Dawson v. St. Vincent Hospital & Health Care Center, Inc.

426 N.E.2d 1328, 1981 Ind. App. LEXIS 1699
CourtIndiana Court of Appeals
DecidedOctober 23, 1981
Docket3-181A10
StatusPublished
Cited by14 cases

This text of 426 N.E.2d 1328 (Dawson v. St. Vincent Hospital & Health Care Center, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dawson v. St. Vincent Hospital & Health Care Center, Inc., 426 N.E.2d 1328, 1981 Ind. App. LEXIS 1699 (Ind. Ct. App. 1981).

Opinion

CHIPMAN, Presiding Judge.

Defendants Fred and Phyllis Dawson, Cliff Garrett and Five Star Construction, Inc. appeal a default judgment entered against them in the Warren Circuit Court for money owed Saint Vincent’s Hospital and Health Care Center, Inc. (Hospital). The trial court awarded the Hospital $8,798.63 plus $703.89 interest and $3,164.34 attorney fees.

After the default judgment was entered, all four defendants filed a motion seeking equitable relief from the judgment pursuant to Ind. Rules of Procedure, Trial Rule 60(B). Also, Garrett and Five Star Construction filed a motion to correct errors under Ind. Rules of Procedure, Trial Rule 59 on grounds the default judgment was contrary to law. The trial court denied both the T.R. 60(B) motion and the T.R. 59 motion to correct errors.

Our Court of Appeals in response to ap-pellee’s motion to dismiss the Dawsons’ appeal for failure to file a motion to correct errors, ruled that because the T.R. 60(B) motion had been filed within 60 days from judgment, no further motion to correct errors was required.

On appeal the defendants contend the default judgment should have been set aside by the trial court because an inadvertent mistake had prevented a timely defense, and the assessment of interest and attorney fees was contrary to law. Moreover, Garrett and Five Star Construction contend the judgment against them was contrary to law because their oral agreement with the hospital was unenforceable under the statute of frauds, and it was also contrary to law to assess attorney fees against them.

We affirm in part and reverse in part.

I. Issues

The parties state the issues thus:

“[Wjhether or not the Trial Court committed reversible error in over ruling the Motion for Relief from Judgment and the motion to correct errors of the Defendants herein, and thereby refusing to set aside the Default Judgment theretofore entered by the Court and permit the Defendants to appear and defend the action.”

We do not find that statement of the issues to be particularly helpful. A review of the argument section of the appellants’ brief and the motion to correct errors indicates that only the following issues have been preserved for review:

1) Was an employer’s oral promise to a hospital that he or his company would pay the bill of an employee’s wife an unenforceable promise under the Statute of Frauds?

2) Was it error for the trial court to assess attorney’s fees absent an agreement or statute authorizing assessment of fees against the defendants?

On the basis of the defendants’ motion for relief from judgment pursuant to T.R. 60(B), the briefs also address the question of whether the trial court abused its discretion in denying equitable relief to the defendants who, because of a series of mistakes, failed to defend the action against them. We note, in this regard, the defendants have not appealed the denial of their T.R. 60(B) motion pursuant to the proce *1330 dure suggested in T.R. 60(C) but rather rely on the language of In Re Marriage of Robbins, (1976) 171 Ind.App. 509, 358 N.E.2d 153 at 155, 156:

“The time limits for each of these motions, TR. 59 and TR. 60(B), have inherent basic purposes. One of the common, overlapping purposes is to call errors, either in equity or in law, to the attention of the trial court to avoid an injustice. To this extent, both motions overlap in their basic purpose. TR. 59(A)(7) states that its purpose shall be for the ‘Correction of a judgment subject to correction, alteration, amendment or modification; or’; and this purpose is supplemented by a more inclusive purpose: ‘(9) For any reason allowed by these rules, statutes or other law.’ This last purpose, TR. 59(A)(9), would appear to encompass the additional equitable purposes stated in TR. 60(B) during the TR. 59 sixty day time limit. Therefore, a TR. 60 purpose stated in a motion, regardless of its denomination, should be treated as a TR. 59 motion if it is filed within the sixty day period after judgment. No further motion to correct errors is required for an appeal. After the sixty days, a motion, regardless of its denomination, which states a TR. 60 purpose must be treated as a TR. 60 motion. When the trial court renders a judgment by denying or granting this motion, a motion to correct errors is required for an appeal from the judgment.”

Because the language of the Robbins case is not in harmony with the language of the Ind. Rules of Procedure, Appellate Rule 2(A), 7.2(A)(1)(a) and T.R. 60(C), we believe it is appropriate to address the question of jurisdiction.

II. Facts

Phyllis Dawson was hospitalized March 21, 1979, through April 6, 1979, at Saint Vincent Hospital in Indianapolis. The bill came to $8,798.63. Upon Mrs. Dawson’s admission, she and her husband signed an agreement guaranteeing payment of the bill, as follows:

“In consideration of the acceptance by the hospital of the above named patient and of the services to be rendered him/her, the undersigned guarantees payment of the account of such patient, and agrees to pay the same if not paid by the patient at the time of discharge from the hospital. The hospital does not charge interest; the cost of credit is prorated in the prices of the rooms and services. If the amounts due St. Vincent Hospital and Health Care Center for services rendered become delinquent and the dept (sic) is assigned to a third-party for collection, it is understood that a service charge not to exceed $5.00 may be added, and that this service charge could be in addition to any court costs and attorney’s fees that may be added.”

In addition, the hospital telephoned Fred Dawson’s employer, Cliff Garrett, Vice President of Five Star Construction, Inc. The hospital contends Garrett orally assumed financial liability up to $25,000 for Mrs. Dawson’s hospitalization.

The debt was not paid and on March 14, 1980, the hospital sued the defendants. The summons and complaint were served but never answered. On May 1, 1980, the court entered a default judgment. Sixty days later, on June 30, 1980, counsel for the defendants filed a motion for relief of judgment on behalf of all four defendants and a motion to correct errors on behalf of Garrett and Five Star Construction. The motions were denied by the trial court on October 14, 1980.

III. Statute of Frauds

Garrett and Five Star Construction contend the default judgment against them was contrary to law because the oral promise made by Garrett was not actionable under the Statute of Frauds, Ind.Code 32-2-1 — l. 1

*1331 At the outset, we note the Statute of Frauds is an affirmative defense. T.R. 8(C). To properly preserve an affirmative defense, the party with the burden of proving the defense (in this case, Garrett and Five Star Construction) must either have set forth the defense in a responsive pleading or have litigated it by consent of the parties. Lawshe v. Glen Park Lumber Company, Inc.,

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Bluebook (online)
426 N.E.2d 1328, 1981 Ind. App. LEXIS 1699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dawson-v-st-vincent-hospital-health-care-center-inc-indctapp-1981.