This case,
Muscogee Realty &c. Corp. v. Jefferson Co.,
The plaintiff, thе Jefferson Company, is a real estate brokerage firm, which is suing the Gentry Company, another real estate brokeragе firm, as well as a Dr. Chastain and the Muscogee Realty Development Corporation (which is owned by Dr. Chastain). The plaintiff allеges that it was the procuring cause of the sale of a $1,110,000 parcel of realty to defendants Chastain and Muscogeе Realty and that it is therefore due a reasonable commission in the amount of $88,000.
All three of the defendants were initially reрresented by the same attorney. However, defendants Chastain and Muscogee Realty were served on September 4,1981, whereas defendant Gentry was not served until September 9. Because service on defendants Chastain and Muscogee Realty had been acknowledged by defendant Chastain, the complaints against them did not reflect the date of service. All threе of the complaints were forwarded to the defendants’ attorney, who erroneously assumed that all three of the defеndants had been served on September 9. The defendants’ attorney testified that a secretary in his office who might have cаught this error was away at the time. In any event, all of the complaints were answered on October 6, which was one day after the statutory 30-day period with
The defendants’ defense was that the parties’ agreement was that the sale of the property was to net the seller $1.2 million, and, if it did not, no commission was to be paid.
After the opening statements of the parties’ attorneys at the commencement of the trial, the trial judge noticed that the answers of defendants Chastain and Muscogеe Realty were filed one day late. The trial judge therefore declared these defendants in default. The plaintiff voluntаrily dismissed defendant Gentry from the suit, thereby avoiding operation of the rule that if the alleged liability of multiple defendants is joint, a dеfault judgment should not be entered against a defaulting defendant or defendants until the nondefaulting defendant or defendants have either defaulted or been adjudicated liable to the plaintiff.
Stasco Mechanical Contractors v. Williamson,
The applicable statutory provision is OCGA § 9-ll-55(b) (Code Ann. § 81A-155), which provides: “At any time bеfore final judgment, the court, in its discretion, upon payment of costs, may allow the default to be opened for providеntial cause preventing the filing of required pleadings or for excusable neglect or where the judge, from all the facts, shall determine that a proper case has been made for the default to be opened, on terms to be fixed by the court. In order to allow the default to be thus opened, the showing shall be made under oath, shall set up a meritorious defensе, shall offer to plead instanter, and shall announce ready to proceed with the trial.” As recognized by the Court of Appeals, this Code section allows a prejudgment default to be opened on one of three grounds if four conditions are met. The three grounds are: (1) providential cause, (2) excusable neglect, and (3) proper case; the four conditions are: (1) showing made under oath, (2) offer to plead instanter, (3) announcement of ready to proceed with trial, and (4) setting uр a meritorious defense. E. g.,
Johnson v. Dockery,
The Court of Appeals affirmed the superior court’s denial of the two co-defendants’ motiоn to open the default. In so ruling, the Court of Appeals noted that the question of whether to open a default on onе of the three grounds noted above rests within the discretion of the
For the following reasons, we hold that, as a matter of law, the facts of this case do constitute a “proper case” for opening the default under OCGA § 9-ll-55(b) (Code Ann. § 81A-155), and, therefore, the trial judge abused his discretion in refusing to open the default. First, the plaintiff allowed the case to proceed to trial without moving that the defaulting defendants’ answers be stricken and/or for a judgment on the pleadings because of the late filing of the answers. Therefore, it must be said that the plaintiff has not been prejudiced by the default and that the interests of truth and justiсe will be served by allowing these defendants to set up the defenses in their responsive pleadings. See
Copeland v. Carter,
Judgment reversed.
