Board of Directors of the Edelweiss Owners' Ass'n v. McIntosh

822 P.2d 1080, 251 Mont. 144, 48 State Rptr. 1131, 1991 Mont. LEXIS 318
CourtMontana Supreme Court
DecidedDecember 19, 1991
Docket91-329
StatusPublished
Cited by4 cases

This text of 822 P.2d 1080 (Board of Directors of the Edelweiss Owners' Ass'n v. McIntosh) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Directors of the Edelweiss Owners' Ass'n v. McIntosh, 822 P.2d 1080, 251 Mont. 144, 48 State Rptr. 1131, 1991 Mont. LEXIS 318 (Mo. 1991).

Opinion

JUSTICE WEBER

delivered the Opinion of the Court.

Defendants McIntosh and Saulnier, individually and doing business as D & M Property Management, Inc., and Metro City Realty and Insurance of Edmonton, Alberta (herein called defendants), appeal from the order of the District Court for the Eleventh Judicial District, Flathead County, refusing to set aside the default judgment entered against them. We affirm.

The only issue is whether the District Court erred by refusing to set aside the default judgment against the defendants.

*146 The complaint of the plaintiff alleges that the Edelweiss Owners’ Association is an incorporated, non-profit association of owners of fractional interest in the Edelweiss Condominiums Project on Big Mountain, Whitefish, Montana. The complaint further alleges that the defendants submitted a proposal to manage the condominium project and to act as brokers for the purpose of renting units for owners who elected to make the units available for rent; the proposal was accepted by the plaintiff; and that the defendants assumed the management and control of the property on August 1, 1989. The further allegation is that the defendants were terminated as managers effective February 28, 1990. The complaint alleges that during the period of time the defendants managed the property they collected various association fees and rents. Next the complaint alleges that the defendants failed to provide a detailed and itemized accounting of plaintiff’s funds or of rents and deposits collected; that the defendants were obligated to collect and hold funds for the benefits of the plaintiff and to provide an accounting; and in the alternative that despite the repeated demands of the plaintiff, the defendants have refused to deliver money collected and to account for the same, and that the defendants’ actions constitute conversion. Following are significant dates and events:

June 8, 1990 — Personal service made on defendant Saulnier, individually and d/b/a D & M Property Management, Inc.

June 18, 1990 — Personal service made on defendant, McIntosh

July 3, 1990 — “Statement of Defence” (sic) was received by clerk of District Court without an appearance fee

July 5,1990 — Clerk of district court letter to defendants requesting appearance fee of $160. (Note that $160 fee has never been paid.)

July 9, 1990 — Default of the defendants McIntosh and Saulnier and D & M Property Management, Inc. was entered in the district court.

August 7, 1990 — Defendant McIntosh wrote to the clerk of the District Court requesting further information with regard to fees.

September 10, 1990 — Personal service on the defendant Metro City Realty and Insurance of Edmonton, Alberta.

September 12,1990 — Hearing on the plaintiffs’ motion for default judgment, and entry of findings of fact and judgment establishing that based on pleadings and testimony the court found that the defaults of McIntosh, Saulnier and D & M Property Management, Inc. were properly entered and that the plaintiffs were entitled to *147 judgment in the amount of $183,593.70 and costs. Judgment entered for $183,593.70 together with costs of $161.24.

October 3,1990 — Default entered of defendant Metro City Realty and Insurance of Edmonton, Alberta.

October 26, 1990 — Amendment to findings of fact and judgment so that previous judgment included Metro City Realty and Insurance of Edmonton, Alberta.

April 9,1991 — Defendants’ motion to set aside default judgment.

May 10, 1991 — Trial court’s memorandum and order denying motion to set aside default judgment.

The “Statement of Defence” (sic), which was not filed because of the failure to pay the appropriate appearance fee of $160.00 remained in the court file. At the time of the hearing prior to judgment, the District Court acknowledged an awareness of that Statement but refused to consider the same because it had not been properly filed. The Statement is a number of pages in length and contains a literate explanation of theories of defense and purports to have been signed by defendants Saulnier and McIntosh.

The issue presented is whether the District Court erred in refusing to set aside the default judgment against the defendants. Defendants argue that the court should relieve them from the judgment pursuant to Rule 60(b), M.R.Civ.P., which in pertinent part states:

“On motion and upon such terms as are just, the court may reheve a party or a party’s legal representative from a final judgment, order, or proceeding for the following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; (2) newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party;... or (6) any other reason justifying relief from the operation of the judgment. The motion shall be made within a reasonable time, and for reasons (1), (2), and (3) when a defendant has been personally served, whether in lieu of publication or not, not more than 60 days after the judgment, order or proceeding was entered or taken ... .”

The standard to be applied on the setting aside of default judgment was stated in Blume v. Metropolitan Life Ins. Co. (1990), 242 Mont. 465, 791 P.2d 784. In Blume this Court stated that where a trial court denies a motion to set aside a default judgment, the standard of review is that no great abuse of discretion is needed to reverse, or in *148 other words, that slight abuse is sufficient to justify reversal of such an order. In applying that test to the present case, we have concluded there was no abuse of discretion on the part of the District Court.

The defendants attempt to argue that relief should be granted under subparagraphs (1), (2) and (3) of Rule 60(b) which cover the elements of mistake, inadvertence, surprise, excusable neglect, newly discovered evidence, and fraud, misrepresentation, or other misconduct. Requests for relief from final judgment on those grounds are required by the above quoted rule to be made not more than 60 days after the judgment. Here the motion was made 165 days after the entry of judgment. We therefore affirm the District Court’s determination that the defendants are precluded from moving to set aside the judgment on the grounds enumerated in Rule 60(b) (1), (2) and (3).

The remaining ground argued by the defendants is that they are entitled to relief under subsection (6), the general catch-all clause which covers any other reason justifying relief from the operation of the judgment. In support of their motion, the defendants filed a lengthy affidavit which purported to be the affidavit of defendant Saulnier. That affidavit was not signed by Saulnier. The result is that the defendants have failed to establish any of the facts which have been referred to in the Saulnier affidavit.

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Bluebook (online)
822 P.2d 1080, 251 Mont. 144, 48 State Rptr. 1131, 1991 Mont. LEXIS 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-directors-of-the-edelweiss-owners-assn-v-mcintosh-mont-1991.