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WILLIAM CROES v. JOHN HANDLOS

Minnesota Supreme Court1948-01-09No. No. 34,423
225 Minn. 247

Summary

Holding. The trial court's denial of the motion to vacate the default judgment was affirmed, as the evidence supported a finding of inexcusable neglect where the defendant failed to engage replacement counsel despite his attorney's advice to do so and ignored the clerk's notice of the default hearing date.

A plaintiff sued a defendant for conversion of a hay baler, alleging the defendant sold property they owned together as tenants in common. The defendant initially retained an attorney, acknowledged the complaint's allegations to that attorney, and agreed to settle. When the defendant later refused to complete the settlement, his attorney withdrew and instructed him to obtain new legal representation. The defendant did not do so. The defendant's wife contacted the plaintiff's attorney claiming to have a receipt showing the defendant sold only his share, but the defendant never followed up by providing the receipt. The plaintiff obtained a default judgment after the defendant failed to answer and ignored notice of the default hearing.

The defendant moved to vacate the default judgment based on excusable neglect. The trial court denied the motion, finding the defendant's failure to answer was not excusable. The appellate court examined whether the trial court's finding of inexcusable neglect was supported by the evidence and determined it was amply supported by two key facts: the defendant ignored his former attorney's explicit instruction to retain new counsel within the answer period, and he disregarded written notice from the court clerk that the case would be heard as a default on a specific date.

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

Key issues

  • Whether a defendant's failure to answer constitutes excusable neglect when he ignores attorney's advice to obtain new counsel
  • Whether ignoring court notice of a default hearing date supports a finding of inexcusable neglect
  • Grounds for vacating default judgments based on excusable neglect

Procedural posture

This appeal challenges the trial court's order denying the defendant's motion to vacate a default judgment and for leave to answer.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Peterson, Justice.

This appeal is from an order denying defendant’s motion to open a default judgment and for leave to answer.

The only question requiring an answer here is whether a finding that defendant without reasonable excuse failed to answer is supported by a showing to the effect that defendant ignored both the advice of his attorney upon withdrawing to procure another one to interpose an answer and a notice received from the clerk that the case would be heard as a default on a specified date.

Plaintiff sued in conversion to recover one-half the value of a hay baler. He alleges that he and defendant owned the baler as tenants in common and that defendant converted the machine by selling the “whole thereof” to a third party. Defendant retained counsel, to whom he in effect stated that the allegations of the complaint were true. Counsel advised a settlement, to which defendant agreed, but which he refused to consummate after it had been arranged. Thereupon, counsel returned the summons and complaint to defendant and told him to get another lawyer to represent him. This defendant did not do within the time to answer. Instead, his wife called plaintiff’s counsel, to whom, she claims, she stated that defendant had a written receipt showing that defendant sold only his half interest in the baler and not the whole thereof. Without opening negotiations of any sort, plaintiff’s counsel suggested to her that defendant mail the receipt to him for examination. This defendant did not do. Not having heard from defendant, no answer having been interposed, and defendant being then in default, plaintiff caused judgment by default to be entered eight days afterward. The memorandum attached to the order appealed from states that the clerk gave defendant notice of the hearing at which the default judgment was rendered and that he made no appearance either in person or by attorney.

About one week after the entry of judgment defendant moved to open and for leave to answer. The court considered at length the case on the merits and concluded that upon the showing the proposed answer was sham and that defendant without reasonable excuse failed to answer. We need consider and decide only the latter question.

The motion to vacate and for leave to answer was made upon the ground of excusable neglect. Under M. S. A. 544.82, the court, in its discretion, may grant such relief upon the ground mentioned. We have repeatedly held that granting or refusing a motion to open a default judgment is a matter resting almost wholly in the sound discretion of the court. Belief should be granted liberally so as to permit determination of the controversy upon the merits. Where, however, the defendant himself has been guilty of inexcusable neglect, relief should be denied. Barwald v. Thuet, 157 Minn. 94, 195 N. W. 768 (failure of defendant to appear at trial, although he was advised to do so by his attorney and had been subpoenaed by plaintiff); Lodahl v. Hedburg, 184 Minn. 154, 238 N. W. 41 (defendant failed to answer, notwithstanding fact that sheriff told him when summons was served to get a lawyer and interpose an answer, and instead wrote a letter to plaintiff’s attorney explaining his side of the controversy). Courts have refused relief to a defendant as being guilty of inexcusable neglect, where, as here, he ignored a notice that on a specified date plaintiff would apply for a default judgment, Mountain v. Stewart, 112 Colo. 302, 149 P. (2d) 176; or where his lawyer withdrew from the case and advised him to get another lawyer to represent him, but he did not do so, Hughes v. Wright, 64 Cal. App. (2d) 897, 149 P. (2d) 392. Of course, a defendant may appear and answer personally, but he must do so either personally or by counsel.

Here, the finding that defendant’s failure to answer was not the result of excusable neglect finds support in the facts that defendant did not engage counsel to interpose an answer within the time therefor, although he was advised to do so by the counsel he retained when counsel withdrew from the case, and that defendant ignored the notice from the clerk that the case was to be heard on a specified date as a default. Such a showing permitted a finding that defendant was guilty of inexcusable neglect.

Affirmed.