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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
print version appearing in the North Carolina Reports and North Carolina Court of Appeals Reports, the latest print version is to be considered authoritative.
L&M TRANSPORTATION SERVICES, INC., Plaintiff, v. MORTON
INDUSTRIAL GROUP, INC., d/b/a MORTON CUSTOM PLASTICS OF NORTH
CAROLINA, INC. and d/b/a MORTON CUSTOM PLASTICS, LLC, Defendant
NO. COA03-709
Filed: 6 April 2004
Process and Service_service on business_identity of corporation and agent
There was proper service of process and the court correctly refused to set aside a default
judgment where defendant denied that it was doing business in North Carolina or that the person to
whom the summons delivered was an employee or agent, but defendant's annual SEC Report was
to the contrary.
Appeal by defendant from order entered 3 February 2003 by
Judge Mark E. Klass in Cabarrus County Superior Court. Heard in
the Court of Appeals 2 March 2004.
Richard M. Koch, for plaintiff-appellee.
Helms Mulliss & Wicker, PLLC, by William C. Mayberry, Robert
Muckenfuss, and Tyyawdi M. Baker, for defendant-appellant.
TYSON, Judge.
Morton Industrial Group, Inc. (defendant) appeals from an
order entered after defendant's motion to set aside an entry of
default and entry of default judgment was denied. We affirm.
I. Background
L&M Transportation Services, Inc. (plaintiff) brought an
action for breach of contract on 9 October 2002. The unverified
complaint identified defendant as Morton Industrial Group, Inc.
dba Morton Custom Plastics of North Carolina, Inc. and dba Morton
Custom Plastics, LLC. The complaint alleged, [a]t the request of
the defendant, the plaintiff rendered transportation services on
account for which the defendant agreed to pay the plaintiff. Plaintiff did not receive payment under the terms of the agreement
and attached statements to the complaint showing the amount due to
plaintiff for services rendered. The statements revealed that
plaintiff billed Morton Custom Plastics, LLC in Harrisburg, North
Carolina, and Morton Custom Plastics in St. Matthews, South
Carolina, in the amount of $61,603.00.
On 14 October 2002, Cabarrus County Sheriff's Deputy D.B.
Riley served the summons and complaint to James Ford, General
Manager for Morton Custom Plastics, LLC, in Harrisburg, North
Carolina. On 14 November 2002, the Cabarrus County Assistant Clerk
of Superior Court noted an entry of default and entered an entry of
default judgment. The judgment awarded plaintiff $61,603.00 plus
interest.
On 27 December 2002, defendant moved to set aside the entry of
default and to vacate the default judgment. Defendant argued the
default judgment was void. In support of its motion, defendant
attached affidavits from Thomas Lauerman, Morton Industrial Group's
Vice President of Finance, and James Ford. In its affidavit,
defendant denied that it was doing business under the names of
Morton Custom Plastics, LLC or Morton Custom Plastics of North
Carolina, Inc. and claimed that James Ford was neither an employee
nor agent for defendant. Plaintiff also filed an affidavit with
the trial court, along with defendant's annual report that had been
filed with the Securities and Exchange Commission (SEC Report).
The SEC Report showed that defendant had a Southeast Molding
Division in both Harrisburg, North Carolina, and St. Matthews,South Carolina. In addition, the SEC Report lists a fabrication
division in both Harrisburg and Concord, North Carolina. The trial
court denied defendant's motion to set aside entry of default and
vacate the default judgment. Defendant appeals.
II. Issue
The sole issue on appeal is whether the trial court erred in
failing to set aside the entry of default and to vacate the default
judgment.
III. Service of Process
Defendant argues the trial court's default judgment was void
for lack of service of process. We disagree.
N.C.R. Civ. P. 60(b)(4) (2004) allows a trial court to grant
relief from a judgment that is void.
The granting of a Rule 60(b) motion is within
the trial court's sound discretion and is
reviewable only for abuse of discretion.
Abuse of discretion is shown only when the
challenged actions are manifestly unsupported
by reason. If there is competent evidence of
record on both sides of the Rule 60(b) motion,
it is the duty of the trial court to evaluate
such evidence, and the trial court's findings
supported by competent evidence are conclusive
on appeal.
Blankenship v. Town & Country Ford, Inc., 155 N.C. App. 161, 165,
574 S.E.2d 132, 135 (2002), disc. rev. denied, 357 N.C. 61, 579
S.E.2d 384 (2003).
Here, the trial court's judgment concluded that based on
defendant's annual report, the 7301 Caldwell Road, Harrisburg
location is an operating plant of the defendant not disclosed as a
separate entity and its general manager is an agent authorizedunder Rule 4(j)(6) to receive service of process for the
defendant. Defendant's SEC Report clearly lists 7301 Caldwell
Road, Harrisburg, North Carolina, on the page labeled Morton
Custom Plastics Locations. This is the same address appearing on
the summons served on James Ford by the Cabarrus County Sheriff's
Department. Although defendant filed affidavits stating that it
did not do business in North Carolina, defendant did not present
any certificates of existence or corporate documents to rebut the
evidence in the annual report, which indicated otherwise. Thus,
competent evidence supports the trial court's decision to deny
defendant's motion to vacate the default judgment. This assignment
of error is overruled.
IV. Entry of Default
Defendant argues the trial court erred in failing to set aside
the entry of default. We disagree.
N.C.R. Civ. P. 55(a) (2004) allows the clerk to enter default
when a party against whom a judgment for affirmative relief is
sought has failed to plead . . . . 'To set aside an entry of
default, good cause must be shown. The trial court's decision
whether good cause has been shown is reviewable by this Court only
for abuse of discretion.' Blankenship, 155 N.C. App. at 166, 574
S.E.2d at 135 (quoting Silverman v. Tate, 61 N.C. App. 670, 673,
301 S.E.2d 732, 734 (1983)).
Defendant argues plaintiff's failure to effectuate service of
process constitutes good cause to set aside entry of default. We
previously held this argument has no merit. This assignment oferror is overruled.
V. Conclusion
Plaintiff noted in its brief that portions of defendant's
brief setting forth the facts were argumentative in violation of
N.C.R. App. P. 28(b)(5). We agree and have not relied upon any
argumentative facts in our review.
Defendant has failed to show the trial court abused its
discretion in denying defendant's motion to set aside the entry of
default and to vacate the default judgment. The judgment is
affirmed.
Affirmed.
Judges WYNN and HUNTER concur.
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