Fisher v. Crest Corp.

735 P.2d 1052, 112 Idaho 741, 1987 Ida. App. LEXIS 374
CourtIdaho Court of Appeals
DecidedMarch 13, 1987
Docket16003
StatusPublished
Cited by11 cases

This text of 735 P.2d 1052 (Fisher v. Crest Corp.) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fisher v. Crest Corp., 735 P.2d 1052, 112 Idaho 741, 1987 Ida. App. LEXIS 374 (Idaho Ct. App. 1987).

Opinions

SWANSTROM, Judge.

This appeal comes to us from an order of the district court setting aside a default judgment entered against respondent Crest Corporation (Crest) in the magistrate division. There are two notable issues. Preliminarily, we must decide whether the trial court acquired personal jurisdiction over Crest so as to allow entry of the default judgment. The second issue is whether the district court erred in subsequently setting aside that default judgment. Appellant Ruby Fisher also asks us to restore the magistrate’s award of costs and attorney fees. The issue of whether the magistrate correctly awarded fees to Fisher was not addressed by the district court. For the reasons set forth below, we disagree with the decision of the district court and conclude that the default judgment entered [743]*743against Crest should not have been set aside.

On May 17, 1984, Ruby Fisher filed a complaint in the district court of Caribou County, Idaho. She alleged that the defendants, Crest Corporation d/b/a The Last Frontier, R. Craig Christensen and Jared P. Lowe, owed her $3,000 and interest on a promissory note they had executed and delivered to her. On June 5, just before leaving on a month-long vacation, counsel for Lowe filed a notice of appearance and a motion for additional time to file an answer. The motion was granted, giving Lowe until July 5 to respond to the complaint. On July 12 Lowe still had not responded. Complying with I.R.C.P. 55(b)(2), Fisher then notified Lowe that she intended to enter a default against him on July 20. Because Crest had not made any appearance in the action, Fisher caused its default to be entered on July 16. The same day she obtained a default judgment against Crest, all without advance notice to Crest. Counsel who had appeared for Lowe then filed an answer and cross-claim on behalf of both Lowe and Crest on July 18. On July 23, counsel moved to have the default judgment against Crest set aside. After hearing oral argument and making written findings, the magistrate denied the motion. An appeal was taken to the district court.1 The district judge reversed the magistrate’s order and set aside the default judgment. Fisher now appeals that ruling.

I

The threshold question we must answer is whether the trial court had acquired personal jurisdiction over Crest when the default judgment was entered. Crest contends that because service upon it in its capacity as a distinct corporate entity was not accomplished, the trial court never acquired personal jurisdiction. This argument is premised on the circumstances surrounding the service of process.

The process server’s “return of service” form indicates that he served one copy of the summons and complaint “upon Crest Corporation, d/b/a The Last Frontier, and Jared P. Lowe, by serving Jared P. Lowe at the Last Frontier Trail Motel Office____” Crest argues that this method did not accomplish service upon the corporation. Crest concedes that Lowe was a corporate officer but also notes that he was an individual defendant in the action. The return does not show Lowe’s corporate capacity nor does it expressly state that a corporate officer of Crest was served. Moreover, Crest contends that the process server should have delivered two copies of the documents — one for Lowe and one for Crest.2 This argument has some merit but the point is not decisive.

Failure to comply with the rules for service of process may cause a subsequent judgment to be void as to a particular defendant for lack of personal jurisdiction, or the resulting judgment may merely be erroneous. An erroneous judgment has an effect different from a void judgment and different remedies are available for relief in each case. See, e.g., Brown’s Tie & Lumber Company v. Kirk, 109 Idaho 589, 710 P.2d 18 (Ct.App.1985); Cockerham v. Zikratch, 619 P.2d 739 (Ariz.1980); Endischee v. Endischee, 685 P.2d 142 (Ariz.Ct.App.1984). Here, we are concerned only [744]*744with whether the judgment was void because personal jurisdiction was not acquired.

Fisher has suggested that any defects in the manner of service of process upon Crest have been waived. It is true that lack of personal jurisdiction — unlike a lack of subject matter jurisdiction — may be waived. The lack of subject matter jurisdiction can be raised at any time. Foster Apiaries, Inc. v. Hubbard Apiaries, Inc., 630 P.2d 1213, (Mont.1981). Fisher relies on the fact that the answer filed by Crest did not assert any defense based on lack of jurisdiction over the person, insufficiency of process, or insufficiency of service of process. She contends, therefore, that under I.R.C.P. 12(b) and (h), the defenses have been waived. Generally, that may be true. However, it must be remembered that the default judgment against Crest had already been entered when the joint answer of Crest and Lowe was filed. In cases where a party in default is said to have waived a lack of personal jurisdiction by failure to timely raise the defense in a motion or pleading, that “waiver” does not operate retroactively so as to validate a void judgment. See, e.g., Phillips v. Incline Manor Association, 91 Nev. 69, 530 P.2d 1207 (1975); Pease Brothers, Inc. v. American Pipe & Supply Co., 522 P.2d 996 (Wyo.1974). Accordingly, we do not base our decision on any purported waiver of personal jurisdiction.

With this in mind we will determine whether the defect in service deprived the court of personal jurisdiction, thereby resulting in a void judgment, or whether the court acquired personal jurisdiction through service of process upon Crest. Crest’s argument is technical. The fact that Crest’s agent was served is not contested. Jurisdiction to enter a default is based upon the fact of service and, ordinarily, it will not be defeated by a showing of mere ministerial defects in the service or return of service. See Mason v. Pelkes, 57 Idaho 10, 59 P.2d 1087, cert. denied 299 U.S. 615, 57 S.Ct. 319, 81 L.Ed. 453 (1936); Call v. Rocky Mountain Bell Telephone Company, 16 Idaho 551, 102 P. 146 (1909); Workman v. Brown, 103 Idaho 945, 655 P.2d 462 (Ct.App.1982).

In cases decided under statutes substantially similar to I.R.C.P. 4(d)(2) and 4(d)(4) New York Courts have concluded that service of a single copy of a summons and complaint upon a defendant corporate officer is effective service upon the defendant corporation, as well as upon the defendant corporate officer — at least where, as in this case, the officer was served personally.3 Lakeside Concrete Corp. v. Pine Hollow Building Corp., 104 A.D.2d 551, 479 N.Y. S.2d 256 (1984), aff'd 65 N.Y.2d 865, 493 N.Y.S.2d 309, 482 N.E.2d 1225 (1985); Wellington Associates v. Vandee Enterprises Corp., 75 Misc.2d 330, 347 N.Y.S.2d 788 (1973); Lac Leasing Corporation v. Dutchess Aero, Inc., 32 A.D.2d 949, 303 N.Y.S.2d 723 (1969); Port Chester Electrical Company v. Ronbed Corporation, 28 A.D.2d 1008, 284 N.Y.S.2d 9 (1967).

The present case is factually similar.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Smith v. Smith
Idaho Supreme Court, 2020
Secured Investment Corp v. Myers Executive Building, LLC
394 P.3d 807 (Idaho Court of Appeals, 2016)
Jeremy J. Gugino v. Dennis J. Sallaz
Idaho Supreme Court, 2014
Baird-Sallaz v. Sallaz
336 P.3d 275 (Idaho Supreme Court, 2014)
State, Dept. of Health & Welfare v. Housel
90 P.3d 321 (Idaho Supreme Court, 2004)
Richland National Bank & Trust v. Swenson
816 P.2d 1045 (Montana Supreme Court, 1991)
Nilsson v. Mapco
764 P.2d 95 (Idaho Court of Appeals, 1988)
Fisher v. Crest Corp.
735 P.2d 1052 (Idaho Court of Appeals, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
735 P.2d 1052, 112 Idaho 741, 1987 Ida. App. LEXIS 374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fisher-v-crest-corp-idahoctapp-1987.