Foster Apiaries, Inc. v. Hubbard Apiaries, Inc.

630 P.2d 1213, 193 Mont. 156, 1981 Mont. LEXIS 791
CourtMontana Supreme Court
DecidedJuly 2, 1981
Docket80-399
StatusPublished
Cited by23 cases

This text of 630 P.2d 1213 (Foster Apiaries, Inc. v. Hubbard Apiaries, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foster Apiaries, Inc. v. Hubbard Apiaries, Inc., 630 P.2d 1213, 193 Mont. 156, 1981 Mont. LEXIS 791 (Mo. 1981).

Opinion

MR. JUSTICE HARRISON

delivered the opinion of the Court.

Defendant Hubbard Apiaries, Inc. appeals from denial of its motions to vacate and dismiss a default judgment of $ 11,968 entered June 20, 1979, by the Fergus County District Court.

Appellant Hubbard is a Michigan corporation which processes honey products. Respondent Foster Apiaries, Inc., is a Montana *158 corporation which produces honey. In November 1978 Foster shipped beeswax to Hubbard for processing. A dispute over the accounting arose between the parties. Foster filed a complaint in Fergus County District Court on February 19, 1979, which was served March 9, 1979. On March 15 the president of Hubbard Apiaries sent the following letter to Foster’s attorney, Robert Foster:

“Dear Mr. Foster:

“Enclosed please find photocopies of invoices for which we sent checks.

“We were not aware there was a problem. Foster sent in cappings-slum. We rendered and reported. What more can we do or say!

“Yours sincerely,

“/si R. L. Hubbard”

Hubbard did not retain local counsel or further communicate with Foster’s counsel. Default judgment was entered on June 20, 1979. Although notice of default was not sent to Hubbard, the company had actual notice of the default judgment against it on September 20, 1979. Hubbard then contacted counsel in Michigan who secured Montana counsel. On behalf of Hubbard Apiaries, counsel filed a motion to vacate and dismiss on February 13, 1980, claiming lack of jurisdiction. When that motion was denied on June 11, 1980, Hubbard renewed the motion to dismiss and vacate on June 17, 1980, on the grounds of mistake, inadvertence, surprise or excusable neglect and offered an answer to the complaint. The motion was deemed denied by failure of the court to rule on the motion. Notice of appeal was filed August 21, 1980.

We find the following issues fundamental to this appeal:

1. Was Hubbard’s appeal to this court timely filed under Rule 5, M.R.App.Civ.P.?

2. Did the District Court err when it denied Hubbard’s June 17, 1980, motion to vacate the default judgment on grounds of mistake, inadvertence, surprise or excusable neglect?

*159 3. Did Foster comply with the Rule 55(a), M.R.Civ.P., requirement of showing by “affidavit or otherwise?”

4. Was Hubbard’s letter to respondent’s counsel an appearance requiring a three-day notice of entry of default?

5. Did the District Court abuse its discretion in not appointing a representative for Hubbard under Rule 55(c), M.R.Civ.P.?

Accompanying a motion to dismiss, respondent Foster argues that this Court has no jurisdiction to hear Hubbard’s appeal because it is untimely. As the facts reflect, the court denied Hubbard’s first motion to dismiss on June 11. Notice of appeal was not filed until August 21, seventy-one days later. This, Foster argues, is beyond the thirty-day time limit mandated by Rule 5, M.R.App.Civ.P. The time limits for filing an appeal are jurisdictional and exclusive. An appellant has a duty to perfect its appeal in the manner and time provided in Rule 5. Absent this compliance, this Court lacks jurisdiction to hear the appeal. Price v. Zunchich (1980), 188 Mont. 230, 612 P.2d 1296, 37 St.Rep. 1058.

Hubbard responds that Foster’s argument belies the fact that the Michigan corporation was appearing specially, challenging only the court’s jurisdictional questions to the court and obtaining a ruling, separate from other viable issues, results in two motions and two hearings, both of which may provide appealable decisions. Hubbard concludes that it would be inappropriate to require the defaulted defendant to appeal the jurisdictional decision prior to judgment on other motions.

In our view neither party is completely correct. The appeal of the denial of Hubbard’s first motion to dismiss is untimely. However, the second denial is timely and properly before this Court for consideration. This conclusion is based on the premise that we have here two separate final orders, each controlled separately by the procedural rules and each singularly appealable.

As Chief Justice Haswell stated in Shields v. Pirkle Refrigerated Freight Lines (1979), 181 Mont. 37, 591 P.2d 1120, 1125, 36 St.Rep. 472, 478, there is no question that an order refusing to vacate a default judgment is immediately appealable. This being *160 the case Hubbard should have appealed promptly when the District Court denied its motion to dismiss on jurisdictional grounds. It should be noted that Hubbard moved to vacate for lack of personal jurisdiction, which can be waived if not appealed properly, as distinguished from subject matter jurisdiction, which may be raised at any time.

Hubbard’s right to appeal the denial of its February 14, 1980, motion was extinguished when it failed to appeal within the time limits of Rule 5, M.R.App.Civ.P. Hubbard is not persuasive regarding its issue of special appearance. The company has not shown that its special appearance somehow engaged a new set of procedural rules.

We also direct Hubbard’s attention to the fact that there is no longer any distinction between a general or special appearance in Montana. With the adoption of Rule 12, M.R.Civ.P., we abolished the difference between the traditional classifications of general and special appearances. The jurisdictional challenge is preserved by including it in a defendant’s initial response to the plaintiff’s claim. Once a party has raised the jurisdictional issue in its pleading, the claim is not lost or waived solely because of the response. Knoepke v. Southwestern Railway Co. (1980), 190 Mont. 238, 620 P.2d 1185, 37 St.Rep. 1910. See also Dragor Shipping Corporation v. Union Tank Car Company (9th Cir. 1967), 378 F.2d 241; Orange Theatre Corp. v. Rayherstz Amusement Corp. (3rd Cir. 1944), 139 F.2d 871; 2A Moore’s Federal Practice ¶ 12.12.

An immediate appeal of the court’s denial of the first motion would not have exposed appellant to the jurisdiction of the District Court. By filing a second motion to vacate on other, non-jurisdictional grounds, Hubbard accepted the denial and admitted the authority and jurisdiction of the court over the company and the case.

Regarding the denial of Hubbard’s June 17 motion, we find that the notice of appeal was timely filed. Disregarding the improper deviations from the procedures outlined in Rules 60(b) and 59(d), *161

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Bluebook (online)
630 P.2d 1213, 193 Mont. 156, 1981 Mont. LEXIS 791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foster-apiaries-inc-v-hubbard-apiaries-inc-mont-1981.