Named and default arguments were added to Scala in version 2.8.
Named arguments improve the readability of method calls with many arguments, and they can avoid traps when a method has many parameters of the same type.
Default arguments are a nice feature to reduce code duplication (e.g. ad-hoc polymorphism aka overloading) and they enable the implementation of a "copy" method for case classes. This method can be used to quickly generate modified copies of instances of a case class.
Links:
[1] http://www.scala-lang.org/sites/default/files/sids/rytz/Mon, 2009-11-09, 17:29/named-args.pdf
[2] http://www.scala-lang.org/sites/default/files/sids/rytz/Mon, 2009-11-09, 17:29/named-args.tex