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ALABAMA COURT OF CIVIL APPEALS
OCTOBER TERM, 2012-2013

2110241

Camping World, Inc. v. Michael McCurdy Appeal from Coffee C i r c u i t (CV-11-77) Court

PITTMAN, J u d g e . Camping World, I n c . , appeals from a judgment ofthe

Coffee C i r c u i t Court denying i t s motion t o s e t aside a d e f a u l t judgment e n t e r e d against i t i n favor of Michael McCurdy.

2110241 On April 26, 2011, McCurdy initiated a civil action

n a m i n g Camping W o r l d as a d e f e n d a n t . Camping W o r l d was s e r v e d w i t h M c C u r d y ' s c o m p l a i n t on May McCurdy filed a motion under 13, 2011. On 55(a), June 21, 2011, P.,

Rule

A l a . R.

Civ.

s e e k i n g t h e e n t r y o f a d e f a u l t judgment a g a i n s t Camping W o r l d . On June 27, 2011, t h e t r i a l e n t e r e d a d e f a u l t judgment c o u r t g r a n t e d M c C u r d y ' s m o t i o n and a g a i n s t Camping W o r l d . On J u l y 8,

2011, t h e a t t o r n e y s f o r Camping W o r l d a p p e a r e d i n t h e a c t i o n . On the July 20, 2011, Camping W o r l d f i l e d a motion to set aside

d e f a u l t judgment p u r s u a n t t o R u l e 5 5 ( c ) , A l a . R. C i v . P., McCurdy d i d n o t to,

which motion i n c l u d e d supporting a f f i d a v i t s . file anything i n opposition motion. to, or

otherwise respond

Camping W o r l d ' s

On O c t o b e r 3, 2011, t h e t r i a l on the motion to set aside

court heard o r a l default

arguments and,

the

judgment

t h e r e a f t e r , d e n i e d the m o t i o n , s t a t i n g t h a t the motion had not b e e n s u p p o r t e d by " c o m p e t e n t meritorious appealed. McCurdy's negligently complaint and alleged damaged that a Camping World had defense to the p r o o f " t h a t Camping W o r l d had a action. Camping World timely

handled

recreational

vehicle

2

2110241 belonging for t o him t h a t he had t a k e n t o Camping W o r l d ' s The complaint s o u g h t damages i n t h e facility of

repairs.

amount

$50,000 and $299.04 i n c o u r t c o s t s . I n i t s m o t i o n t o s e t t h e d e f a u l t j u d g m e n t , Camping W o r l d c o n t e n d e d t h a t i t was the proper defendant as support for that a vice t o have b e e n named i n t h e c o m p l a i n t contention, president submitted of Camping the

aside not and, of

affidavits and

Brent

Moody,

World,

Gary

Clifton,

a senior claims

r e p r e s e n t a t i v e at Gallagher affidavits,

Bassett Camping a

S e r v i c e s , Inc. World

( " G a l l a g h e r B a s s e t t " ) . The amounted to

asserted,

evidence

establishing

meritorious

defense,

demonstrated that

Camping W o r l d

should

n o t be h e l d r e s p o n s i b l e f o r n o t h a v i n g and

answered the

complaint, trial

showed t h a t M c C u r d y w o u l d n o t be p r e j u d i c e d granted in Camping W o r l d ' s particular, was Rule 55(c)

i f the

court

motion. by

Clifton's

affidavit,

supported

correspondence settlement had

b e t w e e n C l i f t o n and M c C u r d y ' s a t t o r n e y t o show t h a t negotiations between Clifton and McCurdy's 2011.

attorney

commenced sometime b e f o r e t o McCurdy's a t t o r n e y than one week b e f o r e

M a r c h 25,

A copy o f a 2011, a

letter less

from C l i f t o n

d a t e d June 15, entry of

McCurdy sought the

default

j u d g m e n t , e x p r e s s l y i n d i c a t e d t h a t C l i f t o n had

engaged i n the

3

2110241 settlement negotiations on behalf LLC, of Emerald as Coast Camping and

Recreational Vehicle Centers, W o r l d R.V. Sales

doing business

("ECRVC"), an a f f i l i a t e o f Camping W o r l d , offer. contends t h a t Alabama

set forth a settlement On appeal,

Camping W o r l d

caselaw

d i c t a t e s t h a t the t r i a l to

c o u r t s h o u l d have g r a n t e d

i t s motion

s e t a s i d e t h e d e f a u l t j u d g m e n t . S p e c i f i c a l l y , Camping W o r l d two the issues trial on appeal. The first outside to set issue on appeal is in

raises whether denying

court

acted motion

i t s discretion aside the

Camping

World's

default

j u d g m e n t b a s e d on t h a t c o u r t ' s c o n c l u s i o n t h a t Camping W o r l d had failed The to establish "competent p r o o f " of a meritorious court should default v.

defense.

second i s s u e i s whether the

trial

have g r a n t e d

Camping W o r l d ' s m o t i o n t o s e t a s i d e t h e weighing Sewer the factors Inc., set 524 out So.

judgment a f t e r Fort

in Kirtland 2d 600

Morgan A u t h .

Serv.,

(Ala.

1988). It is well to settled that trial to courts set are a afforded default be

discretion

determine

whether

aside

judgment; a t r i a l

c o u r t ' s d e c i s i o n i n t h a t r e g a r d w i l l not court

r e v e r s e d u n l e s s the r e c o r d r e v e a l s t h a t the t r i a l

acted

4

2110241 outside that discretion. See Bennett v. Mortgage Elec. 2007).

R e g i s t r a t i o n S y s . , I n c . , 966 So. 2d 935

( A l a . C i v . App.

"'A t r i a l c o u r t has b r o a d d i s c r e t i o n i n d e c i d i n g whether t o g r a n t o r deny a motion to set aside a d e f a u l t judgment. K i r t l a n d v. F o r t Morgan A u t h . Sewer S e r v . , I n c . , 524 So. 2d 600 ( A l a . 1 9 8 8 ) . ... T h a t d i s c r e t i o n , although broad, r e q u i r e s the t r i a l c o u r t t o b a l a n c e two c o m p e t i n g p o l i c y interests associated with default j u d g m e n t s : t h e need t o p r o m o t e judicial economy and a l i t i g a n t ' s r i g h t t o d e f e n d an a c t i o n on t h e m e r i t s . 524 So. 2d a t 604.' " Z e l l e r v. B a i l e y , 950 So. 2d 1149, 1152 ( A l a . 2006). This court has explained the following principles t h a t guide our r e v i e w of the trial court's decision: "'Our supreme c o u r t has h e l d t h a t t h e t r i a l court's use of d i s c r e t i o n a r y a u t h o r i t y should be resolved in favor of the d e f a u l t i n g p a r t y where t h e r e i s d o u b t as t o the p r o p r i e t y of the d e f a u l t judgment. J o h n s o n v. Moore, 514 So. 2d 1343 ( A l a . 1987) . Our supreme court has also established guidelines to assist a t r i a l judge i n e x e r c i s i n g h i s d i s c r e t i o n . ' "'"'A trial court's broad discretionary authority under Rule 55(c) should not be e xe r c i s e d w i t ho u t c o n s i d e r i n g the f o l l o w i n g three f a c t o r s : 1) w h e t h e r t h e def endant has a m e r i t o r i o u s d e f e n s e ; 2) whether the plaintiff 5

2110241 will be unfairly prejudiced if the d e f a u l t judgment i s s e t a s i d e ; and 3) whether the default judgment was a r e s u l t of the defendant's own culpable conduct.' " ' " K i r t l a n d , 524 [(Ala. 1988)]." So. 2d So. [600] 2d at 700, 605 703

" " M a r t i n v. C r u m p t o n, 883 (Ala. C i v . App. 2 0 0 3 ) . '

"'Rudolf [v. P h i l y a w ] , 909 So. 2d [200] a t 202-03 ( A l a . C i v . App. 2 0 0 5 ) ] . 'The law i n A l a b a m a i s c l e a r t h a t t h e d e f a u l t i n g p a r t y has t h e i n i t i a l b u r d e n o f demonstrating the existence of the Kirtland f a c t o r s . ' I d . a t 203 ( c i t i n g Ex p a r t e F a m i l y D o l l a r Stores, 906 So. 2d 892, 899-900 (Ala. 2005); P h i l l i p s v. R a n d o l p h , 828 So. 2d 269, 278 (Ala. 2 0 0 2 ) ; and K i r t l a n d , 524 So. 2d a t 6 0 5 - 6 0 8 ) . " Bennett, 966 So. 2d a t 937. court's ruling on a Rule 55(c),

When r e v i e w i n g Ala. we P., R. C i v . P.,

a trial

m o t i o n and

c o n s i d e r i n g the K i r t l a n d f a c t o r s , Rule 55(c), [ A l a . ] R. Civ.

keep i n m i n d t h a t , " [ a ] l t h o u g h v e s t s the t r i a l motion,

c o u r t w i t h d i s c r e t i o n i n r u l i n g on a R u l e I,

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