Kennedy v. New Era Industries, Inc.

600 P.2d 534, 1979 Utah LEXIS 917
CourtUtah Supreme Court
DecidedAugust 30, 1979
Docket15969
StatusPublished
Cited by39 cases

This text of 600 P.2d 534 (Kennedy v. New Era Industries, Inc.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kennedy v. New Era Industries, Inc., 600 P.2d 534, 1979 Utah LEXIS 917 (Utah 1979).

Opinions

STEWART, Justice:

This is an appeal from a judgment entered by the trial court which imposed sanctions for plaintiffs’ failure to respond adequately to interrogatories. The plaintiffs claim (1) that the trial court abused its discretion in granting a default judgment to M. S. Rosenberger on his counterclaim against them because their answers to interrogatories were substantially completed and detailed, and (2) that the trial court erred in granting judgment on the counterclaim without taking evidence in support of the allegations on which the judgment was based.

We do not reach the merits of plaintiffs’ claims because the case is not properly before this Court. Although the issue of jurisdiction was not raised by either party, it is our prerogative, sua sponte, to refuse to [535]*535decide cases not properly before the Court. J.B. & R.E. Walker, Inc. v. Thayn, 17 Utah 2d 120, 405 P.2d 342 (1965); Coray v. Southern Pacific Co., 112 Utah 166, 185 P.2d 963 (1947), rev’d on other grounds, 335 U.S. 520, 69 S.Ct. 275, 93 L.Ed. 208 (1949); Shurtz v. Thorley, 90 Utah 381, 61 P.2d 1262 (1936). The judgment entered by the lower court was not a final judgment, and no exceptions to the final judgment rule have been met. The appeal is therefore dismissed.

On July 21, 1972, plaintiffs filed a complaint in the trial court against the following defendants: New Era Industries, Inc.; Aircomb Technology Corporation; KFR Aircomb Corporation, aka Bonded Structures; James R. Henderson; Thomas T. Finlayson; Max King; Arch C. Scurlock; M. S. Rosenberger; Clarence R. Frere; and Merlin N. Toombs. Plaintiffs alleged two claims for relief against M. S. Rosenberger, who is the respondent here. Rosenberger answered, asserted four counterclaims against plaintiff Charles R. Kennedy,1 and cross-claimed against one of the original defendants, Aircomb Technology Corporation. On August 18, 1977, the trial court granted a motion for partial summary judgment in favor of defendant Rosenberger with regard to certain accounts receivable. Pursuant to this judgment the trial court ordered plaintiffs to give Rosenberger an accounting of the moneys due him.

Defendant Rosenberger served interrogatories on plaintiffs on October 19, 1977. Plaintiff Charles R. Kennedy did not answer these interrogatories on time and with sufficient specificity, requiring Rosenberger to seek the aid of the trial court several times to compel proper answers. Finally on June 12, 1978, because of plaintiff’s failure to comply with the previous orders of the trial court, Rosenberger filed a motion to enter a default judgment on his counterclaim against the plaintiff and to dismiss plaintiff’s claims against him as a defendant. On June 26, the court rendered a judgment finding that plaintiff’s failure to respond adequately to the discovery requests as ordered was without excuse or justification and that it had caused delay in the prosecution of the proceedings and substantial additional expense to Rosenberger. The court granted Rosenberger’s motion to dismiss with prejudice and entered a default judgment in favor of Rosenberger on his counterclaims. The trial court did not rule on Rosenberger’s cross-claim against Aircomb Technology Corporation; hence, this claim is still alive.

On July 26, 1978, plaintiffs filed a notice of appeal. Plaintiffs here argue that the June 26 judgment was erroneously entered for the reasons stated above.

Article VIII, § 9 of the Utah Constitution and Rule 72(a), Utah Rules of Civil Procedure, provide for appeals to this Court from all final orders and judgments from district court. The policy underlying these provisions is sound. In the first place, it promotes judicial economy by preventing piecemeal appeals in the same litigation to this Court. At least some appeals would ultimately never be taken, since the party aggrieved by an interlocutory order may, in the end, prevail. Also, expense to litigants and the judiciary is reduced by the general requirement that all issues be appealed in one procedure. Further, the final judgment rule prevents this Court from in-termeddling in the business of the trial courts before they have had opportunity to rectify some of their own possible misjudgments and before they have completed the trial. Finally, the final judgment rule prevents the interminable protraction of lawsuits. In a day when the case load of this Court has risen astronomically and seriously strains our resources, there is even additional reason for applying the final judgment rule.

This Court held in Shurtz v. Thorley, 90 Utah at 384, 61 P.2d at 1264, quoting North Point Consolidated Irr. Co. v. Utah & Salt [536]*536Lake Canal Co., 14 Utah 155, 46 P. 824 (1896), that “[a] judgment, to be final, must dispose of the case as to all the parties, and finally dispose of the subject-matter of the litigation on the merits of the case.” 2 The Court further stated that a final judgment is a judgment which ends the controversy between the parties litigant. J.B. & R.E. Walker, Inc. v. Thayn, 17 Utah 2d 120, 405 P.2d 342 (1965). In the case at hand the order entered by the trial court clearly was not a final order. The action against other defendants and Rosenberger’s cross-claim remains alive.

Unquestionably there are times when interlocutory appeals or appeals from certain orders made in the course of litigation before the litigation as a whole comes to an end should be appealable. Our rules provide appropriate provisions in such circumstances. Rule 72(b) permits appeals from interlocutory orders and decisions if this Court enters an order holding that such an appeal is justified. Rule 54(b) authorizes a trial court in cases involving multiple claims or multiple parties to direct the entry of a final judgment, before all issues have been settled, as to some of the claims or some of the parties upon a finding that “there is no just reason for delay and upon an express direction for the entry of judgment.” A strong reason supporting this rule is that the trial court, having an overview of the total litigation, is in a position to determine whether such an order would promote efficiency, serve the ends of justice, and save this Court from having to deal with the same or similar issues in a piecemeal fashion.

The order appealed from in this case was entered by the trial court without a Rule 54(b) determination,3 and this Court has not entered an order pursuant to Rule 72(b) permitting an interlocutory appeal.

It is unfortunate that the plaintiffs did not ask the trial court to reconsider its default judgment on both the main claim raised by them against Rosenberger and the counterclaims against Kennedy on the ground the judgment was unduly harsh since the failure on plaintiff’s part was only with respect to the counterclaims. No doubt the trial judge would have recognized the disproportionately harsh remedy in entering a default on the main claim, as to which there was no dereliction, if he had reconsidered the action.

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Cite This Page — Counsel Stack

Bluebook (online)
600 P.2d 534, 1979 Utah LEXIS 917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennedy-v-new-era-industries-inc-utah-1979.