Metropolitan Service Corp. v. Casa De Palms, Ltd.

Defendants and appellants Casa de Palms, Ltd., Tumanjan Development Corporation, Michael Tumanjan, and George Tumanjan appeal from a default judgment in favor of plaintiff and respondent Metropolitan Service Corporation and from an order denying defendants’ motion pursuant to Code of Civil Procedure section 473 to set aside the default.

Factual and Procedural Background

Plaintiff Metropolitan Service Corporation secured a stipulated judgment in 1989 against defendants Casa de Palms, Ltd., and Tumanjan Development Corporation for $32,000.

On February 4, 1992, Metropolitan filed its complaint in the instant case to amend the stipulated judgment to include defendants Michael Tumanjan and George Tumanjan as judgment debtors on the ground they operated defendant Tumanjan Development Corporation as their alter ego.

Defendants’ attorney James H. Sloey agreed to accept service of the complaint. On February 5, 1992, plaintiff’s attorney Robert Burk sent Sloey the summons, complaint, notice and acknowledgement of service. Sloey executed acknowledgement of service on March 5, 1992, and mailed the acknowledgement to Burk on March 6, 1992. In his cover letter, Sloey stated:…