In what circumstances will a court order a default judgment in favour of a defendant?

In Kim v. Westmoore Partners, Inc. (2011) 201 Cal.App.4th 267, the trial court entered a default judgment in favor of plaintiff when defendants failed to timely answer the complaint. (Id. at p. 278.) After denying defendants' motion to set aside the defaults, the trial court entered judgment in favor of plaintiff. (Id. at pp. 278-279.) The appellate court reversed the default judgment because the complaint failed to state any cognizable cause of action against defendants. (Id. at pp. 283-286.) Citing McCoy, the appellate court concluded it was proper to reverse the judgment with directions to enter a judgment in favor of defendants because plaintiff had a full and fair opportunity to present his case, but failed to do so. (Id. at p. 289.)