Case Name: LLOYD'S UNDERWRITER'S AT LONDON, Appellant, v. RUBY, INC., a Florida corporation, and Sphere Drake Insurance, Appellees
Court: Florida District Court of Appeal
Jurisdiction: Florida
Decision Date: 2001-11-21
Citations: 801 So. 2d 138
Docket Number: No. 4D00-3731
Parties: LLOYD’S UNDERWRITER’S AT LONDON, Appellant, v. RUBY, INC., a Florida corporation, and Sphere Drake Insurance, Appellees.
Judges: SHAHOOD, J., concurs.
Reporter: Southern Reporter, Second Series
Volume: 801
Pages: 138–141

Head Matter:
LLOYD’S UNDERWRITER’S AT LONDON, Appellant, v. RUBY, INC., a Florida corporation, and Sphere Drake Insurance, Appellees.
No. 4D00-3731.
District Court of Appeal of Florida, Fourth District.
Nov. 21, 2001.
Rehearing Denied Dec. 21, 2001.
Thomas J. Morgan of Thomas J. Morgan, P.A., Coconut Grove, for appellant.
Todd C. Drosky of Gillespie & Allison, P.A., Boca Raton, for Appellee-Ruby, Inc.

Opinion:
GROSS, J.
Lloyd's Underwriter's at London appeals a non-final order denying its motion to set aside a default.
Appellee Ruby, Inc., filed a lawsuit against Lloyd's and effected service through the Florida Insurance Commissioner on June 8, 2000. On July 5, 2000, Ruby filed a motion for default, which was entered by the clerk on July 13. On July 17, Lloyd's filed its motion to set aside the default.
The issue is whether Lloyd's failure to timely respond to the lawsuit amounted to excusable neglect.
The Department of Insurance, pursuant to section 48.151(1), Florida Statutes (2000), forwarded the complaint to Lloyd's registered agent at the New York law firm of Mendes and Mount. A paralegal with the firm mislaid the suit papers until June 26, when the firm sent the summons and complaint to London. The law firm's transmittal letter did not tell Lloyd's that it faced an impending deadline for responsive pleading.
Lloyd's received the paperwork, but the assigned broker was on vacation. The fax was misplaced by London office staff, only to be discovered on July 6, 2000. The suit documents were faxed back to the New York law firm on July 10 with instructions to secure Florida counsel to enter an appearance and defend the claim.
The trial court denied Lloyd's motion to set aside the default, ruling that while Lloyd's had shown a meritorious defense and due diligence in acting after discovery of the default, it had not established excusable neglect.
Florida public policy favors the setting aside of defaults so that controversies may be decided on the merits. See N. Shore Hosp., Inc. v. Barber, 143 So.2d 849, 852-53 (Fla.1962). In implementing this policy, "if there be any reasonable doubt in the matter [of vacating a default], it should be resolved in favor of granting the application and allowing a trial upon the merits." Id. at 853 (quoting State Bank of Eau Gallie v. Raymond, 103 Fla. 649, 138 So. 40, 43 (Fla.1931)). An order denying a motion to vacate a default is reviewed under an abuse of discretion standard. See George v. Radcliffe, 753 So.2d 573, 575 (Fla. 4th DCA 1999). It is an order granting a motion to vacate which is reviewed under a gross abuse of discretion standard. Id. McKinzie By & Through McKinzie v. Hollywood, Inc., 421 So.2d 606, 607 (Fla. 4th DCA 1982).
In Shurgard Storage Centers, Inc. v. Parker, 755 So.2d 695, 696 (Fla. 4th DCA 1999), we discussed the law applicable to this area:
This court has previously stated that "[w]here inaction results from clerical or secretarial error, reasonable misunderstanding, a system gone awry or any other of the foibles to which human nature is heir, then upon timely application accompanied by a reasonable and credible explanation the matter should be permitted to be heard on the merits." Gateway Am. Bank of Fla. v. Lucky Jet Corp., 720 So.2d 1141, 1142 (Fla. 4th DCA 1998) (citations omitted).
We find that the trial court abused its discretion in failing to set aside the default in this case. Lloyd's filed its motion to set aside the default only four days after its entry. We reverse and remand with directions to set aside the default.
SHAHOOD, J., concurs.
GUNTHER, J., dissents with opinion.