Judi's of St. Croix Car Rental v. Weston

49 V.I. 396, 2008 WL 901485, 2008 V.I. Supreme LEXIS 12
CourtSupreme Court of The Virgin Islands
DecidedFebruary 21, 2008
DocketS. Ct. Civ. No. 2007-050
StatusPublished
Cited by24 cases

This text of 49 V.I. 396 (Judi's of St. Croix Car Rental v. Weston) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Judi's of St. Croix Car Rental v. Weston, 49 V.I. 396, 2008 WL 901485, 2008 V.I. Supreme LEXIS 12 (virginislands 2008).

Opinion

HODGE, Chief Justice, SWAN, Associate Justice, and HOLLAR, Justice Pro Tem1.

OPINION OF THE COURT

(February 21, 2008)

Appellants Judi’s of St. Croix Car Rental, Linda Denner and Dennis Denner (collectively “Appellants”) appeal both the Superior Court order setting aside entry of dismissal and entering judgment in favor of Appellee Jahmeca Weston (“Weston”) and the order denying Appellants’ Motion for Reconsideration. For the reasons which follow, the order setting aside entry of dismissal and entering judgment for Weston will be reversed and the order denying Appellants’ Motion for Reconsideration will be dismissed as moot.

I. BACKGROUND

Weston entered into a rent-to-own agreement with Appellants, who own a car rental company in St. Croix, for the purchase of an automobile then valued at approximately $5,000. After partial payment of the purchase price, Appellants allegedly repossessed the vehicle for nonpayment. Weston alleged that Appellants stole her vehicle as well as [398]*398$1,5002 in cash that was located in the glove box of the vehicle; Appellants dispute whether the cash was in fact in the vehicle at the time of repossession.

After a complaint and an answer were filed, the parties submitted their dispute to mediation which produced a settlement agreement. Appellants agreed to pay Weston a total sum of $60,000, $10,000 of which was to be paid within thirty (30) days with the remaining $50,000 to be paid in monthly installments of $2,000. The agreement also provided that if Appellants paid in full by January 15, 2006, they would be entitled to a $5,000 deduction from the total amount due.

On October 14,2005, relying upon the mediator’s report that the matter had been completely settled, the Superior Court judge dismissed the complaint but explicitly retained jurisdiction for sixty days “in order that the dismissal be vacated in the event that the settlement reported by the parties is not consummated.” (App. 18). The Order of Dismissal cautioned that “if the parties desire that the Court retain jurisdiction over the settlement agreement, they shall, within sixty (60) days of entry of this Order, file an executed copy of the settlement along with a consent motion for the Court to retain jurisdiction over the settlement” or the court could lose jurisdiction to enforce the settlement. (Id.). Because neither party acted on the order, the trial court, sua sponte, dismissed the case without prejudice on January 31, 2006.

Thereafter, Appellants paid the initial $10,000 but they did so three days late. They also missed their first four monthly installment payments. On March 17, 2006, however, Appellants tendered a bulk payment of $45,000 to Weston and her counsel, both of whom signed a “Settlement and General Release of All Claims” agreement stating that the $55,000 total amount tendered represented “payment in full.” (App. 22). The parties then jointly signed a Stipulation for Dismissal with Prejudice, which was dated March 17, 2006 and filed with the Superior Court on March 21, 2006.

Ancillary to the monetary issues, the settlement agreement required Weston to make “a good faith effort” to supply Appellants with a bank record proving withdrawal of the $1,500 allegedly stolen from Weston’s [399]*399glove box. (App. 29). Instead of producing a bank record, Weston’s mother provided an affidavit in which she stated that she withdrew the funds from her bank on April 6, 2002.3 Appellants had requested, on November 29, 2005, that the case be reopened so that a subpoena could be issued for the alleged bank account but Weston’s counsel denied the request.

On March 30, 2006, Weston, allegedly realizing for the first time that Appellants had taken the $5,000 deduction despite failing to pay in full within the time required by the agreement, filed a “Motion to Set Aside Entry of Dismissal and to Enforce Settlement Agreement.” Weston sought to recover the $5,000 plus $120.17 in interest owed on the four late monthly installments. Rejecting Appellants’ opposition, the trial court granted Weston’s motion and the relief sought on February 7, 2007. Appellants thereafter filed a Motion for Reconsideration, which was denied on March 6, 2007.

On April 3, 2007, Appellants’ filed a Notice of Appeal, appealing both the order that set aside entry of dismissal and entered judgment in favor of Weston and the order that denied Appellants’ Motion for Reconsideration.

II. DISCUSSION

A. Jurisdiction and Standards of Review

“The Supreme Court [has] jurisdiction over all appeals arising from final judgments, final decrees or final orders of the Superior Court.” V.I. Code Ann. tit. 4 § 32(a). Because the March 6, 2007 order denying Appellants’ Motion for Reconsideration was a final judgment, the appeal was properly filed with this Court on April 3, 2007.

Our review of the Superior Court’s application of law is plenary. St. Thomas-St. John Bd. of Elections v. Daniel, 49 V.I. 322, 330 (V.I. 2007). In particular, we exercise plenary review over the trial court’s decisions regarding subject matter jurisdiction. In re Phar-Mor, Inc. Secur. Litig., 172 F.3d 270, 273 (3d Cir. 1999). Findings of fact, however, are reviewed only for clear error. Daniel, at 330.

[400]*400B. The Trial Court Lacked Jurisdiction to Enforce the Settlement Agreement upon Expiration of the Sixty Day Period Provided for in the October Dismissal

Before we can decide whether the Superior Court had jurisdiction to set aside the several dismissals that were filed in the trial court to determine which comprised the final order in the case. According to the Third Circuit Court of Appeals, orders that dismiss an action pending settlement automatically ripen into final orders if the parties fail to reopen the matter within the timetable provided for in the order. Berke v. Bloch, 242 F.3d 131, 135 (3d Cir. 1990). On the other hand, an order purporting to close a case generally requires a separate order upon the expiration of the time period to be considered final. WRS, Inc. v. Plaza Ent., Inc., 402 F.3d 424, 428-29 (2d Cir. 2005).

The record before us indicates that three dismissals were filed in the trial court. First, on October 14, 2005, the trial court entered an “Order of Dismissal” (hereafter “October Dismissal”) that dismissed the case but retained jurisdiction for sixty days to allow for the dismissal to be vacated if the settlement agreement was not consummated.4 Then, on January 31, 2006, the court sua sponte entered a “Judgment of Dismissal” (hereafter “January Dismissal”) that dismissed the case without prejudice because the sixty day period had expired and neither party had moved the court to vacate the October dismissal.5 Finally, on March 21, 2006, the parties’ [401]*401“Stipulation for Dismissal with Prejudice” (hereafter “March Dismissal”) was filed with the court.6

In Berke,

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Bluebook (online)
49 V.I. 396, 2008 WL 901485, 2008 V.I. Supreme LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/judis-of-st-croix-car-rental-v-weston-virginislands-2008.