Default Judgment

News & Analysis as of

Attorney Submitting CCP 473(b) Declaration Not Obligated To State Reasons For “Mistake, Inadvertence, Surprise or Excusable...

In Martin Potts and Associates, Inc. v. Corsair, LLC (No. B263198 - filed January 28, 2016), Division Two of the Second Appellate District ruled that a motion for relief from default under Code of Civil Procedure § 473...more

Use of Denton on an Application to Set Aside Default Judgment in the TCC

In Tideland Ltd v Westminster City Council [2015[ EWHC 2710 (TCC) (a judgment dated July 2015 but only just published), the TCC made a decision to set aside default judgment regarding a £7m claim . The judgment provides...more

Arizona’s Default Judgment Problem

Arizona has a default judgment problem. Every day I meet with families and individuals who have been notified that their wages are about to be garnished based upon a default judgment entered years ago that they didn’t even...more

Reorganization of the United States Code Affects SCRA Classification

Effective December 1, the Servicemembers Civil Relief Act (SCRA) was recodified at 50 U.S.C. §§ 3901 – 4043 from its former location at 50 U.S.C. app. §§ 501 – 597b. Recent structural changes to the U.S. Code eliminated the...more

Summary of December 2015 Amendments to the Federal Rules of Civil Procedure

Amendments to the Federal Rules of Civil Procedure ("Rules") that took effect on December 1, 2015, are expected to impact numerous aspects of civil litigation, including service of process, discovery (including electronically...more

Don’t be Delinquent — Employer Loses Contribution Case by Default

The Court of Appeals for the Seventh Circuit recently affirmed the importance of paying close attention to procedural rules. In Central Illinois Carpenters Health & Welfare Trust Fund v. Con-Tech Carpentry, LLC, No....more

We All Scream For Ice Cream: Master Softee Defaults in Trademark Dispute

For some of us who “summered” on the sweltering streets of New York City as children, the sound of the Mister Softee jingle triggers a Pavlovian response for that sweet, soft-serve ice cream. It was the perfect antidote for...more

Indiana Court Weighs in Deficiency Judgments

The Indiana Court of Appeals recently held that creditors must move for an in personam remedy in the original foreclosure judgment or forfeit their right to collect deficiency funds. In Elliott v. Dyck O’Neal, the bank...more

Illinois District Court Enters Final Judgment Against For-Profit College to Resolve CFPB Litigation

On October 28, the U.S. District Court for the Northern District of Illinois filed a default judgment and order against a for-profit college company to resolve litigation with the CFPB. In a September 2014 lawsuit, the CFPB...more

Beating a dead horse: CFPB announces default judgment against Corinthian

The CFPB announced that it has obtained a final default judgment against Corinthian Colleges, Inc. from the Illinois federal court in which it sued Corinthian in September 2014. In May 2015, Corinthian filed a petition under...more

CFPB Continues to Take Action Against Offenders in Debt Collection Services

CFPB Takes Action Against Servicemember Auto Lender Security National Automotive Acceptance Company - On October 28, 2015, the Consumer Financial Protection Bureau (CFPB) filed an administrative order against Security...more

Stendardo Revisited: The Importance of Specifying Obligations in a Mortgage that Continue in Force after a Foreclosure Judgment

In a recent 2015 case, EMC Mortgage, LLC v. Biddle, 114 A.3d 1057, the Pennsylvania Superior Court applied the holding, Stendardo v. First National Mortgage Association, 991 F.2d 1089 (3d Cir.1993), to a case where a mortgage...more

Failure to Comply with Court Proceedings Results in Default Order (Illinois)

United States v. Alacran Contracting, LLC, 2015 WL 5829710 (N.D. Ill. Oct. 5, 2015) - In this breach of contract case, the defendant moved to set aside the court’s previous orders entering default against it based on the...more

The Alabama Supreme Court Allows a Second Bite at the Arbitration Apple

Could a failure to participate in a court-ordered arbitration be enough to waive a party’s right to arbitration? A recent decision of the Alabama Supreme Court suggests it is not. In 2010, Yan Chen entered into a lease...more

Real Property, Financial Services & Title Insurance Update: Week Ending September 18, 2015

REAL PROPERTY UPDATE - Default Judgment/Voidable: because default judgment was merely voidable, rather than void, where complaint upon which judgment was based failed to state a cause of action, Rule 1.540(b) was not...more

Application of the FDCPA is limited by the 11th Circuit

Recently, in Davidson v. Capital One Bank (USA), N.A., 2015 U.S. App. LEXIS 14714 (11th Cir. Aug. 21, 2015), the 11th Circuit held that banks do not qualify as “debt collectors” under the Federal Debt Collection Practices Act...more

TCPA Connect - August 2015

New Bill Would Create Criminal Penalties for TCPA Violations - Could telemarketers be facing jail time for violations of the Telephone Consumer Protection Act? The answer might be "yes" if a bill introduced by Sen....more

Putting the “force” into enforcement: the Commercial Court sentences arbitration award defaulters to 18 months in prison

A recent decision demonstrates the English courts’ resolve in the enforcement of arbitration awards and court orders. It is a useful reminder to those facing obstructive counterparties of the measures available to enforce...more

EEOC Wins $365,000 Default Judgment Against Bliss Cabaret for Race Discrimination and Retaliation

Adult Entertainment Club Fired Manager Who Objected to Ban on Hiring African-Americans and Terminated African-American Bartender Due to Race - TAMPA, Fla. - A Clearwater, Fla., adult entertainment club and its parent...more

Who is John Doe? Actor James Woods Brings “Twibel” Case Against Anonymous User “Abe List” for Calling Him A “Cocaine Addict”

Last week, renowned film and television actor James Woods brought a defamation claim against an anonymous Twitter user who tweets from the handle “Abe List,” alleging that Abe List falsely accused Woods of being a cocaine...more

Spoliation: How to Stop Trouble from Brewing

When a business is faced with the potential for litigation, it is imperative that all evidence be preserved to avoid the dreaded “s” word: spoliation. Starbucks Corporation recently learned this lesson the hard way when a...more

Don't Overplay Your Hand In The Business Court

When you last heard about London Leasing LLC v. Arcus, the Business Court had entered a default in March 2015 against two of the Defendants for what I called their "defiant and obnoxious conduct." It then seemed like...more

U.S. District Court Affirms FIFRA Arbitration Award

On June 19, 2015, the United States District Court for the District of Columbia granted a motion for default judgment by the Non-Dietary Exposure Task Force (Task Force) and confirmed an arbitration award against an Indian...more

2 Reasons to Go for Defendant’s Default

A default occurs when a defendant served with a complaint doesn’t file the appropriate response within the time allowed. CCP §§585–586. After a defendant is in default, a plaintiff may file a request for entry of default and...more

Seventh Circuit Says Violations of Wisconsin’s Theft-by-Contractor Statute Are Not Dischargeable in Bankruptcy

The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The...more

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