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Justices reverse denial of car dealership’s motion to set aside default judgment

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Because a car dealership and its registered agent did not receive notice of a hearing on default judgment, the judgment entered against it was void for want of jurisdiction, the Indiana Supreme Court ruled.

Scott Jones sued Front Row Motors LLC and Jerramy Johnson, alleging Johnson rolled back the odometer and fraudulently claimed otherwise. Jones knew Johnson was in custody at the Hamilton County Community Corrections facility when he filed his lawsuit. But Jones did not make an effort to serve Johnson at the facility regarding his motion for default judgment and damages after Johnson did not appear at his deposition.

Default judgment was entered against the defendants in the amount of $34,616.73, but Jones later did not object to setting aside the judgment personally against Johnson due to potentially not providing valid service of notice to him.

Front Row Motors and Johnson appealed, arguing the trial court abused its discretion in failing to set aside the judgment as to the dealership.

After finding that the appellate courts had jurisdiction to entertain this appeal based on it being deemed final by operation of Trial Rule 60(C), the justices reversed the denial of Front Row Motor’s motion to set aside default judgment.

Indiana Code 23-1-24-4 provides: “A corporation’s registered agent is the corporation’s agent for service of process, notice, or demand required or permitted by law to be served on the corporation.”

“The record shows that at all relevant times during the pendency of this action Jerramy Johnson was the registered agent for Front Row Motors, LLC. Indeed Jones served Johnson in that capacity at the address listed with the Secretary (of) State, namely Johnson’s home address. But Jones knew that Johnson was not present at that address and instead was a resident of a Community Corrections facility. Despite this knowledge Jones made no effort to serve Johnson – the registered agent of Front Row Motors – at the facility,” Justice Robert Rucker wrote in Front Row Motors, LLC and Jerramy Johnson v. Scott Jones, 49S02-1311-PL-758.

“On the record before us Front Row Motors has made a prima facie showing that Jones’ service of process was a mere gesture not calculated to inform it of the default damages hearing. Because Front Row Motors did not receive notice of the hearing, the default judgment entered against it was void for want of jurisdiction. The trial court thus abused its discretion in denying Front Row Motor’s motion to set aside the judgment.”
http://media.ibj.com/Lawyer/websites/opinions/index.php?pdf=2014/march/03271401rdr.pdf

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  1. The is an unsigned editorial masquerading as a news story. Almost everyone quoted was biased in favor of letting all illegal immigrants remain in the U.S. (Ignoring that Obama deported 3.5 million in 8 years). For some reason Obama enforcing part of the immigration laws was O.K. but Trump enforcing additional parts is terrible. I have listed to press conferences and explanations of the Homeland Security memos and I gather from them that less than 1 million will be targeted for deportation, the "dreamers" will be left alone and illegals arriving in the last two years -- especially those arriving very recently -- will be subject to deportation but after the criminals. This will not substantially affect the GDP negatively, especially as it will take place over a number of years. I personally think this is a rational approach to the illegal immigration problem. It may cause Congress to finally pass new immigration laws rationalizing the whole immigration situation.

  2. Mr. Straw, I hope you prevail in the fight. Please show us fellow American's that there is a way to fight the corrupted justice system and make them an example that you and others will not be treated unfairly. I hope you the best and good luck....

  3. @ President Snow - Nah, why try to fix something that ain't broken??? You do make an excellent point. I am sure some Mickey or Minnie Mouse will take Ruckers seat, I wonder how his retirement planning is coming along???

  4. Can someone please explain why Judge Barnes, Judge Mathias and Chief Judge Vaidik thought it was OK to re weigh the evidence blatantly knowing that by doing so was against the rules and went ahead and voted in favor of the father? I would love to ask them WHY??? I would also like to ask the three Supreme Justices why they thought it was OK too.

  5. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

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