Default Judgment

News & Analysis as of

Suspended And Dissolved Corporation Still Defaulted

The story is straightforward; the legal ramifications are not: The plaintiff sued a corporation. Before the lawsuit was filed, the Secretary of State had suspended the corporation and then the corporation was...more

How Long are Arizona Judgments Enforceable?

Over 95% of the cases filed by junk debt buyers like Midland Funding, CACH, LLC, and Portfolio Recovery Associates end in a default judgment. These debt collectors file thousands of debt collection lawsuits in Arizona each...more

Bridging the Week - August 2016

FCM Agrees to Pay US $800,000 Fine to CFTC Because of US $1.1 Million in Erroneous Customer Exchange Fees Charges: Barclays Capital, Inc. agreed to pay a fine of US $800,000 to the Commodity Futures Trading Commission to...more

5 Reasons Why You Need a Lawyer in Your Arizona Debt Collection Lawsuit

Junk debt buyers like Midland Funding, Portfolio Recovery, Cavalry SPV, CACH, LLC, and Cortez Investment files thousands debt collection cases in Arizona courts every month. Most of these cases don’t end well. In fact, over...more

Federal Judge Awards EEOC $179,000 Default Judgment Against Workplace Staffing Solutions For Sex Discrimination

Louisiana Staffing Firm Failed to Hire Six Qualified Women Because of Their Sex While Hiring Only Men, Federal Agency Charged - JACKSON, Miss. - A federal judge has ruled in favor of the U.S. Equal Employment Opportunity...more

Appellate Court Notes

Appellate Court Advance Release Opinions: AC37813 - Santarsiero v. Planning & Zoning Commission - A planning and zoning commission (PZC) was entitled to use its discretion in waiving a landscape buffer requirement...more

Bankruptcy Beat: Default Judgment Is Not Automatic Following Entry Of Default

On May 12, 2016, the Honorable Julie A. Manning issued a decision in an adversary proceeding entitled Law Office of W. Martyn Philpot, Jr., LLC v. Day, which addressed two issues. The first issue was whether the plaintiff was...more

What Employers Need to Know About the New State Garnishment Laws, Part I: Michigan and Georgia

The requirements and processes applicable to employers handling garnishments are primarily governed by state laws. Therefore, in addition to the federal Consumer Credit Protection Act (CCPA), multistate employers need to be...more

Sued by a Debt Collector? Don’t Ignore it!

The overwhelming majority of families that are sued by debt collectors either don’t get proper notice or simply ignore it. This isn’t the first (or even second) time I have written about this. Every now and again – usually...more

Michigan Attorney General Announces Default Judgment Against Automobile Title Loan Company Over Alleged Usurious Loans

On June 8, 2016, the Michigan Attorney General announced that a Michigan court entered a default judgment and permanent injunction against an automobile title loan company over alleged usurious loans that violated the...more

Southern District Still Screams For Ice Cream – And Attorneys’ Fees – In Master Softee Trademark Dispute

Memorial Day weekend is coming, marking the unofficial start of summer. The Southern District of New York has marked the occasion by entering a judgment for attorneys’ fees and costs against Mister Softee copycat, Master...more

Purchasing a Corporation in Maryland? “Mere Continuation” Rule Just Became Clearer

The Maryland Court of Appeals (the “Court”), the state’s highest court, in Phillip Martin, v. TWP Enterprises Inc. (No. 1855, Sept. Term, 2014, decided Feb. 24, 2016, Leahy, J.) addressed what it identified as the third...more

History Repeats Itself: The EEOC Scores Big Judgment Against Absent Party

Seyfarth Synopsis: The EEOC obtains a multi-million dollar default judgment against an out-of-business company in a case alleging “human trafficking” discrimination claims....more

Dot Your i’s and Cross Your t’s Before Service: It Could Be Worth $2.5 Million

When De Gazelle Group, Inc. sought to use FedEx for service of process of a Saudi Arabian company, Tamaz Trading Establishment, it reliably arrived at the Saudi Arabian post office. In fact, a Tamaz agent, seeking legal...more

Late notice to insurer costs Maryland bank millions

Insurance law generally imposes on a policyholder the duty to give timely notice of claims to its insurance company. Sometimes, because of forgetfulness, ignorance, neglect, or a number of other reasons, companies fail to...more

Sued by Razor Capital in Arizona? We Can Help.

Have you been sued by Razor Capital? Even though Razor Capital is not an Arizona debt buyer they do file a large number of lawsuits in Arizona courts. Razor’s business model is to purchase old charged-off credit cards, auto...more

Appellate Court Notes

Supreme Court Advance Release Opinions: SC19480 - McCullough v. Swan Engraving, Inc. - This case determined that when a husband had already filed a claim for disability benefit in a timely fashion under the Worker’s...more

How Facebook Can Help You Eliminate a Default Judgment

Every single day I meet with people in my law practice who come to me with a wage garnishment stemming from a judgment that, until now, they had no knowledge of. In order to garnish wages it is generally necessary to file a...more

Defendants in Default: Motions for Default Judgment Must Demonstrate Infringement

Order Staying Case In Part And Denying Motion For Default Judgement Without Prejudice. e. Digital Corp. v. Ivideon LLC, et al. Case No. 15-cv-00691-JST (Judge Jon S. Tigar) - In a recent opinion, Judge Jon Tigar sua...more

Insurance Insight - Broad duty to defend applied despite late notice

Even when an insurer receives very belated notice of a suit against its insured, it can face harsh consequences if it does not take action to provide a defense. ...more

Supreme Court of Missouri Reverses Trial Court Order Setting Aside Default Judgment Against Insurance Company

Bate v. Greenwich Insurance Company 464 S.W.3d 515 (Mo.banc June 16, 2015) The Supreme Court of Missouri, en banc, reversed a trial court order setting aside a default judgment against an insurer, based on improper...more

To submit or not to submit – questions of jurisdiction

This appeal arose out of the litigation fallout from the Bernard Madoff Ponzi scheme. In the appeal, the Privy Council considered whether, at common law, an agreement to submit to jurisdiction must be express or whether it...more

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

The U.N. Convention on Contracts for the International Sale of Goods Trumps the UCC

VLM Food Trading International, Inc. (“VLM”), a Montreal-based supplier of foods, sold frozen potatoes from time to time to Illinois Trading Company (“IT”), a United States company located in Illinois. After nine successful...more

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