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"[T]he fact that plaintiff fails to show any prejudice resulting from defendant's claimed lack of diligence, although important, is not decisive. Lack of prejudice is one of the factors the trial court may properly consider in determining whether defendant acted diligently." (Weitz, supra, 63 Cal.2d at p. 857, 48 Cal. Rptr. 620, 409 P.2d 700.) "The other factor to be considered is whether defendant in the light of the circumstances known to him acted unreasonably in not filing the motion to set aside the default judgment earlier." (Ibid.) As we have already determined, Fagor acted unreasonably in failing to take any action to set aside the default and the default judgment once Fagor learned of their existence. Moreover, the record does not establish that Cruz would suffer no prejudice as a result of Fagor's inexcusable delay.

A review of the record demonstrates that Cruz diligently attempted to receive compensation from Fagor's insurance company during the period of time between the incident and the filing of the complaint in this case. It was not until after counsel for Cruz received a letter from American Equity in August 2004 reiterating its previous denial of Cruz's claim that Cruz filed this lawsuit. On this record, it is clear that Cruz was attempting to resolve the matter without having to resort to litigation.

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