Eshelman Motors Corp. Ex Rel. Ottenheimer v. Scheftel

³⁰¹ Byrnes, J., by special assignment, delivered the opinion of the Court. A summary judgment having been entered in an action of assumpsit against appellant for the amount of $3,055.05 upon default of defense, it moved within 13 days to set the judgment aside on the ground that the default was inadvertent and that it had meritorious defenses to the action. For reasons which do not appear of record, the trial court, after hearing, denied the appellant’s motion and granted a motion ne recipiaiur which had been filed by appellee with respect thereto. Thereupon, the appellant prosecuted this appeal in which the appellee filed no brief nor made oral argument.

We believe the trial court erred in both rulings. Apparently, the trial court accepted appellee’s argument below that under Maryland Rule 625 (Revisory Power of Court over Final Judgment — General), the Court may not set aside a judgment by default except for fraud, mistake or irregularity where it is regularly entered after service of process. Rule 625 does not go so far. The requirement that there be fraud, mistake or irregularity applies only where the motion to set aside is filed more than thirty days after the entry of judgment, otherwise the matter lies within the discretion, of the Court.

But it is a discretion which must be exercised liberally lest technicality triumph over justice. Ryan v. Johnson, 220 Md. 70 , 150 A. 2d 906 . The appellant is an insolvent corporation and owing to its financial circumstances had difficulty in engaging counsel and arranging for the defense of the action. Hence, its default in pleading to the narr.

Appellee did not even claim that it would be prejudiced in any way if the judgment were set aside and a trial of the case had on its merits. The only question left then is whether the appellant has shown that it has meritorious defenses to the action. Ryan v. Johnson, supra.