CREATE TABLE #temp(ID int,NAME VARCHAR(100),[GROUP] VARCHAR(100))

INSERT INTO #temp(ID,NAME,[GROUP]) VALUES(1,'MIC','DEFAULT'),(1,'MIC','TERR'),(2,'JAMES','DEFAULT'),(3,'KIM','HOL')

SELECT           a.ID
		,a.NAme 
		,a.[Group] 
FROM
(
SELECT	         *
		,CASE WHEN COUNT(ID)OVER (PARTITIOn BY ID)>1 THEN (SELECT  t2.[GROUP] FROM dbo.#temp t2 WHERE t.ID = t2.ID AND t2.[GROUP] !='Default')
		 ELSE t.[GROUP] END AS 'GroupCheck'
FROM             dbo.#temp t
) a
WHERE            a.[Group] =a.GroupCheck

DROP TABLE dbo.#temp

SELECT   a.*
FROM
(    
  SELECT * FROM #temp 
) a
LEFT JOIN
(
  SELECT * FROM #temp t WHERE (t.[GROUP] != 'Default' AND ID IN (SELECT #temp.ID FROM #temp)) 
) b 
ON     a.ID = b.ID 
WHERE  a.[GROUP] = b.[GROUP] OR b.[GROUP] IS NULL