Chase Is Injured in an Accident While Driving an Off-Road

Essay

Chase is injured in an accident while driving an off-road vehicle made by Drivers Edge Inc., an out-of-state corporation. Chase files a suit against Drivers Edge, alleging negligence, and mails a summons and a copy of the complaint to the firm by certified mail, return receipt requested. The envelope is addressed in part to "Elvin, President, Drivers Edge, Inc." The receipt is returned with the signature of "Francine," a Drivers Edge employee. A U.S. Postal employee later testifies that Francine usually receives mail on Drivers Edge's behalf. Drivers Edge does not respond to the suit. In a default judgment, Chase is awarded damages of $500,000. Later, Elvin claims that he was not notified of the suit and asks the court to set aside the judgment. What is the issue in this set of facts? What rule applies? What should be the result on the application of the rule? Why?