Court Opinion

ID: 9721957
Source: CourtListenerOpinion
Date Created: 2023-08-26 09:13:19.021106+00
Date Added: 2024-06-11T18:24:29.568035
License: Public Domain

FRIEDLANDER, Judge,
concurring.
I concur in result.
Precision argues that, for two reasons, the trial court erred by denying Precision's motion to set aside the partial default judgment entered against it. First, Precision argues that the trial court lacked personal jurisdiction due to insufficient service of process. Second, Precision argues that the trial court should have vacated the partial default judgment on the grounds of mistake or excusable neglect. Specifically, Precision argues here that "[alny mistake or neglect by Todd An-son (because he did neither convey specific information nor forward the legal papers to Precision Erecting, Inc.) should not be transferred and held against Precision Erecting, Inc." Brief of Appellants at 28. I disagree.
Pursuant to Ind. Trial Rule 4.6(A), service upon an organization may be made by serving an appointed agent of the organization. Pursuant to Ind.Code 28-1-49-10, "[the registered agent of a foreign corporation authorized to transact business in Indiana is the corporation's agent for service of process, notice or demand required or permitted by law to be served on the foreign corporation."
The decision whether to vacate a default judgment is a matter entrusted to the sound discretion of the trial court. Storm v. Mills (1990), Ind.App., 556 N.E.2d 965. Any doubt as to the propriety of a judgment entered by default must be resolved in favor of the defaulted party. Id. To prevail on a request to vacate a default judgment, the defaulted party must demonstrate not only why a default judgment would result in an injustice, but also why its failure to plead should be excused. Id. On appeal, we limit our review to whether the trial court abused its discretion. This occurs only when the court's judgment is clearly against the logic and effect of the facts and circumstances before it, or the reasonable, probable and actual deductions to be drawn therefrom. Id.
According to Wokurka's attorney's affidavit, in February of 1998 Anson was listed in our Secretary of State's records as Precision's registered agent. Record at 63. In accordance with T.R. 4.6(A) and LC. 23-1-49-10, Wokurka's attorney mailed, via certified mail, Wokurka's summons and complaint to Anson's residence. Anson's wife signed the return receipt for the documents. An-son, after discovering the contents, telephoned a secretary at Precision's office in Wisconsin and told her what he had received. Precision's secretary instructed Anson to forward the legal documents to Precision. Record at 214. Anson did not do so. According to Anson's affidavit, at the time he received Wokurka's summons and complaint, he was not an employee of Precision, he was not aware that he was Precision's registered agent, and he had not given his consent to be Precision's registered agent. Precision had appointed Anson as its registered agent without Anson's knowledge or consent. Record at 216.
In my opinion, a corporation who appoints an individual as its registered agent, without the individual's knowledge or consent, does so at its own peril. I find Precision's argument that the partial default judgment entered against it should be vacated because Anson mistakenly or neglectfully failed either to forward a copy of the legal documents to the corporation or to provide the corporation with specific details of the lawsuit unpersuasive. Wokurka's attempt at service was directed to Precision at the address Precision provided as that of its registered agent. Wo-kurka's attempt at service succeeded in providing Precision, in this case, with actual notice of the action because Anson telephoned Precision to inform it of the fact that Precision had been sued. Under these circumstances, I am of the opinion that, onee Precision had actual notice of Wokurka's pending lawsuit, Precision became aware of and responsible for the details of the suit and *476the resultant consequences of its failure to act.
Under these particular circumstances, Precision received sufficient service of process and Precision failed to demonstrate why its failure to plead should be excused. The trial court did not abuse its discretion by denying Precision's motion to vacate and I concur in the result.