B & C Investments, Inc. v. F & M National Bank & Trust

1995 OK CIV APP 106, 903 P.2d 339, 66 O.B.A.J. 2913, 1995 Okla. Civ. App. LEXIS 97, 1995 WL 555421
CourtCourt of Civil Appeals of Oklahoma
DecidedAugust 15, 1995
Docket83677
StatusPublished
Cited by5 cases

This text of 1995 OK CIV APP 106 (B & C Investments, Inc. v. F & M National Bank & Trust) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B & C Investments, Inc. v. F & M National Bank & Trust, 1995 OK CIV APP 106, 903 P.2d 339, 66 O.B.A.J. 2913, 1995 Okla. Civ. App. LEXIS 97, 1995 WL 555421 (Okla. Ct. App. 1995).

Opinion

OPINION

HUNTER, Presiding Judge:

Appellant B & C Investments, Inc. (B & C), seeks review of the trial court’s order which vacated an October 21, 1986 default judgment against Appellee/Garnishee F & M National Bank & Trust Company (Bank). 1 Bank sought vacation of the default judgment on several grounds, namely, that judgment had been rendered against an entity which did not exist, that B & C failed to give Bank notice of its intent to take default or that default had been taken, and that the trial court lacked personal jurisdiction over Bank based on improper service. In its motion for summary judgment and supplement thereto, Bank additionally asserted vacation of the judgment was proper because Bank’s constitutional due process rights were violated by the rendition of a default judgment, of which Bank had no notice, and after Bank had filed an answer. Without stating the reason relied upon, the trial court denied B & C’s motion to dismiss and granted Bank’s motion for summary judgment, thereby vacating the default judgment. On appeal, B & C argues vacation was improper because the trial court had in personam jurisdiction, service was not defective and Bank is not entitled to notice prior to default judgment being rendered. Because the default judgment is not void on its face, B & C maintains, the *341 petition to vacate is barred by the statute of limitations provided in 12 O.S.1981, § 1038.

12 O.S.1981, § 1038 (emphasis added) provided:

Proceedings to vacate or modify a judgment or order, for the causes mentioned in subdivision four, five and seven, of Section 5267 [Section 1031 of this title] must be commenced within two years after the judgment was rendered or order made, unless the party entitled thereto be an infant, or a person of unsound mind and then within two (2) years after the judgment was rendered. Proceedings for the causes mentioned in subdivisions three and six of the same section, shall be within three (3) years, and in subdivision nine, within one (1) year after the defendant has notice of the judgment. A void judgment may be vacated at any time, on motion of a party, or any person affected thereby.

If the default judgment is facially void, Bank’s petition to vacate, filed almost five years after the judgment, is not untimely. 2 The provision in § 1038, that a void judgment may be vacated at any time, applies only when the invalidity appears on the face of the judgment roll (the record). Graff v. Kelly, 814 P.2d 489, 492 (Okla.1991). A decision is void on the face of the judgment roll when, from the four corners of that roll, it may be determined that at least one of the three elements of jurisdiction was absent: jurisdiction over the parties, over the subject matter, or jurisdictional power to pronounce the particular judgment that was rendered. Graff, at 492. Laches is not, as B & C suggests, a defense to vacation of a void judgment. Chaney v. Reddin, 201 Okla. 264, 205 P.2d 310 (1949).

An examination of the record shows B & C filed a forcible entry and detainer action against the defendants, the Rutherfords, in February, 1986 and received a default judgment against them in April, 1986. On October 10, 1986, B & C filed its garnishment affidavit and summons to Bank. 3 The first Return of Service indicates service was made on Bank on October 10, 1986 by serving Nettie Robinson. A second amended Return of Service indicates Bank was served on October 10, 1986, by serving one J.E. Day, Jr., Banking Officer. On October 21, 1986 Bank filed its Garnishee’s Answer, ’ stating it was served on October 20, 1986. 4 The file-stamp on the Answer shows the Answer was filed at 2:41 p.m. on October 21, 1986. The same day, October 21, 1986, the trial court rendered default judgment against Bank for $32,962.00 because “no affidavit or answer has been filed by garnishee” under 12 O.S. 1981, § 1178 and that under 12 O.S.1981, § 1179, B & C was entitled to judgment by default. It is undisputed that the judgment was filed on October 21, 1986 at 4:29 p.m.

Section 1179 of Title 12 (1981) provides: If any garnishee, having been duly summoned, shall fail to file and deliver or mail his answer affidavit as required in the preceding sections, or to answer interrogatories as hereinafter provided, the court shall render judgment against him as by default for the amount of the judgment and costs which the plaintiff shall recover against the defendant in the principal action together with the costs of such garnishment. Such garnishee may also be proceeded against as for contempt.

This section of law authorizes the court to render a default judgment against a garnishee who has been properly summoned and who fails to file an answer. Assuming for the sake of argument only that Bank had been properly served with summons on October 10,1986, the question of the timeliness of its answer on October 21, 1986 arises. B & C contends the answer was required, under 12 O.S.1981, § 1178, to be filed within 10 days of the service of summons and that Bank’s answer filed on October 21, 1986, was one day late. Thus, B & C contends, the *342 trial court was required to render judgment for B & C and that it is irrelevant that the file stamp on the Answer shows it was filed almost two hours before the default judgment was filed.

Previous decisions by this Court and the Supreme Court indicate the word “shall” in Section 1179, does not eliminate all discretion on the part of the trial court with regard to rendition of a garnishment default judgment. Casualty Corporation of America v. Turner, 458 P.2d 907 (Okla.1969); Davis v. Meno Guaranty Bank, 836 P.2d 1305 (Okla.App.1992). In Casualty Corporation, the Court said:

We are of the opinion that the words “shall render judgment” as they appear in the above statute refers to those instances where there is an absolute failure by the garnishee to file an answer affidavit or to answer interrogatories. The mandatory language is not directed to the period of time in which the garnishee has to answer.

Id. at 908. Thus, the trial court retains the discretion to allow pleadings, including a garnishee’s answer, out of time and is not required to render judgment at the expiration of the 10-day period, at least where there is not a total failure to file an answer. Here, as in Davis, there is not an absolute failure to file an answer, B & C has failed to demonstrate any prejudice to it by such late filing, and Bank would have been extremely prejudiced by the trial court’s refusal to permit the answer to be filed. Default judgment is proper under 12 O.S.1981, § 1179 if a garnishee fails to file an answer. The record shows that Bank’s answer was filed prior to the time the default judgment was filed.

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Bluebook (online)
1995 OK CIV APP 106, 903 P.2d 339, 66 O.B.A.J. 2913, 1995 Okla. Civ. App. LEXIS 97, 1995 WL 555421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-c-investments-inc-v-f-m-national-bank-trust-oklacivapp-1995.