C. Meisel Music Company v. Perl

415 P.2d 575, 3 Ariz. App. 479, 1966 Ariz. App. LEXIS 654
CourtCourt of Appeals of Arizona
DecidedJune 23, 1966
Docket1 CA-CIV 229
StatusPublished
Cited by7 cases

This text of 415 P.2d 575 (C. Meisel Music Company v. Perl) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C. Meisel Music Company v. Perl, 415 P.2d 575, 3 Ariz. App. 479, 1966 Ariz. App. LEXIS 654 (Ark. Ct. App. 1966).

Opinion

CAMERON, Judge.

This is an appeal from an order of the lower court granting a motion filed pursuant to Rule 60(c), (5) and (6), of the Rules of Civil Procedure, 16 A.R.S., relieving the defendant Leidhaber from the provisions of a default judgment obtained against him by plaintiff Meisel Music Company.

We are called upon to determine whether the uncontroverted facts as indicated by the affidavits on file are sufficient to authorize the trial court to relieve the defendant Leidhaber from the operation of the judgment.

The facts necessary for a determination of this matter are as follows: In September, 1962, the defendant, Benjamin E. Perl, doing business as the House of Music, ordered from the plaintiff, C. Meisel Music Company, certain merchandise. The sale price was not paid in full, and on 25 January, 1964, there was still a balance due and owing upon said merchandise. On 25 January, 1964, the defendant Harry Leid-haber, purchased various musical instruments and other items from Perl for the *481 total sum of $1,800.00. The defendants Leidhaber and Perl both state that the purchase did not constitute a minimum of 75% of the entire stock in trade and the defendant Perl states that the merchandise sold to Leidhaber constituted approximately 40% of the total stock in trade. Defendant Leidhaber stated further that he at no time agreed to pay any claims or indebtedness against Perl. These facts are stated in affidavits submitted to the court below in support of defendant Leidhaber’s motion.

On 18 March, 1964, the plaintiff filed suit against both defendants. The complaint alleged upon information, belief that Leid-haber’s purchase from Perl was in contravention of the Arizona Bulk Sales Law. Leidhaber was served personally on 19 March, 1964. On 1 May, 1964, neither party having answered, the plaintiff obtained a judgment by default against both defendants.

Nine days short of one year after judgment was rendered,'plaintiff filed his motion to be relieved of this judgment. His motion was based on Rule 60(c) of the Arizona Rules of Civil Procedure, which states as follows:

“On motion and upon such terms as are just the court may relieve a party or his legal representative from a final judgment, order or proceeding for the following reasons: * * * (5) * * * it is no longer equitable that the judgment should have prospective application; or (6) any other reason justifying relief from the operation of the judgment.” 60(c), 16 A.R.S.

In support of his motion, defendant Leid-haber filed an affidavit in which he admitted personal service and knowledge of action against him. He further stated his reliance on the word of his co-defendant who stated that the matter would be taken care of and that he [Leidhaber] need not worry about it any longer. The affidavit further asserted that having been' assured that the matter would be taken care of by the co-defendant Perl, Leidhaber continued with his plans for an extended trip abroad and did depart on 10 May, 1964, ignorant of the 1 May default judgment entered against him.

In April of 1965, the sheriff entered Leidhaber’s business establishment with a writ of execution to levy upon the judgment. It was then the defendant first learned that judgment had been entered against him. He immediately retained an attorney and on 21 April, 1965, the motion was filed in the Superior Court for an order relieving him from the prospective operation of the judgment. After oral argument before the lower court by respective counsel, the court granted defendant Leidhaber’s motion. It is from that order that plaintiff brings this appeal.

Our Supreme Court has stated that in order for a default judgment to be set aside, the party in default must show, (1) his failure to answer within the time required by law was by virtue of excusable neglect, and (2) that he had a meritorious defense. Marquez v. Rapid Harvest Company, 99 Ariz. 363, 409 P.2d 285 (1965), Schering Corporation v. Cotlow, 94 Ariz. 365, 385 P.2d 234 (1963). These cases have also indicated that the moving party must make his motion without unreasonable delay after discovering that the judgment had been taken against him. Marquez v. Rapid Harvest Company, supra, Kohlbeck v. Handley, 3 Ariz.App. 469, 415 P.2d 483, filed 14 June, 1966.

The Arizona Supreme Court has stated that in determining these matters, the court is to be guided by equitable principles:

“These principles require that a defendant be given a fair opportunity to litigate a disputed obligation and also require that a plaintiff, who has, according to regular and legal proceedings, secured a judgment be protected against a violation of the rule which requires the sanctity'and the security of a valid judg- *482 níent.” Coconino Pulp and Paper Company v. Marvin, 83 Ariz. 117, 120, 317 P.2d 550, 552 (1957).

EXCUSABLE NEGLECT

In considering what constitutes excusable neglect, our Supreme Court has stated the general test to be whether the neglect or inadvertence is such as would be the act of a reasonable, prudent person under the same circumstances. Coconino Pulp and Paper Company v. Marvin, supra, Bateman v. McDonald, 94 Ariz. 327, 385 P.2d 208 (1963), Gray v. Dillon, 97 Ariz. 16, 396 P.2d 251 (1964). Generally speaking, in applying these principles the question of whether or not there has been a sufficient showing of excusable neglect to warrant the action of the court below vacating and setting aside the entry of default and default judgment rests within the sound discretion of.the trial court and the trial court’s action will not be disturbed on' appeal except for an abuse of that discretion. Gillette v. Lanier, 2 Ariz.App. 66, 406 P.2d 416 (1965), Prell v. Amado, 2 Ariz.App. 35, 406 P.2d 237 (1965), WelltonMohawk Irrigation and Drainage District v. McDonald, 1 Ariz.App. 508, 405 P.2d 299 (1965), Safeway Stores, Inc. v. Ramirez, 1 Ariz.App. 117, 400 P.2d 125 (1965) (opinion on review at 99 Ariz. 372, 409 P.2d 292 [1965]). And our courts and the federal courts have both stated that the civil procedure rules should be given a liberal construction. Di Pietruntonio v. Superior Court In and For Maricopa County, 84 Ariz. 291, 327 P.2d 746 (1958), Radack v. Norwegian America Line Agency, 2 Cir., 318 F.2d 538 (1963).

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415 P.2d 575, 3 Ariz. App. 479, 1966 Ariz. App. LEXIS 654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-meisel-music-company-v-perl-arizctapp-1966.