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Smart Summary

Factual and Procedural Background

This action was initiated by two corporations, East India Co., Inc. and Allan Waller, Ltd., seeking damages for the theft of antiques during shipment from Bombay, India, to Atlanta. Allan Waller, Ltd. initially sued the insurer Unicover, Inc., later substituting East India Trading Co., Inc. as plaintiff. That prior case resulted in a verdict awarding damages against Unicover. The present case, filed jointly by Allan Waller, Ltd. and East India Co., Inc., proceeded with retained counsel who later withdrew, warning the plaintiffs to obtain new counsel or file a pro se appearance to avoid default. Neither step was taken. After notice by publication in the Fulton County Daily Report but without personal notice, the case was called on the trial calendar on November 4, 1980. No appearance was made by the plaintiffs, resulting in a default judgment on the counterclaim for defendants and dismissal of the main action. The plaintiffs later moved to set aside the judgment, which was denied, leading to this appeal.

Legal Issues Presented

  1. Whether notice of trial by publication in the Fulton County Daily Report satisfied the requirements of Code Ann. § 81A-140 (c) for notifying the plaintiffs of the trial date.
  2. Whether the trial court abused its discretion or violated due process in denying the motion to set aside the default judgment and dismissal for lack of prosecution.
  3. Whether the dismissal of the complaint for want of prosecution operates as an adjudication on the merits and whether the trial court had discretion to set aside such dismissal.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
McNally v. Stonehenge, Inc., 242 Ga. 258 (1978) Notice of trial by publication in the court calendar satisfies Code Ann. § 81A-140 (c). Supported the sufficiency of notice by publication in the Fulton County Daily Report to the plaintiffs.
Spyropoulos v. John Linard Estate, 243 Ga. 518 (1979) Notice by publication is sufficient under certain circumstances; trial courts have authority to set aside dismissals for lack of prosecution when warranted. Reinforced the sufficiency of notice and the trial court's discretion in denying the motion to set aside the judgment.
Anderson v. Fulton Nat. Bank, 146 Ga. App. 155 (1978) Due process requires notice to all parties with differing interests; failure to notify one party can deny due process. Distinguished from current case because plaintiffs here were effectively one entity; notice to one sufficed.
Brown v. C. S. Nat. Bank, 245 Ga. 515 (1980) Notice must include attorney's name to be effective when plaintiff is represented; absence of "pro se" designation may render notice defective. Deemed inapplicable because plaintiffs were unrepresented at the time of notice.
Trice v. Howard, 234 Ga. 189 (1975) Dismissal for want of prosecution operates as adjudication on merits unless otherwise specified; acts as res judicata and estoppel by judgment. Supported affirmance of dismissal and denial of motion to set aside absent abuse of discretion.
Maolud v. Keller, 153 Ga. App. 268 (1980) Dismissal solely for absence at trial reversible; trial court must exercise discretion in setting aside dismissal. Referenced in discussion of discretion in setting aside dismissals; distinguished from present case.
Johnson v. Hooks, 156 Ga. App. 257 (1980) Trial court erred in holding no discretion to set aside dismissal; discretion must be exercised considering all circumstances. Discussed in relation to trial court discretion; affirmed trial court's proper exercise of discretion here.
Burns Ledbetter, Inc. v. Primark Marking Co., 244 Ga. 341 (1979) Trial court must consider all circumstances in ruling on motions to set aside default judgments or dismissals. Affirmed denial of motion to set aside where trial court properly exercised discretion.
Mosley v. Lankford, 244 Ga. 409 (1979) Failure to appoint guardian ad litem for a minor plaintiff and failure to appear constitute grounds to set aside dismissal. Distinguished; no such circumstances present in current case.

Court's Reasoning and Analysis

The court analyzed whether the notice of trial by publication in the Fulton County Daily Report was sufficient under Code Ann. § 81A-140 (c). It found such notice adequate because the two plaintiff corporations were effectively one entity, with the same president and operating as a single business. The court distinguished this from cases where multiple parties with differing interests require separate notice. The omission of the "pro se" designation was not fatal since no attorney represented the plaintiffs at the time.

Regarding the denial of the motion to set aside the default judgment and dismissal, the court reviewed the record and found no abuse of discretion or constitutional error. It referenced established precedent holding that dismissal for want of prosecution operates as an adjudication on the merits unless otherwise specified, and that trial courts have discretion to set aside such dismissals when warranted by the circumstances.

The court further harmonized conflicting precedents, emphasizing that the burden is on the appellant to demonstrate that the trial court failed to exercise discretion properly. Here, no exceptional circumstances like those in Mosley existed, and the trial court's thorough and circumstantial decision was affirmed.

Holding and Implications

Judgment affirmed.

The court upheld the dismissal of the plaintiffs' action for lack of prosecution and the denial of their motion to set aside the default judgment. The notice by publication was deemed sufficient, and the trial court did not abuse its discretion or violate due process. This decision directly affects the parties by finalizing the dismissal and default judgment but does not establish new precedent beyond reaffirming existing legal principles regarding notice, dismissal for want of prosecution, and trial court discretion.

EAST INDIA COMPANY, INC. et al. v. MARSH McLENNAN, INC. et al.

DEEN, Presiding Judge.

This action was brought by two corporations, East India Co., Inc. and Allan Waller, Ltd., for damages resulting from the theft of certain antiques during shipment from Bombay, India, to Atlanta. East India Co., Inc. and Allan Waller, Ltd. are corporations principally owned and operated by their president, Allan Waller. Allan Waller, Ltd. first sued the insurer Unicover, Inc. for the loss but during that action filed an amendment substituting East India Trading Co., Inc. as the plaintiff in its place. That trial resulted in a verdict recovering damages for the loss from the insurer Unicover. Unicover, Inc. v. East India Trading Co., 154 Ga. App. 161 ( 267 S.E.2d 786) (1980), cert. denied June 13, 1980.

The present action seeking recovery for the same loss was filed by Allan Waller, Ltd. and East India Co., Inc. jointly with retained counsel who subsequently withdrew, notifying the clerk of court and also notifying the plaintiffs that they should either engage other counsel or file a pro se appearance card and self-addressed post card for notification of trial to avoid a default judgment. Neither action was taken. This case came up on the trial calendar November 4, 1980, following a return of remittitur in the Unicover case (counsel had agreed that this action would be held until disposition of that one) after advertisement twice in the Fulton County Daily Report but without personal notice to the plaintiffs. There was no appearance for plaintiffs and, on motion of defendants' counsel a default judgment in their favor on the counterclaim and a dismissal of the main action were entered on November 4, 1980. On February 13, 1981, at a subsequent term of court a motion was filed by the plaintiffs to set aside the judgment, the denial of which is the subject of this appeal. We affirm.

1. "In our opinion, notice of trial by publication of the court calendar in the Fulton County Daily Report is notice pursuant to Code Ann. § 81A-140 (c). McNally v. Stonehenge, Inc., 242 Ga. 258 ( 248 S.E.2d 653) (1978)." Spyropoulos v. John Linard Estate, 243 Ga. 518 ( 255 S.E.2d 40) (1979). Under the circumstances of this case we find that the notice appearing in that newspaper was sufficient. First, according to Allan Waller, President of both the East India Company and Allan Waller, Ltd., he is the majority stockholder of Allan Waller, Ltd., for which East India Company is "our primary operating company." They have the same address, "operate as one and the same," and "are basically the same company." Where in a case there are multiple defendants or other parties whose interests may be inimical, or at least far from identical, an ex parte or other judicial hearing as to which one of the defendants is not notified and given the opportunity to defend is a denial of due process. Anderson v. Fulton Nat. Bank, 146 Ga. App. 155 ( 245 S.E.2d 860) (1978). The trial court recognized this rule, but as to the contention that the calendar entry printed in the Fulton County Daily Report was insufficient to constitute notice to the plaintiffs, he correctly held the notice provision sufficient under the facts of this case. Under the testimony of their president, these corporations are basically one and the same, and Allan Waller is in effect the alter ego of both. The notice in the Report reading "714488. East India Co., Inc. vs. Marsh McLennan, Inc., Ray C. West Ind. as agent for Marsh McLennan, Inc. Fireman's Fund Ins. Co., Inc., Powell Goldstein, John F. Davis for defendant" is not inadequate under the facts in not including the name of the co-plaintiff Allan Waller, Ltd., since the position of the two plaintiffs is in fact identical. This was not the case in Anderson, supra, involving notice to two defendants who as former partners in a quasi-defunct operation had differing legal positions and potential liabilities.

Nor was the newspaper notice insufficient in that it failed to include, after the name of the plaintiff, the designation "pro se." Appellants in contending this omission was error rely upon Brown v. C. S. Nat. Bank, 245 Ga. 515 ( 265 S.E.2d 791) (1980). That opinion, although recognizing the general rule of Spyropoulos v. John Linard Estate, 243 Ga. 518, supra, refused to apply it for two reasons: (1) The trial court had and exercised discretion to vacate his prior order under the facts of that case, and (2) where the appellant's name was listed but that of his attorney was not, the notice was defective because "in searching the published calendar, attorneys and their calendar assistants look for the names of counsel, not the names of cases." Id. p. 518. Brown thus obviously has no application here. No attorney was representing either plaintiff at the time. The court properly held that the notice twice published in the Report was sufficient.

2. It is also contended that the trial court's decision, which is lengthy and circumstantial, is so far an abuse of discretion as to amount to a lack of due process. We have examined the record on which it is based and find no constitutional error.

Judgment affirmed. Banke and Carley, JJ., concur.

DECIDED OCTOBER 29, 1981 — REHEARING DENIED NOVEMBER 30, 1981.

DEEN, Presiding Judge.

ON MOTION FOR REHEARING.

The appellants have made a motion to rehear in this case contending that the judgment appealed from dismissing the case for lack of prosecution must be set aside insofar as the language "with prejudice" is involved under the authority of Johnson v. Hooks, 156 Ga. App. 257 ( 274 S.E.2d 666) (1980) and Maolud v. Keller, 153 Ga. App. 268 ( 265 S.E.2d 86) (1980). Both these cases reversed an order of dismissal which had become final based on Spyropoulos v. John Linard Estate, 243 Ga. 518 ( 255 S.E.2d 40) (1979). Our decision is in line with Trice v. Howard, 234 Ga. 189 ( 214 S.E.2d 907) (1975) which held that the dismissal of a complaint for want of prosecution operates as an adjudication on the merits unless the order of dismissal specifies otherwise, and that it operates both as res judicata and as estoppel by judgment. A dissent by two justices conceded that such a dismissal operates as res judicata but does not agree that it should also operate as an estoppel by judgment, the operative issue in that case.

Spyropoulos v. John Linard Estate, 243 Ga. 518, supra, without referring to Trice, held that the trial court was not without authority to set aside a judgment entered for lack of prosecution "where the circumstances warrant such relief . . . A dismissal with prejudice for failure to prosecute should not be based solely on absence but on all the circumstances of the case . . . The trial court erred in ruling that it had no authority to set aside the dismissal."

Thereafter, Maolud (1980) and Johnson (1980) without referring to Trice reversed orders of dismissal. We interpret Maolud as holding that the dismissal there "was solely on the ground of the defendants' absence from trial" and the case was reversed and remanded to "exercise his discretion" in the matter, a judgment which comports with the Spyropoulos case, and also with Trice. In the Johnson case, the trial court affirmatively stated in its order that it "had no discretion to either order a new trial on the matter or to set aside the judgment." This was error under both Spyropoulos and Trice, the Trice holding being (p. 191) that "the dismissal of a complaint for want of prosecution `operates as an adjudication upon the merits' unless the order of dismissal specifies otherwise."

The Trice and Spyropoulos rulings were harmonized in Burns Ledbetter, Inc. v. Primark Marking Co., 244 Ga. 341 ( 260 S.E.2d 58) (1979) at page 344 where the court, following the Trice ideology, held that where the appellants failed to show that the trial court in granting the appellee's motion for summary judgment on a motion to set aside a default judgment based on a failure to appear on the trial date "in any way failed to take all the circumstances of the default judgment into account" the denial of the motion to set aside would be affirmed. The burden is clearly on the appellant to show that the trial judge failed to exercise his discretion in the matter. Where he fails to do so, as in Mosley v. Lankford, 244 Ga. 409 ( 260 S.E.2d 322) (1979) the refusal to set aside the dismissal for lack of prosecution is error. In Mosley the plaintiff was a minor and was entitled to representation, and it appeared from the face of the record both that no one appeared in his behalf (although his father was acting as next friend) and that the court failed to appoint a guardian ad litem in his behalf. No such circumstances occur in this case.

Judgment adhered to.

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EAST INDIA CO. v. MARSH McLENNAN
(Oct 29, 1981)