Court Opinion

ID: 9513542
Source: CourtListenerOpinion
Date Created: 2023-08-06 22:37:29.36791+00
Date Added: 2024-06-11T09:05:54.071521
License: Public Domain

RICHARD W. GROSZ, District Judge,
concurring in part and dissenting in part.
[¶ 32] I concur with the majority’s conclusion that an appearance was not made by Arnold in this case thereby requiring notice by the Bank to Arnold prior to the Bank seeking default judgment. The Trial Court’s factual determination that the substance of the telephone call was an agreement to stay execution on the then pending Order for Default Judgment was not clearly erroneous. An appearance for purposes of Rule 55(a)(3), N.D.R.Civ.P., must, at minimum, contain some indication that the matter is being contested or disputed. Throndset v. Hawkenson, 532 N.W.2d 394, 397 (N.D.1995), citing Hatch v. Hatch, 484 N.W.2d 283, 285 (N.D.1992). Here, the telephone contact concerned only an agreement to stay execution on a judgment both parties contemplated being entered pending further settlement discussions.
[¶ 33] I dissent from the majority’s holding that the Trial Court did not abuse the Trial Court’s discretion in denying Arnold’s Rule 60(b) Motion to Vacate the *158Default Judgment. The Trial Court focused and ruled solely on one reason (clinical depression) proffered by Arnold for excusable neglect: “... Here, Mr. Arnold simply states he was clinically depressed, and his counsel argues in his brief that this clinical depression caused him to be unable to respond to the Complaint. This Court believes a person must do more to avoid the consequences of the Rules of Civil Procedure. Mr. Arnold has not established excusable neglect justifying vacating the default judgment.” The Trial Court did not rule on or utilize in any manner, the other proffered reasons given by Arnold for excusable neglect, specifically, Arnold’s brother’s terminal cancer in July, 2000, which “.. .was especially debilitating to me mentally and his condition occupied my thoughts much of the time. I also spent much time making trips .to my brother’s home in Esmond, North Dakota, a ninety minute trip from my home in Steele, to assist with his care and to spend time with his family...” and “.. .August, September, and October, 2000 also were very difficult and a busy time for me at Denny’s Lumber. As the sole owner of Denny’s Lumber and with only part-time help, all of the business affairs at Denny’s Lumber are handled exclusively by me. I was overwhelmed with work during this time.” The record indicates that Arnold’s clinical depression was diagnosed in May, 1998, well before Arnold’s brother’s cancer and Arnold’s work load in August through October, 2000.
[¶ 34] When one is unable to determine whether the Trial Court abused the Trial Court’s discretion because the Trial Court, without explanation, made no rulings on material and relevant factual issues, discretion has been abused.
[¶ 35] Arnold also proffered that before receiving copies of the default motion papers from the Bank’s Attorney, “... I was not completely aware that I had been sued or that there could be any consequences if I did not respond to the Complaint.” The Trial Court did not specifically rule on this factual assertion which, in essence, asserts the effect all of the proffered reasons for excusable neglect.
[¶ 36] There is no dispute that timely relief from default judgment was sought and the Trial Court ruled that a meritorious defense had been interposed by Arnold.
[¶ 37] “This court has long encouraged trial courts to be more lenient when entertaining Rule 60(b) motions to vacate default judgments as distinguished from “litigated” judgments, that is, judgments entered after trial on the merits. E.g., Suburban Sales v. District Court of Ramsey, 290 N.W.2d 247, 252 (N.D.1980); Perdue v. Sherman, 246 N.W.2d 491, 496 (N.D.1976). While a trial court certainly has discretion to grant or deny a Rule 60(b) motion to vacate a default judgment [First Federal Savings and Loan Ass’n v. Hulm, 328 N.W.2d 837 (N.D.1982) ], the range of that discretion is limited by three important considerations. See Schwab v. Bullock’s Inc., 508 F.2d 353, 355 (9th Cir.1974). First, Rule 60(b) is remedial in nature and should be liberally construed and applied. Sioux Falls Construction Co. v. Dakota Flooring, 109 N.W.2d 244, 247 (N.D.1961). Second, decisions on the merits are preferable to those by default. Bender v. Liebelt, 303 N.W.2d 316, 318 (N.D.1981). Third, as a consequence of the first two considerations, “ ‘[w]here timely relief is sought from a default judgment and the movant has a meritorious defense, doubt, if any, should be resolved in favor of the motion to set aside the judgment so that cases may be decided on their merits.’ ” King v. Montz, 219 N.W.2d 836, 839 (N.D.1974) [quoting 7 Moore’s Federal Practice ¶ 60.19, at p. 60-*159156].” CUNA Mortgage v. Aafedt, 459 N.W.2d 801, 803 (N.D.1990).
[¶ 38] Here, timely relief has been sought and a meritorious defense interposed. Doubt is present because the Trial Court did not rule on relevant and material factual issues and because of this doubt, Arnold’s Rule 60(b) Motion should be resolved in his favor and a resolution of the parties’ dispute should be made on the merits.