FI L ED

U.S. COURT OF APPEAL S

EL EVENTH CI RCUI T

FEB RUARY 25, 2011

J OHN L EY

CL ERK [DO NOT PUBLISH]

IN THE UN ITED STATES COURT OF APPEALS

FOR THE ELE VENTH CIRCUIT

__ __ __ __ __ __ __ __ __ __ __ __

No. 1 0- 14 13 4

Non -Arg um en t Ca le nd ar

__ __ __ __ __ __ __ __ __ __ __ __

D.C. Dock et No. 1 :0 9- cv -0 11 60 -RLV

AZALEA HOUSE LL C,

Pl ai nt iff -Ap pe ll an t,

ve rs us

NATIONAL REGISTERED AGENTS, INC.,
a.k .a. NRAI Serv ic es , Inc

.,

Defen da nt -Ap pe ll ee.

__ __ __ __ __ __ __ __ __ __ __ __

App eal fro m

th e Uni te d S ta te s Di st ric t Co ur t
fo r th e Nor th ern Dis tri ct of Ge or gi a

__ __ __ __ __ __ __ __ __ __ __ __ (Feb ru ary 25 , 20 11 )

Befo re HULL, MARTIN an d C OX, Circ ui t J ud ge s.

PER CURI AM:

A z a l e a H ou se LLC hi red Nati on al Reg is te red Age nt s, In c. (“ NRAI”) as it s

reg is te red ag en t fo r rece iv in g se rv ic e of pr oc es s. W he n Azal ea Hou se di d no t rece iv ese rv ic e of pr oc es s in a st at e-co ur t act io n an d la te r su ffer ed a de fau lt jud gm en t, it su ed

NRAI in fed eral co ur t fo r n e g l i g e nc e, al le gi ng th at NRAI di d no t pr op erl y se rv e it

wit h pr oc es s. The di st ric t co ur t gr an te d su m m ary jud gm en t in fav or of NRAI, fin di ng

th at Azal ea Ho us e’s fai lu re t o re cei ve pro ces s an d t he su bs eq ue nt de fau lt jud gm en t

were cau se d, no t by NRAI’s act io ns , b ut by Azal ea Ho us e’s fai lu re t o n ot ify NRAI

th at it ha d m ov ed it s offi ce fro m Atl an ta

, Geo rg ia to Orm on d Bea ch

, Fl or id a. Afte r

rev ie w, we affi rm

.

W e rev ie w a di st ric t co ur t’s su m m ary jud gm en t de ci si on de no vo , ap pl y in g th e

sa m e le ga l st an da rd s as th os e th at go ve rn ed th e di st ric t co ur t. Ca po ne v. Aetn a Li

fe

In s. Co

. , 59 2 F.3 d 11 89

, 11 94 (1 1t h Ci r. 20 10 ) (ci ta ti on om it te d)

. Su m m ary jud gm en t

i s a p p r o p r i at e whe re “ th ere is no ge nu in e di sp ut e as to an y m at eri al fact an d th e

m ov an t is en ti tl ed to jud gm en t as a m at te r of la w.” Fed

. R. Ci v. P. 56 (a). W e co ns tru e

th e fact s and dr aw al l reas on ab le in fere nc es in fav or of th e no n- m ov in g par ty. Abe l

v. S. Sh ut tl e Se rv

s., In c. , 62 0 F.3 d 12 72

, 12 73 n.1 (1 1t h Ci r. 20 10 ) (ci ta ti on om it te d)

.

W e th eref

or e st at e th e fact s in th e li gh t m os t fav or ab le to Azal e a Hou se , th e

no n- m ov in g p art y

.

Azal ea Hou se was or ga ni zed as a Geo rg ia li m it ed li a b i li ty co m pa ny in

Decem be r 20 05

, an d at th at ti m e de si gn at ed NRAI as it s reg is te red ag en t fo r se rv ic e

of pr o c e s s

. A fiv e-m em

be r LLC, Azal ea Hou se de si gn at ed Mar ti n Sch ue ren as an

2of

fic er an d th e m an ag in g ag en t. In th e Arti cl es of Org an iz at io n fil ed wit h th e Geo rg ia

Secr et ary of St at e, Azal ea Hous e li st ed th e fo ll owi ng ad dr es s as it s m ai li ng ad dr es s

an d pr in ci pa l pl ace of bu si ne ss : 82 5 Hig hl an d Lan e, #1 21 5, Atl an ta

, Geo rg ia 30 30 6.

Th is ad dr es s was act ua ll y Sch ue ren ’s ho m e ad dr es s at th e ti m e, an d was th e on l y

co nt act ad dr es s p ro vi de d t o NRAI for it s u se as r eg is te red ag en t.

In Mar ch 20 06

, on e of Azal ea Hou se ’s m em be rs , Mar k Pi nz ur , tra ns ferr ed

pr op ert y lo cat ed on Azal ea Driv e in Aug us ta

, Geo rg ia to Azal ea Hou se by qu it cl ai m

de ed

. The pr op ert y was lo cat ed le ss th an on e m il e away fro m th e Aug us ta Nati on al

Gol f Cl ub

, whe re th e Mas te rs Gol f Tou rn am en t is pl ay ed an nu al ly. As it s so le as se t,

th e pr op ert y was in te nd ed to be us ed as a ho sp it al it y ho us e du rin g th e Mas te rs Gol f

Tou rn am en t.

In May 20 07

, Mar ti n Sch ue ren an d th e reg is te red of fic e o f A z a le a Hou se

m ov ed fro m Atl an ta

, Geo rg ia to Orm on d Bea ch

, Fl or id a. W he n Az a l e a H o u s e

ret ai ne d NRAI as it s reg is te red ag en t, Sch ue ren rece i v ed a no ti ce reg ard in g th e

im po rta nc e of no ti fy in g NRAI of an y ch an ge of ad dr es s fo r Azal ea H o u s e

. Tha t

not ic e pr ovi ded a to ll -fre e te le ph on e nu m be r fo r ch an ge -o f-ad dr ess pur pose s. D es pit e

th is no ti ce, Sch ue ren di d no t no ti fy N R A I of th e ch an ge of ad dr es s. Sch ue ren al so

fai le d to no ti fy th e Geo rg ia Secr et ary of St at e’s o f f ic e whe n he an d th e co m pa ny

m ov ed

. Due to th e fai lu re to in fo rm th e Secr et ary of St at e’s of fic e, Azal ea Hou se di d

3no t rece iv e it s an nu al co rp or at e ren ewal fo rm s, di d no t pa y it s an nu al fee, an d was

la te r ad m in is tra ti ve ly dis so lv ed

. 1

Abo ut se ve n m on th s aft er Azal ea H o u s e m ov ed it s reg is te red of fic e wit ho ut

te ll in g an y on e, in Decem be r 20 07

, NRAI was se rv ed wit h pr oc es s fo r an act io n th at

ha d be en fil ed ag ai ns t Azal ea Hou se in a Geo rg ia st at e co ur t. Pu rs ua nt to it s in te rn al

po li ci es , NRAI at te m

pt ed to cal l Azalea Hou se ab ou t th e fil in g of th e la wsu it

. Tha t

effo rt pr ov ed un su cces sf

ul be cau se th e pr ov id ed nu m be r was a wro ng nu m

be r. The

ne xt da y , NRAI fo rward ed th e pr oc es s, vi a ov ern ig ht Fed eral Exp res s de li ve ry , to th e

on ly ad dr es s th at it ha d on fil e fo r Azal ea Hou se : th e Hig hl a n d La n e a dd res s in

Atl an ta , Geor gi a.

The p a c k a g e se nt to th e Geo rg ia ad dr es s was ne ve r ret ur ne d to NRAI, an d

NRAI rece iv ed a de li ve ry co nf irmatio n fro m Fed eral Exp res s. The de li ve ry

co nf irmatio n in d i c a t e d th at si gn at ur e co nf irmatio n co ul d be ob ta in ed by cal li ng

Fed eral Exp r e s s

. N R A I d id no t cal l to ve rif y th at a si gn at ur e ha d be en ob ta in ed

,

ho wev er, be cau se it as su m ed th e pa ck ag e w a s r e c e iv ed ba se d on th e de li ve ry

co nf irmatio n. It is un di sp ut ed th at Fed eral Exp res s di d no t ob ta in a si gn at ur e whe n

it de li ve red ser vi ce o f pr oc es s.

Azalea House was e ventually reinstated, a

nd then filed this lawsuit. 1

4Azal ea Hou se di d no t act ua ll y rece iv e se rv ic e of pr oc es s of th e st at e-co ur t

act io n, an d di d no t fil e an an swe r. A de fau lt jud gm en t was en te red

. Lik e th e se rv ic e

of pr oc es s, Azal ea Hou se cl ai m s to h a v e ne ve r rece iv ed a co py of th e de fau lt

jud gm en t. NRAI se nt th e de fau lt jud gm en t vi a Fed eral Exp res s to th e sa m e Geo rg ia

ad dr es s pr ov id ed by Azal ea Hou se

. On th is oc cas io n, ho wev er, NRAI rece iv ed

no ti fic at io n th at Azal ea Hou se was no lo ng er pr es en t at th at ad dr es s, an d th e pa ck ag e

was ret ur ne d to NRAI as un de li ve rab le

. NRAI th en se nt th e de fau lt jud gm en t by th e

Uni te d St at es Po st al Serv ic e to th e Geo rg ia ad dr es s. W hi le th e reco rd is un cl ear as to

wha t ha pp en ed to th is pa ck ag e, Azal ea Hou se co nt en ds it ne ve r r e c e i v e d a co py o f

th e d efau lt jud gm en t.

As a res ul t of

th e d efau lt jud gm en t en te red ag ai ns t Aza le a Hou se , own ers hi p

of it s so le pr op ert y rev ert ed t o o n e o f it s in di vi du al m em be rs , Mar k Pi nz ur

. The

pr op ert y was su bs eq ue nt ly so ld at a sh e r i f f ’s sa le to a th ird pa rty ba se d up on a

jud gm en t th at ha d be en en te red in an ot he r cas e ag ai ns t Pi nz ur

. Azal ea Hou se di d no t

le arn th at own ers hi p of th e pr op ert y ha d be e n t r a n s ferr ed un ti l May 20 08

. Azal ea

Hou se th en fil ed th is act io n, se ek in g da m ag es fo r t h e v al ue of th e Azal ea Driv e

pr op ert y , lo st pro fit s, an d p un it iv e d am ag es

.

In th is di ve rs it y cas e, Azal ea Hou se ha s su ed NRAI fo r n e g l ig en ce. Und er

Geo rg ia la w, t o st at e a cau se of act io n fo r ne gl ig e n c e , a pl ai nt iff m us t es ta bl is h th e

5fo ll owi ng es se nt ia l el em en ts : “ (1 ) a le ga l du ty; (2 ) a br each of t hi s du ty; (3 ) an

in jury; an d (4 ) a cau sa l co nn ect io n be twee n th e br each an d th e in jury.” Doz ie r Cr an e

& Mac h., In c. v. Gib so n , 64 4 S.E.2d 33 3, 33 6 (Ga. Ct

. App

. 20 07 ). The di st ric t co ur t,

in gr an ti ng su m

m ary jud gm en t in NRAI’s fav or , im pl ic it ly as s u med th at NRAI

br each ed it s le ga l du ty to Azal ea Hous e bu t con cl ud ed th at Azal ea Hous e co ul d no t

es ta bl is h a cau sa l co nn ect io n b et ween th is bre ach an d t he de fau lt jud gm en t en te red

ag ai ns t Azal ea Hou se

. W e m ay affi rm th e di st ric t co ur t’s gr an t of su m m ary jud gm en t

on an y gro un d, re ga rd le ss of whe th er th e gr ou nd was ad dr es se d an d re li ed up on by

th e di st ric t co u r t

. C

ud de ba ck v. Fla

. Bd. of Edu c. , 38 1 F.3 d 12 30

, 12 35 (1 1t h Ci r.

20 04 ).

A. Duty

Geo rg ia la w do es no t pr ov id e, ei th er by st at ut e or jud ic ia l de ci sion, an y sp eci fic

du ty of care th a t a r e g is te red ag en t owe s to a li m it ed li ab il it y co m pa ny. Und er

O.C.G.A. § 14 -2 -5 04

, a reg is te red ag en t m us t rece iv e se rv ic e of pr oc es s on be ha lf of

th e co m pa ny, bu t th e st at ut e do es no t req ui re an ag en t to pe rfo rm an y pa rti cu la r act s

in rece iv in g se rv ic e of pr oc es s. Bec au se Geo rg ia la w is si le nt on th e du ty th at a

reg is te red ag en t owes to an LLC, th e pa rti es ag ree, as do we, th at a reg is te red ag en t

si m pl y owes a du ty of “ reas on ab le care ” in rece iv in g s erv ic e o f pr oc es s.

6Azal ea Hou se c o n t e n d s th at NRAI br each ed it s du ty to us e reas on ab le care

be cau se it di d no t fo ll ow it s own de li ve ry po li cy

. Azal ea Hou se ’s th eo ry is th at NRAI

was ne gl ig en t i n fa il in g t o o bt ai n a si gn at ur e u po n d el iv ery. The fa il ur e to ob ta in a

s ig na tu re, in tu rn , cau se d NRAI to co m m it a nu m

be r of ot he r al le ge dl y ne gl ig en t

act s– na m el y , th at N R A I f a i l e d to se nd Azal ea Hou se an em ai l, co nd uc t a Goo gl e

se arch

, se nd th e se rv ic e of pr oc es s by Uni te d St at es m ai l, an d co nt act th e Po st Offi ce

fo r fo rward in g in fo rm at io n. To es ta bl is h NRAI’s le ga l du ty to ob ta in a si gn at ur e an d

pe rfo rm al l of th es e act s, Azal ea Hou se ci te s NRAI’s “ Reg is te red Age n t S e r v i c es

Man ua l,” whi ch sa y s: “ The ov erri di ng res po ns ib il it y as [reg is t e r ed ] ag en t is to

[rec ei ve ] le ga l pr oc es se s on be ha lf o f yo u r c l ie nt an d to ta ke al l st ep s ne ces sa ry to

co m m un ic at e wit h an d fo rward to th e cl ie nt th e l e g a l pr oc es s im m ed ia te ly up on

rece ip t.” (R.2 -3 6, Ex . D at 5.) In ad di ti on to th e Man ua l, Azal ea Hou se po in ts ou t

th at th e Exe cu ti ve Vice Pres id en t o f NRAI t es ti fie d i n hi s d ep os it io n t ha t NRAI, as

a m at te r of

co m pa ny po li cy , req ui res a si gn at ur e fo r de li ve ry of s erv ic e o f pr oc es s.

(R.2 -3 6, Ex. A at 9.) The Vice Pres id en t al so te st ifi ed th at

, if a pa ck ag e is ret ur ne d,

NRAI ta ke s m

ul ti pl e st ep s in or de r to fin d a m or e accu rat e ad dr es s. NRAI wil l cal l

th e ph on e nu m

be r on reco rd

, pe rfo rm in te rn et res earc h in an at te m pt to fin d a be tt er

ad dr es s, or se nd th e pa ck ag e by Uni te d St at es m a i l i n h o p e s th at th ere wil l be a

fo rward in g ad dr es s or th at it wil l be r et ur ne d wit h a be tt er ad dr es s. (R.2 -3 6, Ex. A

7at 15 -1 6.) Bas ed on th is ev id en ce, Azal ea Hou se arg ue s th at th ere is a ge nu in e is su e

of m at eri al fact as to whe th er NRAI br each ed it s le ga l du ty to us e reas on ab le care in

rece iv in g s erv ic e o f pr oc es s.

W e co nc lu de th at

, as a m at te r of la w, NRAI di d no t br each it s d u t y of

reas on ab le care to Azal ea Hou se

. Fi rs t, we em ph as iz e th at no ag reem en t be twee n

Azal ea Hou se an d NRA I a d d r e s s e s wha t pe rfo rm an ce wil l be req ui red of NRAI as

reg is te red ag en t. Mo st no ta bl y , NRAI ne ve r rep res en te d to Azal ea Ho u s e th at a

si gn at ur e wou ld be req ui red or th at NRAI ha d a res po ns ib il it y to ob ta in a si gn at ur e.

Seco nd

, th e Vice Pr esid en t’s te st im on y an d NRAI’s Man ua l do no t es ta bl is h an y le ga l

du t y t o ob ta in a si gn at ur e up on de li ve ry of se rv ic e of pr oc es s. “ St an da rd s or

reco m m en da ti on s pu bl is he d b y a pr iv at e en ti ty for use as gu id el in es do no t creat e a

le ga l req ui rem en t to co m

pl y wit h th os e st an da rd s, an d vi ol at io n of su ch pr iv at el y se t

gu id el in es , al th ou gh ad m is si bl e as il lu st rat iv e of ne gl ig en ce, do es no t es ta bl is h

ne gl ig en ce.” Mul le r v. Eng li sh , 4 7 2 S

. E. 2d 44 8, 45 4 (Ga. Ct . Ap p. 19 96 ) (in te rn al

qu ot at io n m ark s an d ci ta ti on om it te d)

. W ha te ve r NRAI’s po li ci es m ay pr ov id e, th ey

do no t cr eat e an y

leg al du ty o n NRAI’s be ha lf. And , wh il e NRAI’s vi ol at io n of it s

own po li cy m ay be ad m is si bl e ev id en ce of ne gl ig en ce, th at ev id en ce, in th e co nt ex t

of th is cas e, do es n o t c r e a t e a ge nu in e is su e of fact fo r tri al

. No reas on ab le juro r

co ul d co nc lu de th at NRAI, wit h no ag reem en t wha ts oe ve r as to it s pe rfo rm an ce, was

8ne gl ig en t by fai li ng to ob ta in a si gn at ur e, se nd an em ai l, or pe rfo rm a Goo gl e se arch

,

es pe ci al ly co ns id eri ng NRAI se nt th e pr oc es s to th e on ly ad dr es s th at Azal ea Hou se

pr ov id ed an d rece iv ed de li ve ry co nf irmatio n th at pr oc es s w a s de li ve red

. W e

t h e r efo re affi rm th e di st ric t co ur t’s gr an t of su m m ary jud gm en t on th e gr ou nd th at

NRAI d id no t b reac h i ts leg al du ty to Aza le a Hou se

.

B. Cau sa ti on

Eve n if NRAI’s fai lu re to co mp l y w i t h it s in te rn al po li ci es co ul d es ta bl is h a

br each of it s le ga l du ty to Azal ea H o u s e , t h e di st ric t co ur t was co rrec t in gr an ti ng

su m m ary jud gm en t on th e gr ou nd th at NRAI’s ne gl ig en ce d id no t caus e th e de fau lt

jud gm en t en te red ag ai ns t Azal ea Hou se

. The di st ri c t c ou rt fo un d th at th e de fau lt

jud gm en t en te red ag ai ns t Azal ea Hou se was cau s e d b y A z al ea Hou se ’s fai lu re to

no ti fy NRAI of it s ch an ge of a dd res s, n ot an y act or o m is si on of NR AI.

Azal ea Hous e co nt en ds th is was erro r, arg ui ng th at it m os t lik el y wou ld ha ve

rece iv ed th e se rv ic e of pr oc es s ha d NRAI m ad e su re th at Fed eral Exp res s o b t ai ne d

a si gn at ur e. Azal ea Hou se ba se s it s th eo ry of cau sa ti on on th e f ol lo win g ch ai n of

ev en ts : Fi rs t, if NRAI ha d req ui red a si gn at ur e whe n it se nt th e se rv ic e of pr oc es s,

an d no si gn at ur e was ob ta in ed

, th e pa ck ag e wou ld ha ve be en ret ur ne d to NR A I

.

Seco nd

, if th e pa ck ag e ha d be en ret ur ne d t o N R A I

, i t wou ld ha ve th en se nt th e

pa c k a g e vi a th e Uni te d St at es Po st al Serv ic e to th e sa m e ad dr es s. Thi rd

, if th e

9pa ck ag e was se nt by th e Uni te d St at es Po st al Serv ic e, it wou ld ha ve be en fo rward ed

,

ei th er by th e Po st al Serv ic e it se lf or th e oc cu pa nt s of Sch ue ren ’s Geo rg ia ad dr es s, to

Sch ue ren ’s co rrec t ad dr es s in Fl or id a. Fo ur th

, if th e pa ck ag e was se nt to Sch ue ren ’s

Fl or id a ad dr es s, Sch ue ren wou ld ha ve rece iv ed it

, an d m ad e su re th e co m pl ai nt was

an swe red in ord er t o a vo id a de fau lt jud gm en t.

W e ag ree with th e di st ric t cou rt th at

, as a m at te r of la w, NRAI’s co nd uc t was

no t th e cau se -in -fac t or pr ox im at e cau se of Azal ea Hou se ’s ha rm in s u f f e r i n g a

de fau lt jud gm en t. To sh ow c a u s a t io n, “ a pl ai nt iff m us t in tro du ce ev id en ce whi ch

affo rd s a reas on ab le ba si s fo r th e co nc lu si on th at it is m or e li ke ly th an no t th at th e

co nd uc t of th e de fen da nt was a cau se in fact of th e res ul t. A m ere po ss ib il it y of su ch

cau sa ti on is no t en ou gh .” Gay v. Red la nd Bap ti st Ch ur ch

, 65 3 S.E.2d 77 9, 78 0 (Ga.

Ct . App . 20 07 ) (q uo ta ti on s an d c it at io n o m it te d)

.

Azal ea Hou se ’s st rin g of sp ecu la ti ve co nt in ge nc i e s can no t es ta bl is h an

un br ok en ch ai n of ev en ts th at am ou nt s to cau se -in -fac t o r p r ox im at e cau se un de r

Geo rg ia la w; t h e c a us al ch ai n br eak s in m ul ti pl e pl aces

. Fi rs t, it is un cl ear th at th e

pa ck ag e wou ld ha ve be en ret ur ne d to NR A I if a si gn at ur e was req ui red

. Eve n if

NRAI req ui red a si gn at ur e, Fed eral Exp res s m ay no t hav e act ua ll y ob ta in ed on e, or

m ay no t ha ve ob ta in ed on e fro m Sch ue ren

. No ci te d ev id e n c e i n th e reco rd

es ta bl is he s Fed eral Exp res s’s po li cy reg ard in g si gn at ur es –wh o m us t si gn , whe n th ey

10m

us t si gn , th e co ns eq ue nc es of si gn in g, et c. S e c o n d

, as su m in g th at req ui rin g a

si gn at ur e wou ld ha ve cau se d th e pa ck ag e to be ret ur ne d to NRAI, it is un cl ear th at

NRAI wou ld ha ve tu rn ed aro un d an d se nt th e sa m e pa ck ag e vi a Uni t ed St at es m ai l

t o t h e sa m e Geo rg ia ad dr es s, or so m eh ow fo un d Sch ue ren ’s F lo rid a ad dr es s on th e

in te rn et

. Thi rd

, as su m in g NRAI wou ld ha ve se nt th e pa ck ag e by Uni te d St at es m ai l

to th e sa m e Geo rg ia ad dr es s, th ere is no ev id en ce th at th e pa ck ag e wou ld ha ve be en

fo rward ed to Sch ue ren ’s co rrec t ad dr es s in Fl or id a. The un di sp ut ed ev id en ce sh ows

th at Sch ue ren was n ot rece iv in g al l o f hi s m ai l t hr ou gh th e fo rward in g s erv ic e wit h

th e Uni te d St at es Po st al Serv ic e. In pa rti cu la r, th e Secr et ary of St at e’s of fic e se nt

Sch ue ren an in vo ic e fo r Az a l e a Hou se ’s an nu al fee, bu t th at in vo ic e was no t

fo rward ed

, whi ch ev en tu al ly le d to Azal ea Hou se ’s ad m in is tra ti ve di ss ol ut io n. And

,

NRAI us ed th e U n i te d St at es Po st al Serv ic e to fo rward th e de fau lt jud gm en t to

Azal ea Hou se , bu t Azal ea Hou se al le ge dl y ne ve r rece iv ed th at pa ck ag e. Fo ur th an d

fin al ly, as su m in g th e pa ck ag e so m eh ow m ad e it to Sch ue ren in Fl or id a, it is un cl ear

th at he wou ld ha ve m ad e arra ng em en ts to an swe r th e co m pl ai nt ag ai ns t Azal ea

Hou se

. Co ns id eri ng Sch ue ren di d no t ch an ge Azal e a Hou se ’s a dd res s, di d no t pa y

i t s an nu al fee, di d no t co m m un ic at e wit h an y ot he r Azal ea Hou se m em be r s , a n d

al lo wed Azal ea Hou se to ad m in is tra ti ve ly di ss ol ve , it is sp ecu la ti ve to co nc lu de th at

he wou ld ha ve m ad e arra ng em en ts to an swe r th e co m pl ai nt

. Bas ed on th is st rin g of

11co nt in ge nc ie s, we co nc lu de

, as t he di st ric t co ur t di d, th at Azal ea Hou se ha s no t

crea te d an y ge nu in e is su e of m at eri al fact as to whe th er NRAI’s ne gl ig en ce cau se d

Azal ea Ho us e to su ffer a de fau lt jud gm en t.

AFFIR MED.

12