First Small Business Inv. Co. v. Sistim, Inc.

Defendant Patrick F. Koenigsberger was the president and principal shareholder of defendant Sistim, Inc. In 1965 Koenigsberger executed a promissory note in favor of plaintiff in the amount of $50,000 and Sistim, Inc., executed a promissory note in favor of plaintiff in the amount of $25,000.

In 1968, the notes not having been paid, plaintiff brought two actions, one against each defendant. Koenigsberger was served July 8, 1968, and Sistim, Inc., was served August 19, 1968. Default was entered against Koenigsberger July 24, 1968, and against Sistim, Inc., September 17, 1968. Judgment was taken against Koenigsberger October 13, 1968, and against Sistim, Inc/, October 23, 1968. On December 4, 1968, each defendant noticed a motion to be relieved from the default entered and the judgment taken. The motions were heard together on April 10, 1969, and denied on that date. A notice of appeal with respect to each order was timely filed. The orders are appealable. (Code Civ. Proc., § 904.1.) We treat both appeals in this opinion.

Section 473 of the Code of Civil Procedure provides in part: “The court may, upon such terms as may be just, relieve a party or his legal representative…