COLLETON PREPARATORY ACADEMY, INC. V. HOOVER UNIVERSAL, INC.
616 F.3d 413 (4th Cir. 2010)
NATURE OF THE CASE: Hoover (D) appealed a judgment for Colleton (P) on the grounds that D's resident agent failed to notify D of service.
FACTS: P sued Ds alleging claims for negligence and for violation of Unfair Trade Practices. P alleged damage to the roof trusses and sheathing on several P buildings allegedly caused by fire-retardant substances produced and sold by the Ds. Beazer (D) timely filed an answer denying liability and asserting affirmative defenses; Hoover Wood (D) failed to answer, and P promptly obtained an entry of default against Hoover Wood (D). P had sued the incorrect defendant in joining Hoover Wood (D). P then filed an amended complaint substituting D for Hoover Wood (D). P served a copy of the summons and amended complaint on D by certified mail through service on the latter's registered agent for service of process. A certified mail receipt showed that TCC had accepted service on June 23, 2003. TCC negligently failed to notify D of the existence of the lawsuit. D failed to file a timely answer to the amended complaint. P moved for entry of default and default was entered by the clerk. D learned of the lawsuit less than two months later. D filed a motion to quash service of process and to set aside the entry of default. The district court denied both motions. In advance of the trial on damages, D filed eight motions in limine, seeking a limitation on the measure of P's damages. D also sought to maintain the case on the district court's list for jury trial, which P had requested in its complaints. The district court declined to empanel a jury. The district court found in favor of P on the UTPA claim and in favor of D on the negligence claim, setting damages in different amounts depending upon when (summer or winter) repairs to the P building might be completed. Eventually, the court affirmed a damages award of $ 71,690.15, and awarded P $290,563.38 in costs and attorney's fees. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
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