They would be hard pressed to make a rationale arg

They would be hard pressed to make a rationale argument for default judgment with respect to "damages" especially in light of the counter suit. I dont see a judge giving it any weight. Im assuming $HJOE lawyers will be using recent cases as precedent which will further puah KBM.

For a judge to geant default judgment here - she woulfld have to consider what is reasonable and just compensation for "damages." Possible she orders/suggests HJOE to pay back original loan amount and urges KBM to accept it. Judges have a lot if authority for better or airse in cases like this.