Go Invest Wisely LLC v. Murphy

2016 UT App 185, 382 P.3d 631, 820 Utah Adv. Rep. 31, 2016 Utah App. LEXIS 192, 2016 WL 4578415
Court of Appeals of Utah·Decided September 1, 2016·No. 20140822-CA·Published·Cited by 4 cases

Opinion

Memorandum Decision

CHRISTIANSEN, Judge:

¶1 Appellant Blaine Murphy appeals the district court’s denial of his rule 60(b) motion for postjudgment relief. See Utah R. Civ. P. 60(b). We affirm in part, vacate in part, and remand for further proceedings.

*633 BACKGROUND

¶2 In November 2013, Go Invest Wisely LLC (GIW) filed an amended- complaint against Murphy, a resident of North Carolina, alleging three causes of action: (1) fraud, (2) negligent misrepresentation, and (3) unlawful formation and use of Bryce Peters Financial Corporation (BPFC) in violation of law. The complaint also named as defendants Odell Barnes and BPFC. See generally Go Invest Wisely LLC v. Barnes, 2016 UT App 184, 382 P.3d 623.

¶3 Copies of the summons and amended complaint were served on Murphy at the correctional facility in- Ohio where he was then incarcerated. Several days later, Murphy sent a letter to the district court and GIW’s counsel “to request an extension of time in which to submit [a] response/answer due to [his] current incarceration.” At a pretrial conference on January 6, 2014, the district court acknowledged that it had received Murphy’s letter; however, the court did not respond to, or formally rule on, Murphy’s request for an- extension. Ultimately, in March 2014, the district court entered a default judgment against Murphy for $1,183,496.14.

¶4 Three months later, Murphy’s current counsel entered an appearance and filed a motion for relief from the judgment pursuant to rule 60(b) of the Utah Rules of Civil Procedure. In his motion, Murphy requested oral argument and asked the court to set aside the judgment as void for lack of jurisdiction under rule 60(b)(4) and on grounds of mistake and excusable neglect under rule 60(b)(1). In support of his motion, Murphy submitted a declaration setting forth his version of the facts regarding jurisdiction and his reasons, for failing to timely answer GIW’s complaint. Thereafter, GIW filed an opposition to Murphy’s rale 60(b) motion, contending that the district court could exercise jurisdiction over Murphy because, among other things, “Murphy had numerous contacts with GIW, knowing it was a Utah company. Murphy received hundreds of thousands of dollars from GIW related to his criminal acts.” GIW’s opposition was not supported by any affidavits, declarations, or other sworn testimony,. but GIW did submit approximately 430 pages of documents as exhibits (the Motion Exhibits), including what purported to be (1) Murphy’s Ohio criminal indictment; (2) a press release from the. Cuyahoga County Prosecutor’s Office stating that.Murphy had been released from prison on January 17, 2014; (3) several email exchanges between. GIW and Marty Franks acting on behalf of BPFC; (4) several email exchanges between GIW and Sandy Warren acting on behalf of BPFC; (5) unsigned copies of purported sales agreements between GIW and BPFC; (6) several email exchanges between GIW and Andi Davis acting on behalf of BPFC; and (7) the district court’s order denying codefendant Odell Barnes’s motion to dismiss for lack of personal jurisdiction. See Go Invest Wisely LLC v. Barnes, 2016 UT App. 184, 382 P.3d 623.

¶5 Murphy then filed a reply memorandum, asserting that GIW had “failed to establish personal jurisdiction over Murphy” and “failed to proffer an affidavit or other admissible evidence in support of its argument for personal jurisdiction.” Murphy contended that the Motion Exhibits constituted “inadmissible hearsay in the absence of a supporting affidavit” and that the district court was therefore required to accept as true the facts in Murphy’s declaration. In addition, Murphy attached a supplemental declaration, a copy of a complaint filed against GIW for fraud, an Ohio Court of Appeals decision affirming GIW’s misdemeanor convictions entered on no contest pleas, and a Cleveland Municipal Court Capi-as Warrant Report showing an outstanding warrant for GIW. 1

¶6 In August.2014, after the conclusion of Barnes’s trial, see generally Barnes, 2016 UT App 184, ¶ 7 n.1, 382 P.3d 623, 627 n.1, the district court entered an order denying Murphy’s motion for relief from the default judgment. In denying-Murphy’s motion, the district court stated that “Murphy did not support his motion with any admissible evi *634 dence.” The court then found that it had jurisdiction over Murphy pursuant to section 78B-3-205 of the Utah Code:

Murphy claims the court lacks general and specific jurisdiction over him. However, he offers no affidavit supporting his alleged facts. Sin[c]e he wants instead to rely on the complaint and seemingly convert his motion to a motion to dismiss on this point, the' Court notes the complaint contains facts indicating Muiphy whs transacting real estate sales with [GIW] which was located in Utah and Murphy received payments sent [to] him from Utah by that Utah company. He did business using emails and couriers going to and from Utah and provided fraudulent materials to Utah. He thus engaged in transactions, supplied documents and caused injury in Utah according to the complaint. Plaintiff also provided exhibits establishing these facts.

The court further concluded that “Murphy also made a general appearance in the case when he wrote and filed a letter asking for an extension of -time.” Regarding Murphy’s mistake claim, the court ruled that Murphy had “assumed the Court gave him more time to answer” and that

he received no such grant from the Court and his claim to making such an assumption is belied by the fact he waited a half year after being served, including four and a half months after getting out of jail, to do anything, far beyond any reasonable amount of time even if his assumption was correct (he conveniently left out of his “facts” the date he got out of jail-plaintiff had to research the date to respond to the motion).

Likewise, the district court found ho excusable neglect for Murphy’s failure to respond to the complaint because Murphy providéd “no facts showing that once he got out of jail, circumstances made him unable to act for six weeks.” According to the district court, even if Murphy had “been served the day of his release, he would have had to answer in 30 days, but did nothing for 45 days to the default date, and then continued to do nothing thereafter for another .90 days.” Consequently, the district court denied Murphy’s rule 60(b) motion in its entirety. The court did not address Murphy’s claim that the Motion Exhibits submitted by GIW constituted “inadmissible hearsay in the absence of a supporting affidavit.”

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Go Invest Wisely LLC v. Murphy, 2016 UT App 185, 382 P.3d 631, 820 Utah Adv. Rep. 31, 2016 Utah App. LEXIS 192, 2016 WL 4578415 (Utah Ct. App. 2016).

2016 UT App 185 (Go Invest Wisely LLC v. Murphy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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