ILNews

Separate notice argument not enough to vacate small claims judgment

Back to TopCommentsE-mailPrintBookmark and Share

A business’s argument that it should have been served with a separate notice of a small claims action was rejected by the Indiana Court of Appeals Friday.

The appeals court affirmed a denial of KOA Properties LLC’s motion to set aside default judgment. In KOA Properties LLC v Laura Matheison, 48A04-1207-SC-365, the Court of Appeals ruled that KOA failed to establish the lower court abused its discretion by denying the business’s motion because the trial court did not have personal jurisdiction.

A default judgment for $4,300 plus court costs was entered against KOA in February 2012. In a dispute over a lease, Laura Matheison had filed a notice of small claim against “Todd Culp, KOA Properties LLC aka/Woodpoint.” The notice was sent by certified mail and Culp, owner and property manager of KOA, accepted it.

However Culp did not open the certified mail and neither he nor KOA appeared at the small claims hearing. The court subsequently entered a default judgment against Culp.

Culp successfully argued that he had been improperly named individually in the suit because KOA is an LLC. The trial court then vacated the judgment against Culp but refused to set aside the judgment against KOA because the business had not shown it had a “good and valid defense.”

KOA’s motion to vacate the default judgment was denied by the trial court. In its appeal, KOA asserted the small claims court did not have personal jurisdiction over KOA because the business was not listed as a separate party defendant on the notice of the claim and KOA was not separately served with the notice.  

The COA disagreed. It ruled KOA was listed as a separate defendant because the notice of the claim clearly included KOA as a party defendant, and the address listed on the notice of the claim was KOA’s address and Culp was the acknowledged owner and property manager of KOA.

Further the Court of Appeals observed that separate service would have been sent to the same address and directed to the same person, Todd Culp.

“We cannot agree with KOA that when Culp accepted the certified mailing addressed to ‘Todd Culp (KOA Properties LLC)’ at KOA’s business address there was a total failure to serve process on KOA,” Judge Ezra Friedlander wrote for the court. “… KOA was provided with service reasonably calculated to inform KOA that a small claims action had been instituted against it.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Bill Satterlee is, indeed, a true jazz aficionado. Part of my legal career was spent as an associate attorney with Hoeppner, Wagner & Evans in Valparaiso. Bill was instrumental (no pun intended) in introducing me to jazz music, thereby fostering my love for this genre. We would, occasionally, travel to Chicago on weekends and sit in on some outstanding jazz sessions at Andy's on Hubbard Street. Had it not been for Bill's love of jazz music, I never would have had the good fortune of hearing it played live at Andy's. And, most likely, I might never have begun listening to it as much as I do. Thanks, Bill.

  2. The child support award is many times what the custodial parent earns, and exceeds the actual costs of providing for the children's needs. My fiance and I have agreed that if we divorce, that the children will be provided for using a shared checking account like this one(http://www.mediate.com/articles/if_they_can_do_parenting_plans.cfm) to avoid the hidden alimony in Indiana's child support guidelines.

  3. Fiat justitia ruat caelum is a Latin legal phrase, meaning "Let justice be done though the heavens fall." The maxim signifies the belief that justice must be realized regardless of consequences.

  4. Indiana up holds this behavior. the state police know they got it made.

  5. Additional Points: -Civility in the profession: Treating others with respect will not only move others to respect you, it will show a shared respect for the legal system we are all sworn to protect. When attorneys engage in unnecessary personal attacks, they lose the respect and favor of judges, jurors, the person being attacked, and others witnessing or reading the communication. It's not always easy to put anger aside, but if you don't, you will lose respect, credibility, cases, clients & jobs or job opportunities. -Read Rule 22 of the Admission & Discipline Rules. Capture that spirit and apply those principles in your daily work. -Strive to represent clients in a manner that communicates the importance you place on the legal matter you're privileged to handle for them. -There are good lawyers of all ages, but no one is perfect. Older lawyers can learn valuable skills from younger lawyers who tend to be more adept with new technologies that can improve work quality and speed. Older lawyers have already tackled more legal issues and worked through more of the problems encountered when representing clients on various types of legal matters. If there's mutual respect and a willingness to learn from each other, it will help make both attorneys better lawyers. -Erosion of the public trust in lawyers wears down public confidence in the rule of law. Always keep your duty to the profession in mind. -You can learn so much by asking questions & actively listening to instructions and advice from more experienced attorneys, regardless of how many years or decades you've each practiced law. Don't miss out on that chance.

ADVERTISEMENT