Attorney sued for failing to file adequate pleadings to set aside default
Broad Street Securities, Inc. sued Walter Baumgardner and his firm, Burkhart, Wexler & Hirshberg, alleging that they responded inadequately to a lawsuit against the securities firm. The securities firm was defaulted in the previous lawsuit for failing to answer on a timely basis. In order to set aside a default, the defendant must prove that it has a meritorious defense argument and also that it has a reasonably good excuse for not answering on time. The securities firm argued that the attorneys did not adequately address both issues and therefore the default was not set aside. On appeal, the Court of Appeals agreed with this position.