Jackson (D) purchased a yacht in Florida to be used as a charter boat in the Virgin Islands. D financed the purchase by a note in favor of P, but D believed that the only collateral for the note was the yacht itself. This was an erroneous belief. D defaulted on the note and P sued. D failed to respond to that complaint and P got a default judgment. The yacht was sold which resulted in partial satisfaction of the judgment. P then sued D to recover the balance of the judgment. D then sued P for fraud, negligence and fraudulent and deceptive business practices. P then asked for a summary judgment on grounds that D’s allegations should have been brought in the initial action in Florida and that D’s default was a default to any counterclaims on the note. The trial court agreed and gave P its summary judgment. D appealed.