United Airlines, Inc. v. Martin H. McCubbins

262 So. 3d 536
CourtCourt of Appeals of Mississippi
DecidedApril 17, 2018
DocketNO. 2017–CA–00154–COA
StatusPublished
Cited by1 cases

This text of 262 So. 3d 536 (United Airlines, Inc. v. Martin H. McCubbins) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Airlines, Inc. v. Martin H. McCubbins, 262 So. 3d 536 (Mich. Ct. App. 2018).

Opinion

WILSON, J., FOR THE COURT:

¶ 1. Martin McCubbins bought a round trip ticket from Jackson to Panama City, Panama on United Airlines (United). McCubbins alleges that on February 6, 2013, before he departed Jackson and again during a layover in Houston, United employees examined his passport and ticket and assured him that everything was in order. Nonetheless, when McCubbins arrived in Panama, he was detained and informed that he would not be allowed to enter the country because his passport's expiration date was less than 90 days from the date of his travel. McCubbins was forced to spend an unpleasant night in a Panamanian holding pen before he was allowed to return to the United States the next morning.

¶ 2. After returning home, McCubbins contacted customer service representatives at United, but United told him that he was responsible for verifying the requirements for international travel and entry into a foreign country. United did give McCubbins a coupon for ten percent off his next ticket to fly the friendly skies. Dissatisfied with blame and a coupon, McCubbins filed suit against United in Hinds County Circuit Court.

¶ 3. McCubbins served a summons and the complaint on United's registered agent for service of process in Mississippi, CT Corporation (CT). Unfortunately, the complaint named the defendant as "United Airlines Corporation," an Illinois corporation "with a principal place of business located at 1200 East Algonquin Road, Elk Grove Township, IL." This information was out of date or just incorrect. In point of fact, United is "United Airlines, Inc.," a Delaware corporation with its principal place of business at 233 South Wacker Drive in Chicago. Because the summons and complaint misnamed United, CT did not forward the documents to United, United did not answer, and McCubbins ultimately obtained a default judgment against "United Airlines Corporation" for $70,000.

¶ 4. United first learned of the judgment when McCubbins's attorney mailed a letter demanding payment to United's CEO at United's headquarters on South Wacker Drive in Chicago. United subsequently moved to set aside the default judgment, 1 arguing that the judgment (1) was void for lack of proper service of process or, in the alternative, (2) should be set aside under the three-part "balancing test" applicable to a motion to set aside a default judgment under Mississippi Rule of Civil Procedure 60(b). See Tucker v. Williams , 198 So.3d 299 , 309 (¶ 23) (Miss. 2016). The circuit court denied United's motion as "not well taken."

¶ 5. On appeal, United makes the same two arguments as in the circuit court. We hold that service of process on United's registered agent was sufficient. However, we agree with United that the default judgment must be set aside under the three-part balancing test. Therefore, we reverse and remand for further proceedings consistent with this opinion. Additional facts are discussed below as necessary.

ANALYSIS

I. SERVICE OF PROCESS

¶ 6. United's first argument on appeal is that service of process was improper and ineffective because the summons and complaint named "United Airlines Corporation," not United Airlines, Inc., and misidentified United's state of incorporation and address. "In the absence of proper service of process, the court lacks jurisdiction, so any default judgment that it enters is void." S & M Trucking LLC v. Rogers Oil Co. of Columbia , 195 So.3d 217 , 221 (¶ 16) (Miss. Ct. App. 2016). "If a default judgment is void, the trial court has no discretion and must set the judgment aside." McCain v. Dauzat , 791 So.2d 839 , 842 (¶ 7) (Miss. 2001). "Sufficiency of service of process is a jurisdictional issue, which is reviewed de novo." BB Buggies Inc. v. Leon , 150 So.3d 90 , 95 (¶ 6) (Miss. 2014).

¶ 7. McCubbins filed his complaint alleging negligence and breach of contract in circuit court on January 16, 2015. As noted above, the complaint misidentified United as "United Airlines Corporation," an Illinois corporation with a principal place of business in the Chicago suburb of Elk Grove Township. In fact, United is "United Airlines, Inc.," a Delaware corporation with its principal place of business in downtown Chicago.

¶ 8. McCubbins did, however, serve a summons and the complaint on United's registered agent for service of process in Mississippi, CT. The summons and complaint were served personally on Matthew Thiebodeaux, an employee of CT, on February 12, 2015, by Melissa Rand, an employee of McCubbins's attorney, Wayne Ferrell. Rand and Thiebodeaux knew one another by name because she regularly served process on CT.

¶ 9. In addition, Exhibit A attached to the complaint served on CT is the eTicket itinerary and receipt issued by United to McCubbins. Notably, the ticket was sent to McCubbins from "United Airlines, Inc."

¶ 10. United failed to answer the complaint, so McCubbins applied for and obtained an entry of default. McCubbins then filed a motion for a determination of damages and entry of final judgment. On November 25, 2015, the circuit court entered judgment in favor of McCubbins and against "United Airlines Corporation" for $70,000, including actual damages of $50,000 and punitive damages of $20,000. On January 8, 2016, Ferrell mailed United's CEO a letter-at United's correct, downtown Chicago address-demanding payment.

¶ 11. We pause our discussion of the case's procedural history here to discuss other evidence related to McCubbins's service of process on United's registered agent, CT. An affidavit from a CT employee states that CT's records show that CT sent Ferrell a letter by regular mail on February 13, 2015-i.e., the day after McCubbins served CT. The letter advised as follows: "United Airlines Corporation was not listed on our records or on the records of the State of MS. CT was unable to forward." An affidavit from an employee in United's legal department confirms that United did not receive notice of the lawsuit, from CT or otherwise, until Ferrell's January 2016 letter to United's CEO.

¶ 12. The record copy of the February 13, 2015 letter from CT to Ferrell is not signed; however, CT states that such letters are sent out automatically and are not signed. Ferrell denied under oath that he ever received the letter. In addition, the letter purports to show that CT mistakenly sent a copy of the letter to the Hinds County Chancery Court; however, the chancery clerk provided an affidavit stating that the court has no record of receiving such a letter. Nor is there any evidence that the circuit court ever received such a letter.

¶ 13. In opposition to United's motion to set aside the default judgment, McCubbins also submitted copies of CT's policies and procedures for handling "name discrepancies" in documents served on CT. McCubbins obtained these documents from CT by subpoena.

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Bluebook (online)
262 So. 3d 536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-airlines-inc-v-martin-h-mccubbins-missctapp-2018.