The North Carolina Court of Appeals recently upheld a default judgment against Corbett Clearing & Demolition, LLC and its owner, Jeremy Kyle Corbett. The court's ruling, filed on October 21, 2026, confirms that the defendants are liable for breaching an equipment finance agreement with Regions Bank. This decision impacts the defendants financially and sets a precedent for similar cases regarding default judgments in North Carolina.
In this case, Regions Bank, which is the successor by merger to Ascentium Capital, LLC, filed a lawsuit against Corbett Clearing and Corbett after the company failed to make payments on a financed piece of equipment. The court's ruling emphasizes the importance of responding to legal complaints in a timely manner, as failure to do so can lead to significant financial consequences.
The dispute began when Regions Bank and Corbett Clearing entered into an Equipment Finance Agreement (EFA) on November 10, 2022. Under this agreement, Regions Bank financed a 2016 Red Rhino Jaw Crusher for Corbett Clearing, which required monthly payments of $2,611.65 over five years, totaling $156,699.00. The agreement included provisions for default, allowing Regions Bank to take action if payments were not made.
Corbett Clearing fell behind on payments, and by June 18, 2024, Regions Bank issued a Notice of Default and Acceleration, demanding payment of $99,379.32. Following the failure of Corbett Clearing to respond to the lawsuit filed on July 24, 2024, the court entered a default judgment in favor of Regions Bank on December 12, 2024.
The defendants contended that the trial court abused its discretion in entering the default judgment. They argued that the entry of default was void because they had appeared through counsel by filing a motion to extend their deadline to respond. However, the court clarified that the Clerk of Court had properly entered default due to the defendants' failure to plead in a timely manner.
Judge John Arrowood, who authored the opinion, stated, "Defendants’ failure to plead prior to entry of default continued to the trial court, where 'no answer... or pleading' had been filed by defendants in time for the hearing." The court also noted that the defendants had not shown good cause for setting aside the default judgment.
In its ruling, the court affirmed the trial court's decision, stating that the defendants were jointly and severally liable for the amount claimed by Regions Bank, including the principal amount, interest, and attorneys' fees. The trial court awarded Regions Bank $99,379.32, plus 18% interest per annum from June 18, 2024, until the judgment date, and $14,906.90 for attorneys' fees.
The court's decision underscores the importance of adhering to legal deadlines and the consequences of failing to respond to legal actions. It also highlights the enforceability of equipment finance agreements and the rights of lenders to seek recovery in cases of default.
Moving forward, this ruling may serve as a precedent for similar cases involving default judgments in North Carolina, reinforcing the necessity for defendants to respond promptly to legal complaints. The decision may also impact how lenders approach collections and defaults in equipment financing agreements.
As for what’s next, the defendants may consider appealing the ruling to a higher court. However, the court filing did not specify whether an appeal is planned or if there are related cases pending.