Russell v. Taylor
24-745
N.C. Ct. App.Jun 4, 2025Background
- Plaintiff Russell sued National Speed of Wilmington, Inc. (NSW, Inc.), alleging negligent vehicle tuning caused substantial damage.
- Summons and complaint were properly served on NSW, Inc. through Taylor, its registered agent; NSW, Inc. answered the complaint.
- Plaintiff amended the complaint and continued serving NSW, Inc. at the designated address after its counsel withdrew.
- Plaintiff obtained default judgment against NSW, Inc. after the corporation failed to respond to the amended complaint.
- During judgment collection, Plaintiff discovered NSW, Inc. had been administratively dissolved for over a decade and moved to amend the default judgment to name Taylor individually instead of the corporation.
- Trial court granted the motion, entered judgment against Taylor individually, and Taylor appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction over Taylor individually | Substitution of Taylor proper after dissolution | No summons or service on Taylor individually | No jurisdiction; judgment vacated |
| Amendment as misnomer correction vs. party change | Change is mere correction or misnomer | Substitution is an impermissible party change | Party substitution not allowed |
| Rule 60(a) correction of clerical errors | Rule 60(a) authorizes name correction in the judgment | Rule 60(a) does not reach party substitution | Rule 60(a) did not authorize change |
| Validity of default judgment | Judgment valid against Taylor as successor/entity operator | Judgment void for lack of process/jurisdiction | Judgment against Taylor is void |
Key Cases Cited
- Grimsley v. Nelson, 342 N.C. 542 (1996) (Personal jurisdiction requires proper service of process on the individual defendant)
- Harris v. Maready, 311 N.C. 536 (1984) (Amendments correcting misnomers allowed unless they result in substitution of parties)
- Jones v. Wallis, 211 N.C. App. 353 (2011) (Default judgment is void if service of process is defective)
- Bentley v. Watauga Bldg. Supply, Inc., 145 N.C. App. 460 (2001) (Court lacks jurisdiction if valid service not made on defendant)