Daniel Watkins Cynthia Watkins v. Terry Lundell Stephanie Lundell

BEAM, Circuit Judge.

Terry and Stephanie Lundell (the Lun-dells) appeal the district court’s partial denial of their motions to set aside default judgment. The district court set aside a portion of the default judgment, under Federal Rule of Civil Procedure 60(b)(6), in order to correct a computation of actual damages and to reduce punitive damages. The Lundells argue that the entire default judgment should be set aside. They contend, inter alia, that the district court erred in awarding punitive damages. We affirm in part and reverse in part.

I. BACKGROUND

Terry Lundell, a resident of Tucson,…