Duvall v. McLeod

984 P.2d 287, 160 Or. App. 685, 1999 Ore. App. LEXIS 822
CourtCourt of Appeals of Oregon
DecidedMay 26, 1999
DocketC940918CV, CA A96226
StatusPublished
Cited by3 cases

This text of 984 P.2d 287 (Duvall v. McLeod) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duvall v. McLeod, 984 P.2d 287, 160 Or. App. 685, 1999 Ore. App. LEXIS 822 (Or. Ct. App. 1999).

Opinions

[687]*687HASELTON, J.

Plaintiff appeals from a judgment following a jury trial, assigning error to a pretrial order setting aside a default judgment. ORCP 69 C. Plaintiff asserts, in particular, that the trial court erred in granting defendant’s motion to set aside the default judgment because that motion was not “accompanied by’ a responsive pleading as required by ORCP 71 B(1). We affirm.

This action arose out of a 1992 auto accident in which defendant negligently rear-ended plaintiffs car. In September 1994, plaintiff filed a complaint, served defendant, and sent a courtesy copy of the complaint to defendant’s insurer. After reviewing the complaint, the assigned claims adjuster for defendant’s insurer contacted plaintiffs attorney to discuss an extension of time for filing an answer. The adjuster subsequently wrote to plaintiffs attorney “confirming” their agreement on an “open-end” extension. Plaintiffs attorney responded by letter, asserting that he had granted a 70-day extension, not an open-ended extension. The claims adjuster contended that he never received that letter, which was sent by regular mail.

In January 1995, when defendant had not filed a responsive pleading, plaintiff, without notice to defendant,1 moved for an order of default. The trial court entered that order on January 13. On July 26, the court entered a “Money Judgment and Order” on the default order, awarding plaintiff damages of $69,519.52, plus costs and disbursements.

Defendant and her insurer first became aware of the order of default and the consequent judgment in August 1995, when plaintiff sought to enforce the judgment. On August 24, defendant filed a motion to set aside the default judgment, asserting that there was “good cause” to do so under ORCP 69 C2 and ORCP 71 B. With that motion, defendant submitted an affidavit of the claims adjuster. In that [688]*688affidavit, the claims adjuster averred that he had not received either the letter from plaintifPs attorney limiting the extension to 70 days, or any notice of plaintifPs intent to seek a default judgment, and that he would have “immediately instructed [the] attorneys to file an Answer” had he received such notice. Defendant did not submit an answer or any other responsive pleading at the time she filed her motion. Plaintiff responded that defendant’s motion should be denied for two reasons: (1) it was not “accompanied by a pleading or a motion under [ORCP] 21 A which contains an assertion of a claim or defense,” ORCP 71 B(1); and (2) in all events, defendant’s submissions failed to establish “excusable neglect.”

On October 6,1995, the trial court received evidence and heard argument on defendant’s motion. Defense counsel represented that his client did not dispute liability but did dispute damages. The court then ruled orally that it intended to grant defendant’s motion provided that she filed an answer within 10 days. On October 13, defendant tendered a putative answer that, contrary to counsel’s representation, generally denied plaintiffs allegations.

After defendant tendered her answer, the trial court did not immediately issue an order setting aside the default judgment. In late October 1995, approximately two weeks after defendant tendered her answer, plaintiff filed a “motion to reconsider” the court’s “previous decision to vacate the default judgment.”* *3 In that motion, plaintiff reiterated that defendant’s failure to “accompany” her motion with a responsive pleading was fatal or, alternatively, that her “extreme” negligence precluded relief. After yet another hearing in early January 1996, the court entered an order setting aside the default judgment. In its concurrent letter opinion, the court explained:

[689]*689“It is undisputed that at the time of the filing of the motion to set aside the default judgment an answer was not tendered. However the purpose of the rule is to not allow defaults to be set aside merely to delay. Under ORCP 15 D, the court has the authority to allow the filing of the answer before entry of an order setting aside the default judgment. None of the cases cited by counsel for the plaintiff support a contrary position. Since a responsive pleading has been filed the motion for reconsideration is denied and defendant will submit an order to set aside the default judgment.”4 (Emphasis in originial.)

The case proceeded to trial, with defendant amending her answer to admit liability. A jury awarded plaintiff $3,379.

On appeal, plaintiff challenges the order setting aside the default judgment on two grounds. First, plaintiff argues that, as a matter of law, defendant’s failure to tender a responsive pleading with her motion to set aside precluded the allowance of relief under Rule 71 B, and defendant’s subsequent tender of an answer could not cure that defect. Second, in all events, defendant’s general denial did not allege a “meritorious defense,” which plaintiff asserts is a prerequisite to Rule 71 B(1) relief. See, e.g., Fisher v. Fenter, 75 Or App 408, 411, 706 P2d 593 (1985) (movant must tender a “bona fide” defense). Because plaintiff failed to raise and preserve the second argument in the trial court, we address only the first.

Under ORCP 69 C, a court may set aside a default judgment “in accordance with Rule 71 B and C.” ORCP 71 B(1), in turn, provides:

“On motion and upon such terms as are just, the court may relieve a party or such party’s legal representative from a judgment for the following reasons: (a) a mistake, inadvertence, surprise, or excusable neglect; * * * A motion for reasons (a) * * * shall be accompanied by a pleading or motion under Rule 21 A which contains an assertion of a [690]*690claim or defense. The motion shall be made within a reasonable time, and for reasons (a), (b) and (c) not more than one year after receipt of notice by the moving party of the judgment.” (Emphasis added.)

We review allowance of relief under ORCP 71 B(1) for an abuse of discretion. Walters v. Kmart Corp., 149 Or App 65, 68, 942 P2d 286, rev den 326 Or 59 (1997); Hackett v. Alco Standard Corp., 71 Or App 24, 33 n 7, 691 P2d 142 (1984), rev den 298 Or 822 (1985) (addressing content of “abuse of discretion” standard). Plaintiff contends, however, that the trial court’s exercise of discretion is conditional upon the “shall be accompanied” requirement, and, thus, unless that condition is satisfied, the allowance of relief is, necessarily, an abuse of discretion.

We agree with plaintiff that satisfaction of the “shall be accompanied by” requirement is a prerequisite to the valid exercise of discretion under ORCP 71 B(1). However, the content of that requirement is unsettled. In particular, it is unclear whether “accompanied by” means (as plaintiff argues) that the responsive pleading must be concurrently tendered with the motion to set aside or whether that requirement is satisfied where (as here) the responsive pleading is submitted after the filing of the motion but before the court allows Rule 71 relief — i.e., during the pendency of the motion.

We return to the text of ORCP 71 B(1). “Accompanied by” is reasonably, plausibly susceptible to either of the constructions the panties posit. “Accompany” is defined as:

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Related

Duvall v. McLeod
21 P.3d 88 (Oregon Supreme Court, 2001)
Wood v. James W. Fowler Co.
7 P.3d 577 (Court of Appeals of Oregon, 2000)
Duvall v. McLeod
984 P.2d 287 (Court of Appeals of Oregon, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
984 P.2d 287, 160 Or. App. 685, 1999 Ore. App. LEXIS 822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duvall-v-mcleod-orctapp-1999.