Opinion ID: 1696534
Heading Depth: 1
Heading Rank: 1

Heading: mandatory reinstatement

Text: The final paragraph of rule 215.1, R.C.P., provides: The trial court may, in its discretion, and shall upon a showing that such dismissal was the result of oversight, mistake or other reasonable cause, reinstate the action or actions so dismissed. Application for such reinstatement, setting forth the grounds therefor, shall be filed within six months from the date of dismissal. Reinstatement is mandatory and not discretionary for trial court if the dismissal is shown to be the result of oversight, mistake or other reasonable cause. Rath v. Sholty, 199 N.W.2d 333, 335-336 (Iowa 1972). The general policy in this jurisdiction has been to allow trial on the merits. In general, a liberal approach is taken in appeals from rulings overturning default (rule 236, R.C.P.) entered because of mistake, inadvertence and excusable neglect. In Rath v. Sholty, 199 N.W.2d at 335-337, this same liberal approach taken in regard to rule 236 appeals was considered as the approach to be followed with respect to reinstatement under rule 215.1, R.C.P., in view of the 1965 amendment. The operation of the rule 215.1 amendment in a mandatory reinstatement situation and the scope of review in this court are set out in Rath v. Sholty, 199 N.W.2d at 336:    [T]rial court must initially determine whether the evidence adduced at the hearing constitutes a 'showing' of oversight, mistake or other reasonable cause. This first involves a factual finding which we shall review not de novo, as in equity, but as in a law proceeding. It follows that trial court's findings of fact and inferences inherent therein are binding upon this court if supported by substantial evidence. Rule 344(f)(1), R.C.P. Whether the facts and inferences found constitute `inadvertence,' `mistake' or `other reasonable cause' is not a factual but a legal question on review. 5 C.J.S. Appeal and Error § 1454, p. 591. We have held trial court's interpretation of its findings becomes a question of law which is not conclusive on appeal.    [citing authorities]. Plaintiff urges rule 215.1 is to be afforded the same interpretation as rules 236 and 252, R.C.P. He is correct in regard to rule 236; Rath, 199 N.W.2d at 337 states: This court has been liberal in affirming determinations of default-voiding mistake, inadvertence, and excusable neglect in rule 236 appeals.    [citing authorities] The same policy shall be followed, within the scope of our permissible review, with respect to reinstatement under the rule 215.1 amendment. The basic policy in regard to rule 236 and thus to reinstatement situations under rule 215.1 has been stated to be to use a liberal approach in order to allow trial on the merits. See Rath v. Sholty, supra. In Windus v. Great Plains Gas, 255 Iowa 587, 600, 122 N.W.2d 901, 909, a case involving a petition to vacate a dismissal for want of prosecution, the policy of allowing trial on the merits was qualified and stated to be as follows:    The rule that courts favor trials on the merits should be qualified to read that courts favor expeditious trials on the merits, under settled rules of procedure. It should not be stretched to the point where a judgment will be vacated when the petitioner, through his counsel, has ignored plain mandates of the rule with ample opportunity to abide by them. To do so would be to abrogate the rule and to reward negligence or inattention. (Emphasis in the original) See also Haynes v. Ruhoff, 261 Iowa 1279, 1282, 157 N.W.2d 914, 916 and Edgar v. Armored Carrier Corporation, 256 Iowa 700, 706-707, 128 N.W.2d 922, 926. To a certain extent appeals in rule 236 situations proceed on a case-by-case method due to great variety in factual circumstances. Certain rules, however, are established. It is movant's burden to show good cause for setting aside a default judgment under rule 236. Hobbs v. Martin Marietta Co., 257 Iowa 124, 130, 131 N.W. 2d 772, 775-776. A defendant's ignoring a notice under circumstances showing no more than excuse, plea, apology, extenuation, or explanation for failure to timely appear is not sufficient to overturn a default. Haynes v. Ruhoff, 261 Iowa at 1286, 157 N.W.2d at 918. Accident or excusable neglect where the defendant has a good faith intent to defend will justify setting aside a default. The fact a meritorious defense is disclosed and that defendant had honestly intended to present it and had justification for supposing he had made arrangements for its presentation is a circumstance in favor of good faith. Newell v. Tweed, 241 Iowa 90, 95, 40 N.W.2d 20, 23; Tate v. Delli, 222 Iowa 635, 639-640, 269 N.W. 871, 873; see also Annot., 174 A.L.R. 10. II. The first issue presented for review stems from plaintiff's contention dismissal of his application for reinstatement was inconsistent with the policy stated in Rath that a liberal approach is to be followed with respect to reinstatements under the 1965 amendment to rule 215.1, R.C.P., to assure, if possible, that all litigants have a fair opportunity to have their cases decided by the courts on the merits. In order for the mandatory reinstatement provision of rule 215.1 to operate in the present case it was plaintiff's burden to establish that the dismissal was the result of oversight, mistake or other reasonable cause. As indicated, Judge Bown overruled plaintiff's motion for reinstatement without further comment; there was no oral hearing on the application and no findings of fact or conclusions of law were filed. It is therefore difficult to ascertain the trial court's findings of fact and inferences inherent therein. It can only be said the court found the evidence insufficient to show the dismissal was the result of oversight, mistake or other reasonable cause. Hence, the case could not be reinstated. However, plaintiff in written argument urges this court to look at all the facts and circumstances to determine whether there was a sufficient showing of oversight, mistake or other reasonable cause as would warrant reinstatement pursuant to the dictates of Rath v. Sholty. The only material before the trial court at the time of its ruling was the verified application of plaintiff, an unverified resistance and the pleadings. A trial court must on a hearing for reinstatement of a case dismissed under rule 215.1 initially determine whether the evidence adduced at such hearing constitutes a showing of oversight, mistake or other reasonable cause so that this court on review may determine as a matter of law whether the facts and inferences found constitute inadvertence, mistake or other reasonable cause. Nevertheless, we accept plaintiff's invitation with the view that at some point in time there may be an end to all litigation. This is not to be considered as a precedent. Examination of the record discloses that except for the filing of unverified answers to interrogatories on May 26, 1971, the dates of April 2 and April 5, 1971, when the trial court sustained defendants' motion for more specific statement and their motion for production of documents, respectively, are the dates upon which all activity ceased on the part of plaintiff in connection with the prosecution of this case. Almost nine months expired during the year 1971 without plaintiff taking any action in regard to his obligation to produce the documents and make more specific certain allegations set forth in his substituted petition. The record does not support plaintiff's contention his present attorney had only entered the case shortly before the rule 215.1 dismissal. Counsel actually entered the case in June of 1971, six months before the effective date of dismissal. During this entire time there was no activity on plaintiff's part in connection with the prosecution of his case. The important words in rule 215.1 are oversight, mistake, and other reasonable cause. Rath v. Sholty, 199 N.W.2d at 336 gives these definitions:    `Oversight' has been defined as `something overlooked;' an 'omission or error due to inadvertence.' `Inadvertence' in turn is defined as `lack of care or attentiveness.' Webster's Third New International Dictionary, Unabridged 1610, 1139 (14th ed. 1966). Oversight is similar to excusable neglect. Negatively, it is not gross neglect or willful procrastination as those terms are employed in Hobbs v. Martin Marietta Company, 257 Iowa 124, 131 N. W.2d 772 (1964). (Emphasis in the original) Examination of all the facts and circumstances as suggested by plaintiff compels the conclusion there was not a sufficient showing that the dismissal was the result of such oversight, mistake or other reasonable cause as would warrant a reinstatement under the mandatory provision of rule 215.1, R.C.P. Other than argument concerning the facts and inferences to be drawn therefrom, plaintiff's basic argument is that the dismissal was caused by the mistake or error of the attorney alone. Relying on the distinction between attorney and client fault plaintiff contends that he should be allowed his day in court. Plaintiff argues interpretation of rule 236, R.C.P., and its statutory predecessors has distinguished between litigant-client fault and attorney fault. In Reilley v. Kinkead, 181 Iowa 615, 165 N.W. 80, cited by plaintiff, a default judgment was entered against defendant when he failed to timely appear or answer. Defendant's motion to set aside the judgment and default stated in effect that a new member of the attorney's staff improperly filed the pleadings in the case and therefore the matter did not come to his attention as it normally would have. This court first examined authorities dealing with the distinction between client and attorney negligence. The ruling that the motion should have been sustained was based on a finding that neither the client nor the attorney was negligent; the mistake by the attorney, under the circumstances, was held not to constitute negligence. In Hatt v. McCurdy, 223 Iowa 974, 274 N.W. 72, the distinction was again noted and given more importance than in Reilley. This court stated that the client was guilty of no negligence whatsoever and therefore should have his day in court. The client in Newell v. Tweed, 241 Iowa 90, 40 N.W.2d 20, was without fault in causing the entry of the default judgment. This court affirmed the setting aside of the default judgment relying on the distinction between attorney and client mistake, trial court's discretion in these types of actions and other principles. In general, the distinction between client error and attorney error is relevant in determining whether a default judgment should be overturned. It would not seem to be the sole factor, however; rather, it is part of the overall situation which might include prompt attention to the default, existence of a meritorious defense, appellate court's reliance on trial court's discretion and the policy of trial on the merits. Furthermore, there are limits on the extent to which the distinction will be carried. In Peterson v. Eitzen, 173 N.W.2d 848, 853 (Iowa 1970), involving rule 252, R.C.P., this court stated whether to vacate a default is to a great extent a matter to be decided on the basis of each factual situation. Noting the distinction between client and attorney error it was stated there were no grounds for vacating where the client's attorney espouses for the client a position or strategy to avoid trial on the merits. Other jurisdictions are divided on the question of imputation of attorney's mistake to his client. Thus, where some jurisdictions do not impute the attorney mistake resulting in default from failure to timely file appearance or other necessary papers, or to appear for trial, others hold the client is not entitled to relief from the default. See Annot., 21 A.L.R.3d 1255. See also Iowa Cord Tire Co. v. Babbitt, 195 Iowa 922, 192 N.W. 431 and Clarke v. Smith, 195 Iowa 1299, 192 N.W. 136. Rath v. Sholty, 199 N.W.2d at 337 has this statement:    Rule 215.1 allows for reinstatement for a case dismissed as a result of `oversight, mistake or other reasonable cause,' without limitation as to whose conduct must provide the cause. We do not construe the rule change to permit reinstatement only for technical or ministerial oversights. From the foregoing statement it would seem that grounds for reinstatement could arise from conduct of the attorney or the client, as well as court personnel, which amounted to mistake, oversight or other reasonable cause. The problem thus is not so much who made the cause for dismissal but the substance of the cause. The distinction between attorney and client mistake or error has been made in regard to default judgments. It has not been the sole reason for setting aside a default, however, but most often one cause, which when considered with other reasons, has constituted grounds for setting aside a default judgment. In Newell v. Tweed, 241 Iowa at 95, 40 N.W.2d at 23, good faith intent to defend but for accident or excusable neglect, discretion of trial court and the traditional policy of allowing trial on the merits were mentioned along with the attorney-client distinction as reasons for sustaining trial court's setting aside of a default. In Reilley v. Kinkead, 181 Iowa at 623-624, 165 N.W. at 82-83, particularly relied on by plaintiff, there was found to be no negligence on the part of the attorney and the default was therefore properly set aside. Furthermore, even in regard to setting aside the default judgment there are limits on the extent to which the distinction will be carried. See Peterson v. Eitzen, 173 N.W.2d at 852-853. Where fault of attorney is relied on as a basis in seeking reinstatement of dismissals under rule 215.1, R.C.P., it is our view that although there may be a valid distinction between litigant-client fault and attorney fault it is a factual inquiry as to whether the evidence adduced at the hearing regarding the facts and circumstances resulting in dismissal constitutes grounds warranting reinstatement. The scope of review as well as the burden of proof and the approach to be followed remain the same. See the quoted portion of Rath v. Sholty, 199 N.W.2d at 336 set out in division I of this opinion. Plaintiff failed to show by any competent evidence oversight, mistake or other reasonable cause either on the part of plaintiff personally or upon the attorney representing him. Plaintiff's first issue presented for review does not call for reversal.