Jesse Marcus Spica v. Kevin J Schrotenboer

CourtMichigan Court of Appeals
DecidedMarch 12, 2015
Docket317510
StatusUnpublished

This text of Jesse Marcus Spica v. Kevin J Schrotenboer (Jesse Marcus Spica v. Kevin J Schrotenboer) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jesse Marcus Spica v. Kevin J Schrotenboer, (Mich. Ct. App. 2015).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

JESSE MARCUS SPICA, UNPUBLISHED March 12, 2015 Plaintiff-Appellee,

v No. 317510 Kent Circuit Court KEVIN J. SCHROTENBOER, LOIS MAXINE LC No. 11-008456-NI SCHROTENBOER,

Defendants-Appellants and

KALES, INC,

Defendant.

Before: M. J. KELLY, P.J., and MURPHY and HOEKSTRA, JJ.

PER CURIAM.

In this personal injury action arising from an automobile accident, defendants Kevin Schrotenboer and Lois Schrotenboer appeal as of right from the judgment entered in favor of plaintiff Jesse Spica in the amount of $750,000. Because the trial court did not abuse its discretion in refusing to set aside the defaults entered against defendants and because the award of $750,000 in noneconomic damages was not clearly erroneous, we affirm.

In the early morning hours of June 26, 2011, plaintiff was walking westbound on 11 mile Road NE in Courtland Township, MI. At that time, he was struck by a vehicle driven by Kevin. The vehicle in question was owned by Kevin’s mother, Lois. Both Kevin and plaintiff had been drinking the night of the accident. Kevin, a karaoke operator at a local bar, Kales, Inc., was driving home with a blood alcohol content of 0.10. Plaintiff, who was a twenty-year-old pedestrian at the time of the accident, had a blood alcohol content of 0.255. As a result of the accident, plaintiff suffered numerous injuries and Kevin faced criminal charges involving operating a motor vehicle while intoxicated causing serious injury, MCL 257.625(5)(a).

-1- On September 6, 2011, plaintiff filed the present civil suit against Kevin, Lois, and Kales, 1 Inc. Relevant to Lois and Kevin, plaintiff’s complaint asserted three claims: (1) negligence against Kevin involving allegations that Kevin’s operation of the vehicle violated several criminal codes, (2) ownership liability against Lois, MCL 257.401, and (3) negligent entrustment against Lois, MCL 257.625(1). Neither Kevin nor Lois responded to plaintiff’s complaint, and in October of 2011, defaults entered against both Kevin and Lois.

Approximately a year later, plaintiff filed a motion for entry of default judgment and requested an evidentiary hearing on the issue of damages. Kevin and Lois objected to plaintiff’s motion for entry of default judgment and moved the trial court to set aside their defaults. The trial court denied their motion, finding that they had not demonstrated the good cause required by MCR 2.603(D)(1). Thereafter, the trial court conducted an evidentiary hearing, during which it heard testimony from plaintiff and his parents pertaining to plaintiff’s injuries. Medical records, photographs of plaintiff’s injuries in the hospital, and life expectancy tables were also introduced into evidence by plaintiff.

Following the evidentiary hearing, the trial court rejected defendants’ assertion of comparative negligence by plaintiff, and determined that the accident did not occur on the travelled portion of the road, but rather that Kevin drove off the road and hit plaintiff who was walking in the “weeds.” Based on plaintiff’s injuries and the testimony regarding his pain and suffering, the trial court awarded $400,000 in initial noneconomic damages, from the time of the accident to the time of the hearing, and $350,000 in future noneconomic damages. When awarding future damages the trial court specified that it had accounted for a reduction to present value. Defendants now appeal as of right.

Defendants first argue that the trial court abused its discretion in refusing to set aside the defaults entered against them in October of 2011. In particular, they maintain that they demonstrated both good cause and the existence of a meritorious defense as required to set aside a default under MCR 2.603(D)(1).

On appeal, we review a trial court’s decision on a motion to set aside a default for a clear abuse of discretion. Shawl v Spence Bros, Inc, 280 Mich App 213, 220; 760 NW2d 674 (2008). An abuse of discretion “involves far more than a difference in judicial opinion.” Alken-Ziegler, Inc v Waterbury Headers Corp, 461 Mich 219, 227; 600 NW2d 638 (1999). Instead, an abuse of discretion will be found “only when the trial court’s decision is outside the range of reasonable and principled outcomes.” Shawl, 280 Mich App at 220-221 (citation omitted).

The relevant court rule for setting aside a default is MCR 2.603(D), which states, in pertinent part, that:

1 Kales, Inc was dismissed from the lawsuit with prejudice and it is not a party to this appeal.

-2- (1) A motion to set aside a default or a default judgment, except when grounded on lack of jurisdiction over the defendant, shall be granted only if good cause is shown and an affidavit of facts showing a meritorious defense is filed.[2]

In other words, pursuant to MCR 2.603(D)(1), to set aside a default, there must be “both good cause, i.e., a reasonable excuse for the failure to answer, and a meritorious defense.” Saffian v Simmons, 477 Mich 8, 14; 727 NW2d 132 (2007). The burden of demonstrating good cause and a meritorious defense falls on the defaulting party. Id. at 15.

To demonstrate good cause, the defaulting party must show either: “(1) a procedural irregularity or defect, or (2) a reasonable excuse for not complying with the requirements that created the default.” Barclay v Crown Bldg & Dev, Inc, 241 Mich App 639, 653; 617 NW2d 373 (2000). Ordinarily, an attorney’s negligence is attributable to the client and such negligence “does not constitute grounds for setting aside a default judgment.” Park v American Casualty Ins Co, 219 Mich App 62, 67; 555 NW2d 720 (1996). Regarding a meritorious defense, MCR 2.603(D)(1) “requires an affidavit of facts establishing a meritorious defense.” Huntington Nat’l Bank v Ristich, 292 Mich App 376, 392; 808 NW2d 511 (2011). The affiant must have “personal knowledge of the facts, state admissible facts with particularity, and show that the affiant can testify competently to the facts set forth in the affidavit.” Id.

Notably, “good cause” and “meritorious defense” are separate inquiries, Barclay, 241 Mich App at 653, and “[i]t is important that the ‘good cause’ and ‘meritorious defense’ elements of a motion to set aside be considered separately.” Zaiter v Riverfront Complex, Ltd, 463 Mich 544, 553 n 9; 620 NW2d 646 (2001). Nonetheless, it has been recognized that there is “some interplay between the two[.]” Shawl, 280 Mich App at 237. Specifically, “if a party states a meritorious defense that would be absolute if proven, a lesser showing of ‘good cause’ will be required than if the defense were weaker, in order to prevent a manifest injustice.” Alken- Ziegler, Inc, 461 Mich at 233-234. However, this notion of “manifest injustice” may not be construed as “a third form of good cause that excuses a failure to comply with the court rules where there is a meritorious defense.” Barclay, 241 Mich App at 653. “Rather, manifest injustice is the result that would occur if a default were to be allowed to stand where a party has satisfied the ‘meritorious defense’ and ‘good cause’ requirements of the court rule.” Alken- Ziegler, Inc, 461 Mich at 233. In other words, “[w]hile a lesser showing of good cause will suffice where the meritorious defense is strong, good cause must still be shown in order to prevent a manifest injustice.” Barclay, 241 Mich App at 653 (emphasis added). Consequently, it is not necessary to reach the meritorious defense inquiry where a party fails to make a showing of good cause. See Zaiter, 463 Mich at 553 n 9. See, e.g., Midwest Mental Health Clinic, PC v Blue Cross & Blue Shield of Mich, 119 Mich App 671, 675; 326 NW2d 599 (1982).

In the present case, regarding good cause, defendants assert that good cause exists for their failure to respond because: (1) Lois does not recall receiving the complaint and summons,

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