Case Title: Conner v. Pound, Conner, Lucas, Andreozzi, Inc.

Citation: 

Docket Number: 

State: west-virginia

Court: West Virginia Supreme Court

Date: 2001-10-05T00:00:00Z

Document:
IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA FILED October 5, 2001 RORY L. PERRY II, CLERK SUPREME COURT OF APPEALS OF WEST VIRGINIA September 2001 Term _____________ No. 29180 _____________ HENRY CONNER, Plaintiff Below, Appellee, V. RELEASED October 5, 2001 RORY L. PERRY II, CLERK SUPREME COURT OF APPEALS OF WEST VIRGINIA POUND, CONNER, LUCAS, ANDREOZZI, INC., d/b/a DRULANE, PALMER & SMITH, Defendant Below, Appellant. ____________________________________________________________________ Appeal from the Circuit Court of Marion County Honorable Rodney Merrifield, Judge Civil Action No. 00-C-108 REVERSED AND REMANDED ____________________________________________________________________ Submitted: September 19, 2001 Filed: October 5, 2001 David Conrad Gall Fairmont, West Virginia Attorney for the Appellee Ross Maruka Fairmont, West Virginia James A. Liotta Tharp, Liotta & Yokum Fairmont, West Virginia Attorneys for the Appellant The Opinion of the Court was delivered PER CURIAM. SYLLABUS BY THE COURT 1. “Appellate review of the propriety of a default judgment focuses on the issue of whether the trial court abused its discretion in entering thedefault judgment.” Syllabus point 3, Hinerman v. Levin, 172 W. Va. 777, 310 S.E.2d 843 (1983). Per Curiam: i Pound, Conner, Lucas, Andrecozzi, Inc., d/b/a Drulane, Palmer & Smith (hereinafter collectively referred to as “Pound”), appellant/defendant below, appeals from a default judgment order entered by the Circuit Court of Marion County. The default judgment required Pound to pay Henry Conner (hereinafter referred toas “Mr. Conner”), appellee/plaintiff below, approximately $51,009.12.1 Inthis appeal, Pound contends that it was never served with a copy of the complaint, and therefore, default judgment should not have been entered. After a review of the recordwe agree, and reverse the trial court’s entry of default judgment. I. FACTUAL AND PROCEDURAL HISTORY Mr. Conner was employed by Pound as a corporate officer during the1980’s, he was also a stockholder. While employed by Pound, Mr. Conner loaned the company $200,000.00. Additionally, Mr. Conner permitted the company to use his personal credit cards. Mr. Conner’s employment with Pound was terminated on April 15, 1998. On May 2, 2000, Mr. Conner filed a complaint against Pound seeking monies owed from the loan, the use of his personal credit cards and for other reimbursements. Pound did not file an answer to the complaint. Mr. Conner moved for default judgment. Ahearing was held on the default judgment motion. During the hearing, counsel for Pound made a special appearance to argue that Pound never received a copy of the complaint. On October 2, 2000, the circuit 1Mr. Conner did not file a brief in this case. Counsel for Mr. Conner indicatedby letter that he was not opposed to setting aside the default judgment. 1 court entered a default judgment against Pound in the amount of $51,009.12. Pound now appeals entry of the default judgment. II. STANDARD OF REVIEW The circuit court entered a defaultjudgment in this case pursuant to Rule 55(b)(2) of the West Virginia Rules of Civil Procedure.2 We have previously held that “[a]ppellate review of the propriety of a default judgment focuses on the issue of whether the trial court abused its discretion in entering the default judgment.” Syl. pt. 3, Hinerman v. Levin, 172 W. Va. 777, 310 S.E.2d 843 (1983). Accord Syl. pt. 6, White v. Berryman, 187 W. Va. 323, 418 S.E.2d 917 (1992). In Hinerman, this Court stated that while it is “quite willing to review default judgments and to overturn them in cases where good cause is shown, a demonstration of such good cause is a necessary predicate to our overruling a lower court’s exercise of discretion.” Hinerman, 172 W. Va. at 782, 310 S.E.2d at 848. III. DISCUSSION The underlying facts of this case pertaining to service of process upon Pound are unclear. The record shows that Mr. Conner completed a Civil Case Information Statement listing a West Virginia 2In Coury v. Tsapis, 172 W. Va. 103, 106, 304 S.E.2d 7, 10 (1983), we distinguished between a “default” and a “default judgment,” by observing that “a default relates to the issue of liability and a default judgment occurs after damages have been ascertained.” 2 post office address for Pound. Thereafter, the Secretary of State issued a summons, along with the complaint, that also listed a West Virginia post office address for Pound. However, the Secretary of State’s office appears to have had a registered agent for Pound that had a New York post office address.3 Adocument contained in the record shows that service of process was mailed to the New York post office address, but the New York post office made no return thereon. When a return receipt for service of process isnoted “unknown” or “insufficient address,” and no other action has been taken pursuant to the statutory provisions for service, then service of process has not complied with the statutory requirements and will not support adefault judgment. See, e.g., Syl. pt. 2, Evans v. Holt, 193 W. Va. 578, 457 S.E.2d 515 (1995); Syl. pt. 4, Mollohan v. North Side Cheese Co., 144 W. Va. 215, 107 S.E.2d 372 (1959). In the instant proceeding, the only evidence regarding serviceof process upon Pound is a notation from the Secretary of State’s office indicating “no return.” Consequently, there is no evidence to show that Pound received service of process. IV. CONCLUSION In view of the foregoing, the circuit court’s entry of default judgment is reversed, and this case is remanded. Reversed and Remanded. 3Pound’s corporate status with the State of West Virginia is unclear. 3