Opinion ID: 874103
Heading Depth: 2
Heading Rank: 2

Heading: Unique and Compelling Circumstances Justifying Relief

Text: The district court did not abuse its discretion in concluding that unique and compelling circumstances justified the relief it granted to the Nguyens. The district court acted within its discretion in concluding that Maynard's counsel should have provided it with the letter and attached Three Days Notice at the default hearing because it did outline a meritorious defense, it was directed to the judge, and it obviously had a bearing on the judge's outlook with regard to the case. As Maynard points out in her opening brief, Rule 3.3(d) of the Idaho Rules of Professional Conduct provides, In an ex parte proceeding, a lawyer shall inform the tribunal of all material facts known to the lawyer that will enable the tribunal to make an informed decision, whether or not the facts are adverse. She continued, Maynard and her counsel acknowledge, of course, that the existence of the letter was material to the default hearing, as was the letter's salutationto `The Honorable Judge.' (emphasis in original). When he learned of the content of the letter at a later date, the district judge obviously concluded that it contained information material to the issue at hand in the default hearing. [3] While Maynard's counsel orally notified the judge of the letter at that hearing, there was no mention of the attached Three Days Notice, nor of the indication in the letter that the Nguyens were intent on defending against Maynard's claim. [4] It is unknown exactly how the matter was presented to the judge, including what inflection may have accompanied the disclosure, but it is clear that how situations are presented can have a material effect on the import given them by the other party. This is why the Court allows discretion in these matters to the presiding judge. There is certainly no indication that the judge went outside the bounds of his discretion in determining that he had not been informed of all material facts known to the lawyer that will enable the tribunal to make an informed decision. At the hearing on the motion to set aside the default and judgment, which was held on November 4, 2009, the district judge alluded to another irregularity in the proceedings, although it is not clear whether, or to what extent, that irregularity may have played a part in the judge's decision to grant the motion. In summarizing the procedure, the district judge noted, On June 25, 2009, I signed an order of default noting that the defendants had been served with the complaint and the summons and had not appeared or answered. That default wasn't entered until September 2nd. Indeed, that is the case. Thus, the default order had not been entered at the time the district court entertained Maynard's proof in support of her request for judgment by default. [5] The document entitled Orders of Default was not entered into the court record until September 2, 2009, the same time the district court entered its Memorandum Decision and Order determining the form and content of Maynard's subsequent judgment. Further complicating the situation, individual defaults for the three Nguyens were signed and entered by the clerk on September 11, 2009, the same day the judgment was entered. Thus, the defaults against the defendants were entered concurrent with entry of the judgment, the Order of Default was entered concurrent with the Memorandum Decision and Order and no default had been entered of record at the time of the default hearing, nor was any entered until the court determined the disposition of the case in the Memorandum Decision and Order. [6] This Court recently dealt with a request for relief under I.R.C.P. 60(b)(6) in Dawson v. Cheyovich Family Trust, 149 Idaho 375, 234 P.3d 699 (2010). There, we recited: A trial court's decision whether to grant relief pursuant to I.R.C.P. 60(b) is reviewed for abuse of discretion. The decision will be upheld if it appears that the trial court (1) correctly perceived the issue as discretionary, (2) acted within the boundaries of its discretion and consistent with the applicable legal standards, and (3) reached its determination through an exercise of reason. A determination under Rule 60(b) turns largely on questions of facts to be determined by the trial court. Those factual findings will be upheld unless they are clearly erroneous. If the trial court applies the facts in a logical manner to the criteria set forth in a logical manner to the criteria set forth in Rule 60(b), while keeping in mind the policy favoring relief in doubtful cases, the court will be deemed to have acted within its discretion. Id. at 380, 234 P.3d at 704 (quoting Waller v. State, Dep't of Health & Welfare, 146 Idaho 234, 237-38, 192 P.3d 1058, 1061-62 (2008)). In Dawson we noted that where a district court grants relief that is inconsistent with the pleadings and evidence in the case, such fact may constitute unique and compelling circumstances sufficient to justify relief under I.R.C.P. 60(b)(6). Id. In Hopkins v. Troutner, 134 Idaho 445, 447, 4 P.3d 557, 559 (2000), we noted that Rule 60(b)(6) gives wide latitude to the trial court in determining those circumstances under which to relieve a party from the effects of an order. In that case, we held the district judge acted within the bounds of his discretion and consistently with the legal standards applicable in a situation where the district court determined a lawyer had given legal advice to an unrepresented party in settling a claim, thereby coming into conflict with a comment to the Model Rules of Professional Conduct, even though the comment had not been adopted in Idaho. The situation in this case is certainly no less compelling where the attorney representing Maynard failed to disclose the purport of the correspondence directed toward the judge at a default hearing held when no default had been entered in the record. Therefore, the district court did not abuse its discretion in finding that unique and compelling circumstances existed to justify setting aside the default judgment.