Title: TA Financial, Inc. v. Discover Bank

State: alabama

Issuer: Alabama Supreme Court

Document:

REL: 04/13/2007
Notice: This opinion is subject to formal revision before publication in the advance
sheets of Southern Reporter.  Readers are requested to notify the Reporter of Decisions,
Alabama Appellate Courts, 300 Dexter Avenue, Montgomery, Alabama 36104-3741 ((334)
242-4621), of any typographical or other errors, in order that corrections may be made
before the opinion is printed in Southern Reporter.
SUPREME COURT OF ALABAMA
 OCTOBER TERM, 2006-2007
_________________________
1060301
_________________________
TA Financial, Inc.
v.
Discover Bank
Appeal from Jackson Circuit Court
(CV-05-10)
WOODALL, Justice.
TA Financial, Inc. ("TA"), appeals from a default
judgment against it awarding injunctive relief to Discover
Bank ("Discover") in an action filed by Discover against TA
and others.  We reverse and remand.
1060301
2
On June 14, 2006, Discover filed a motion for a default
judgment against TA based solely on TA's failure to file,
through counsel, an answer to Discover's complaint.  The
motion indicated that the trial court would consider it at a
hearing on June 22.  Significantly, on June 21, counsel filed
an answer on behalf of TA.  
The record indicates that the hearing was held on June
22.  However, the record does not include a transcript of that
hearing. Subsequently, the trial court granted Discover's
motion and entered a judgment by default against TA for the
injunctive relief sought by Discover.
TA, pursuant to Ala. R. Civ. P. 55(c), filed a motion to
set aside the judgment by default.  The motion was denied by
operation of law pursuant to Ala. R. Civ. P. 59.1.  TA then
appealed to this Court.
TA argues that "the defect complained of by Discover [in
its motion for a judgment by default] was rectified prior to
the trial court's order granting default."  TA's brief, at 30.
Our review of the record confirms that TA's answer was filed
before the hearing on the motion.  Consequently, as Discover
concedes in correspondence to this Court, "the filing of that
1060301
3
answer cured the default before any default judgment was
entered.  Thus, the default judgment should not have been
entered."  
For these reasons, the default judgment against TA is
reversed, and the cause is remanded for further proceedings.
REVERSED AND REMANDED.
Cobb, C.J., and See, Smith, and Parker, JJ., concur.