Court of 5 Gardens Condominium Ass'n v. 10330 Old Olive, LLC

326 S.W.3d 834, 2010 Mo. App. LEXIS 1690, 2010 WL 5078847
CourtMissouri Court of Appeals
DecidedDecember 14, 2010
DocketED 94576
StatusPublished
Cited by9 cases

This text of 326 S.W.3d 834 (Court of 5 Gardens Condominium Ass'n v. 10330 Old Olive, LLC) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Court of 5 Gardens Condominium Ass'n v. 10330 Old Olive, LLC, 326 S.W.3d 834, 2010 Mo. App. LEXIS 1690, 2010 WL 5078847 (Mo. Ct. App. 2010).

Opinion

GARY M. GAERTNER, JR., Judge.

Introduction

Defendant, 10330 Old Olive, LLC, appeals from the judgment denying its mo *836 tion to set aside a default judgment. We affirm in part, reverse in part and remand.

Background

On December 30, 2008, plaintiff, Court of 5 Gardens Condominium Association, filed a two-count petition for breach of contract and suit on account. Plaintiff alleged that defendant, as a successor in interest, breached an easement agreement (agreement) that provided that defendant would pay thirty-one percent of “Common Operating Costs” as defined in the agreement. Plaintiff further alleged that defendant’s breach caused it to suffer damages “in the principal amount of $23,536.56 (31% of $83,206.89 as of October 29, 2007), plus additional charges that have and continue to accrue, together with interest per contract or statute.” Plaintiff sought payment of $23,536.56, additional charges to the date of judgment, interest, attorney fees and costs. The agreement was one of the documents attached to the petition. The agreement contains provisions regarding interest, attorney fees and costs if certain obligations under the agreement are not satisfied.

The summons to be served on defendant’s registered agent was returned non-est. Thereafter, an alias summons was issued for service upon the Secretary of State of Missouri, as agent for defendant. 1 The Secretary of State forwarded the summons by certified mail to defendant. The Secretary of State’s affidavit provides that the certified mailing was returned because “forward time expired” but the returned envelope does provide a new address. On May 28, 2009, defendant failed to appear for a scheduled hearing and plaintiff requested a default judgment. The court does not appear to have ruled on plaintiffs request but subsequently certified the case for a principal balance in excess of $25,000.

On August 24, 2009, the court conducted a status hearing. 2 Defendant did not appear. On that day the court entered a default judgment in favor of plaintiff and awarded $35,977.54 for principal, $5,331.82 for interest, and $6,196.40 for attorney fees for a total of $47,505.76 plus court costs. Defendant contends that it did not receive notice of the status hearing until September 2009.

On October 12, 2009, defendant filed a motion to set aside the default judgment. The motion was not verified and no affidavits were attached. On November 12, 2009, the trial court had a hearing on the motion. The trial court subsequently denied the motion. Defendant thereafter filed a “VERIFIED MOTION TO RECONSIDER ORDER/JUDGMENT OF THE COURT.” In this motion, defendant raised for the first time the issue that there was not an evidentiary hearing for proof of damages or written evidence of plaintiffs damages for the default judgment’s award. The court denied the motion. Defendant raises two points on appeal.

Discussion

A trial court’s ruling on a motion to set aside a default judgment is reviewed for abuse of discretion. Brungard v. Risky’s Inc., 240 S.W.3d 685, 687-88 (Mo. banc 2007). A trial court has broader discretion when sustaining a motion to set aside a default judgment then when overruling such a motion. Id. at 687.

In its first point, defendant argues that the trial court abused its discretion in denying its motion to set aside the default *837 judgment under Rule 74.05(d). Defendant contends that it established grounds of good cause and meritorious defenses against plaintiffs action. In response, plaintiff argues that the trial court did not abuse its discretion in denying defendant’s motion to set aside because defendant failed to file a verified pleading, provide affidavits in support or provide sworn testimony at a hearing.

Rule 74.05(d) provides that “[u]pon motion stating facts constituting a meritorious defense and for good cause shown, an interlocutory order of default or a default judgment may be set aside.” A motion to set aside a judgment cannot prove itself. First Community Bank v. Hubbell Power Systems, Inc., 298 S.W.3d 534, 540 (Mo.App. S.D.2009); Hinton v. Proctor & Schwartz, Inc., 99 S.W.3d 454, 458 (Mo.App. E.D.2003); Reed v. Reed, 48 S.W.3d 634, 642 (Mo.App. W.D.2001). The motion must be verified or supported by affidavits or sworn testimony produced at the hearing on the motion. Id. In the present case, defendant failed to satisfy this requirement. The record does not reflect that defendant’s motion to set aside the default judgment was verified or supported by affidavits or sworn testimony at the hearing on the motion. “Where the motion to set aside a judgment is unverified and unsupported by affidavits or sworn testimony, the circuit court has no basis for granting the motion.” Reed, 48 S.W.3d at 642. Accordingly, the trial court did not abuse its discretion in denying defendant’s motion to set aside the default judgment. 3

Defendant did file a verified motion to reconsider the denial of its motion to set aside. Defendant’s motion for reconsideration may be treated as a motion for new trial under Rule 78.01 if, as in this case, it was timely filed. Hinton, 99 S.W.3d at 459-60. Rule 78.01 states in part, “On a motion for a new trial in an action tried without a jury, the court may open the judgment if one has been entered, take additional testimony, amend findings of fact or make new findings, and direct the entry of a new judgment.” In Hinton, this court stated that “Rule 74.05(d) provides for the setting aside of a default judgment by the trial court when the party requesting such relief meets certain requirements in the motion requesting such relief, not in a motion for reconsideration after a judgment denying the motion requesting such relief.” Id. Even assuming that the trial court for purposes of Rule 74.05(d) could consider defendant’s verified motion to reconsider under Rule 78.01, it would have had discretion not to do so. See In re Coe, 903 S.W.2d 916, 918 n. 1 (Mo. banc 1995). 4 Defendant’s first point is denied.

In its second point, defendant argues that the trial court erred in its award of damages to plaintiff. Defendant contends that when, as in this case, a plaintiff sues for an unliquidated sum and takes a default judgment, there must be proof of the damages.

Defendant failed to challenge the damages award in its motion to set aside. Defendant first raised the issue in its motion to reconsider. The issue is not prop *838

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326 S.W.3d 834, 2010 Mo. App. LEXIS 1690, 2010 WL 5078847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/court-of-5-gardens-condominium-assn-v-10330-old-olive-llc-moctapp-2010.