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