East Coast News Corp. v. Video Flixx II

Full title: EAST COAST NEWS CORP. INTERNATIONAL VIDEO DISTRIBUTORS, L.L.C.…

Court: SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3194-10T2

Date published: Feb 15, 2012

Fact;

East Coast News Corp. International Video Distributors, L.L.C. (plaintiff) sued defendants Doreen Acciardi, Video Flixx II, and Video Flixx 2 on a book account for monies owed for videos sold to defendants for retail use in their video stores from December 2005 to January 2010. The complaint was served on defendant Acciardi on June 3, 2010. No answer was filed, and default judgment was entered against all three defendants on August 13, 2010, in the amount of $300,117.98.

Issue:

The issue in this case is whether the Law Division judge erred in denying defendants’ motion to vacate the default judgment. Specifically, the question is whether defendants demonstrated excusable neglect under the circumstances and whether they have a meritorious defense.

Decision:

The Appellate Division reverses the order denying defendants’ motion and remands the matter for further proceedings. The court determines that both sides are entitled to an opportunity to present their proofs at trial after appropriate discovery. The default judgment is vacated, and defendants are permitted to file their answer. The order is conditioned on defendants’ payment of plaintiff’s filing fees and other appropriate costs.

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