The Delaware Supreme Court recently
analyzed the standard of excusable neglect sufficient to vacate a
default judgment. In the case of Christiana Mall, LLC v. Emory
Hill and Company (opinion here), Christiana Mall sought to overturn the
Superior Court's finding that it could not vacate a default
judgment entered against it. The judgment was the result of a
mechanic's lien claim brought by Emory Hill against the mall
and one of its tenants, MrFruz. MrFruz was obligated to
defend and indemnify Christiana Mall in the action pursuant to
the terms of the lease between the parties.
After the complaint was filed,
McFruz advised Christiana Mall that it was attempting to resolve
the claim and that it had secured an extension of time for it and
the Mall to answer the Complaint. In fact, MrFruz never
obtained an extension for the Mall. Moreover, Emory Hill had
advised MrFruz that it did not believe MrFruz was negotiating in
good faith and therefore it and the Mall must