What is the effect of a default in an action brought by appellant in a personal injury case?

Upon failure of appellant's attorney to appear at a calendar call, a default was granted and the action set down for inquest. Appellant's attorney appeared at the inquest, together with witnesses and sought leave to defend on the merits. Appellant's counsel was permitted to participate in the proceeding, but only to the extent of cross examination of plaintiffs. Appellant was not permitted to present any direct evidence either with respect to liability or damages. This appeal was taken from the judgment thereafter rendered in plaintiffs-respondents' favor, 67 Misc.2d 254, 323 N.Y.S.2d 853, appellant arguing on the authority of James v. Powell, 19 N.Y.2d 249, 279 N.Y.S.2d 10, 225 N.E.2d 741, that it was entitled to seek review of the questions of both liability and damages, since these issues were considered upon the inquest, wherein it was a participant. Appellant also moved below for an order vacating its default. That motion was denied without prejudice to renewal upon this disposition of this appeal.