TERRANCE KYLE ALEXANDER v. KHORI FRANCIS

CourtCourt of Appeals of Georgia
DecidedOctober 20, 2023
DocketA23A0934
StatusPublished

This text of TERRANCE KYLE ALEXANDER v. KHORI FRANCIS (TERRANCE KYLE ALEXANDER v. KHORI FRANCIS) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TERRANCE KYLE ALEXANDER v. KHORI FRANCIS, (Ga. Ct. App. 2023).

Opinion

FOURTH DIVISION DILLARD, P. J., RICKMAN and PIPKIN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

October 20, 2023

In the Court of Appeals of Georgia A23A0934. ALEXANDER et al. v. FRANCIS.

DILLARD, Presiding Judge.

Terrance Kyle Alexander and Capital Gains, LLC, appeal from the trial court’s

denial of their motion to open default, demand for a jury trial, and motion for partial

involuntary dismissal of certain claims brought by Khori Francis, arguing that it erred

in doing so. For the following reasons, we affirm in part, vacate in part, and remand

this case for further proceedings consistent with this opinion.

On February 25, 2022, Francis filed a verified complaint against Alexander and

his company, Capital Gains, seeking a constructive trust, an equitable lien, and an

equitable accounting; making claims of unjust enrichment, fraud, conversion, and

breach of contract; and requesting an award of punitive damages, attorney fees, and litigation expenses. The key allegations of the complaint were that Francis provided

Alexander and Capital Gains with $5,000 for credit-monitoring services and $37,500

to invest in a luxury van business, but that they did neither and failed to repay him. By

stipulation, the trial court extended the time for Alexander and Capital Gains to

answer the complaint through April 14, 2022, and a second stipulation extended the

time to do so through April 18, 2022.

On April 18, 2022, a Notice of Substitution of Counsel was filed on behalf of

both Alexander and Capital Gains, replacing the attorney of record with Alexander as

the pro se representative for both parties. The next day, April 19, 2022, Alexander filed

an answer to the complaint on behalf of himself. Francis then filed a motion for default

judgment against Capital Gains, noting that it had not yet filed an answer. Francis also

filed a motion to strike Alexander’s answer and sought default judgment against him

because his answer was filed one day after the stipulated deadline and his counsel of

record had not properly withdrawn from the case, and so his purported pro se answer

was subject to being stricken as a nullity.

Eventually, new counsel entered an appearance on behalf of Capital Gains and

Alexander, and both moved to open the default on July 15, 2022, as a “proper case”

2 for doing so. In an attached affidavit, Alexander averred that he filed his pro se answer

on April 19 because he believed up until April 18 that the case would settle. He further

averred that he did not file an answer on behalf of Capital Gains because he thought

it was unnecessary due to the corporation having been administratively dissolved.1

In response, Francis argued that Alexander and Capital Gains failed to set forth

a meritorious defense that would allow the trial court to exercise its discretion to open

the default under the “proper case” standard. More specifically, Francis asserted that

Alexander and Capital Gains failed to proffer any facts suggesting a meritorious

defense and instead merely relied on conclusory denials. Francis also pointed to

Alexander and Capital Gains’s failure to timely move to open the default within 15

days.

Following a hearing, the trial court granted the motion to strike and the request

for default judgment as to Alexander. The court struck Alexander’s answer because

1 Even if Alexander had filed the answer on behalf of Capital Gains, corporations cannot be represented pro se. See Eckles v. Atlanta Tech. Grp., Inc., 267 Ga. 801, 805 (2) (485 SE2d 22) (1997) (“In this state, only a licensed attorney is authorized to represent a corporation in a proceeding in a court of record, including any proceeding that may be transferred to a court of record from a court not of record.”); Columbus Transmission Co. v. Murry, 277 Ga. App. 243, 244 (1) (626 SE2d 202) (2006) (holding that default judgment was properly granted when registered agent and shareholder filed pro se answer on behalf of corporation).

3 it was belatedly filed and done without the necessary fee to open the default. The

court further ordered that it would hold a hearing to determine the amount of

damages. Likewise, the court granted the motion for default judgment as to Capital

Gains with the amount of damages to be determined at a later hearing.

Separately, the trial court denied the motion from Alexander and Capital Gains

to open the default judgment. In doing so, the court concluded both parties failed to

present a meritorious defense that would allow it to exercise discretion to open the

default judgment because they did not provide facts beyond conclusory statements of

denial. Alternatively, the court concluded Alexander and Capital Gains failed to move

to open the default with reasonable promptness.

Thereafter, Alexander and Capital Gains filed a demand for a jury trial on the

issue of damages. The trial court denied the demand, concluding that it was untimely

and that they failed to place the issue of damages into question through the filing of

a pleading. Alexander and Capital Gains then moved for a partial involuntary dismissal

after Francis presented evidence at the final hearing on the matter. The court

ultimately denied that motion, finding that it was not made at the appropriate time,

and awarded the requested damages to Francis. This appeal follows.

4 1. Alexander and Capital Gains argue the trial court erred in denying their

motion to open default.2 We disagree.

When this Court reviews the denial of a motion to open default judgment, we

are charged with determining “whether the trial court abused its discretion based on

the facts peculiar to each case.”3 And under OCGA § 9-11-55,

2 Alexander and Capital Gains do not dispute that they were in default as a matter of law at the time they filed their motion to open the default judgment. See OCGA § 9-11-55 (a) (“If in any case an answer has not been filed within the time required by this chapter, the case shall automatically become in default unless the time for filing the answer has been extended as provided by law. The default may be opened as a matter of right by the filing of such defenses within 15 days of the day of default, upon the payment of costs. If the case is still in default after the expiration of the period of 15 days, the plaintiff at any time thereafter shall be entitled to verdict and judgment by default, in open court or in chambers, as if every item and paragraph of the complaint or other original pleading were supported by proper evidence . . . .”); Willis v. Allstate Ins. Co., 321 Ga. App. 496, 498 (740 SE2d 413) (2013) (“[A] defendant in default is in the position of having admitted each and every material allegation of the plaintiff’s petition except as to the amount of damages alleged. The default concludes the defendant’s liability, and estops him from offering any defenses which would defeat the right of recovery.”); see also H.N. Real Est. Grp., LLC v. Dixon, 298 Ga. App.

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