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The Wolf Organization, Inc. v. TNG Contractors, LLC
M2018-00073-COA-R3-CV
| Tenn. Ct. App. | Jul 3, 2019
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Background

  • Wolf (Pennsylvania creditor) obtained a prothonotary-entered default judgment in Pennsylvania against TNG (Tennessee LLC) for unpaid invoices after TNG failed to answer.
  • TNG filed a petition to open the default judgment in Pennsylvania with a proposed answer claiming defective goods, but did not assert lack of personal jurisdiction; the petition was denied and an appeal failed.
  • Wolf registered and sought enforcement of the Pennsylvania judgment in Davidson County, Tennessee under the Uniform Enforcement of Foreign Judgments Act (UEFJA).
  • TNG first raised lack of personal jurisdiction in the Tennessee enforcement action and served requests for admission asserting Pennsylvania courts lacked jurisdiction; Wolf’s responses were late.
  • Tennessee trial court found TNG waived its jurisdictional defense under Pennsylvania procedure and granted Wolf summary judgment enforcing the foreign judgment; the court denied Wolf’s later request to supplement the judgment with post-judgment attorney’s fees and costs.
  • On appeal, the Tennessee Court of Appeals affirmed: TNG waived the personal-jurisdiction defense in the Pennsylvania action, and the UEFJA enforcement action could not be used to obtain additional post-judgment attorney’s fees.

Issues

Issue Plaintiff's Argument (Wolf) Defendant's Argument (TNG) Held
Whether Pennsylvania court had personal jurisdiction over TNG TNG waived any jurisdictional objection by failing to raise it in the Pennsylvania proceedings Pennsylvania courts lacked both specific and general jurisdiction over TNG; defense preserved for enforcement action Court: TNG waived the defense by not raising it in preliminary objections/petition to open in Pennsylvania; enforcement affirmed
Whether Wolf’s late responses to requests for admission caused conclusive admissions that Pennsylvania lacked jurisdiction Wolf argued TNG waived relying on the untimely Rule 36 admissions by not timely pursuing them TNG argued Wolf’s failure to respond within 30 days meant facts (including lack of jurisdiction) were conclusively admitted Court: TNG waived reliance on the requests for admission by waiting and not timely raising the issue in court; admissions not treated as conclusive here
Whether Wolf can recover post-judgment attorney’s fees and costs in the Tennessee enforcement action under UEFJA Wolf argued credit agreement entitled it to collection costs and fees, and sought to supplement the registered judgment for fees incurred after March 1, 2016 TNG opposed supplementation in the enforcement proceeding Court: Denied—UEFJA enforcement action does not authorize awarding additional post-judgment fees; Wolf should have sought fees in the original Pennsylvania proceedings

Key Cases Cited

  • Tennessee Dep’t of Human Servs. v. Barbee, 714 S.W.2d 263 (Tenn. 1986) (failure to bring Rule 36 admissions to court’s attention can waive reliance)
  • Four Seasons Gardening & Landscaping, Inc. v. Crouch, 688 S.W.2d 439 (Tenn. Ct. App. 1984) (judgments issued without personal jurisdiction are not entitled to full faith and credit)
  • Biogen Distributors, Inc. v. Tanner, 842 S.W.2d 253 (Tenn. Ct. App. 1992) (burden on party attacking foreign judgment; procedural posture for summary judgment review)
  • Cintas Corp. v. Lee’s Cleaning Servs., Inc., 700 A.2d 915 (Pa. 1997) (distinction between petition to strike and petition to open default judgment)
  • Samuel-Bassett v. Kia Motors Am., Inc., 34 A.3d 1 (Pa. 2011) (petition for attorneys’ fees is ancillary; trial court retains authority after entry of judgment)
Read the full case

Case Details

Case Name: The Wolf Organization, Inc. v. TNG Contractors, LLC
Court Name: Court of Appeals of Tennessee
Date Published: Jul 3, 2019
Docket Number: M2018-00073-COA-R3-CV
Court Abbreviation: Tenn. Ct. App.