Donald Spear, V. Kraftwerk K9, Inc.

CourtCourt of Appeals of Washington
DecidedFebruary 14, 2023
Docket56740-7
StatusUnpublished

This text of Donald Spear, V. Kraftwerk K9, Inc. (Donald Spear, V. Kraftwerk K9, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donald Spear, V. Kraftwerk K9, Inc., (Wash. Ct. App. 2023).

Opinion

Filed Washington State Court of Appeals Division Two

February 14, 2023

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II DONALD SPEAR, a resident of the State of Florida, No. 56740-7-II

Appellant,

v. UNPUBLISHED OPINION KRAFTWERK K9, INC., a corporation formed under the laws of the State of Washington; and WAYNE G. CURRY, a resident of the State of Washington,

Respondent.

PRICE, J. — Donald Spear appeals the superior court’s order granting Wayne Curry’s

motion to vacate the default judgment entered against him. Spear argues the superior court abused

its discretion because Curry did not establish the required factors for vacating a default judgment.

We affirm the superior court.

FACTS

On April 26, 2021, Spear filed a complaint for damages against Kraftwerk K9, Inc. and

Curry. In his complaint, Spear, a dog breeder, stated that he had been doing business with Curry,

another dog breeder, through Curry’s business Kraftwerk K9 for more than 20 years. In November

2019, Spear purchased a dog from Curry. Spear made plans to breed the dog, but was unable to

do so successfully. Further examination revealed severe deformities in the dog’s spine, cervix,

and vagina that required euthanasia. Spear alleged multiple claims related to breach of contract

and sought actual and expectation damages. No. 56740-7-II

Curry was served with the summons and complaint on May 17, 2021. After receiving the

summons and complaint, Curry retained attorney Christopher Brown to represent him. Although

Brown did not engage in litigation services, he agreed to pursue an alternative course of action to

attempt to resolve the dispute. Brown agreed to send Spear a letter outlining the arguments in

defense of the claims with the intent to settle the dispute. However, Brown informed Curry that

he would not engage in litigation services and would withdraw and refer Curry to alternate counsel

if the matter continued to ligation. On June 9, Brown sent a letter to Spear’s counsel disputing the

claims raised in Spear’s complaint and setting out the arguments in support of Curry’s position.

On June 14, 2021, Spear obtained an order of default against Curry. Then, on June 29,

Spear obtained a default judgment against Curry for $76,780.61.

About two weeks later, on July 14, Curry learned of the default judgment while meeting

with a different attorney, Garrett Ratfield, on an unrelated matter. On July 28, Ratfield filed a

notice of appearance in the dispute with Spear. Then, on September 16, Ratfield filed a motion to

vacate the default judgment. In his declaration, Curry claimed he was “shocked” to learn of the

default judgment because he believed Brown was representing him. Clerk’s Papers at 132.

In opposition to the motion, Spear obtained a declaration from Curry’s former attorney,

Brown. Brown stated that after Spear filed a motion for default, he contacted Curry to withdraw.

Brown also sent Curry referrals for alternate counsel.

Spear argued that the motion to vacate should be denied because Curry failed to establish

excusable neglect. Spear also argued that Curry failed to act with due diligence in seeking to

vacate the default judgment. Finally, Spear argued that Curry failed to establish a prima facie

2 No. 56740-7-II

defense to the complaint because the arguments they made were based on an alleged contract that

was not sent to or signed by Spear.

The superior court found that, given that the order of default was signed only two months

after the complaint was served, Curry acted with due diligence and there was no substantial

hardship to Spear. The superior court also found excusable neglect because Brown was not clear

about the risk of default and the need to attend to litigation immediately. Finally, the superior

court found that, viewing the evidence in a light most favorable to Curry, he had established a

prima facie defense because both parties were relying on the same allegedly unsigned or draft

contract language to make their arguments. The superior court granted Curry’s motion to vacate

the default judgment.

Spear appeals.

ANALYSIS

I. MOTION TO VACATE DEFAULT JUDGMENT

We review the superior court’s decision to set aside a default judgment for an abuse of

discretion. Little v. King, 160 Wn.2d 696, 702, 161 P.3d 345 (2007). “A [superior] court abuses

its discretion by making a decision that is manifestly unreasonable or by basing its decision on

untenable grounds or untenable reasons.” VanderStoep v. Guthrie, 200 Wn. App. 507, 518, 402

P.3d 883 (2017), review denied, 189 Wn.2d 1041 (2018). “[W]e are more likely to find an abuse

of discretion when the [superior] court denies a motion to set aside a default judgment than when

the [superior] court grants such a motion.” Id. “[D]efault judgments generally are disfavored

because courts prefer to resolve cases on their merits.” Id. at 517.

3 No. 56740-7-II

CR 60(b)(1) provides for relief from a judgment for “[m]istakes, inadvertence, surprise,

excusable neglect or irregularity in obtaining a judgment or order.” Courts apply a four-prong test

to determine if a default judgment should be vacated under CR 60(b)(1):

(1) that there is substantial evidence supporting a prima facie defense; (2) that the failure to timely appear and answer was due to mistake, inadvertence, surprise, or excusable neglect; (3) that the defendant acted with due diligence after notice of the default judgment; and (4) that the plaintiff will not suffer a substantial hardship if the default judgment is vacated.

Little, 160 Wn.2d at 703-04. The first two factors are the primary considerations in whether to set

aside a default judgment. Id. at 704.

Whether to set aside a default judgment is ultimately a matter of equity. Id. “Our primary

concern is whether justice is being done.” VanderStoep, 200 Wn. App. at 517. We must determine

whether the superior court’s decision is ultimately just and equitable. Id. “What is just and

equitable must be determined based on the specific facts of each case, not based on a fixed rule.”

Id. at 517-18.

Spear concedes that the fourth factor is satisfied, but argues that the superior court erred by

finding that Curry satisfied the other three factors of the test.

A. PRIMA FACIE DEFENSE

First, Spear argues that Curry failed to produce substantial evidence supporting a prima

facie defense because he did not support his alleged defense with evidence. To support a motion

to vacate a default judgment, “a defendant generally must submit affidavits identifying specific

facts that support a prima facie defense.” Id. at 519. “The defendant must present ‘concrete facts’

that support a defense.” Id. (quoting Ha v. Signal Elec., Inc., 182 Wn. App. 436, 449, 332 P.3d

991 (2014), review denied, 182 Wn.2d 1006 (2015)).

4 No. 56740-7-II

However, the superior court views all facts and reasonable inferences in the light most

favorable to the defendant. Id. at 519-20. Any set of facts that, if believed, would entitle the

defendant to relief can support setting aside a default judgment. Id. at 520. “[E]ven a ‘tenuous’

defense may be sufficient to support a motion to vacate.” Id. (internal quotation marks omitted)

(quoting Little, 160 Wn.2d at 711).

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Related

Little v. King
161 P.3d 345 (Washington Supreme Court, 2007)
Little v. King
160 Wash. 2d 696 (Washington Supreme Court, 2007)
Stiles v. Kearney
277 P.3d 9 (Court of Appeals of Washington, 2012)
Ha v. Signal Electric, Inc.
332 P.3d 991 (Court of Appeals of Washington, 2014)

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