Order Michigan Supreme Court
Lansing, Michigan
April 7, 2010 Marilyn Kelly,
Chief Justice
137698 Michael F. Cavanagh
Elizabeth A. Weaver
Maura D. Corrigan
Robert P. Young, Jr.
Stephen J. Markman
STATE FARM MUTUAL AUTOMOBILE Diane M. Hathaway,
INSURANCE COMPANY, Justices
Plaintiff-Appellee,
v SC: 137698
COA: 277300
Wayne CC: 06-612812-AV
SYLVESTER HUDSON,
Defendant-Appellant.
_________________________________________/
On December 9, 2009, the Court heard oral argument on the application for leave
to appeal the October 7, 2008 judgment of the Court of Appeals. On order of the Court,
the application is again considered and, pursuant to MCR 7.302(H)(1), in lieu of granting
leave to appeal, we REVERSE the Court of Appeals and we REMAND this case to the
36th District Court with directions to grant the defendant’s motion to set aside the default
and the default judgment. We conclude that the district court abused its discretion in
allowing substituted service because the plaintiff did not demonstrate a “diligent inquiry”
to ascertain the defendant’s present address, as required by MCR 2.105(I)(2). Therefore,
the plaintiff failed to show that service of process could not reasonably be made and that
substituted service should be permitted.
Because the defendant was not properly served and did not appear in court, the
district court lacked jurisdiction over the defendant. See Turrill v Walker, 4 Mich 177,
184 (1856); Kulko v Superior Court of California, 436 US 84, 91; 98 S Ct 1690; 56 L Ed
2d 132 (1978). Accordingly, the grounds in MCR 2.603(D)(1) for setting aside a default
have been met.
I, Corbin R. Davis, Clerk of the Michigan Supreme Court, certify that the
foregoing is a true and complete copy of the order entered at the direction of the Court.
April 7, 2010 _________________________________________
0331 Clerk