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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. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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