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MSZL&M ATTORNEYS SUCESSFUL IN HAVING $550,000.00 DEFAULT JUDGEMENT SET ASIDE
George W. Vokolos, Esquire and Phillip B. Silverman, Esquire
Recently MSZL&M attorneys Phillip B. Silverman and George W. Vokolos successfully argued before the United States District Court for the Western District of Pennsylvania that a $553,453.34 default judgment entered against their client should be set aside.
In the matter of Owens v. Clawson Container Co. Plaintiff, Paul Owens alleged that he sustained severe chemical burns to over half of his body when potassium hydroxide (Pargon) spewed from a chemical tote manufactured by Clawson. Because of a clerical error by the client, Clawson failed to respond to Plaintiff's Complaint and the Court entered judgment against Clawson and assessed damages at $553,453.34.
In arguing on behalf of Clawson, MSZL&M argued that both Federal Rule of Civil Procedure 55(c) and 60(b) afford certain exceptions which would allow a party relief from a default judgment under similar circumstances. They highlighted the fact that the equitable principals underlying these exceptions called for the Court to review this matter under a liberal standard rather than a strict one. Counsel also relied on the Third Circuit Court of Appeals opinion of Farnese v. Bagnasco which set forth the test for determining whether a default/default judgment should be set aside. In Farnese the Third Circuit held that, in determining whether to set aside a default/default judgment, the trial court must consider three factors (1). whether the Plaintiff will be prejudiced if the default is lifted; (2). whether the defendant has a meritorious defense; and (3). whether the default was the result of the defendant's culpable misconduct and/or willful act.
Finally, Counsel argued that this particular matter should be afforded special consideration by the Court, since Plaintiff's claims arise in the context of a products liability case. Counsel argued that unlike a "run of the mill" negligence claim, this action strikes at the heart of Clawson's reputation, thus Clawson should be afforded the opportunity to defend the integrity of the products it manufactures.
Immediately following argument, the Court ruled from the bench that the Default and Default Judgment should be set aside and Clawson allowed to answer Plaintiff's Complaint. The case is now continuing through the normal discovery process and MSZL&M is defending all claims without any prejudice to the client.
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