Opinion ID: 1934252
Heading Depth: 1
Heading Rank: 5

Heading: frow doctrine

Text: The principal issue in this appeal is whether the district court erred in not applying what has become known as the Frow doctrine, which arose from the opinion of the U.S. Supreme Court in Frow v. De La Vega, 82 U.S. 552, (15 Wall. 552), 21 L.Ed. 60 (1872). In that case, De La Vega filed suit against Frow and 13 other defendants, alleging that 8 of the defendants, including Frow, fraudulently obtained a tract of land by various devices, including the use of a forged power of attorney. All defendants except Frow filed timely answers. On application of De La Vega, the district court entered the equivalent of a default judgment against Frow in which it determined that De La Vega had title to the land and awarded injunctive relief. The case was then tried and resolved in favor of the answering defendants, resulting in its dismissal. In his appeal, Frow contended that the court erred in entering judgment against him while the case was still pending on the merits as to the answering defendants. The Supreme Court reversed the judgment against Frow, holding: If the court in such a case as this can lawfully make a final decree against one defendant separately, on the merits, while the cause was proceeding undetermined against the others, then this absurdity might follow: there might be one decree of the court sustaining the charge of joint fraud committed by the defendants; and another decree disaffirming the said charge, and declaring it to be entirely unfounded, and dismissing the complainant's bill. And such an incongruity, it seems, did actually occur in this case. Such a state of things is unseemly and absurd, as well as unauthorized by law. The true mode of proceeding where a bill makes a joint charge against several defendants, and one of them makes default, is simply to enter a default and a formal decree pro confesso against him, and proceed with the cause upon the answers of the other defendants. The defaulting defendant has merely lost his standing in court. He will not be entitled to service of notices in the cause, nor to appear in it in any way. He can adduce no evidence, he cannot be heard at the final hearing. But if the suit should be decided against the complainant on the merits, the bill will be dismissed as to all the defendants alikethe defaulter as well as the others. If it be decided in the complainant's favor, he will then be entitled to a final decree against all. But a final decree on the merits against the defaulting defendant alone, pending the continuance of the cause, would be incongruous and illegal. 82 U.S. at 554. The Court in Frow did not identify under what specific circumstances it is inappropriate to enter a default judgment against one of multiple defendants. See Farzetta v. Turner & Newall, Ltd., 797 F.2d 151, 154 n. 2 (3d Cir.1986) (noting, inter alia, that Frow opinion does not describe relationship between Frow and his co-defendants). Various courts and commentators have taken different approaches to the applicability of Frow. According to one treatise, Frow establishes a general rule that when one of several defendants who is alleged to be jointly liable defaults, judgment should not be entered against that defendant until the matter has been adjudicated with regard to all defendants, or all defendants have defaulted. 10A Charles A. Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure: Civil § 2690 at 73 (3d ed.1998). Wright further states that the Frow doctrine also applies where liability is joint and several and even probably can be extended to situations in which several defendants have closely related defenses. Id. at 76. Several courts have applied Frow in accordance with this approach. See, Farzetta v. Turner & Newall, Ltd., supra (holding that Frow stands for proposition that if facts are proved at trial which exonerate answering defendants and that as matter of logic preclude liability of defaulting defendant, plaintiff cannot obtain judgment against defaulting defendant, even though defaulter failed to participate in proceeding in which exculpatory facts were proved); Gulf Coast Fans v. Midwest Elec. Importers, 740 F.2d 1499 (11th Cir.1984) (noting that when defendants are similarly situated, though not jointly liable, judgment should not be entered against defaulting defendant if other defendant prevails on merits); Federal Deposit Ins. Corp. v. Manatt, 723 F.Supp. 99 (E.D.Ark.1989) (stating that when defendants are sued jointly and severally and one defaults, judgment should not be entered against defaulter until matter has been adjudicated as to all defendants); Warrington U.S.A., Inc. v. Allen, 631 F.Supp. 1456 (E.D.Wis.1986) (stating that when complaint makes joint charge against two or more defendants and one fails to answer, judgment should not be entered against defaulter until matter has been adjudicated as to all defendants). Other authorities interpret Frow v. De La Vega, 82 U.S. 552, (15 Wall. 552), 21 L.Ed. 60 (1872), more narrowly. A noted commentator states: Frow stands for the narrow rule that a default judgment may not be entered against one of several defendants when: the theory of recovery is one of true joint liability, such that, as a matter of law, no one defendant may be liable unless all defendants are liable, or; the nature of the relief demanded is such that, in order to be effective, it must be granted against each and every defendant. 10 James W. Moore, Moore's Federal Practice § 55.25 at 55-45 and 55-46 (3d ed.1999). Under this approach, Frow ... does not apply to cases involving the joint and several liability of multiple defendants for damages, because in such a case the liability of each defendant is not necessarily dependent upon the liability of any other defendant, and plaintiff may be made whole by a full recovery from any defendant. Id. at 55-46. Some courts have followed the narrow interpretation of Frow articulated by Moore. See, McMillian/McMillian, Inc. v. Monticello Ins. Co., 116 F.3d 319 (8th Cir.1997) (finding Frow inapplicable where defendants had closely related interests but were not alleged to be jointly liable); In re Uranium Antitrust Litigation, 617 F.2d 1248 (7th Cir.1980) (holding that Frow does not apply where liability is joint and several); Martin v. Coughlin, 895 F.Supp. 39 (N.D.N.Y.1995) (holding that Frow prohibits entry of default judgment against one of several defendants only: (1) where theory of recovery is one of true joint liability, such that, as matter of law, no one defendant may be liable unless all defendants are liable, or (2) where nature of relief demanded is such that, in order to be effective, it must be granted against every defendant); Montcalm Pub. Corp. v. Ryan, 807 F.Supp. 975 (S.D.N.Y. 1992) (holding that where joint and several liability of multiple defendants was alleged, court may enter default judgment against any defendants who fail to appear); Days Inns Acquisition Corp. v. Hutchinson, 707 So.2d 747 (1997) (recognizing that where relief against one defendant is completely dependent upon liability of codefendant, it is improper to enter default judgment until liability of codefendant is decided). This approach is aptly summarized in In re Uranium Antitrust Litigation, 617 F.2d at 1257-58: Frow involved a claim of a joint tort to defraud the plaintiff of title to a res. To the extent that it holds that there cannot be inconsistent adjudications as to joint liability or as to a single res in controversy this ancient equity case remains good law. But to apply Frow to a claim of joint and several liability is to apply that venerable case to a context for which it was never intended, and ignores the several or independent aspects of the claim set forth in this complaint. The result in Frow was clearly mandated by the Court's desire to avoid logically inconsistent adjudications as to liability. However, when different results as to different parties are not logically inconsistent or contradictory, the rationale for the Frow rule is lacking. The appellate courts of Nebraska have never specifically recognized or applied the Frow doctrine. However, two reported cases address circumstances in which a default judgment was entered against one of several defendants. In Grant v. Clarke, 58 Neb. 72, 78 N.W. 364 (1899), the plaintiff brought an action against multiple defendants to foreclose a mortgage securing two promissory notes. The court entered a default judgment against one of the defendants and, after trial, resolved the action against the other defendants. On appeal, this court found that there was no proof establishing the plaintiff's title to the notes and his right to foreclose the mortgage securing them, and thus we reversed the order of the district court. However, without mentioning Frow v. De La Vega, 82 U.S. 552, (15 Wall. 552), 21 L.Ed.60 (1872), this court noted that as to a defendant who defaulted, the averments of the petition were taken as true, and therefore as to the defaulter, the original foreclosure decree entered by the district court was still valid. In German-American Bank of Milwaukee v. Stickle, 59 Neb. 321, 80 N.W. 910 (1899), a bank sued four defendants on a promissory note. One defendant answered, denying the execution of the note, and the other three defaulted. A jury found in favor of the answering defendant, and the trial court dismissed the action as to all defendants. On appeal, this court noted without reference to Frow that the trial court was correct in not instructing the jury to return a verdict against the defaulted defendants, stating: The business of the jury was to try issues of fact, and, as between the plaintiff and the defaulted defendants, there was no issue of fact to try. The claim of the bank against [the defaulters] was confessed, and judgment should have been rendered accordingly. The court therefore erred in dismissing the action. Id. at 325-26, 80 N.W. at 911.