Henderson v. American Optical Co.

418 N.E.2d 549, 1981 Ind. App. LEXIS 1339
CourtIndiana Court of Appeals
DecidedApril 8, 1981
Docket3-180A25
StatusPublished
Cited by13 cases

This text of 418 N.E.2d 549 (Henderson v. American Optical Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henderson v. American Optical Co., 418 N.E.2d 549, 1981 Ind. App. LEXIS 1339 (Ind. Ct. App. 1981).

Opinion

GARRARD, Judge.

Appellants, Carl Henderson and Louie Henderson, appeal from an order setting aside a default judgment entered against appellees, American Optical Company and Warner-Lambert Company. 1

Carl and Louie Henderson brought suit against American Optical as a result of an injury Carl sustained when a piece of metal bar struck the safety glasses he was wearing. The glasses, which were manufactured by American Optical, shattered, resulting in the permanent impairment of Henderson’s vision. Suit was filed on April 28,1978, and the Hendersons served American Optical at one of its Indiana manufacturing plants. American Optical’s corporate offices are located in Massachusetts. Employees at the plant where service was made were not equipped to handle legal matters, and thus transmitted the documents to corporate legal counsel in Massachusetts. The papers were then transferred through the corporation’s legal and insurance departments, and it was not until June 2,1978, that American Optical’s local insurance representative secured Indiana counsel, who then promptly filed an appearance. Default judgment had been entered on May 26th. A variety of procedural maneuvers ensued, including requests for change of venue by both parties. Jurisdiction was ultimately settled in the Allen County Superior Court on or about October 18, 1978. American Optical filed its motion to set aside the default judgment on March 20, 1979.

Upon the basis of the foregoing, the trial court granted American Optical’s motion to set aside, finding that entry of the default judgment “slipped through due to the administrative surprise and neglect inherent in the way the plaintiff served the complaint . .. . ”

Additionally, the court stated:

“Viewed from the six factors detailed by Green, [Green v. Karol (1976), 168 Ind.App. 467, 344 N.E.2d 106] the defendant’s motion should be granted because: 1) the amount involved is large, being in excess of $350,000; 2) there are material issues of fact, e. g. whether the injury was pre-existing or not; 3) there are meritorious defenses, e. g. the cautionary label on the glasses; 4) the delay is in large part, attributable to procedural maneuvering on plaintiff’s part; 5) the delay is not overly long considering the circumstances, and; 6) given the product liability subject matter and the injury, very little prejudice to the plaintiffs’ case can have occurred and that which may be there must be shouldered equally by plaintiffs themselves.”

The Hendersons’ challenge to the trial court’s action may be best summarized as follows:

1. Whether the trial court abused its discretion in setting the default judgment aside upon the basis of “excusable neglect” as provided in Indiana Rules of Procedure, Trial Rule 60(B)(1). 2
2. Whether the trial court committed an abuse of discretion in failing to hold that American Optical did not file its motion to set aside within a “reasonable time” after entry of the default judgment pursuant to TR 60(B).

Prior to proceeding to the specific issues, we note that our standard of review in the area of default judgments is a limited one. The decision whether or not to set *552 aside a default judgment is committed to the sound discretion of the trial court. Thus, our review is limited to determining whether there has been an abuse of discretion. Green v. Karol (1976), 168 Ind.App. 467, 344 N.E.2d 106. Additionally, as the court in Green noted, “A default judgment is not generally favored, and any doubt of its propriety must be resolved in favor of the defaulted party.” 344 N.E.2d at 111.

I.

The Hendersons’ first contention of error invites this court to make an independent review of the record in determining whether the evidence supports the trial court’s conclusion that the judgment be set aside upon the basis of excusable neglect. 3 This we decline to do as it is outside the bounds of our appellate review.

There are no fixed rules for determining what constitutes excusable neglect as the facts and circumstances of no two cases are alike. Grecco v. Campbell (1979), Ind.App., 386 N.E.2d 960. Because of the inherently vague and general nature of the term “excusable neglect,” each case must necessarily depend upon its own unique factual background. Continental Assurance Company v. Sickels (1969), 145 Ind.App. 671, 252 N.E.2d 439. The determination is, therefore, one committed to the trial court’s discretion.

The Hendersons refer us to a number of cases where, under similar circumstances of bureaucratic delay, the courts did not find excusable neglect. We stress, however, that our review is greatly limited by the trial court’s disposition in this particular case. As long as there is some inferential showing of excusable neglect, albeit slight, it will control on appeal. Kreczmer v. Allied Construction Co. (1972), 152 Ind.App. 665, 284 N.E.2d 869.

We cannot conclude that, as a matter of law, no evidence existed upon which the trial court could base its finding of excusable neglect. The court found American Optical’s delay in responding to the Hendersons’ complaint to have resulted in part from the manner in which plaintiffs served the complaint. While American Optical’s plant was legally a proper place for service, the record reveals that the Hendersons had been communicating for approximately one year prior to suit with American Optical’s local insurance adjuster who advised them that he was handling the dispute on American Optical’s behalf. The adjuster was not notified suit had been filed until he received the complaint from corporate headquarters over five weeks later. Although service upon the adjuster may not have constituted legal service of process, the trial court could properly have concluded that the Hendersons’ failure to communicate with the person they knew was handling the matter for American Optical was a factor contributing to the entry of default. Further, given a judicial preference for deciding cases on the merits, the trial court properly considered such factors as the amount of money involved, the existence of material issues of fact and valid defenses, and the lack of prejudice to the Hendersons. The court, therefore, did not abuse its discretion in granting American Optical relief on the ground of excusable neglect.

II.

American Optical’s motion to set aside was granted on October 6, 1979. At that time, TR 60(B) read in pertinent part:

“The motion shall be made within a reasonable time, and for reasons (1), (2), (3), and (4) not more than one [1] year *553

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418 N.E.2d 549, 1981 Ind. App. LEXIS 1339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-american-optical-co-indctapp-1981.