Serranos at Symphony Square, Inc. and Mama Ninfa's, A/K/A Mama Ninfa's Austin Management, LLC v. Winnie S. Rutledge
Rutledge sued Serranos for negligence after a fall, leading to a default judgment when Serranos failed to respond. Serranos's motion for a new trial was denied by the district court. On appeal, Serranos argued their failure to answer was a mistake, believing their insurance carrier was handling the defense, rather than conscious indifference. The appellate court found this belief negated conscious indifference, fulfilling one of the Craddock elements for setting aside a default judgment. Consequently, the court reversed the district court's judgment and remanded the case for further proceedings.