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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Just an aside, but regardless of the outcome, I 'm proud of Judge William Hughes. He was the original magistrate on the Home place issue. He ruled for Home Place, and was primaried by Brainard for it. Their tool Poindexter failed to unseat Hughes, who won support for his honesty and courage throughout the county, and he was reelected Judge of Hamilton County's Superior Court. You can still stand for something and survive. Thanks, Judge Hughes!

  2. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  3. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  4. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  5. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

ADVERTISEMENT