Government of the Virgin Islands v. V.I. Pleasure Boat, Inc.

14 V.I. 123, 1977 V.I. LEXIS 41
Supreme Court of The Virgin Islands·Decided September 14, 1977·No. Case No. 83-77·Published·Cited by 1 cases

Opinion

FEUERZEIG, Judge

MEMORANDUM OPINION AND ORDER

Once again this court is confronted with the increasingly recurrent problem of a defaulting defendant seeking post judgment relief. It has become evident by the number of motions filed pursuant to Rule 60(b) of the Federal Rules of Civil Procedure, 5 V.I.C. App. I Rule 60(b), that requests to set aside default judgments are being filed as a matter of course. The leniency with which the court has entertained such motions has led to a situation where service of process appears to be summarily disregarded or conveniently forgotten by defendants unimpressed by the summons of the court. While this court is in complete accord with the prevailing philosophy of the Federal Rules, a philosophy that favors resolving disputes on the merits and not by default, countervailing considerations of public policy and overcrowded dockets dictate that at some point there shall be an unconditional end to litigation.

The cases show that although the courts have sought to accomplish justice, they have administered Rule 60(b) with a scrupulous regard for the aims of finality.

11 Wright and Miller, Federal Practice and Procedure: Civil § 2857, p. 161 (1973). Failure of a defendant to defend will ordinarily, absent good cause, achieve such an end. The courts

have been unyielding in requiring that a party show good reason for his failure to take appropriate action sooner. Id.

[125] In the present case, after taking testimony and making findings of fact and conclusions of law, the court on May 11, 1977, granted a default judgment to the plaintiff, Government of the Virgin Islands. Subsequently, the defendant, Virgin Islands Pleasure Boats, Inc., filed a motion to set aside the default judgment and stay execution of judgment pending disposition of the motion pursuant to Rules 55(c), 60(b), and 62(b) of the Federal Rules of Civil Procedure, 5 V.I.C. App. I R. 55, 60 and 62. Defendant alleged “lack of proper notice of the default judgment.” This indicates that at least some notice was received, although it may have been deficient either on its face or in the manner in which service was effected. Defendant’s memorandum in support of its motion argued, however, that

[d]efendant has no recollection of receiving any notice of this lawsuit or of the default judgment.

The emphasis seems to be on the ability of the affiant, the president of defendant corporation, to recall service. In face of this uncertainty as to defendant’s legal position and in accord with the prevailing philosophy of the Federal Rules, this court gave leave on June 23 for defendant to file an affidavit indicating a justifiable excuse for not taking appropriate action sooner and that it had a potentially meritorious defense. On July 14, defendant submitted its affidavit, by and through Carlos Giminez, president and majority stockholder of defendant corporation. In paragraphs four and nine of the affidavit, Mr. Giminez asserted that he does not “recall” having been personally served in spite of the marshal’s return of service to the contrary. On July 15, this court gave both parties an opportunity to request a hearing on whether or not a sufficient showing had been made by the defendant to set aside the default judgment. Both parties having subsequently submitted [126] memoranda of law and neither party having requested a hearing, the court will base its decision on the strength of the motion and the supporting and opposition papers and affidavits.

RULE 60(b)

Defendant’s motion to set aside the judgment is based on Rule 60(b), the relevant parts of which are set out in the margin.1 Unfortunately, defendant has not stated which subdivision of the Rule supports its prayer for relief. This is compounded by a continuing uncertainty as to the defendant’s factual contentions. Mr. Giminez has attested to his inability to “recall” service of process on him. It is unclear, however, whether Mr. Giminez contends that service was not made on him or whether this is a tacit concession that service may well have been effected, but that he simply is unable to recall it. This is significant because the issues involved and the showing needed in support of each of the two possible interpretations of Giminez’ inability to “recall” service vary considerably. Accordingly, both possible interpretations of defendant’s statements will be considered. It is the court’s conclusion, however, that neither interpretation of the Giminez statement is sufficiently supported to justify relief under Rule 60(b).

[127] SERVICE OF PROCESS

It is a well settled rule that service of process is a necessary prerequisite for the court to exercise jurisdiction over a defendant. Walden v. Craig’s Heirs, 14 Pet. 147, 39 U.S. 147, 10 L.Ed. 393 (1840). Absent service of process or other valid notice on a defendant the judgment is void. Under Rule 60(b)(4) a party may have a judgment set aside if he can show that it was void. Failure to serve a defendant a fortiori renders a judgment void and makes out a claim for relief under Rule 60 (b) (4).

The problem in the case sub judice is that the marshal’s return of service states that copies of the summons and complaint were personally served on Mr. Giminez. At common law such a return was conclusive between the parties to an action. See Halpert v. Appleby, 23 F.R.D. 5, 6 (S.D.N.Y. 1958) and references therein. Although the rule has been relaxed, under federal law the return of a U.S. Marshal still is entitled to great weight and may only be controverted upon an adequate showing. 2 Moore’s Federal Practice, ¶4.43, p. 1295.4 (2d ed. 1970). Such a showing requires “strong and convincing” evidence. Hicklin v. Edwards, 226 F.2d 410, 414 (8th Cir. 1955); Cleaves v. Funk, 76 F.2d 828 (10th Cir. 1935). Mere allegations by a defendant that he did not receive service, even when supported by affidavit, are insufficient to impeach the marshal’s return or require a hearing on the question of service, United States v. Scheiner, 308 F.Supp. 1315 (S.D.N.Y. 1970); See Hill v. Sand, 403 F.Supp. 1368 (N.D. Ill. 1975).

In the instant case Mr. Giminez says that he doesn’t “recall” service being made on him. This, if a denial it is, is one of the weakest forms of denial that is linguistically achievable. It clearly does not present the kind of “strong and convincing” evidence necessary to impeach the mar[128] shal’s return and justify relief under Rule 60(b) (4). The policy considerations weighing against the grant of relief in such circumstances are obvious and well stated by Judge Dimock in Halpert v. Appleby, supra at 6:

It would be highly inconvenient and, indeed, demeaning to the dignity of the court and its officers if a defendant, by a mere denial, could force the plaintiff to take the deposition of the marshal in support of his official return....

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Government of the Virgin Islands v. V.I. Pleasure Boat, Inc., 14 V.I. 123, 1977 V.I. LEXIS 41 (virginislands 1977).

14 V.I. 123 (Government of the Virgin Islands v. V.I. Pleasure Boat, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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