./CONSTRUCTION MGMT.)

STEELMAN, Judge.

When the trial court applies the incorrect standard in deciding a motion to set aside an entry of default, we are required to remand the case to the trial court for application of the correct standard.

I. Factual Background

On 8 June 2001, Daniel and Susan Decker (plaintiffs) entered into an agreement to pay Homes, Inc./Construction Management & Financial Group (Homes, Inc.