BERKLEY INTERN. CO., LTD. v. Devine

423 N.W.2d 9, 1988 Iowa Sup. LEXIS 151, 1988 WL 45765
CourtSupreme Court of Iowa
DecidedMay 11, 1988
Docket86-1361
StatusPublished
Cited by2 cases

This text of 423 N.W.2d 9 (BERKLEY INTERN. CO., LTD. v. Devine) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BERKLEY INTERN. CO., LTD. v. Devine, 423 N.W.2d 9, 1988 Iowa Sup. LEXIS 151, 1988 WL 45765 (iowa 1988).

Opinion

SCHULTZ, Justice.

The dispositive issue in this case is whether a district court ruling denying a joint application to continue an action beyond the automatic dismissal date of Iowa Rule of Civil Procedure 215.1 (dismissal for want of prosecution) precludes the granting of an application to reinstate the dismissed action. In ruling on defendant’s motion to reinstate his counterclaims under the rule, the district court reinstated the entire action including plaintiffs’ claims even though plaintiffs had not made a timely request for reinstatement. Because we hold that the doctrine of issue preclusion applies and reverse the order reinstating the action on that basis, we do not address the question of whether an entire action may be reinstated on the motion of one party to reinstate its claims.

On January 8, 1979, Berkley International Company, Ltd., and Berkley and Company, Inc. (Berkley) filed a petition against Francis P. Devine claiming that Devine had acted improperly in the management of plaintiffs’ Taiwan plant. Devine’s challenge to the jurisdiction of the Iowa District Court was rejected in Berkley International Co. v. Devine, 289 N.W.2d 600 (Iowa 1980). Devine then filed an answer and asserted a counterclaim against plaintiffs for abuse of process, intentional infliction of emotional distress, tortious interference with business relationships, and breach of his employment contract.

The actions first became subject to automatic dismissal under Iowa Rule of Civil Procedure 215.1 when the clerk of court gave notice to the parties on August 13, 1982, that the case would be subject to dismissal if not tried prior to January 1, 1983. In response to applications and stipulations of the parties, the district court entered various orders continuing the action until a final order was issued that the case stood dismissed if it was not tried before December 31, 1984.

On December 21,1984, the parties filed a joint application for a continuance of the action until June 30, 1985. On the same date the district court entered a ruling which reviewed in chronological order the filings that had occurred during the previous six-year period and concluded that there had not been a timely and diligent prosecution of the case. The court indicated that after March 1981, the only documents filed were a notice of deposition in *11 March 1983 and the various matters concerning automatic dismissal under rule 215.1. It also noted twenty-eight months had elapsed since the clerk’s original try-or-dismiss notice and that a certificate of readiness was not on file. The court acknowledged that other proceedings had caused delay and that additional problems were caused by discovery and the geographic location of parties and witnesses.

The court denied the joint application to continue this matter past December 31, 1984. Plaintiffs and defendant immediately sought vacation and reconsideration of the court’s ruling. These applications expanded on the grounds stated in the motion for continuance and submitted additional material for the requested continuance, however, the court refused to continue the case. On January 2, 1985, the clerk of court entered a notice of dismissal and taxation of court costs to the parties. Defendant appealed and plaintiffs cross-appealed from the denial of the application for continuance and the subsequent dismissal. Defendant’s appeal was voluntarily dismissed on May 23, 1985, and the plaintiffs’ cross-appeal was voluntarily dismissed on June 21, 1985.

In addition to providing a means for automatic dismissal of an action for want of prosecution, rule 215.1 provides authority for reinstatement of dismissed cases as follows:

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.

On the last day of the sixth-month period for reinstatement, Devine filed an application for reinstatement of his counterclaims. He predicated his application upon grounds nearly identical to those previously presented to the court in the joint application to continue and in the separate applications for reconsideration. These grounds involved the scope and complexity of the litigation, the preparation required, and a denial of inactivity. A few days later, after the time for reinstatement had expired, plaintiffs filed a resistance to Devine’s application, and in the alternative, asked the court to reinstate the entire case including their own claims. The district court ordered plaintiffs’ claims and defendant’s counterclaims reinstated on defendant’s timely application. Defendant appealed the reinstatement of plaintiffs’ claims and plaintiffs cross-appealed the reinstatement of defendant’s counterclaims.

During appellate arguments, De-vine’s counsel acknowledged that this appeal was interlocutory. He requested that we exercise our discretion to permit the appeal even though neither party had filed a formal request for interlocutory appeal. Berkley’s counsel did not resist this oral motion. We agree to permit the appeal under Iowa Rule of Appellate Procedure 2(a).

On appeal the parties raise two basic issues. First, plaintiffs maintain that defendant’s voluntary dismissal of his appeal from the court’s refusal to continue was an adjudication of his claims. Second, defendant maintains that the district court did not have authority to reinstate plaintiffs’ claims because their application was untimely.

I. Dismissal of appeal. Plaintiffs claim that the district court lacked authority to reinstate defendant’s counterclaims. In the district court plaintiffs had resisted defendant’s application to reinstate, stating that the court “has no jurisdiction in this matter and the entire matter has been finally adjudicated with prejudice.” Plaintiffs appear to challenge the court’s subject matter jurisdiction on grounds of the prior disposition of the motion to continue the action. We believe this raises two matters.

A. Subject matter jurisdiction. There is no merit in plaintiffs’ contention that the district court lacked jurisdiction to rule on the motion for reinstatement. Subject matter jurisdiction ordinarily means the power and authority to hear and determine a case of the general class to which the proceeding belongs. See Rerat Law *12 Firm v. Iowa Dist. Court, 375 N.W.2d 226, 230 (Iowa 1985). The last paragraph of rule 215.1 expressly provides the district court with authority to reinstate a case dismissed under the rule upon timely application. Iowa Rule of Appellate Procedure 12(f), which provides that a voluntary dismissal of an appeal “shall constitute a final adjudication with prejudice” does not take away the court’s authority to hear a motion for reinstatement even though the appeal from the order denying a continuance was voluntarily dismissed. At most, this language may provide an affirmative defense to an action recommenced.

B. Issue preclusion.

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Bluebook (online)
423 N.W.2d 9, 1988 Iowa Sup. LEXIS 151, 1988 WL 45765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berkley-intern-co-ltd-v-devine-iowa-1988.