Georgia Kidney and Hypertension Specialists Inc. v. Fresenius USA Marketing Inc.

Georgia Kidney and Hypertension Specialists, Inc. GKHS appeals from the trial court’s entry of default judgment and subsequent award of damages and attorney fees, contending that the trial court should have recused and that GKHS’s motion to open default was improperly denied. Fresenius USA Marketing, Inc. Fresenius filed its complaint against GKHS and Carrollton Dialysis, Inc. on August 14, 2006. Fresenius sought recovery on an open account and alleged that GKHS was the successor in interest to Carrollton and that the two companies had conspired to fraudulently transfer the assets of Carrollton to GKHS to avoid paying off the account after Carrollton was administratively dissolved by the Georgia Secretary of State in 2002. Both GKHS and Carrollton were served on August 17, 2006, and Carrollton filed its answer on August 31, 2006. GKHS did not file an answer as required by September 18, 2006, or any other pleading in response to the complaint. See OCGA § 9-11-12 a.

On October 10, 2006, Fresenius filed its motion for default judgment against GKHS. On October 27, 2006, GKHS filed an answer and a motion to open default. By order of December 1, 2006, the trial court denied the motion to open default and granted Fresenius’s motion for default judgment on liability. A hearing on damages was held on December 13, 2006.