This decision reverses the trial court’s denial of defendant’s motion to set aside a default judgment and the underlying default under CCP 473.5 and for extrinsic mistake or fraud. Plaintiff lent to defendant’s CEO, who without authority pledged defendant’s assets as collateral for the loan, which he invested in a Ghanaian scam. Plaintiff filed suit against the CEO and defendant, serving defendant by service on the CEO, who never notified anyone else at defendant. By the time defendant had actual knowledge of the suit and default judgment, its principal asset, a television license, was at risk and a receiver had been appointed over the rest of its assets. It was reasonable for defendant to fight those immediate fires before the FTC and in Pennsylvania state court before coming to California to try to set the default judgment aside. Plaintiff’s conduct was inequitable as it made no attempt to notify defendant of the suit except by serving the CEO who it knew and alleged was engaged in fraud.