VM Residential, LLC v. Equity Trust Company CA4/2
In this action over a disputed real estate transaction, plaintiff and respondent, VM Residential, LLC (VM Residential), obtained a default judgment against defendant and appellant, “Equity Trust Company Custodian FBO Scott McKhann Traditional IRA” (Equity). As the name might imply, Equity “serves as a passive, self-directed custodian” for an individual retirement account (IRA) owned by Scott McKhann. McKhann, as the owner of the IRA, is responsible for defending this lawsuit, even though Equity is the named defendant. Upon receiving the summons and operative complaint here, Equity mailed the documents to the address it had on file for McKhann. This was an outdated address, however, and McKhann did not receive notice of the operative complaint until too late. He did not have a chance to mount a defense before VM Residential sought entry of Equity’s default and the default judgment. McKhann first learned of the operative complaint when he received notice of the default ju
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