Background
Tesha Hill-McDonald alleged that she was injured in January 2020 when she fell on uneven or broken steps while avoiding a dog tied near the stairs of an apartment complex. She sued Park at Autumn Ridge BD TIC LLC for negligence. After Park failed to respond, the clerk entered default, and the county court entered a $70,000 default judgment following a damages hearing.
Park learned of the judgment during a title search associated with refinancing and moved to set it aside. Park maintained that it had not received the summons and complaint and, separately, that it did not own the property when Hill-McDonald fell. The county court denied relief, and the circuit court affirmed.
The Court’s Holding
The Court of Appeals reversed, rendered judgment setting aside the default judgment, and remanded the case to county court for further proceedings. Although the court found no good cause for Park’s default because the county court was entitled to credit the process server’s testimony, it held that Park presented a colorable defense by showing that it may not have owned or controlled the property when the accident occurred.
The county court also applied overruled precedent when it required Park to establish its defense through affidavits or other sworn evidence. Under controlling Mississippi Supreme Court precedent, a proposed defense need only be reasonable and supported by more than a “wish and a prayer”; it need not be proved to trial standards or established by sworn affidavits. Because the colorable-defense factor outweighed the other factors and the record did not show that litigating the claim would likely prejudice Hill-McDonald, the default judgment had to be vacated. Judge McDonald concurred in part and in the result without a separate opinion; the remaining participating judges concurred.
Key Takeaways
- A defendant may obtain relief from a default judgment despite failing to show good cause for the default when the other factors, particularly a colorable defense, favor relief.
- Evidence that the defendant did not own or control the premises when an injury occurred can constitute a colorable defense to premises-liability claims.
- Mississippi law does not require sworn affidavits or proof sufficient for trial to establish a colorable defense when seeking to set aside a default judgment.
Why It Matters
The decision reinforces Mississippi’s preference for resolving cases on their merits when a defaulting defendant presents a reasonable defense. It also cautions trial courts against relying on older cases that imposed an affidavit requirement later rejected by the Mississippi Supreme Court.
The ruling does not resolve whether Park owned or controlled the property or whether Hill-McDonald can prove negligence. It restores the case to the county court so those issues can be litigated.