Discover Bank v. Crocker
2016 Ohio 2759
Ohio Ct. App.2016Background
- Discover Bank sued Curtis L. Crocker in Wayne County Municipal Court for unpaid credit-card charges after unsuccessful attempts to serve by certified mail.
- Crocker filed a procedural-defect notice asserting he had not been served, then filed an answer; parties agreed Discover would re-serve and Crocker would have 28 days to plead after proper service.
- Discover again failed to serve by certified mail; the clerk mailed the summons and complaint by ordinary mail, which was not returned, and service was treated as complete.
- Crocker filed a notice of appearance and a motion for leave to plead on April 3, 2014; the trial court denied leave and Crocker did not file an answer.
- Discover obtained a default judgment the same day it moved for default judgment; Crocker moved to set aside under Civ.R. 55(A) and Civ.R. 60(B), which the trial court denied.
- Crocker appealed; the Ninth District reversed the trial court, finding error in entering default judgment without providing the seven-day notice required after a party has appeared.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court erred entering default judgment without a hearing after Crocker filed a notice of appearance | Default judgment appropriate because Crocker failed to timely file an answer after service and the clerk had mailed process | Crocker had "appeared" by filing a notice of appearance and thus was entitled to seven days' written notice of the default-judgment hearing under Civ.R. 55(A) | Court held Crocker’s April 3 notice of appearance constituted an "appearance" under Civ.R. 55(A); trial court erred by entering default judgment without the required notice/hearing |
| Whether the trial court abused discretion by denying motion to set aside default judgment | Default judgment was valid; denial of set-aside appropriate | Denial was reversible because judgment was entered without required notice after appearance | Court reversed trial court and remanded for further proceedings |
Key Cases Cited
- Ohio Valley Radiology Assocs., Inc. v. Ohio Valley Hosp. Assn., 28 Ohio St.3d 118 (Ohio 1986) (definition and basic rules governing default judgment)
- BancOhio Natl. Bank v. Mager, 47 Ohio App.3d 97 (10th Dist. 1988) (broad construction of "appearance" for default-judgment notice purposes)