No. 1087 Pittsburgh, 1980, Appeal from and Order of the Court of Common Pleas of Mercer County, Pennsylvania, Civil Division, at No. 584 C.D. 1980.
David H. Patterson, Pittsburgh, for appellant.
Thomas W. Kuster, Sharon, for appellees.
Hester, DiSalle and Popovich, JJ. Popovich, J., concurs in the result.
[ 293 Pa. Super. Page 471]
This is an appeal from the lower court's order denying the Petition of appellant, Forrest Brooke Sales, to Open a Default Judgment. For the reasons stated herein we reverse.
The record shows that on June 3, 1980, plaintiffs-appellees filed a Complaint in Assumpsit seeking to recover damages arising out of their purchase of a mobile home. Named as defendants were the manufacturer of the mobile home, Skyline Corporation (Skyline); the seller, appellant, Forrest Brooke Sales; and the mortgagee, First Federal Savings and Loan Association of New Castle, Pennsylvania. Service on all three defendants was proper. On July 8, 1980, attorney David Patterson entered his appearance on behalf of Skyline
[ 293 Pa. Super. Page 472]
only. On July 24, 1980, appellees filed and sent to appellant a notice of intention to take a default judgment against it, and on August 14, 1980, the default judgment was entered. On September 12, 1980, an amended praecipe for entry of a money judgment was filed. That same day, appellant, through attorney Patterson, filed a petition to open the default judgment. On October 3, 1980, following a hearing, the lower court denied the petition to open.
To be entitled to open a default judgment the petitioner must prove (1) that the petition was filed promptly; (2) that the failure to file an answer can be satisfactorily explained; and (3) that a meritorious defense exists. Nardulli v. John Carlo, Inc., 274 Pa. Super. 34, 417 A.2d 1238 (1979). The lower court held that appellant had failed to comply with the latter two requirements.
Appellant contends that it did satisfactorily explain its reason for failing to file an answer. Appellant explained that there was an "inadvertent lack of communication" between Skyline, appellant, and Mr. Patterson as to whether Mr. Patterson, as Skyline's counsel, was also representing appellant. Walter Roberts, a partner in appellant, testified at a deposition that, upon service of the complaint, he contacted Skyline and was told that negotiations had been commenced with plaintiff prior to the filing of the complaint and that it was anticipated they would result in a settlement prior to trial. After receipt of the default notice Roberts again contacted Skyline. Skyline's representatives advised Roberts that they were attempting to obtain an extension, that attorney Patterson had entered his appearance in the action, and that Roberts should contact his attorney. Roberts attempted to reach his attorney but could not because the attorney was on vacation. Appellant explains that counsel other than Robert's attorney was not sought because it thought it was being represented by Mr. Patterson.
In Sprouse v. Kline-Styer-McCann, Post No. 7155, Veterans of Foreign Wars, 237 Pa. Super. 419, 423, 352 A.2d 134, ...