Federal National Mortgage Ass'n v. Hull

830 N.E.2d 1203, 161 Ohio App. 3d 438, 2005 Ohio 2490
CourtOhio Court of Appeals
DecidedMay 20, 2005
DocketNo. H-04-035.
StatusPublished
Cited by1 cases

This text of 830 N.E.2d 1203 (Federal National Mortgage Ass'n v. Hull) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal National Mortgage Ass'n v. Hull, 830 N.E.2d 1203, 161 Ohio App. 3d 438, 2005 Ohio 2490 (Ohio Ct. App. 2005).

Opinions

Singer, Presiding Judge.

{¶ 1} This is an accelerated appeal from an order of the Huron County Court of Common Pleas, denying a litigant’s motion to vacate a default judgment.

{¶ 2} In 2004, the Federal National Mortgage Association (“FNMA”) initiated a foreclosure action against Timmy and Sonja Hull on property in Bellevue, Ohio. Among the defendants named who may have or claim an interest in the property was appellant, Key Funding.

{¶ 3} The summons and complaint in the matter were served on appellant by certified mail on April 1, 2004. When, on July 19, 2004, neither the Hulls nor appellant had answered or otherwise responded to the complaint, FNMA moved for and was granted a default judgment against them.

{¶ 4} On July 28, 2004, appellant moved for leave to file an answer, stating that “due to inadvertence, the summons and complaint herein were misdirected and/or misplaced by defendant, Key Funding, and therefore not forwarded to counsel until recently.” On August 27, 2004, appellant filed a motion to vacate the default judgment, pursuant to Civ.R. 60(B)(1). The motion reiterates appellant’s assertion that the summons and complaint were “misdirected” and asserts that it has a meritorious defense to present, namely a mortgage interest in the property as “attached hereto as exhibit ‘B’ The record contains no exhibit associated with this motion.

{¶ 5} The trial court set a nonoral hearing on the motion. Prior to the hearing, FNMA responded to appellant’s motion, favoring vacation of the default judgment. On September 17, 2004, the trial court denied appellant’s Civ.R. 60(B) motion. The court stated:

{¶ 6} “[Appellant] has made no showing justifying relief on the ground of mistake or inadvertence. There is no evidence before the Court from which the Court could draw such a conclusion. Counsel’s statement that the summons and *441 complaint were ‘misdirected’ is not evidence and, even if such statement were set forth in an affidavit of [an appellant] employee, it would be insufficient by itself to warrant relief from judgment. Neglect is conduct that ‘falls substantially below what is reasonable under the circumstances.’ To determine whether neglect is excusable or is the result of inadvertence or mistake, the Court must have before it the* circumstances from which to draw those conclusions. Because [appellant] failed to offer any evidence to the Court in support of its motions, it is not entitled to have the default judgment against it vacated and it is not entitled to leave to file its answer instanter.” (Citations omitted.)

{¶ 7} From this order, appellant now brings this appeal. Appellant insists that without opposition to its motion by an opposing party, the trial court erred in denying the relief requested.

{¶ 8} “To prevail on a motion brought under Civ. R. 60(B), the movant must demonstrate that: (1) the party has a meritorious defense or claim to present if relief is granted; (2) the party is entitled to relief under one of the grounds stated in Civ. R. 60(B)(1) through (5); and (3) the motion is made within a reasonable time, and, where the grounds of relief are Civ. R. .60(B)(1), (2) or (3), not more than one year after the judgment, order or proceeding was entered or taken.” GTE Automatic Elec. v. ARC Industries, Inc. (1976), 47 Ohio St.2d 146, 1 O.O.3d 86, 351 N.E.2d 113, paragraph two of the syllabus. If any of these elements are not met, the motion should be denied. Svoboda v. Brunswick (1983), 6 Ohio St.3d 348, 351, 6 OBR 403, 453 N.E.2d 648.

{¶ 9} The decision as to whether relief should be granted rests in the sound discretion of the court, Griffey v. Rajan (1987), 33 Ohio St.3d 75, 77, 514 N.E.2d 1122, and will not be reversed on appeal absent an abuse of that discretion. An abuse of discretion implicates an attitude by the court that is arbitrary, unreasonable, or unconscionable. Blakemore v. Blakemore (1983), 5 Ohio St.3d 217, 219, 5 OBR 481, 450 N.E.2d 1140.

{¶ 10} Even though appellant omitted exhibit B from his motion, there is ample other evidence of its claim in the record. This is sufficient to satisfy the first prong of the GTE test. See Moore v. Emmanuel Family Training Ctr. (1985), 18 Ohio St.3d 64, 67, 479 N.E.2d 879. Since appellant’s Civ.R. 60(B)(1) motion was filed only a few weeks after the default judgment was entered, the third GTE prong also appears to be met.

{¶ 11} At issue is whether appellant properly demonstrated to the court that its failure to timely answer the complaint was because of “mistake, inadvertence, surprise or excusable neglect,” pursuant to Civ.R. 60(B)(1). Appellant’s position seems to be that because no party opposes the motion and, indeed, FNMA expressly supported the motion, its unsupported assertion that the delay *442 was the result of “mistake or inadvertence” should be sufficient. The trial court clearly did not share this opinion, demanding evidence of the circumstances precipitating appellant’s failure to answer.

{¶ 12} Civ.R. 60(B) is a remedial rule and should be liberally construed. In so doing, the court should balance the sometimes conflicting principles that litigation should be timely concluded and effect a just result. Colley v. Bazell (1980), 64 Ohio St.2d 243, 248, 18 O.O.3d 442, 416 N.E.2d 605. The decision as to whether a party’s ground for relief was the result of an excusable mistake, inadvertence, surprise or neglect “must of necessity take into consideration all the surrounding facts and circumstances.” Id. at 249, 18 O.O.3d 442, 416 N.E.2d 605.

{¶ 13} As to the measure of evidence sufficient to demonstrate the surrounding facts and circumstances, this case is similar to Rose Chevrolet, Inc. v. Adams (1988), 36 Ohio St.3d 17, 520 N.E.2d 564. In Rose, the auto dealer sued Adams on a debt. When Adams failed to timely answer the complaint, Rose sought and obtained default judgment.

{¶ 14} The day following the entry of the default, Adams moved for relief from judgment based on “inadvertence and excusable neglect.” Id. at 18, 520 N.E.2d 564. No evidence by affidavit or otherwise was submitted to support the motion. There was a hearing on the motion, following which the trial court denied relief, concluding that any inadvertence or neglect was inexcusable.

{¶ 15} On appeal, the transcript of the motion hearing was not included in the record.

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Bluebook (online)
830 N.E.2d 1203, 161 Ohio App. 3d 438, 2005 Ohio 2490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-national-mortgage-assn-v-hull-ohioctapp-2005.