Discover Bank v. Joy A. Morgan

In this consumer protection case, we must determine which Tennessee Rule of Civil Procedure applies to a motion that seeks relief from a default judgment of liability on a counter-complaint, where the motion has been filed within thirty days of entry of the default, the trial court has not expressly directed the entry of judgment on the counter-complaint pursuant to Rule 54.02, and neither liability on the original complaint nor damages on the counter-complaint have been determined. We hold that Rule 54.02, rather than Rule 60.02, applies in this situation; however, we also hold that the same test applies to motions seeking relief from default judgment, under either rule, on the basis of “excusable neglect.” We also hold that actual damages are recoverable for loss of available credit under Tennessee Code Annotated section 47-18-109(a)(2001) of the Tennessee Consumer Protection Act where the plaintiff suffers a demonstrable loss of credit, proximately caused by the defendant, resulting in actual harm. For these reasons, we affirm the judgment of the Court of Appeals upholding the default judgment, vacating the award of damages, and remanding the case to the trial court for a new hearing on the amount of damages.