IN THE COURT OF APPEALS OF IOWA
No. 16

- 0246 Filed January 25, 2017

DIRK COLE BEAL , Plaintiff

- Appell ee ,
vs. JONATHAN TOLBERT CROWDER , Defendant

- Appell ant

.

________________________________________________________________ Appeal from the Iowa District Court for Benton County, Marsha A. Bergan , Judge.

A defendant appeals the district court’s denial of his motion to set aside a default judgment. REVERSED AN D REMANDED.

Jeffrey M. Beatty of Shuttleworth & Ingersoll, P.L.C. , Cedar Rapids , for appellant. Gary J. Shea of Gary J. Shea Law Offices , Cedar Rapids , for appellee.

Considered by Potterfield, P.J., and Doyle and Tabor, JJ.2

TABOR, Judge. Jonathan Crowder appeals the district court’s denial of his motion to set aside a default judgment holding him liable for $993,760 in damages suffered by
Dirk Beal. Crowder argues the court abused its discretion by entering judgment against him because he was not in default. Considering the unusual procedural course taken by this case, we agree d efault judgment was not appropriate. Specifically, we find Crowder’s handwritten letter, in which he denie d Beal’s allegations , constituted an answer and the clerk of court’s mailing of the letter at the court’s direction satisfie d Crowder’s service requirement. Accordingly, we

reverse the ruling and remand for further proceedings. 1
I. Facts and Prior Proceedings Beal filed a petition at law on June 27, 2011, alleging he suffered injuries while working on a roofing construction project in November 2010 as a result of the negligence of Paul and Jennifer Sankot , doing business as Sankot Construction

. After receiving notice the Sankots had filed for ban kruptcy, Beal filed an amended petition on July 3, 2012, adding Crowder a nd a number of other individuals as defendants in the action. 2 On July 19, 2012 , in response to the petition, Crowder filed a handwritten
letter with the di strict court , stating:

To whom it may concern, I Jonathan T. Crowder am being sued by Dirk Beal in a civil suit. I would ask that I be given more time to find an attorney. I deny the accusa tions against me and need more t i me to find

1 Because we reverse on this ground, we need not address Crowder’s other arguments raised on appeal. 2 The other defendants are not parties to this appeal.3
representation. All the attorneys I’ve c ontacted have had conflict of interest. Please allow me more time. Thank you, Jonathan T. Crowder
The letter did not contain a formal caption or certificate of service , but it did include a case number. 3 That same day, the district court issued a for m order in response to Crowder’s letter . The court checked a box indicating it would not take action because Crowder’s “request for relief” did not include a certificate of service . The court checked a second box , which provided : “The clerk shall send a copy of the correspondence to the attorneys and interes ted parties of record. No further action is taken by the Court at this time.” The court added this handwritten not e : “Court costs associated with copying and mailing Mr. Crowd er’s notice are taxed to Mr. Crowder.” According to the notation of the clerk of court, the attorneys of record in the case, but not Crowder, were mailed a copy of Crowder’s file

- stamped letter along with the court’s order. 4 Approximately one week late r, the district court issued an order for a scheduling conference; the clerk’s office did not mail Crowder a copy of the order. On August 2, 2012, Beal’s attorney sent Crowder a notice of intent to file written application of default, which stated:

3 In the clerk’s docket, Crowder’s filing is designated as an “Answer.” The comments following the entry state: “Answer to Petition (denial) & Request for more time to find legal counsel.” 4 Crowder’s letter to the court provided his telephone number but not his current address. A n affidavit of service from the process server, which was on file at the time of the court’s order, did include Crowder’s address.4

YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A DEFAULT JUDGMENT WILL BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE IMPORTANT RIGHTS. YOU SHOU LD SEEK LEGAL ADVICE AT ONCE. [ 5 ] Crowder did not respond to this notice . Shortly thereafter, the district court stayed the proceedings with the consent of the parties who had attended the scheduling conference. Crowder did not receive notice of the stay

. More than two years later, on October 6, 2014, Beal filed an ap plication for entry of default

. The clerk of court granted the application the next day and sent a copy of the filing to Crowder. Beal then applied for entry of judgment on the default . The district court set the matter for hearing on November 21, 2014, but the hearing was continued due to the illness of the presiding judge. The court
rescheduled the hearing for January 30, 2015

. Th e scheduling order was not sent to Crowder. Unsurprisingly, Crowder did not attend the January 30 hearing. Beal offered evidence at the hearing that supported the amount of damages he requested against Crowder , and on August 20, 2015, the district court entered judgment against Crowder in the amoun t of $993,760.28

. 6

5 The document did not include a certificate of service, but in Beal’s application for entry of de fault, hi s attorney certified he sent it “by ordinary mail to the Defendant J.T. Crowder on 8/2/ 12 at his last known address.” 6 The court found Crowder and Chance Brennecke, another defendant who had defaulted, to be jointly and severally liable for the damages. Brennecke did not appeal the district court’s order.5 Crowder filed another handwritten document with the court on August 28, stating: I Jonathan Crowder ask the Court to reconsider the judgment against me. I had called the Clerk of Court a few days after I was originally served . . . . I was told just to write a letter asking for more time. I didn’t and still don’t have an attorney because of my financial situation. I did not know I had to also send a letter to the plaintiff’s lawyer. I am participating in this case. I was jus t mis

- informed of what my duties were in this case. I was just doing what I was told. I have only received [three] papers over the years about this case; I did not know what a lot of them meant. I ask that the court reconsider the default Judgment. I t ried to respond.

. . . Also, I had recently called the Clerk of Court office and was told I should call Legal Aid in Cedar Rapids for help. I did and was instructed to write this letter in regards to the case. I will be sending a copy to the Plaintiff ’ s lawyer as well. The district court treated Crowder’s filing as a motion to reconsider default judgment and summarily overruled the motion on September 8. On September 30, an attorney filed an appearance on behalf of Crowder. Crowder’s attorney f iled a motion to set aside default judgment on October 9 , arguing Crowder had never been in default and, alternatively, good cause existed to set aside the default judgment. Beal resisted, contend ing Crowder’ s second motion was improper but also rebutting the merits of Crowder’s argument.
T he district court held a hearing on Crowder’s motion on November 20

. Crowder did not present any evidence at the hearing. After considering argument in the matter , the district court judge

— the same judge who had i ssued the order in response to Crowder’s initial filing

— commented on her reasons for issuing the July 19, 2012 order and sending Crowder’s filing to the parties of
record in the case:6 [T]his was a unique piece of paper from a pro se litigant. He actually wrote I deny the accusations against me and so as a Judge I’m thinking that looks a lot like an answer, not a very good one, but . . . Mr. Crowder does identify himself, he signs the document, he says who the plaintiff is, he says it’s a civil suit, and he denies the accusations. So when it comes upstairs to me, I’m thinking this looks a lot like an answer but I can see he didn’t serve it on anybody, and so I’m pretty concerned. I want everybody to know that he filed that document, and that’s why I checke d the box entitled other and asked the clerk to send that notice out; and it upsets me as a Judge that our clerk has to spend time sending out papers that are supposed to be sent out to the other parties by the pro se litigant who files them, so I wrote th at those costs needed to be taxed to Mr. Crowder. The judge noted she did not rule “on what looked like a general denial and a lot like an answer” because she was not asked to do so. She also clarifi ed that what the court declined to “take any action o n” in the order was the request for more
time , not Crowder’s denial of the allegations against him : “My order simply said what is common. Nobody takes any action on an answer. You file an answer; I don’t take an action on answer. I take no action becaus e nobody does.” Despite the court’s initial inclination to believe that Crowder’s filing was an

answer , t he district court denied Crowder’s motion to set aside default judgment. The court emphasized Crowder’s failure to act over a protracted period of t ime despite receiving filings from both the court a nd Beal and found, considering “this history of [Crowder’s ] inactions,” it was inappropriate to, “in hindsight, rule that [Crowder’s] July 19, 2012 filing is deemed to be an answer.” The court also rejected Crowder’s argument default should be set aside for good cause , particularly considering Crowder’s failure to present testimony or other evidence in support of his motion to reconsider

. Crowder now appeals.7

II. Jurisdiction As an initial matter, Beal argues we should not reach the merits of Crowder’s appeal because Crowder did not file a notice of appeal within thirty days of the district court’s September 8, 2015 order denying his motion to

re consider the default judgment

. Beal contends the district court lacked jurisdiction to consider Crowder’s subsequent motion to set aside default judgment because the September 8 denial of Crowder’s motion to reconsider constituted “law of the case,” and “ the se issues cannot again be re

- litigated by filing a second motion . . . under the doctrines of res j udicata and/or issue preclusion. ”
We disagree with Beal’s position. Crowder’s initial filing in response to the entry of default judgment was a motion to enlarge or amend u nder Iowa Rule of Civil Procedure 1.904 (2) (“On motion joined with or filed within the time allowed for a motion for new trial, the findings and conclus ions may be enlarged or amended and the judgment or decree modified accordingly or a different judgment or decree substituted.”) . His next filing was distinct

— a motion to set aside default judgment u nder rule 1.977 (“On motion and for good cause
shown

. . . the court may set aside a default or the judgment thereon, for mistake, inadvertence, surprise, excusable neglect or unavoidable casualty.”) . Crowder appropriately appealed from the district court’s order denying his motion to set aside default judgmen t. Nor do we find Beal’ s law

- of

- the

- case or res judicata argument s persuasive. As Crowder points out, t he law

- of

- the

- case doctrine governs issues raised and decided on appeal , which is not the situation here

. See Spiker v.8

Spiker , 708 N.W.2d 347, 352 n.1 (Iowa 2006) ( “[A]n appellate decision becomes the law of the case and is controlling on both the trial court and on any further appeals in the same case.” (citation omitted) ). As for res judicata , which
encompasses both issue and claim preclusion, tho se doctrines have preclusive effect only where more than one action is involved

. See Clarke Cty. Reservoir Comm’n v. Robins , 862 N.W.2d 166, 177 (Iowa 2015) (“Issue preclusion, a form of res judicata, is based on a prior judgment . So, too, is claim precl usion.” (citation omitted)). H ere , we are faced with a single action. Accordingly, we proceed to the merits of Crowder’s appeal.
III

. Scope and Standard of Review We review a proceeding to set aside a default judgment for correction of legal error. See Iowa R. App. P. 6.907. Because the district court has broad
discretion in entering a default judgment and ruling on a motion to set aside a default judgment , we will reverse only if the court has abused its discretion. See Cent. Nat’l Ins. Co. of Omaha v. Ins. Co. of N. Am. , 513 N.W.2d 750, 753 (Iowa 1994). “We are bound by the district court’s findings of fact if supported by substantial evidence, and we view the evidence in the light most favorable to the district court’s ruling.” Id.
B ut if there is no factual issue and the question is solely one of law, we are not bound by the district court’s determination. See id. at 754. W e resolve all doubts in favor of setting aside a default judgment, as we prefer “to allow a determination of controversie s on their merits rather than on the basis of nonprejudicial inadvertence or mistake.” See Brandenburg v. Feterl Mfg. Co. , 603 N.W.2d 580, 584 (Iowa 1999) (citation omitted).9

I V. Analysis
A defendant who “[f]ails to serve and, within a reasonable time thereafter, file a[n] . . . answ er as required in rule 1.303” shall be in default. Iowa R. Civ. P. 1.971(1). Rule 1.303 sets t he deadline for a defendant to satisf y the answer requirement: tw enty days after receiving service of the original notice and petition. See Iowa R. Civ. P. 1.303(1). Accordingly , to determine whether Crowder was in default, we must consider whether Crowder’s letter constitutes
an answer and , if so, whether the clerk o f court’s actions

— taken at the behest of
the district court

— satisfied the service requirement. Crowder argues his July 19, 2012 letter constituted an answer as a matter of law. He acknowledges the “filing leaves something to be desired in terms of formal i ty ” b ut asserts its substance is a clear “general denial, as the operative language effectively conveys . . . Crowder’s intent to deny all the allegations of [the] Petition.” Further, Crowder argues we should liberally construe his filing because Beal fa iled to attack it through a motion for more specific statement or a
motion to strike. Emphasizing Crowder’s failure to include a certificate of service and to “specifically admit or deny each allegation or paragraph” of the petition, Beal argues the tr ial court did not abuse its discretion when it found Crowder’s July 19
letter did not constitute an answer. Beal asserts he was “entitled to rely upon the court’s directive confirming that no action shall be taken relating to the filing,” particularly con sidering Crowder’s inaction after filing the letter.
W e find Crowder’s letter constitute d an answer. Beal is correct that our rules of civil procedure discuss technical requirements for answers, including10

“specifically admit[ting] or deny[ing] each allegation or paragraph of th e pleading to which it responds. ” S ee Iowa R. Civ. P. 1.405(1) ; 7 see also Foods, Inc. v. Leffler , 240 N.W.2d 914, 920 (Iowa 1976) (“ The foregoing rule [previously numbered as rule 72] enunciates general principles as to what m atters may be put in issue by, or provable under, a general denial, and what matters must be specifically pleaded as affirmative defenses. ”). But a filing that generally denies the allegations in a petition may constitute an answer for purposes of avoidin g a default. See Iowa R. Civ. P. 1.402(1) ( sta ting the rules relating to form and sufficiency of pleadings should be “construed and enforced to secure a just, speedy and inexpensive determination of all controversies on their merits”). 8 In determining wh ether a filing is an answer, we are guided by the substance of the filing

. See Zimmer v. Vander Waal , 780 N.W.2d 730, 732 (Iowa 2010) (“[W]e do not rely on the name of a pleading in determining what type of motion it presents; rather, we look to the plead ing’s substance.” ) ; Lopez

- Penaloza v. State , 804 N.W.2d 537, 541 (Iowa Ct. App. 2011) (finding filing captioned a resistance and raising statute

- of

- limitations defense could be treated as an answer or a motion to dismiss in postconviction

- relief proceeding s).

7 T he official comment to rule 1.405 states : “Rule 72 [now Rule 1.405] abolished general denials and requires specific denials or admissions of each allegation of a petition. ” But the comment also clarifies that general denials are not void: “ Although Rules 67 and 72 [now 1.402 and 1.405] were intended in part to abolish the general denial, it is said in Frederick v. Shorman , [ 147 N.W.2d 478 , 482 (Iowa 1966)] , that: ‘ Under a general denial def endant may prove anything tending to show plaintiff's allegation is untrue. ’” 8 The official comment to rule 1. 402 states: “[T] he general denial was here abolished, in the hope that specific denials would narrow the fact disputes, and thereby shorten trials and minimize the expense of litigation. Whether this has actually been done, so as to counterbalance the resulting complexity in pleadings, is doubtful. ” This comment reveals the purpose of requiring specific denials was not to test the adequacy o f an answer but to streamline litigation.11 Crowder’s July 19 l etter admitted he was the subject of a civil lawsuit brought by Beal and included the following statement : “I deny the accusations against me . . . .” In substance, t h is statement is an answer
— a denial

— and should be treated as such, particularly considering the brevity of the amended petition to which it responds

. 9 In addition, we find Crowder’s self

- represented status significant. Generally, we do not “utilize a deferential standard when persons choos e to represent themselves,” see Kubik v. Burk , 540 N.W.2d 60, 63 (Iowa Ct. App. 1995) (finding self

- represented plaintiff failed to show good cause for failing to timely designate experts when he was unaware of the timing requirement), but a self

- represent ed party “is entitled to a liberal construction of his pleadings,” see Munz v. State , 382 N.W.2d 693, 697 (Iowa Ct. App. 1985). 10
T he district court acknowledged it “often required very little of self

represented litigants for the Court to deem a filing to be an answer

. ” But the
court nevertheless faulted Crowder for failing to caption the filing as an answer

. In addition, the court cited Crowder’s failure to correct the district court when it

9 In relation to Crowder, t he petition alleges: (1) Beal was injured when he fell off a roof during a roofing construction project and sustained “serious and debilitating injuries”; (2) Crowder, a Benton County resident, was one of at least two other individuals working on the project; and (3) Crowder was “negligent, which negligence was a proximate cause of . . . Beal’s injuries and damages,” including medical expenses, pain and suffering, emotional distress, lo ss of earnings, disability, proper ty damages, and other damages. 10 Although we find Crowder’s answer sufficient to prevent a default, we do not comment upon the overall adequacy of Crowder’s answer, nor do we suggest Beal could not have question ed the suf ficie ncy of Crowder’s answer through a motion for more specific statement or a motion to strike. See Iowa R. Civ. P. 1.433, .434; see also Burlington and Mo. River R.R. Co. v. Marchand , 5 Clarke 468, 468

– 69 (Iowa 1858) (“Where an answer fails to convey to a common understanding, a reasonable certainty of meaning, the court, on motion, may require the defendant to make his statement more specific; or, if necessary, may require him to respond specifically to the affirmative allegations of the petition. It i s not allowable to treat an insufficient answer, as a nullity, and render judgment by default, as if no answer was on file.”)

.12

referred to his letter as “correspondence” and a “notice” rath er than an “answer,” his failure to notify Beal his filing was a n answer after receiving the notice of
intent to file written application of default , and his failure to appear to defend at the default judgment hearing.
T he district court plac ed too much weight on Crowder’s failure to label the
letter as an “answer” and hi s inaction after filing the letter, which appears to be largely the result of Crowder’s failure to receive orders from the court

. We also find the clerk of court’s actions satisfied Cro wder’s s ervice requirement

. 11 “Service shall be made by . . . mailing . . . a copy to the attorney or to the party at the attorney’s or party’s last known address or, if no address is known, by leaving it with the clerk of court.” Iowa R. Civ. P. 1.442(2). Here, the service requirement was satisfied whe n the clerk of court complied with the district court’s directive by sending copies of Crowder’s letter to t he parties of record and charging Crowder for the cost of mailing. Beal does not dispute he received a copy of Crowder’s letter , thereby learning of Crowder’s denial of the allegation of negligence

. W e find the district cour t abused its discretion in finding Crowder in default and declining to set aside the default judgment

. Accordingly, we reverse and remand for further proceedings. REVERSED AND REMANDED.

11 Citing Iowa Rule of Appellate Procedure 6.903(2)(g)(3), Beal contends we should not consider Crowder’s argument his answer was properly served under the rules of civil procedure because Crowder cites no auth ority to support his argument. We disagree. Crowder cites to the relevant rule of civil procedure as well as a prior Iowa Court of Appeals opinion in support of his argument. Accordingly, we find it appropriate to consider the merits of his argument.