Miss. Court Vacates $500,000 Default Judgment Against Lender

JACKSON, Miss. - The Mississippi Court of Appeals has reversed a $500,000 default judgment for buyers of a manufactured home, ruling that service of process on the defendant-lender was defective. Flagstar Bank, FSB v. Danos, No. 2007-CA-00418-COA (Miss. Ct. App.).

Four of the 10 judges dissented from the majority's Dec. 2 opinion, saying the procedure followed by plaintiffs in sending a certified letter to the corporate defendant was proper, and the lender "slept on its responsibility" to respond.

Calvin and James Danos alleged in their complaint that their $65,000 manufactured home had pre-existing water damage that led to mold …