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Gassett v. Snappy Car Rental11/30/1995
Per Curiam: In September of 1985, appellant Deborah Gassett rented a car from respondent Snappy Car Rental and, while driving the car, was involved in an accident with an uninsured motorist. Gassett retained the law offices of Edward M. Bernstein & Associates (Bernstein) to handle her personal injury claims and her dispute with Snappy regarding payment of the damage to the car. Snappy and Bernstein exchanged correspondence regarding the property damage, but seventeen months after its last letter to Bernstein, Snappy filed a complaint against Gassett to recover the amount of the damage to the car. Snappy attempted to serve Gassett at her last known address. Gassett had moved by this time, and Snappy's process server could not find her, Snappy then served Gassett by publication, and when Gassett did not answer, Snappy obtained a default judgment against her. Gassett first discovered the default judgment in 1993, when she attempted to buy a house. The judgment had been recorded on her credit report. Gassett initiated a proceeding to have the judgment set aside. The district court denied her motion. Gassett appealed that denial to this court. We conclude that Snappy did not use due diligence in attempting to serve Gassett and reverse the district court's order.
FACTS
The instant case arises out of an automobile accident involving Gassett, which occurred on September 26, 1985. When Gassett was involved in the accident, she was driving a car leased from Snappy. The other driver was uninsured, and Gassett carried no collision insurance; consequently, Snappy could not collect from Gassett's carrier. Additionally, Snappy claimed that Gassett had not purchased collision insurance with her rental agreement, thereby leaving her liable for any and all damages to the car. Snappy claimed that Gassett owed it $7,962.56, the amount of the deficiency due after deducting the salvage value of the automobile. Gassett retained the services of Bernstein to represent her with regard to personal injuries sustained in the accident. Snappy was also negotiating the issue of property damage with Gassett through Bernstein because there were questions
[111 Nev. 1416, Page 1418]
regarding efficacy of the lease agreement and what actually transpired at the time the lease agreement was signed. Correspondence was exchanged between Snappy and Bernstein between January and October of 1986. The last correspondence between Snappy and Bernstein was on October 16, 1986, when Snappy sent a letter to Bernstein supplying a more legible copy of the rental agreement. On March 18, 1988, seventeen months after its last communication with Gassett or Bernstein, Snappy instituted a suit against Gassett to collect this sum. On March 25, 1988, in an affidavit of due diligence, Snappy's process server, Robert Irwin, stated that he had attempted to serve Gassett at her last known address in Las Vegas, 4600 W. Sirius, #1310. According to the affidavit, service was attempted on March 22, 1988. The affidavit, a predominately pre-printed form, states: "Affiant further attempted normal and routine checks of telephone directories for the communities nearby for the last known address of Defendant, vehicle registration and Post Office forwarding orders." Irwin also noted on the form that he spoke with the manager of the apartment complex who told him that Gassett no longer lived at the Sirius address. Based on the affidavit of due diligence, an order for the service on Gassett by publication was entered, the summons was published five times, and a copy of the summons and complaint mailed to Gassett at her address on Sirius. Gassett did not respond, and on July 22, 1988, the district court entered a default judgment against Ga
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