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Robbins v. Wolfenbarger8/2/2000
On may 7th, 1999, plaintiff Robbins filed a complaint for damages against Wolfenbarger and Horne, alleging breach of contract, intentional misrepresentation and negligence, per se. On August 26, 1999, an Order of Compromise and Dismissal was entered as to Wolfenbarger individually and d/b/a Wolf Motors.
Horne did not file an answer during the time allowed by the Rules of Civil Procedure, and Robbins filed a motion for default judgment on July 9, 1999. Horne wrote a letter to the plaintiff's attorney in response to the complaint and summons, postmarked July 16, 1999. The letter was forwarded to the Clerk of the Court for filing by plaintiff's counsel's letter dated July 30, 1999.
On August 27, Robbins' Motion for Default Judgment was heard, but Horne who had notice did not attend. Default judgment was entered on September 1, 1999.
Horne then retained counsel and filed a Motion to Set Aside the Default on September 10, 1999, which Motion was heard on October 4, 1999. The Trial Court denied the Motion and set a date for hearing damages. Thereafter, a full evidentiary hearing on damages was held and a Judgment for damages in the amount of $1,881.84 plus interest, was entered.
Horne then filed this appeal.
Rule 55.02 of the Rules of Civil Procedure provides that " or good cause shown the court may set aside a default judgment by default in accordance with Rule 60.02." Rule 60.02 provides, in pertinent part:
On motion and upon such terms as are just, the court may relieve a party or that party's legal representative from a final judgment, order or proceeding for the following reasons: (1) mistake, inadvertence, surprise or excusable neglect; (2) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party; (3) the judgment is void; (4) the judgment has been satisfied, released or discharged, or a prior judgment upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that a judgment should have prospective application; or (5) any other reason justifying relief from the operation of the judgment. A motion shall be made within a reasonable time, and for reasons (1) and (2) not more than one year after the judgment, order or proceeding was entered or taken.
A party seeking to set aside a default judgment has the burden of demonstrating that it is entitled to relief. Nelson v. Simpson, 826 S.W.2d 483, 485 (Tenn. Ct. App. 1991); Walker v. Baker, 738 S.W.2d 194, 196 (Tenn. Ct. App. 1987); Tennessee State Bank v. Lay, 609 S.W.2d 525, 527 (Tenn. Ct. App. 1980). In order to obtain relief, the party must satisfy the court that it is entitled to relief based on one of the grounds in Tenn.R.Civ.P. 60.02 and that it has a meritorious defense to the plaintiff's suit. Patterson v. Rockwell Int'l., 665 S.W.2d 96, 100 (Tenn. 1984); Turner v. Turner, 739 S.W.2d 779, 780 (Tenn. Ct. App. 1986).
The setting aside of a default judgment lies within the sound discretion of the trial court. Tennessee Department of Human Services v. Barbee, 689 S.W.2d 863, 866 (Tenn. 1985). However, courts should liberally construe 60.02's requirements when a party is seeking relief from a default judgment. Barbee at 866. The court should also consider whether the movant's default was willful or culpable, and examine the extent to which the movant's conduct has prejudiced the non-defaulting party. Id. Court's should grant relief whenever any reasonable doubt exists concerning whether the default judgment should be set aside. Nelson v. Simpson, 826 S.W.2d 486 (citing Keck v. Nationwide Sys., Inc., 499 S.W.2d 266, 267 (Tenn. Ct. App. 1973)).
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