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

United States Court of Appeals for the Fourth Circuit
616 F.3d 413 (4th Cir. 2010)


Facts

Colleton Preparatory Academy, Inc. (Colleton) (plaintiff) sued Beazer East, Inc. (Beazer) (defendant) in the United States District Court for the District of South Carolina on March 24, 2003. Colleton also mistakenly sued Hoover Treated Wood Products, Inc. (Hoover Wood), when Hoover Universal, Inc. (Hoover Universal) (defendant) was the correct party. Colleton filed an amended complaint naming Hoover Universal on June 6, 2003. Colleton served the amended complaint on Hoover Universal’s registered agent, The Corporation Company (TCC), on June 23, 2003. TCC was also Beazer’s registered agent, and TCC negligently forwarded the summons to Beazer. Hoover Universal, unaware of the lawsuit, failed to answer, and an entry of default was entered on August 5, 2003. Hoover Universal learned of the error and filed a motion to quash service and set aside the default. Both motions were denied. Colleton was awarded over $1.1 million in damages and fees. Hoover Universal appealed the district court’s refusal to set aside the entry of default.

Rule of Law

Issue

Holding and Reasoning (Davis, J.)

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