Default Judgment: Madinah v. Duke
The Baltimore Medical Malpractice Lawyer Blog examines issues in civil litigation cases from Maryland appellate court opinions. In this post the issue is whether a trial court abuses its power by denying a motion to vacate or amend a default judgment when a party fails to file a timely response or timely appeal. The case is Madinah, Inc. v. Duke 22664, LLC, No. 974, September Term 2025 (Md. App. Sept. 14, 2026). The Appellate Court of Maryland issued this unreported opinion.
Factual Background on Default Judgment Appeal
This legal dispute began with a lease for a commercial shop in Maryland. The landlord and the tenants signed a five-year lease in April 2017. The lease included both a business entity and two private business owners as tenants.
Over time, the tenants struggled to pay their monthly rent on time. Therefore, the landlord worked with them by signing two lease changes. The first change in January 2020 ended future rent hikes. It also removed the duty of the tenants to pay shared maintenance fees. The second change in October 2022 made the lease month-to-month. It reduced the monthly rent to $6,500. It also turned the unpaid rent debt of $170,195.77 into an on-demand note.
Despite these changes, the tenants still failed to make regular payments. By October 2024, the tenants owed nearly $250,000 in unpaid rent and fees. So, the landlord filed a breach of contract lawsuit in the circuit court. The suit sought damages under the lease and note, along with late fees, interest, and legal fees.
On October 9, 2024, a process server served legal papers on the primary private defendant. The server served him both personally and as resident agent for the business. On the same date, the server served the secondary private defendant at a home address. However, the tenants did not file an answer or any court papers within the set time limit.
Default
Because the tenants failed to respond, the landlord requested an order of default in December 2024. The trial court entered the default order that same day. This began the process that led to the default judgment and appeal. The court also set a hearing on damages for March 2025. The clerk mailed notice to an address in Maryland. However, those letters returned as undeliverable.
To fix the notice issue, the landlord postponed the hearing date. The landlord located a new address in Maryland. In March 2025, the landlord served the papers to an adult daughter at that home. The landlord also served the business through its resident agent in April 2025.
The trial court held the damages hearing in June 2025. The landlord appeared with a lawyer. The private defendants appeared without a lawyer. The landlord presented the lease, the note, and a payment ledger through a property manager. The defense cross-examined the witness. The primary private defendant testified that early costs surprised him. He also testified that pandemic troubles harmed business revenues. However, he gave no proof of payments made after signing the note.
The trial court ruled that the landlord proved damages of $265,820.24 plus $39,870.03 in legal fees. The court entered default judgment on June 11, 2025. Twenty-eight days later, a lawyer entered an appearance for the defense. The lawyer filed an appeal and moved to vacate the default judgment. On August 5, 2025, the trial court denied the motion to vacate. However, the defense did not file a new appeal from that denial order.
Parties’ Arguments
On appeal, the tenants argued that the trial court erred when it denied their motion to vacate the default judgment. They asserted that their total debt should not exceed the amount in the note. They also argued that agents of the landlord verbally promised rent breaks during the pandemic. Thus, they asked the court to set aside or reduce the monetary judgment.
In contrast, the landlord argued that the appellate court lacked legal power to review the denial order. The landlord pointed out that the tenants failed to file a fresh appeal after the court denied the motion to vacate. Furthermore, the landlord argued that the tenants lost their right to dispute liability because they never moved to vacate the initial default order within thirty days. On the issue of damages, the landlord noted that the lease change clearly required ongoing rent on top of the note.
Court’s Ruling
The appeal court held that it lacked legal power to review the order denying the motion to vacate the default judgment. The court explained that filing a post-judgment motion more than ten days after entry of judgment does not pause the thirty-day appeal window. Also, a premature appeal filed before a late motion is decided does not cover the eventual denial order. Because the defense failed to file a second notice of appeal after the August order, the appellate court had no power to review that ruling.
Furthermore, the appellate court ruled that the tenants could not challenge their liability for breach of contract. Under state rules, obtaining a default judgment is a two-step process. The entry of an order of default fixes legal liability. If a party does not move to vacate that default order within thirty days, the issue of liability is closed forever.
Finally, the court reviewed the ruling on damages. The court rejected the defense claim that damages were capped by the note amount. The second lease change clearly required monthly rent payments in addition to the note debt. In addition, the defense did not raise that argument at the trial court hearing. Thus, the appellate court affirmed the monetary judgment in full and ordered the tenants to pay court costs.
Commentary By Baltimore Medical Malpractice Lawyer Mark Kopec on Default Judgment Appeal
This case provides lessons for individuals and businesses involved in court claims. Ignoring court papers or missing deadlines can bring total financial trouble. However, parties can take clear steps to navigate complex legal claims and avoid harsh results.
First, act immediately when served with a lawsuit. When a process server delivers legal papers, the deadline clock starts right away. Defendants must not ignore a summons or hope to settle informally outside of court. Instead, retain experienced legal counsel immediately to file an answer within the required time limit. Early action prevents an order of default from ever being entered.
Second, if a default order occurs, act quickly within the thirty-day cure window. State procedural rules give a party thirty days after entry or service of a default order to file a motion to vacate. This window is your best opportunity to save your case. If you move quickly and show good cause along with a real defense, courts will often strike the default. However, if you miss this thirty-day deadline, liability becomes fixed. After that point, no court will let you argue about who was at fault.
Additional Items
Third, understand the sharp difference between liability and damages. Once a default order stands, the lawsuit shifts entirely to calculating damages. At a damages hearing, you cannot present defense theories about verbal promises or contract terms. Instead, you must focus entirely on line-item numbers. Defense lawyers must check financial logs, challenge unproven costs, and show proof of proper payments. Raising clear objections during the hearing is vital to preserve your rights on appeal.
Fourth, track appellate deadlines with extreme care. A major procedural trap occurs when filing post-judgment motions. A motion filed within ten days of default judgment pauses the deadline to appeal. However, a motion filed after ten days does not pause that appeal clock. If you file an appeal while a late motion is pending, that appeal will not cover the motion’s eventual denial. When the court denies the late motion, counsel must file a second notice of appeal within thirty days. Failing to file that second notice leaves the appellate court with no power to help you.
In short, parties can protect themselves by acting fast, meeting court deadlines, focusing on key damage issues, and following appeal rules. Taking these early steps will help avoid default judgments and safeguard your legal rights.
You can read Blog posts on other cases involving judgment issues.
Mark Kopec is a top-rated Baltimore medical malpractice lawyer. Contact us at 800-604-0704 to speak directly with Attorney Kopec in a free consultation. The Kopec Law Firm is in Baltimore and helps clients throughout Maryland and Washington, D.C. Thank you for reading the Baltimore Medical Malpractice Lawyer Blog.