Walters v. Kmart Corp.

Defendant Kmart 1 appeals an order denying a motion to set aside a default judgment. Defendant argues that the trial court abused its discretion as a matter of law in failing to set aside the default judgment on the ground of excusable neglect. We agree and reverse and remand.

Defendant is a Michigan corporation, with stores located in this state. It hired CT Corporations Systems (CT Corp.) to act as its registered agent for service of process in Oregon. Defendant and CT Corp. established as their standard procedure that CT Corp. was to forward service documents to defendant’s headquarters in…