Colleton Preparatory Academy, Inc. v. Hoover Universal, Inc.

616 F.3d 413 (4th Cir. 2010)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

P sued Ds alleging claims for negligence and 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.