Caputo v. Globe Indemnity Co.

41 F.R.D. 239, 10 Fed. R. Serv. 2d 1503, 1966 U.S. Dist. LEXIS 10667
CourtDistrict Court, E.D. Pennsylvania
DecidedAugust 26, 1966
DocketCiv. A. No. 40116
StatusPublished
Cited by6 cases

This text of 41 F.R.D. 239 (Caputo v. Globe Indemnity Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caputo v. Globe Indemnity Co., 41 F.R.D. 239, 10 Fed. R. Serv. 2d 1503, 1966 U.S. Dist. LEXIS 10667 (E.D. Pa. 1966).

Opinion

OPINION

JOSEPH S. LORD, III, District Judge.

This case arises on plaintiff’s complaint seeking to set aside a default judgment and praying for leave to file an answer. Defendant has moved to dismiss under F.R.Civ.P. 12(b). From the allegations of the complaint, which must be accepted as true on this motion, these are the facts:

Defendant, Globe Indemnity Company, was the insurer of Philco Corporation under a policy covering Dishonesty, Destruction and Disappearance. Under that policy, Globe paid Philco a total of $30,-085.51 representing the total of all losses sustained by Philco as a result of all peculations from it covered by the policy. Thereafter, Globe sued a total of ten persons (Globe Indemnity Company v. Snyder et al., E.D.Pa., C.A.No.32325), including Caputo, charging a conspiracy to steal and dispose of certain merchandise of Philco.

When served with the complaint in C.A.No.32325, plaintiff engaged one Stanley B. Singer, then of the Philadelphia Bar, but since suspended from practice, to represent him. Plaintiff paid Singer $750, plus an additional $600 to pay plaintiff’s real estate taxes. Singer converted all of this money to his own use; failed to enter an appearance or file an answer and became almost totally unavailable to plaintiff.

As a result of Singer’s neglect, a default judgment was entered against Caputo for the entire $30,085. Plaintiff alleges that his sole connection with the Philco losses was the purchase of four television sets from a friend who had bought them from a friend, who had bought them from an employe of Philco. Plaintiff had no knowledge of any conspiracy to steal from Philco and had no connection whatsoever with the thefts. The four television sets have been returned undamaged.

After fruitless efforts to reach Singer, plaintiff engaged his present counsel, who filed in C.A.No.32325 a motion under F.R.Civ.P. 60(b) for relief from the default judgment, stay of execution and leave to file an answer. This motion was denied by Hon. Ralph C. Body on February 25, 1966. He ruled that the motion was untimely under Rule 60(b) (1) and that no other grounds were alleged which would warrant granting the motion under Rule 60(b) (6). On April 6, 1966 plaintiff appealed from that ruling and on April 13, 1966 filed the present action. The parties have stipulated that no action would be taken on the appeal pending the disposition of this action, C.A.No.40116.

Defendant’s motion to dismiss is bottomed on four grounds: (1) that Judge Body’s order of February 25, 1966 is res judicata; (2) the remedies provided in F.R.Civ.P. 60(b) are alternative and not cumulative; (3) this court lacks jurisdiction because of the appeal to the Court of Appeals; and (4) plaintiff has an adequate remedy at law by filing a supersedeas bond.

We have no difficulty in concluding that Judge’s Body’s order of February 25 is not res judicata in the present action. That Rule provides in pertinent part:

“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: (1) mistake, inadvertence, surprise, or excusable neglect; * * * 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) not more than one year after the judgment, order or proceeding was entered or taken. * * * ”

[241]*241It is perfectly obvious that Judge Body concluded that the only provision of Rule 60(b) under which relief could be sought was 60(b) (1) which includes a mandatory time-bar of one year. Judge Body had no choice but to deny the motion, and the merits of plaintiff’s position were never before him. Indeed, under the Rule he could not reach the merits; the one year limitation was an effective bar to any such consideration. It follows that because of the time strictures of the Rule, the merits were not matters that were or could have been litigated. Cf. Heiser v. Woodruff, 327 U.S. 726, 66 S.Ct. 853, 90 L.Ed. 970 (1946).

Defendant’s second contention is equally without merit. Rule 60(b) provides for relief for excusable neglect and commands that relief under that Rule must be sought within one year. The Rule further provides, however, that:

“ * * * This rule does not limit the power of a court to entertain an independent action to relieve a party from a. judgment, order, or proceeding, * * * Writs of coram nobis, coram vobis, audita querela, and bills of review and bills in the nature of a bill of review, are abolished, and the procedure for obtaining any relief from a judgment shall be by motion as prescribed in these rules or by an independent action. * * * ”

To argue that the independent action and the motion for relief under Rule 60(b) are alternative and not cumulative is to lose sight of the fact that, under the circumstances of this case, there is no remedy under Rule 60(b) (1). The remedy is gone with the passage of time. However, the saving clause of Rule 60(b), supra, was designed to preserve the traditional power of courts of equity to relieve from unjust judgments if warranted by equitable principles when relief by motion under the Rule is time-barred. 7 Moore’s Fed. Prac., ¶ 60.38(3). In West Virginia Oil & Gas Co. Inc. v. George E. Breece Lumber Co., Inc. et al., 213 F.2d 702 (C.A.5, 1954), plaintiff filed an independent action to correct a judgment on the basis of Rule 60(b) (1) grounds some nine years after the judgment was entered. Reversing a dismissal of the complaint by the lower court, Judge (now Circuit Judge) Wright said, at pages 706 and 707:

* * * However, since Rule 60(b) further provides that such relief may be obtained no more than one year after the judgment complained of was rendered, plaintiff herein is precluded from proceeding under that part of the rule. Klapprott v. United States, 335 U.S. 601, 69 S.Ct. 384, 93 L.Ed. 266; Wallace v. United States, 2 Cir., 142 F. 240. Plaintiff is relegated, therefore, to an independent action seeking relief from the judgment, and he cannot prevail in such action except on the principles which the courts have historically applied to the independent action in equity to reform a judgment. Notes of Advisory Committee on Amendment to Rules, 1946.
******
“And the limitations of time for filing such independent action are those of laches or any relevant statute of limitations. * * * ”

Locklin v. Switzer Bros. Inc., 335 F.2d 331 (C.A.7, 1964), relied upon by defendant, is distinguishable. There, the plaintiff had been the defendant in a California action. It had pressed in California an available Rule 60(b) motion, and had lost. It then brought this independent action in Illinois. It was with this background that the court held that, under the circumstances before it, Rule 60(b) remedies are alternative and not cumulative. Those circumstances do not obtain here.

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Bluebook (online)
41 F.R.D. 239, 10 Fed. R. Serv. 2d 1503, 1966 U.S. Dist. LEXIS 10667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caputo-v-globe-indemnity-co-paed-1966.