GTE Automatic Electric, Inc. v. ARC Industries, Inc.

351 N.E.2d 113, 47 Ohio St. 2d 146, 1 Ohio Op. 3d 86, 1976 Ohio LEXIS 682
CourtOhio Supreme Court
DecidedJuly 21, 1976
DocketNo. 75-1011
StatusPublished
Cited by2,201 cases

This text of 351 N.E.2d 113 (GTE Automatic Electric, Inc. v. ARC Industries, Inc.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GTE Automatic Electric, Inc. v. ARC Industries, Inc., 351 N.E.2d 113, 47 Ohio St. 2d 146, 1 Ohio Op. 3d 86, 1976 Ohio LEXIS 682 (Ohio 1976).

Opinion

O ’Neill, C. J.

The question presented by this appeal is whether it was an abuse .of discretion for the trial court to grant appellant’s motion; under Civ. R. 60(B), to vacate the default judgment previously entered. Since this court finds that the trial court did abuse its discretion under the facts of this case, the judgment of the Court of Appeals must be affirmed.

Initially, however, the court must first determine that an order vacating a default judgment is a final order and, therefore, appealable. Section 3(B)(2), Article IV of the Ohio Constitution.

The general rule in the federal courts is that an order vacating a default judgment is not a final order. United States v. Agne (C. A. 3, 1947), 161 F. 2d 331; Stathatos v. Arnold Bernstein S. S. Corp. (C.A. 2, 1953), 202 F. 2d 525; 7 Moore’s Federal Practice, Paragraph 60.30[3]. See, also,. Annotation, 8 A. L. R. 3d 1272, for a summary of cases on the state level.'

Tn the second paragraph of the syllabus in Chandler & Taylor Co. v. Southern Pacific Co. (1922), 104 Ohio St. 188, 135 N. E. 620, this court held:

[149]*149“An order vacating a default judgment upon motion of the defendant, filed at the saíne term, but more than three days after its rendition, is not a final determination of the rights of the parties and is not reviewable unless the court abuses its discretion in making it.”

Although Chandler has not been expressly overruled by this court, much has changed since it was decided. Insofar as Chandler may have implied that an otherwise interlocutory order can be made final and appealable by an abuse of discretion in the making of that order, that notion was laid to rest in Klein v. Bendix-Westinghouse Co. (1968), 13 Ohio St. 2d 85, 234 N. E. 2d 587. In addition, the constitutional provisions relating to the jurisdiction of the Court of Appeals, as well as the interpretations given those provisions by this court, have changed since Chandler was decided. Writing for a unanimous court in Klein, supra, Justice Paul W: Brown appropriately noted, at page 86, that “ [o]nly since Price v. McCoy Sales & Service, Inc. (1965), 2 Ohio St. 2d 131, 207 N. E. 2d 236] # * *, has Section 2505.-02, Reviséd Code, been an accurate legislative restatement of this court’s definition of a final order.” Price represents the culmination of a long and difficult series of decisions in which this court attempted to define a final order in terms of the jurisdictional provisions of the Ohio Constitution. While difficulties still remain in this area, the present case can be resolved by looking to R. C. 2505.02.

R. C. 2505.02 defines a final order as:

“An order affecting a substantial right in an action which in effect determines the action and prevents a judgment, an order affecting a substantial right made in a special proceeding or upon a summary application in an action after judgment, or an order vacating or setting aside a judgment and ordering a new trial is a final order which may be reviewed, affirmed, modified, or reversed, with or without retrial.” (Emphasis added.)

Regardless of whatever else may be said of a default judgment, it is a judgment. It is as good as any other judg[150]*150ment. It is a final determination of the rights of the parties. Therefore, an order of the trial court pursuant to Civ. R. 60(B), setting aside a default judgment, is clearly within the-express language of R. C. 2505..02. It is a final, appeal-able order.

Having found that the order of the trial court was a final ofdér, we may .now proceed to the question of whether the making of the-order was an'abuse of discretion.

. Civ. R. 55(B). allows, the trial court to set aside a default judgment in accordance with Civ. R. 60(B). Civ. R. 60(B) states, in part:

On motion and upon such terms as are just, the court may re-lieye a party or his legal representative from a final judgment, order or proceeding for the following reasons: (1) mistake, inadvertence, surprise or excusable neglect; (2) newly, discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule- 59(B); (3) fraud (whether heretofore denominated intrinsic or extrinsic)-, misrepresentation or other misconduct of an adverse party; (4) the judgment has been satisfied, released or discharged, or a prior judgment upon which: it is based has been reversed or otherwise vacated, or it is. no longer equitable, that the judgment should have prospective application; or-(5) any other reason justifying relief from the judgment. The motion, shall be made within a reasonable time, and for reasons (1), (2) and (3) not more than one year after the judgment, order or proceeding was entered or taken. A motion under this subdivision (B) does not affect the finality of a judgment or suspend its operation.”

To.prevail on his motion under Civ. R. 60(B), the movant must demonstrate that: (1) the party has a meritorious defense or claim to present if. relief is granted; . (2) the pártyis entitled to relief under one of the grounds stated in Civ. R. 60(B) (1). through (5); and (3), the motion is made-within a reasonable time; and, where the grounds of relief areCiv. ,R. 60(B)(1), (2) or (3), not more than one year after the judgment, order or proceeding was entered [151]*151or taken. Civ. R. 60(B); Universal Film Exchanges v. Lust (C. A. 4, 1973), 479 F. 2d 573; Adomeit v. Baltimore (1974), 39 Ohio App. 2d 97, 316 N. E. 2d 469; Brenner v. Shore (1973), 34 Ohio App. 2d 209, 297 N. E. 2d 550. The court agrees with the statement by Judge Sobeloff, in Lust, that these requirements are independent and in the conjunctive, not the disjunctive.

Appellant contends that where timely relief is sought from a default judgment and the movant has a meritorious defense, doubt, if any, should be resolved in favor of the motion to set aside the judgment so that cases may be decided on their merits. As a general statement of the proposition of law, this is, of course, true, and the courts have consistently applied the principle in appropriate cases. Tozer v. Charles A. Krause Milling Co. (C. A. 3, 1951), 189 F. 2d 242; Bridoux v. Eastern Air Lines (C. A. D. C., 1954), 214 F. 2d 207; Davis v. Parkhill-Goodloe Co. (C. A. 5, 1962), 302 F. 2d 489; Tolson v. Hodge (C. A. 4, 1969), 411 F. 2d 123; 7 Moore’s Federal Practice 232, Paragraph 60.19.

However, the cases do not imply that relief should always be granted at the request of the movant. It is a general guide, which the trial court uses as a frame of reference in deciding whether the three requirements have been met. Cf. Hamden Lodge v. Ohio Fuel Gas Co. (1934), 127 Ohio St. 469, 189 N. E. 246; Civ. R. 50(A)(4). In particular, the principle does not obviate the requirement that the movant must demonstrate • that he is entitled to relief under one of the grounds stated in Civ. 60(B) (1) through (5).

Turning to the facts of the instant appeal, it is undisputed that appellant’s motion was timely and that appellant has a meritorious defense. The sole remaining issue is whether appellant has demonstrated that it is entitled to relief under Civ. R. 60(B)(1) through (5).

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

Related

Keen v. Keen
2025 Ohio 5810 (Ohio Court of Appeals, 2025)
Feasby v. Garza
2025 Ohio 5786 (Ohio Court of Appeals, 2025)
Smith v. Hines
2023 Ohio 107 (Ohio Court of Appeals, 2023)
Goebel v. Hopkins
2022 Ohio 4718 (Ohio Court of Appeals, 2022)
Cleveland Municipal Court v. Rasheeda Properties, L.L.C.
2022 Ohio 4211 (Ohio Court of Appeals, 2022)
Turull v. Turull
2019 Ohio 2863 (Ohio Court of Appeals, 2019)
State v. Dennard
2019 Ohio 2601 (Ohio Court of Appeals, 2019)
In re L.H.
2019 Ohio 2383 (Ohio Court of Appeals, 2019)
Ocwen Loan Servicing, L.L.C. v. Van
2019 Ohio 2169 (Ohio Court of Appeals, 2019)
Calicoat v. Calicoat
2019 Ohio 2031 (Ohio Court of Appeals, 2019)
Harvey v. Boak
2019 Ohio 1811 (Ohio Court of Appeals, 2019)
Tillimon v. Coutcher
2019 Ohio 1683 (Ohio Court of Appeals, 2019)
JPMorgan Chase Bank v. Liggins
2019 Ohio 1076 (Ohio Court of Appeals, 2019)
In re N.P.
2019 Ohio 1053 (Ohio Court of Appeals, 2019)
Simon v. Simon
2019 Ohio 777 (Ohio Court of Appeals, 2019)
Ferrell v. Kakika Ent., Ltd.
2019 Ohio 575 (Ohio Court of Appeals, 2019)
Parker v. Wilcox
2019 Ohio 75 (Ohio Court of Appeals, 2019)
Koberlin v. Koberlin
2018 Ohio 4806 (Ohio Court of Appeals, 2018)
Wuebben v. Wuebben
2018 Ohio 4768 (Ohio Court of Appeals, 2018)
Discover Bank v. Wells
2018 Ohio 4637 (Ohio Court of Appeals, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
351 N.E.2d 113, 47 Ohio St. 2d 146, 1 Ohio Op. 3d 86, 1976 Ohio LEXIS 682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gte-automatic-electric-inc-v-arc-industries-inc-ohio-1976.