Cassidy v. Wisti

204 N.W.2d 252, 43 Mich. App. 356, 1972 Mich. App. LEXIS 1037
CourtMichigan Court of Appeals
DecidedOctober 25, 1972
DocketDocket 11984
StatusPublished
Cited by2 cases

This text of 204 N.W.2d 252 (Cassidy v. Wisti) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cassidy v. Wisti, 204 N.W.2d 252, 43 Mich. App. 356, 1972 Mich. App. LEXIS 1037 (Mich. Ct. App. 1972).

Opinions

Fitzgerald, P. J.

This is a malpractice action brought against the Hancock law firm of Wisti & Jaaskelainen by plaintiff husband and wife, Jacques and Jane Cassidy. The action in the Houghton County Circuit Court resulted in a jury verdict in favor of defendants of no cause of action. Plaintiffs appeal as of right following the denial by the trial court of a motion for judgment notwithstanding the verdict and/or new trial.

The motivating force behind the present action was the conduct of defendant attorney Wisti who stipulated, seemingly without the knowledge of his clients, the plaintiffs herein, to set aside a default judgment which had been entered in plaintiffs’ favor. It appears from the record that in February 1964, plaintiff Jane Cassidy was injured while [358]*358doing volunteer work on the premises of St. Ignatius Loyola Grammar School in Houghton. The attorney whom she had first consulted was fatally injured in an automobile accident and the Cassidy file was turned over to defendant Wisti. The record supports plaintiffs’ contention that service of process was made on Bishop Thomas Noa of the Catholic Diocese of Marquette, St. Ignatius Loyola Church, on September 18, 1964. The Bishop did not respond to the pleadings within the required 20 days following service of summons and complaint. Defendant Wisti filed an affidavit in support of default on December 1, 1964. A default judgment was entered on February 3, 1965, in favor of plaintiff Jacques Cassidy in the amount of $10,000 and in favor of plaintiff Jane Cassidy in the sum of $25,000.

On May 19, 1966, more than 15 months after entry of the default judgment, defendant Wisti, along with counsel representing Bishop Noa and the church, filed a stipulation to set aside the default judgment. On May 25, 1966, the circuit judge, since deceased, entered an order setting aside the judgment. Not until May 27, 1966, did defendant Wisti inform his clients, plaintiffs herein, of the action which he had taken. He sent a letter to them in Oregon, where they had moved from their former residence in Houghton. In that letter he stated that the church’s insurance carrier had not been notified by the Bishop of the legal proceedings instituted against the Bishop and the church and that, as a result, there was no policy of insurance available through which the plaintiffs could recover a judgment. The trial of the instant malpractice action revealed a conflict of testimony as to whether, before the taking of the default judgment, defendant Wisti and the plaintiffs Cas[359]*359sidy had resolved to collect, if at all, only from the liability insurance carrier and not from the church. Defendant Wisti testified that such án understanding had been had between himself and the Cassidys. The Cassidys denied any such understanding.

Following plaintiffs’ notification by Wisti of the action which he had taken to obtain an order setting aside plaintiffs’ default judgment, and some further negotiations between the parties, the present action was commenced. The complaint filed in this case averred in part:

"7. That on May 19, 1966, the Defendants herein, without the permission, authority, or knowledge of the Plaintiffs, stipulated to set aside the Default Judgment entered against the Bishop Noa and the Archdiocese of Marquette.”

In answer to the foregoing, defendants stated:

"7. Defendants admit setting aside Default Judgment in the best interest of clients.”

Immediately prior to trial in the instant case, plaintiffs’ trial counsel filed a motion for summary judgment pursuant to GCR 117.2(2), on the ground that the defendants had failed to state a valid defense to the claim asserted against them; defendants, by answer, having admitted setting aside the default judgment, and not having denied that such action was without the permission, authority or knowledge of plaintiffs.1 It was plaintiffs’ contention that the unauthorized act of defendants rendered them liable to plaintiffs. The court denied plaintiffs’ motion, ruling that the question as to [360]*360whether defendants were guilty of malpractice was one of fact for the determination of the jury.

On appeal, plaintiffs contend that the conduct by an attorney in stipulating to set aside a client’s judgment 15 months after its entry constitutes professional malpractice as a matter of law. Plaintiffs claim that defendants’ act in stipulating to set aside the judgment was contrary to applicable statutory and case law authority.2 It may be open to question whether or not the court, on May 25, 1966, properly ordered that the default judgment be set aside. That question, however, is not before this Court on the instant appeal. Downriver Loan Co v Gabbert, 37 Mich App 411 (1971). Plaintiffs assert that, notwithstanding the validity of defendants’ action in view of GCR 1963, 520.4 and 528, [361]*361and irrespective of whether plaintiff Jane Cassidy had wanted to collect her judgment from the insurance company rather than from the church, defendant Wisti undertook, and improperly so, to set aside the default judgment without authorization from plaintiffs; and that such action, admitted by defendants, renders them liable to plaintiffs as a matter of law.

Defendants assert that the trial court was correct in assuming at the beginning of trial that there were going to be factual issues which would be disputed and upon which the minds of reasonable men might differ; and that the record of the trial proceedings supports the action of the court in denying plaintiffs’ motion for summary judgment.

The transcript in this case reveals a conflict of testimony regarding whether the parties had agreed to look only to the church’s liability insurance carrier in satisfaction of a judgment which might be obtained against the church.

Examination of defendant Wisti disclosed in part the following testimony:

”Q. Now, did you discuss with [Jane Cassidy] the source of any funds that might be used if you ever got into a position where you could collect from one of the defendants?
"A. Yes.
”Q. Would you tell the jury the gist of the discussion you had with Mrs. Cassidy about that?
'A. Well, in our office we do not take cases against any defendants unless they carry liability insurance. We have made a practice of not suing anyone unless there is an insurance company that is the source of collectibility.
"We discussed this with Mr. and Mrs. Cassidy, about the fact that the church did carry a policy of liability insurance. We were aware of that from the contents of [362]*362the file which had been given to us by [plaintiffs’ original attorney, since deceased]. We all clearly understood that if we were going to collect from anyone, that we would ultimately collect from the liability insurance carrier and not from the church.”

Plaintiff Jane Cassidy, on the other hand, testified in part as follows:

"Q. All right. Now do you remember — and you testified here that there was no agreement between you, your husband and Mr. Wisti that you would seek the money only from an insurance company. Do you deny that there was such an agreement between you?
"A. No. I — because Mr.

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Related

Sawabini v. Desenberg
372 N.W.2d 559 (Michigan Court of Appeals, 1985)
Cassidy v. Wisti
204 N.W.2d 252 (Michigan Court of Appeals, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
204 N.W.2d 252, 43 Mich. App. 356, 1972 Mich. App. LEXIS 1037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cassidy-v-wisti-michctapp-1972.