Sierra-Corral Homes LLC v. Pourreza

The trial court did not abuse its discretion in denying an LLC's motion to open default because the LLC offered no reasonable explanation for failing to maintain a proper registered agent for service of process.

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Fatemah Pourreza sued Sierra-Corral Homes, LLC “Sierra” for breach of a construction contract. The trial court entered default judgment against Sierra and denied its motions to compel arbitration and to recover attorney fees. Sierra appeals, and we affirm. The record shows that on April 17, 2007, Fatemah Pourreza entered into a contract with Sierra for the construction of a new home in Gainesville. Disputes arose, and on May 23, 2008, Pourreza sued Sierra, asserting claims of breach of contract, specific performance, equitable relief, and damages. Sierra’s registered agent for service of process could not be located, so Sierra was served through the Secretary of State on October 17, 2008. Sierra filed an untimely answer and moved to open the default. Following a hearing, the trial court denied the motion and entered default judgment on March 20, 2009. Sierra filed a direct appeal from that order. We dismissed the appeal because the order was not final, given that the issue of damages had not been adjudicated.

After the remittitur was issued, the trial court scheduled a hearing on damages for November 9, 2009. On November 5, Sierra filed a motion to set aside the default judgment, asserting that the trial court lacked jurisdiction because the parties’ contract was governed by an arbitration clause. Sierra also filed a motion to compel arbitration.1 Sierra also filed a motion seeking attorney fees and litigation expenses pursuant to OCGA § 9-15-14 b. Pourreza filed a motion to stay arbitration. Following a hearing, the trial court issued an order on March 18, 2010, granting Pourreza’s motion and denying Sierra’s motions to compel arbitration and to recover attorney fees. Sierra appeals, enumerating nine errors.

Sierra-Corral Homes LLC v. Pourreza

The trial court did not abuse its discretion in denying an LLC's motion to open default because the LLC offered no reasonable explanation for failing to maintain a proper registered agent for service of process.

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