Eitel's Towing Serv., Inc. v. D H Trucking, Inc.

2022 Ohio 1639
Ohio Court of Appeals·Decided May 11, 2022·No. 21CA3753·Published·Cited by 4 cases

Opinion

IN THE COURT OF APPEALS OF OHIO FOURTH APPELLATE DISTRICT ROSS COUNTY

EITEL’S TOWING SERVICE, INC., et al.,:

: Case No. 21CA3753 Plaintiffs-Appellants, :

:

v. : DECISION AND JUDGMENT : ENTRY D H TRUCKING, INC., et al., :

: RELEASED: 05/11/2022 Defendants-Appellees. :

APPEARANCES:

Daniel J. Bennett, Bennett Law Group, LLC, Gahanna, Ohio, for Appellants.

Fridrikh V. Shrayber and Christina Manfredi McKinely, Dentons Cohen & Grigsby P.C., Pittsburgh, Pennsylvania, for Appellee, Pittsburgh Glass Works, LLC.

Wilkin, J.

{¶1} Appellants, Eitel’s Towing Service, Inc., and Harper’s Garage (“appellants”), appeal the Ross County Court of Common Pleas judgment that granted appellee, Pittsburgh Glass Works, LLC’s (“PGW”) Civ.R. 60(B) motion for relief from a default judgment. Appellants present a single assignment of error: “The trial court erred in granting [PGW’s] motion for relief from judgment.” After reviewing the parties’ arguments, the record, and the applicable law, we overrule appellants’ assignment of error, and affirm the trial court’s judgment granting PGW relief from the default judgment.

FACTS AND PROCEDURAL BACKGROUND

{¶2} On May 19, 2020, appellants filed a complaint against PGW and other defendants primarily seeking reimbursement for services they had

performed cleaning up a damaged trailer, as well as removing and storing cargo from the trailer. On June 18, 2020, D H Trucking, filed an answer, and on July 8, 2020, P.A.M. Transport filed its answer.

{¶3} On July 16, 2020, appellants filed a Civ.R. 55 motion for default judgment against Marah Transportation, LLC (“Marah”) and PGW alleging that neither had answered or otherwise responded within 28 days after the complaint was served on both. On July 20, 2020, the trial court granted appellants’ motion for default judgment against Marah and PGW.

{¶4} On July 30, 2020, Marah filed a motion to set aside the default judgment and requested an extension for it to file an answer.

{¶5} On August 27, 2020, PGW filed a motion to set aside the default judgment against it pursuant to Civ.R. 60(B)(1) and (5). PGW alleged that it was unaware of the lawsuit “because, due to the various mitigation orders issued by Pennsylvania Governor Tom Wolfe related to the COVID-19 pandemic, PGW’s entire staff, including its legal department, has been working remotely since March 2020 and was not physically present in their offices.” PGW alleged that it was not aware of the appellants’ complaint until after the trial court entered default judgment against PGW.

{¶6} PGW argued that its failure to file a timely response to the complaint was due to excusable mistake, inadvertence, surprise, or excusable neglect under Civ.R. 60(B)(1) or “any other reason justifying relief from the judgment” under (B)(5). PGW also asserted that it had a meritorious defense because it is not a proper party to appellant’s complaint.

{¶7} Appellants filed a memorandum contra asserting that PGW’s internal mishandling of the complaint did not warrant PGW relief from the default judgment.

{¶8} The trial court held a hearing on PGW’s motion for relief from judgment. Two witnesses testified.

{¶9} PGW’s first witness was Doug Palumbo, its production manager. He testified that PGW makes auto glass for “original equipment manufacturers[,]” like Chrysler, and “flat glass.” He claimed that PGW ships its glass products using third party shippers. Palumbo testified that he is notified if the shipper is involved in an accident, and would in turn notify PGW’s in-house counsel “if things escalated.” With regard to the underlying case, Palumbo never notified PGW’s in-house counsel of the accident because he “was never made aware of it.”

{¶10} Based upon his examination of a “load confirmation agreement,”

Palumbo maintained that PGW’s product was not involved in the accident that resulted in appellant’s lawsuit. More specifically, when asked if the load confirmation agreement indicated who owned “the glass racks at issue in the accident[,]” he stated, “it looks like PGW Auto Glass.” Palumbo testified that PGW Auto Glass manufactures “after market” auto glass (e.g., products used to replace original parts), while PGW manufactures auto glass for original equipment manufacturers (e.g., products installed in new vehicles).

{¶11} PGW’s next witness was its in-house counsel, Xochitl Sandoval.

Sandoval testified that she is in charge of all legal services pertaining to PGW’s business in the United States, Canada, Germany, China, and Columbia. She

indicated that she is the designee who receives notice of service of process on PGW’s behalf. Sandoval further stated that PGW is made aware of lawsuits in numerous ways, including by notice from the “business,” their insurance carriers, counsel for the litigant, and from their statutory agent, CCS.

{¶12} She testified that when CCS is served with notice of a lawsuit against PGW, it, in turn, sends paper copies of those documents to her office in Pennsylvania, as well as by e-mail. Upon receiving notice of a lawsuit, she testified that the first thing she typically does is contact outside counsel.

{¶13} Sandoval testified that in 2020 because the pandemic closed her Pennsylvania office, she relocated to her home country of Mexico where she had access to her work e-mail. Sandoval asserted that she was not aware of the paper copies pertaining to appellant’s lawsuit that CCS had sent to her Pennsylvania office due to her absence, and was never informed by the business about the lawsuit. The record shows and Sandoval acknowledged that she received e-mails from CCS dated April 21 (that contained a demand letter regarding the lawsuit) and May 22, 2020 (that contained a copy of appellant’s complaint), and July 16, 2020 (that contained an answer from P.A.M. Transport Inc.), but she testified that she did not open any of them because:

this was in the middle of a pandemic situation. I was basically doing pressing matters for the company and trying to be [sic] keep our people safe. Trying to get the facilities open. With these different states ruling and changing orders, we need to be like from day to night like reviewing orders, getting questions from business, dealing with different situations from the supply chain, logistic issues. There were, to be honest with you honestly, I made this mistake of -- but again, it was -- I was trying to keep the business afloat. It was part of my day and I admit, I made that mistake.

However, Sandoval testified that she became aware that PGW was a party to the lawsuit in question sometime near the “end of July 2020” when she received appellants’ motion for default judgment. She immediately notified outside counsel, who filed PGW’s motion for relief from judgment. She also maintained that “this is the first time that it’s happened in my whole career,” and “made an internal rule on my book just to forward all these notifications or e-mails to another in-house counsel.”

{¶14} Sandoval testified that she receives many e-mails from CCS involving issues other than lawsuits, including orders of garnishment, third-party subpoenas, and other documents.

{¶15} Finally, Sandoval testified that PGW did not own any of the glass racks that were involved in the accident that is the basis of appellant’s lawsuit herein.

{¶16} After the hearing, the trial court issued a judgment entry granting PGW’s motion for relief from the default judgment finding that PGW filed its Civ.R. 60(B) motion within a reasonable time, asserted a meritorious defense, and

that the neglect committed by Defendant PGW was excusable, and occasioned by an unprecedented global pandemic.

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Eitel's Towing Serv., Inc. v. D H Trucking, Inc., 2022 Ohio 1639 (Ohio Ct. App. 2022).

2022 Ohio 1639 (Eitel's Towing Serv., Inc. v. D H Trucking, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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