RUSSELL COAL CO., INC. v. Smith
| Court | Supreme Court of Alabama |
| Citation | 845 So.2d 781 |
| Parties | RUSSELL COAL COMPANY, INC. v. Kenneth SMITH and Deborah Smith. |
| Decision Date | 20 September 2002 |
845 So.2d 781
RUSSELL COAL COMPANY, INC.v.
Kenneth SMITH and Deborah Smith
1011008.
Supreme Court of Alabama.
September 20, 2002.
Garve Ivey, Jr., of Ivey & Ragsdale, Jasper, for appellees.
WOODALL, Justice.
The defendant, Russell Coal Company, Inc. ("Russell"), appeals from an order denying its Rule 60(b), Ala. R. Civ. P., motion for relief from a default judgment in favor of the plaintiffs, Kenneth Smith and Deborah Smith. Russell suffered a default judgment in the amount of $300,000 after it failed to answer the Smiths' complaint. Russell argues that the judgment is void, because, it says, the Smiths did not properly serve process on it. We agree, and we reverse and remand.
I.
In 1996, Russell filed a petition in the United States Bankruptcy Court for the Northern District of Alabama, seeking protection under Chapter 11 of the United States Bankruptcy Code. The bankruptcy court appointed Terry Humphryes trustee of the bankruptcy estate of Russell, the debtor. Humphryes retained David B. Anderson as his attorney, apparently with the approval of the bankruptcy court.
In 1997, the Smiths filed this action against Russell. After their attempts to obtain service of process upon Russell failed, the Smiths had a copy of the summons and complaint sent by certified mail to Anderson, the attorney representing the bankruptcy trustee. A secretary at the law firm where Anderson works signed the certified-mail receipt on January 6, 2000.
On September 18, 2000, the Smiths filed an application for the entry of a default against Russell, claiming that Russell "was served through the bankruptcy trustee ... on January 6, 2000." Default was entered on that same date, with leave to prove damages. On November 6, 2000, after a hearing on damages, the trial court entered judgment in favor of the Smiths and against Russell in the amount of $300,000.
On March 6, 2001, Russell filed a Rule 60(b), Ala. R. Civ. P., motion for relief from the default judgment, claiming that the judgment was void, because, it alleged, it had not been served with process in accordance with Rule 4(c)(6), Ala. R. Civ. P. On January 10, 2002, the trial court held a hearing on Russell's Rule 60(b) motion.
II.
Russell argues that the trial court erred in denying its motion for relief from the default judgment, because, it argues, the judgment is void. Rule 60(b), Ala. R. Civ. P., provides, in pertinent part: "On motion and upon such terms as are just, the court may relieve a...
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