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

2022 Ohio 1639
CourtOhio Court of Appeals
DecidedMay 11, 2022
Docket21CA3753
StatusPublished
Cited by4 cases

This text of 2022 Ohio 1639 (Eitel's Towing Serv., Inc. v. D H Trucking, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

[Cite as Eitel's Towing Serv., Inc. v. D H Trucking, Inc., 2022-Ohio-1639.]

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 Ross App. No. 21CA3753 2

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. Ross App. No. 21CA3753 3

{¶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 Ross App. No. 21CA3753 4

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. Ross App. No. 21CA3753 5

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.

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2022 Ohio 1639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eitels-towing-serv-inc-v-d-h-trucking-inc-ohioctapp-2022.