Verijet, Inc. v. Vision Leasing 241, LLC
After Verijet's counsel withdrew, the trial court gave the corporation ten days to retain new counsel and, when it failed, struck its pleadings and entered a $2.9 million default final judgment. The Third District reversed the denial of Verijet's Rule 1.540(b)(1) motion, holding that the CEO's unrebutted affidavit—showing the order went to a closed branch office because of the former CEO's abrupt departure and corporate upheaval—established excusable neglect, a meritorious defense, and due diligence, so the default judgment must be vacated.
Key facts
- Verijet, Inc., a corporation, had its counsel withdraw from representation; the trial court ordered Verijet to retain new counsel within ten days, and when it failed to do so, the court struck its pleadings and entered a $2.9 million default final judgment.
- The withdrawal order was sent to Verijet's closed branch office due to the abrupt resignation of the former CEO and entire board, causing a breakdown in the corporation's internal document-handling systems.
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Why it matters
Useful authority for parties seeking relief from a default entered as a sanction for failing to retain substitute counsel, particularly for corporate defendants whose internal mail/communication systems fail after… — full analysis with a trial
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