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MARTHALER MACHINE & ENGINEERING COMPANY v. FRANK E. MEYERS

Minnesota Supreme Court1928-02-24No. No. 26,570
173 Minn. 606

Summary

Holding. The appellate court reversed the trial court's order vacating the judgment, holding that the defendant failed to demonstrate grounds for relief under the discretionary statute and that his motion was untimely filed more than one year after receiving notice of the judgment.

Plaintiff Marthaler Machine & Engineering Company appealed after a lower court vacated a judgment it had won against defendant Frank E. Meyers. The defendant had moved to set aside the judgment, claiming he was never properly served with a summons, though the record contained an affidavit of service. The trial court vacated the judgment and reopened the case to allow the defendant to file an answer, stating it did so to ensure the case could be decided fairly on the merits rather than on service grounds.

The appellate court examined whether the trial court had authority to vacate the judgment. The court found that the trial court relied on a discretionary statute allowing relief from a judgment when a party shows mistake, inadvertence, surprise, or excusable neglect, provided the motion is filed within one year of notice. However, the defendant failed to meet the statutory requirements: he made no showing of any such grounds, and he waited over a year after receiving actual notice of the judgment before moving to vacate it. Additionally, the court rejected the defendant's argument that the original judgment was improperly entered by the clerk, finding that the claim for goods sold and delivered constituted a liquidated demand for which default judgment was proper.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a trial court may vacate a judgment under discretionary relief statute absent a showing of mistake, inadvertence, surprise, or excusable neglect
  • Whether a motion to vacate is timely when filed more than one year after the moving party received notice of judgment
  • Whether a default judgment for goods sold and delivered is properly entered by a clerk without court hearing

Procedural posture

Plaintiff appealed from an order by the trial court that vacated a judgment entered in plaintiff's favor and reopened the case for trial.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Olsen, C.

Plaintiff appeals from an order vacating a judgment in its favor.

Defendant moved to set aside the judgment on the ground that it is “absolutely void, and for such other relief as may be just with costs.” He accompanied his notice of motion with and based the motion upon his own affidavit and a proposed answer. In the affidavit he denied that any summons in the action was ever served upon him and set forth matters in defense of the action.

1. The court, by its order, does not vacate the judgment on jurisdictional grounds or because of any failure to serve the summons upon defendant, but vacates and opens the judgment to permit defendant to interpose his answer, and sets the case down for trial. In its memorandum, filed with but not expressly made a part of the order, the court states that the order is “not made by reason of the failure of a proper service but is granted in order that justice may be done and that the case may fairly be determined upon the merits.” The record contains proof of service, shown by affidavit of the person making such service and supported by his additional aifidavit presented at the hearing. Other circumstances shown tend to support rather than to overcome the proof of service. Defendant’s showing of want of service is weak, but presents a question of fact which might have justified the order if the court had based it on that ground. The court’s memorandum was not expressly made a part of the order, but such memorandum may be considered where it throws light upon or furnishes a “controlling reason” for the court’s findings or order. This is such a case. Johnson v. Johnson, 92 Minn. 167, 170, 99 N. W. 803; Bradley v. Bradley Est. Co. 97 Minn. 130, 106 N. W. 338; Kipp v. Clinger, 97 Minn. 135, 106 N. W. 108; Gay v. Kelley, 109 Minn. 101, 123 N. W. 295, 26 L.R.A. (N.S.) 742; Baker v. Polydisky, 144 Minn. 72, 174 N. W. 526; Standard S. & C. Co. v. Commercial Cas. Ins. Co. 171 Minn. 39, 213 N. W. 543.

Construed in the light of the court’s memorandum, it is clear that the order was made as a discretionary order under G. S. 1923, § 9283, granting power to the court, at any time within one year after notice thereof, in its discretion, to relieve a party from a judgment entered against him through his mistake, inadvertence, surprise or excusable neglect.

2. To obtain relief under the section of the statute noted, the moving party must make his application within a reasonable time after notice of the judgment, and at all events within one year after such notice. 3 Dunnell, Minn. Dig. (2 ed.) § 5015, and cases cited, n. 56. The order here made cannot be sustained for two reasons: Defendant makes no showing of mistake, inadvertence, surprise or excusable neglect. In the second place, the judgment was entered on June 28, 1926, and on July 1, 1926, plaintiff’s attorneys notified the defendant by letter that they had entered judgment against him in the matter. A few days later defendant acknowledged receipt of the letter, and in his letter stated: “I notice you say you were forced to enter judgment against me.” The motion to vacate the judgment was not made until September 19, 1927. Defendant now claims the notice was insufficient because it did not state at what place or in what court the judgment was entered. He made no claim as to that in his letter; and, as the order was made on the basis that the summons was properly served, he cannot now claim lack of information as to where and in what court the judgment was entered.

3. The cause of action stated in the complaint is for an indebtedness of $189.15 “for goods sold and delivered to defendant, at defendant’s special instance and request and which were reasonably worth said sum.” Defendant claims that this is a cause of action for unliquidated damages and that the action comes under G-. S. 1923, § 9256(2), and therefore the clerk had no authority to enter judgment by default, without a hearing before the court on the amount of damages or value of the goods and an order for judgment by the court. This claim is disposed of by the case of Thomas-Halvorson Lbr. Co. v. McRell, 165 Minn. 160, 206 N. W. 951. If in fact the action was, as defendant now claims, for materials furnished and services rendered, it would likewise be one for entry of judgment by default under § 9256 (1). Whereatt v. Ellis, 68 Wis. 61, 30 N. W. 520, 31 N. W. 762.

The order appealed from is reversed.