Court Opinion

ID: 9547188
Source: CourtListenerOpinion
Date Created: 2023-08-07 17:43:08.952594+00
Date Added: 2024-06-11T15:17:25.982975
License: Public Domain

*1259FABE, Justice,
dissenting.
While I agree with the court’s conclusion that the trial court erred in granting the Bodes greater relief than they sought in their application for default judgment, I believe that the trial court also abused its discretion by denying Melendrez’s motion to set aside the entry of default.1 The factors in Hertz v. Berzanske, 704 P.2d 767, 771 (Alaska 1985), and the relevant policy considerations support trying this case on the merits.
Under the court’s own analysis, four of the six Hertz factors weigh in favor of setting aside the entry of default in this case. Op. at 1257-1258. As the court points out, Melen-drez raised a meritorious defense, any prejudice to the Bodes was not great, the amount at stake is substantial, and alternative sanctions could easily be imposed. Op. at 1258. Counsel for Melendrez entered an appearance in the case one week after default was entered and just five weeks after the complaint was served on Melendrez. Although two months elapsed before a motion to set aside entry of default was forthcoming, this brief delay does not justify the trial court’s actions in the context of this case. During the two months between the entry of default and the motion to set it aside, the court did not take any action on the case, nor did the delay prejudice the Bodes, who were apparently already in possession of the property. Indeed, the trial court did not grant the Bodes’ request to enter judgment until four months after Melendrez moved to set the entry of default aside.
Admittedly, Melendrez is at fault for apparently attempting to avoid service and failing to respond to the summons and complaint. However, depriving him of a chance to prove his defense to the quiet title action is a harsh penalty for his behavior. See Gregor v. Hodges, 612 P.2d 1008, 1010 (Alaska 1980) (stating that, under the Rule 60(b) standard, the “forfeiture of real property would be a harsh sanction to impose for [defendant’s] neglect if her defense were indeed meritorious”). In addition, as the court notes, Op. at 1258, any harm caused by his conduct can be adequately remedied by requiring him to reimburse the Bodes for the cost of obtaining the default and by such other corrective sanctions as the trial court may deem appropriate. See Hertz, 704 P.2d at 773 & n. 8.
This position also finds support in the “strong policy favoring resolution of cases on their merits.” Id. at 773; accord Peter Pan Seafoods, Inc. v. Stepanoff, 650 P.2d 375, 380 (Alaska 1982) (stating that “a trial on the merits is always preferred over a default judgment”). This policy is particularly compelling in the context of a motion to set aside an entry of default. As the Hertz court pointed out, “the ‘good cause’ standard for setting aside a default entry is more flexible and lenient than the Rule 60(b) standard for setting aside a default judgment.” 704 P.2d at 770. The entry of default, after all, is “simply an interlocutory order that in itself determines no rights or remedies.” Id. at 770. Therefore, in close cases, “all doubts should be resolved in favor of the party seeking relief.” 10 Charles Alan Wright et al., Federal Practice and Procedure § 2693, at 485 (1983).
In conclusion, I would hold that the superi- or court abused its discretion by refusing to set aside the entry of default.

. Assuming that the court’s holding in Part III.C is correct, I also note an inconsistency in the opinion. The opinion’s conclusion implies that the only issue on remand is "a determination of the payment to which Melendrez is entitled.” Op. at 1258. As I read Alaska Civil Rule 55(c)(1) and Peter Pan Seafoods, Inc. v. Stepanoff, 650 P.2d 375, 378 (Alaska 1982), the superior court must determine whether the Bodes are entitled to any of the relief they seek. Thus, on remand, the superior court must determine whether the Bodes are entitled to a judgment quieting title before it decides the amount the Bodes owe Melendrez.