Attorneys successfully opened a default judgment entered on a purported bad faith, UTPCPL and breach of contract case

Attorneys successfully opened a default judgment entered on a purported bad faith, UTPCPL and breach of contract case in which five pleadings were properly served upon the client's branch office and sent to the legal department, but no record of the receipt of any of the documents by the legal department existed. Three months after the default judgment was entered, a non-jury trial on damages occurred. The client discovered that the lawsuit had been filed five days after the non-jury trial occurred. Subsequently, a judgment was entered. The Court found that the 22 day time period between the discovery of the entry of the default judgment and the filing of the Petition to Open the Default Judgment was prompt in light of the speed in obtaining outside counsel, diligence in researching the potential whereabouts of the missed pleadings and the required analysis involved in determining whether meritorious defenses existed. The Court also held that the client provided a reasonable excuse or explanation for failing to file a responsive pleading and noted that a mistake should not preclude the client from an opportunity to litigate a case on its merits due to an unintentional error. Finally, the Court acknowledged that the client demonstrated that meritorious defenses existed to the underlying claims. The Court struck the judgment and the client will be permitted to proceed with the litigation of the case on its merits.