Challenge
Our client, a reputable credit card processing services business, had a default judgment entered against them without proper service and knowledge of the original proceedings filed against them. The client was therefore not represented in the original proceedings filed by the Plaintiff. The client was sued for breach of contract, fraud, and for a liquidated judgement. The default judgment was hugely detrimental to our clients’ business where the Plaintiff had obtained through the default judgment a restraint on one of client’s corporate bank accounts.
Solution
We immediately conducted an in depth consultation with the client. We reviewed the original proceedings and service of the lawsuit. A thorough review of the Plaintiff’s default judgment and service of it was conducted. We determined that legal grounds existed warranting a motion to vacate the default judgment.
In addition, we determined that our client had legal defenses and counterclaims which they could file against the Plaintiff in re-opening the original proceedings.
Result
We filed a motion to vacate the default judgment. The motion has been fully submitted before the court. This has the effect of reopening this case and seeking to curtail the Plaintiff’s ability to continue to impose restraint(s) on one of our client’s corporate bank accounts.