RYDER TRUCK RENTAL, INC., APPELLANT,
v.
JAMES ARTHUR PATTERSON, APPELLEE
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Ryder Truck Rental appealed the trial court's denial of its motion to set aside a default judgment entered due to clerical error in failing to answer. The appellate court reversed, holding that Ryder satisfied all three requirements for setting aside a default and that the trial court abused its discretion by denying the motion without considering Ryder's meritorious defense.
The appellate court held that because Ryder satisfied all three requirements for setting aside a default—legal excuse for failure to comply with procedural rules, a meritorious defense, and due diligence—the trial court abused its discretion in denying the motion to set aside the default.
[1] To set aside a default order, a party must demonstrate excusable neglect, a meritorious defense, and due diligence in seeking relief from the default.
[2] A long-term lessor may assert a meritorious defense in a lawsuit arising from an accident involving a leased vehicle.
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Join FLexlaw to unlock all legal intelligence“When a default order is filed against a party, to set aside that default the defaulted party must show three things: (1) that it had a legal excuse for failure to comply with the Florida Rules of Civil Procedure; (2) that it has a meritorious defense; and (3) that it demonstrated due diligence in seeking relief from the default.”
Establishes the three-part test for setting aside a default judgment under Florida law
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Join FLexlaw to unlock all legal intelligenceJames Arthur Patterson was injured in an automobile accident involving a truck leased by Ryder to a third party. Ryder was properly served but failed …
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PER CURIAM.
This is an appeal from an order denying a motion to set aside a default. We reverse.
The appellee, James Arthur Patterson, was injured when his auto was involved in an accident with a truck which was under a long-term lease from the appellant, Ryder Truck Rental, Inc., to an entity not a party to this appeal. The appellant was duly served with the suit papers but due to clerical error neglected to answer or present affirmative defenses. When a default was entered against the appellant, it realized for the first time its failure to answer or otherwise defend and immediately moved to set aside the default. At the hearing on this motion, it apparently convinced the court of its excusable neglect, but because it had not provided a meritorious defense its motion to set aside the default was denied “without prejudice.” Before it filed a motion for rehearing, the appellant filed its answer, affirmative defenses, and supporting affidavits. Its subsequent motion for rehearing was ultimately denied. This appeal followed.
When a default order is filed against a party, to set aside that default the defaulted party must show three things: (1) that it had a legal excuse for failure to comply with the Florida Rules of Civil Procedure; (2) that it has a meritorious defense; and (3) that it demonstrated due diligence in seeking relief from the default. Westinghouse Elevator Co. v. DFS Constr. Co., 438 So. 2d 125 (Fla. 2d DCA 1983). The appellee does not dispute that there was excusable neglect, Associated Medical Institutions v. Imperatori, 338 So. 2d 74 (Fla. 3d DCA 1976). The record further shows that the appellant quickly moved to set aside the default once it became aware that the default had been entered. Furthermore, it presented the meritorious defense which a long-term lessor can claim under Kraemer v. General Motors Acceptance Corp., 572 So. 2d 1363 (Fla.1990), opinion on remand, 613 So. 2d 483 (Fla. 2d DCA 1992), review denied, 624 So. 2d 266 (Fla.1993). The record has no indication that this meritorious defense was ever considered by the trial court. From the record we think this oversight was probably due to the fact that this cause was transferred between two judges during the period that the answer and affirmative defenses were presented. Because the appellant fulfilled all three parts of the test to successfully have a default set aside, it was an abuse of the trial court’s discretion not to vacate the default. See Marshall Davis, Inc. v. Incapco, Inc., 558 So. 2d 206 (Fla. 2d DCA 1990).
We accordingly reverse the order denying the motion to set aside the default. We remand for further proceedings consistent with this opinion.
Reversed and remanded.
DANAHY, A.C.J., and FULMER and QUINCE, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
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Global Constr. Servs., Inc. v. Jackson, 890 So. 2d 445 (Fla. 4th DCA 2004)…rial court to have denied the motion for rehearing. Hollywood v. Cordasco, 575 So. 2d 301 (Fla. 4th DCA 1991) (defective motion to vacate default can be cured by motion for rehearing correcting the deficiency). Ryder Truck Rental, Inc. v. Patterson, 633 So. 2d 539 (Fla. 2d DCA 1994) (same). Reversed. GUNTHER and MAY, JJ., concur.…
Authorities Cited
- Kraemer v. Gen. Motors Acceptance Corp., 572 So. 2d 1363 (Fla. 1990)
- Westinghouse Elevator Co. v. DFS Constr. Co. & Fed. Ins. Co., 438 So. 2d 125 (Fla. 2d DCA 1983)
- Associated Med. Insts., Inc. v. Imperatori, 338 So. 2d 74 (Fla. 3d DCA 1976)
- Marshall Davis, Inc. v. Incapco, Inc., 558 So. 2d 206 (Fla. 2d DCA 1990)
- Kraemer v. Gen. Motors Acceptance Corp. & Nationwide Ins. Co., 613 So. 2d 483 (Fla. 2d DCA 1992)