714 S.W.3d 506
Tenn. Ct. App.2024Background
- Roland Brown sued HDR Logistics, LLC in Tennessee state court after being injured when HDR’s employee backed into his parked tractor-trailer.
- Brown served HDR’s registered agent in Tennessee, Lisa Blackwell, with the complaint and subsequent filings.
- HDR Logistics did not respond or appear, leading to a default judgment for $750,000 plus costs.
- HDR later moved to set aside the default, arguing lack of actual notice, but provided no affidavit from Blackwell explaining the lack of notice.
- The trial court denied HDR’s motion to set aside the judgment, finding that serving the agent constituted proper service.
- HDR appealed, raising issues of excusable neglect and the process for awarding unliquidated damages.
Issues
| Issue | Brown's Argument | HDR's Argument | Held |
|---|---|---|---|
| Set aside default for excusable neglect | Service on agent suffices; lack of notice by HDR is not excusable | No actual notice; excusable neglect warrants relief | Motion to set aside denied |
| Adequacy of damages hearing | Trial court heard evidence and testimony at the default hearing | No proper writ of inquiry; damages award unsupported | No error—hearing was held |
| Frivolous appeal | Appeal lacks merit | Appeal is in good faith | Not frivolous |
| Extension of time for admissions | Issue is moot as motion denied | Nothing to waive |
Key Cases Cited
- Bogan v. Bogan, 60 S.W.3d 721 (Tenn. 2001) (standard of review for factual findings on appeal)
- Discover Bank v. Morgan, 363 S.W.3d 479 (Tenn. 2012) (willfulness as threshold requirement for setting aside default)
- Henry v. Goins, 104 S.W.3d 475 (Tenn. 2003) (burden of proof on party seeking to set aside judgment)
- Adkisson v. Huffman, 469 S.W.2d 368 (Tenn. 1971) (default admits all allegations except unliquidated damages)
- Phillips v. State Bd. of Regents, 863 S.W.2d 45 (Tenn. 1993) (due process requires notice and opportunity to be heard)