First Wholesale Cleaners Inc. v. Donegal Mutual Insurance

792 A.2d 325, 143 Md. App. 24, 2002 Md. App. LEXIS 41
CourtCourt of Special Appeals of Maryland
DecidedFebruary 28, 2002
Docket02828, Sept. Term, 2000
StatusPublished
Cited by12 cases

This text of 792 A.2d 325 (First Wholesale Cleaners Inc. v. Donegal Mutual Insurance) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Wholesale Cleaners Inc. v. Donegal Mutual Insurance, 792 A.2d 325, 143 Md. App. 24, 2002 Md. App. LEXIS 41 (Md. Ct. App. 2002).

Opinion

HOLLANDER, Judge.

This case is an example of the proverbial “rush to judgment.” Here, judgment was granted in favor of the defendant because the plaintiff failed to file timely an amended complaint after the case was removed by the defendant from the District Court for Anne Arundel County to the Circuit Court for Anne Arundel County.

In July 2000, First Wholesale Cleaners Inc., t/a Queens Cleaners (“Wholesale”), appellant, filed suit against Donegal Mutual Insurance Company (“Donegal”), appellee, in the District Court. Appellant alleged that Donegal breached its contract of insurance by failing to satisfy Wholesale with respect to a loss it had sustained in August 1997. Pursuant to *27 appellee’s request for a jury trial, the case was transferred to the circuit court in October 1997. Within a month, appellant’s lawyer withdrew from the case. Then, in January 2001, the circuit court granted appellee’s motion to strike and dismissed the suit, with prejudice, because appellant did not file its amended complaint in the time prescribed by the circuit court.

On appeal, Wholesale presents two questions:

I. Did the circuit court err as a matter of law in granting Appellee’s Motion to Sti'ike Complaint by default thereby striking Appellant’s Complaint and dismissing its case with prejudice?
II. Did the circuit court abused [sic] its discretion in granting Appellee’s Motion to Strike Complaint by default thereby striking Appellant’s Complaint and dismissing its case with prejudice?

Among other things, appellee asks:

Should the Appeal be dismissed because the owner of the corporation filed the Notice of Appeal on behalf of the Appellant corporation, making such filing a nullity?

For the reasons that follow, we shall vacate the judgment and remand for further proceedings.

FACTUAL SUMMARY

On July 18, 2000, Wholesale, through counsel, instituted suit in the District Court against Donegal for breach of an insurance contract. Wholesale sought to recover $25,000 in damages, claiming that Donegal failed to pay monies due and owing under an insurance policy issued to Wholesale, in regard to a loss that appellant incurred in August 1997. On or about September 27, 2000, Donegal prayed a jury trial. Accordingly, the case was transferred to the circuit court on October 6, 2000.

By letter dated October 5, 2000, appellant’s counsel, Paul Bennett, sent a letter to Adebisi Anthony A’Denariwo, Wholesale’s sole owner, advising of his intent to withdraw as counsel for Wholesale. The letter said, in part:

*28 [PJlease be advised that I will file my withdrawal as your attorney with the court in the above referenced matter in five days. My office has been advised that [Donegal] has requested a jury trial, and the case will be transferred to the Circuit Court.' You have the option of having another attorney enter an appearance in. the case or of notifying the court clerk in writing of your intention to proceed and represent yourself.

(Emphasis added).

On October 16, 2000, Bennett filed a motion to withdraw his appearance, and attached as an exhibit his letter to A’Denari-wo of October 5, 2000. The motion was granted by order dated November 6, 2000. On November 8, 2000, when the order was docketed, the court sent notice to Wholesale, stating, in relevant part:

It appears from the record in the ... case that you are not ... represented by counsel.
You are hereby notified this day, that your failure to have new counsel enter his appearance in this case within fifteen (15) days after service upon you of this notice shall not be grounds for postponing any further proceedings, concerning the case. You are warned that without counsel to protect your interests in the case, you risk a nonsuit or judgment by default and all court costs being ordered against you by the court....

In the meantime, on November 6, 2000, appellee filed a Motion for More Definite Statement, pursuant to Maryland Rule 2-322(d), asserting that appellant’s District Court complaint was “so general, vague and ambiguous that movant cannot reasonably frame an answer.” Appellee sought such information as appellant’s policy number, date of loss, nature of the claim, and the reason that the claim was denied. By Order dated November 29, 2000, docketed on November 30, 2000, the court granted appellee’s motion, and ordered appellant to file an amended complaint within thirty days.

On January 2, 2001, when appellant had not yet filed its amended complaint, appellee filed a “Motion to Strike Com *29 plaint,” requesting dismissal of the case, with prejudice. 1 2Al-though the motion was filed on that date with the court, the certificate of service indicates that appellee chose to serve the motion on appellant by mailing it on that date.

On January 23, 2001, A’Denariwo, as “owner” of Wholesale and its “only principal officer,” filed a response to the motion to strike, titled “Plaintiff First Wholesale Cleaners, Inc[.] Response Motion Not to Grant the Defendant’s Motion to Strike With Prejudice.” According to the certificate of service, the opposition to the motion to strike had already been mailed to appellee’s attorney on January 8, 2001. A’Denariwo included a sworn affidavit in which he averred that he had not received a copy of the court’s order requiring Wholesale to file an amended complaint. Furthermore, he stated that he was the only person with sufficient personal knowledge to respond for Wholesale, and he had been away on vacation from November 22, 2000 to January 3, 2001 — his first vacation in nine years. Additionally, he asserted that he was “making progress for arrangement for a new counsel,” but told the court that, “because of statue [sic] of limitation, if this honorable court favorably grant the defendant’s Motion to Strike we would not be able to refile this case.... ” On behalf of Wholesale, A’Denariwo also filed a “Response To Order,” in answer to the Motion For More Definite Statement.

The next day, January 24, 2001, the circuit court granted appellee’s motion to strike and dismissed appellant’s suit, with prejudice. In doing so, the court signed appellee’s proposed order, but added that the motion was granted “by default.” Because the court did not mention the opposition to the motion to strike, filed the day before, we cannot determine with certainty whether the judge was aware of the opposition when he ruled on the motion to strike. In view of the “by default” language added by the judge, however, it is reason *30 able to assume that the judge had no knowledge of the opposition.

After the suit was dismissed, A’Denariwo filed a notice of appeal on behalf of Wholesale. The notice of appeal states in its entirety: “FIRST WHOLESALE CLEANERS, Inc[.], notices an appeal to the Court of Special Appeals in the above-captioned action.” Wholesale subsequently retained a lawyer to prepare its appellate brief and to present oral argument.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Tallant v. State
Court of Special Appeals of Maryland, 2022
Alexander & Baldwin , LLC v. Armitage.
508 P.3d 832 (Hawaii Supreme Court, 2022)
Kelly v. Saint Francis Med. Ctr.
889 N.W.2d 613 (Nebraska Supreme Court, 2017)
Myran D. Jones, II v. Rose Brooks
97 A.3d 97 (District of Columbia Court of Appeals, 2014)
Dolan v. McQuaide
79 A.3d 394 (Court of Special Appeals of Maryland, 2013)
Downtown Disposal Services, Inc. v. The City of Chicago
2012 IL 112040 (Illinois Supreme Court, 2012)
Bacon v. Arey
40 A.3d 435 (Court of Special Appeals of Maryland, 2012)
Sterling v. ATLANTIC AUTOMOTIVE CORP.
924 A.2d 328 (Court of Appeals of Maryland, 2007)
Renbaum v. Custom Holding, Inc.
871 A.2d 554 (Court of Appeals of Maryland, 2005)
Dual v. Lockheed Martin Corporation
857 A.2d 1095 (Court of Appeals of Maryland, 2004)
Holly Hall Publications, Inc. v. County Banking and Trust Co.
807 A.2d 1201 (Court of Special Appeals of Maryland, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
792 A.2d 325, 143 Md. App. 24, 2002 Md. App. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-wholesale-cleaners-inc-v-donegal-mutual-insurance-mdctspecapp-2002.