Giuliano v. Vacca

2004 Mass. App. Div. 154, 2004 Mass. App. Div. LEXIS 48
CourtMassachusetts District Court, Appellate Division
DecidedSeptember 22, 2004
StatusPublished
Cited by6 cases

This text of 2004 Mass. App. Div. 154 (Giuliano v. Vacca) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giuliano v. Vacca, 2004 Mass. App. Div. 154, 2004 Mass. App. Div. LEXIS 48 (Mass. Ct. App. 2004).

Opinion

Williams, PJ.

The birth of a foal engendered this action regarding its ownership between the plaintiff, Louis Giuliano (“Giuliano”), who owned the foal’s sire, and the defendants Paul Yacca (‘Yacca”), who owned the foal’s dam and Rosalie Vacca (“Rosalie”).1 The Vaccas were defaulted for failing to answer the complaint. Following a hearing on damages, the judge awarded Giuliano damages for the claimed fair market value of the foal as well as for the foal’s potential purse winnings. The judge also awarded Giuliano attorneys fees after finding that the Vac-cas had falsely asserted in affidavits that Rosalie had no ownership interest in the foal. The Vaccas appealed, arguing that the judge abused his discretion in denying their motion to set aside the default entered against them, and that the Statute of Frauds should have prevented entry of that default as a matter of law in any event. If the default judgment was properly entered, the Vaccas argue, then the judge [155]*155erred in his assessment of damages, and also improperly levied an attorney’s-fee sanction against them for perjury.

We conclude the judge did not abuse his discretion in denying the Vaccas’ motion to set aside the default and that the Statute of Frauds did not prevent the entry of default. We do, however, remand the case for a new hearing on damages, and we reverse the imposition of the attorney’s-fee sanction for the perceived “perjury.”

Claiming that the consideration for his stallion’s acting as stud to Vacca’s mare in April 1999 was not a standard stud-service fee, as the Vaccas claimed, but rather half-ownership in the resultant foal, Giuliano filed his complaint against the Vaccas on June 27,2001. The Vaccas’ then-counsel2 delayed filing an answer while both counsel discussed settlement as well as the issue of the Vac-cas’ earlier-filed small-claims action against Giuliano. On July 30, 2001 counsel filed an assented-to motion extending the time to answer for a week, until August 7, 2001. The Vaccas did not file an answer by then. After that date, their counsel tried to reach Giuliano’s counsel “many times,” unsuccessfully, but still filed no answer. More than two months later, on October 9, 2001, Giuliano sought a default, which entered on October 15, 2001. One week later, on October 22, 2001, the Vaccas filed a motion to set aside the default under Mass. R. Civ. R, Rule 55(b), arguing “good cause” existed for setting aside the default. Giuliano opposed the motion, and on November 8, 2001, filed a motion for default judgment and assessment of damages. This motion was scheduled for hearing on November 26,2001, to be heard along with the Vaccas’ motion to set aside the default. On November 9, 2001 the Vaccas had filed a purported answer and counterclaim — which was apparently accepted for filing despite their having been in default for several weeks (and so must be considered a proposed answer only).

A motion hearing on several matters, including the default situation, began on November 27,2001 and was continued to December 3,2001. The judge denied the Vaccas’ motion to set aside the default.

The theme of the Vaccas’ motion to set aside the default was their then-counsel’s mea culpa to the effect that he “should have been more persistent” in resolving with Giuliano’s counsel two “threshold issues”: the Vaccas’ prior small-claims action against Giuliano (apparently dismissed for seeking equity relief outside small-claims jurisdiction) and the claimed “inappropriate joinder” of Rosalie, whom counsel argued should not be a defendant since she had no ownership interest in the foal. We infer there was no discussion between counsel on these or any other issues between August 7 and October 9, and the record reveals no correspondence between counsel during that time. No reason is proffered as to why those issues could not have been raised in an answer or by motion within that two-month period.

After the denial of the Vaccas’ motion to set aside the default against them, a damages hearing was held in May 2002, and a judgment entered against the Vac-cas for over $48,000.00, including attorney’s fees of $3,800.00 because the judge found the Vaccas “guilty” of “perjury.”

I. The Judge Did Not Err In Refusing To Set Aside The Vaccas’ Default And In Entering Default Judgment Against Them, Which Was Not Barred By Statute Of Frauds

The threshold issue is whether the judge abused his discretion, see, e.g., Riley v. Davidson Constr. Co., 381 Mass. 432, 441 (1980), in refusing to set aside the default against the Vaccas. A trial judge’s decision in allowing or denying a [156]*156motion to set aside a default is “not generally disturbed on appeal.” DeKarz v. V&V Roofing, Inc., 1998 Mass. App. Div. 21, 22. We do not disturb the denial here.

The Vaccas argue the judge abused his discretion in denying their motion because their then-counsel detailed the reasons for the delay in answering, and because they had meritorious defenses to Giuliano’s action. As to the first point, the Vaccas insist their then-counsel, despite repeated attempts, was unable to reach Giuliano “over a four-month period.” More critically, the Vac-cas essay no reason why during the two months they filed neither a motion to dismiss based on their perceived key defense issues nor an answer, and did not even move to enlarge time in which to file either. In order to set aside a default, a party must demonstrate a good reason to set aside the default as well as the existence of a meritorious defense. See, e.g., Clamp-All Corp. v. Foresta, 53 Mass. App. Ct. 795, 806 (2002). The Vaccas’ showing of good cause was less than persuasive.

The Vaccas’ second point centers on their claimed meritorious defense, that the Statute of Frauds provision of the Uniform Commercial Code, M.G.L.c. 106, §2-201 (1), should have barred Giuliano’s action as a matter of law because the subject transaction involved the sale of goods for $500.00 or more, which contract must be in writing.3 This argument, however, runs counter to the Vac-cas’ major defensive theme: that the transaction between them and Giuliano was simply their paying Giuliano a standard flat fee for the stud services of his stallion. That theory of the case clearly involves no sale of goods so as to trigger the UCC’s statute-of-frauds provision, and would have made that purported defense inapplicable at all.

The further flaw in the Vaccas’ argument is that their motion to set aside and its supporting affidavit are silent as to the statute-of-frauds defense. The [157]*157defense appeared for the first time in the Vaccas’ proposed answer, filed nearly two weeks after the motion and affidavit, and apparently not made part of that two-part submission.4 Demonstrating a “meritorious defense” to an action requires some factual showing, preferably by affidavit with some specifics; mere assertions or conclusions are insufficient. See New England Allbank for Sav. v. Rouleau, 28 Mass. App. Ct. 135, 140 (1989); Cicchese v. Tape Time Corp., 28 Mass. App. Ct. 72, 74-75 (1989); see also, e.g., Fleet Nat’l Bank v. Smith, 1999 Mass. App. Div. 163, 163-64. But the sole hint in the motion of a meritorious defense is the Vaccas’ suggestion that their being the first of the parties to seek judicial determination of the parties’ rights, by filing a small-claims action, “strongly suggests] the existence of meritorious defenses and claims” on his part.

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Cite This Page — Counsel Stack

Bluebook (online)
2004 Mass. App. Div. 154, 2004 Mass. App. Div. LEXIS 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giuliano-v-vacca-massdistctapp-2004.