Kmart Corp. v. Englebright

719 N.E.2d 1249, 1999 Ind. App. LEXIS 2007, 1999 WL 1045639
CourtIndiana Court of Appeals
DecidedNovember 19, 1999
Docket65A04-9812-CV-593
StatusPublished
Cited by43 cases

This text of 719 N.E.2d 1249 (Kmart Corp. v. Englebright) 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
Kmart Corp. v. Englebright, 719 N.E.2d 1249, 1999 Ind. App. LEXIS 2007, 1999 WL 1045639 (Ind. Ct. App. 1999).

Opinion

OPINION

ROBB, Judge

Kmart Corporation (“Kmart”) appeals the trial court’s order denying its Trial Rule 60(B) motion to set aside the default judgment entered in favor of Donna En-glebright. We reverse and remand.

Issue

Kmart raises one issue for our review which we restate as whether the trial court erred in denying Kmart’s motion to set aside the default judgment previously entered in favor of Englebright when Kmart alleged that it had reasonably relied on the representations of Englebright’s counsel granting Kmart an indefinite extension of time in which to file responsive pleadings and also that it had a meritorious defense to Englebright’s claim.

Facts and Procedural History

On July 22, 1993, Englebright slipped and fell at a Kmart retail store located in Mount Vernon, Indiana. Consequently, on February 2, 1995, Englebright filed a lawsuit against Kmart in the Posey County Circuit Court seeking to recover damages for the personal injuries she incurred as a result of the fall.

On February 7, 1995, William P. Woods filed with the trial court an appearance as counsel for Englebright. Woods served a *1253 copy of his appearance on Kmart. Kmart forwarded Woods’ appearance to IHDS of Michigan, Ltd. (“IHDS”), the entity that administers liability claims brought against Kmart. Subsequently, an IHDS adjuster contacted Woods and requested certain documentation from him. Thereafter, on February 10, 1995, Woods sent the IHDS adjuster a letter informing him that Engle-bright desired to pursue settlement negotiations with Kmart, and that unless otherwise notified by Woods, it was unnecessary for Kmart to respond to Englebright’s complaint or enter its attorney’s appearance with the trial court. Woods’ attempts to settle Englebright’s claim were ultimately unsuccessful, and on February 23, 1996, Woods filed a motion for leave to withdraw as Englebright’s counsel, which was later granted by the trial court.

On May 30, 1997, David D. Kiely entered his appearance on behalf of Engle-bright and filed a motion for a default judgment against Kmart. Consequently, the trial court entered a default judgment in favor of Englebright and against Kmart in the amount of $732,265.72 plus interest and costs. Thereafter, counsel for Kmart entered an appearance with the trial court and filed a Trial Rule 60(B) motion based upon excusable neglect seeking to set aside the default judgment entered in favor of Englebright. On January 30, 1998, the trial court denied Kmart’s Trial Rule 60(B) motion. This appeal ensued.

Discussion and Decision

Kmart contends that the trial court erred in denying its Trial Rule 60(B)(1) motion to set aside the default judgment entered in favor of Englebright. Specifically, Kmart alleges that it has shown excusable neglect in its failure to respond to Englebright’s complaint. Moreover, Kmart alleges that it has shown a meritorious defense to Englebright’s cause of action.

A. Standard of Review

The decision whether to set aside a default judgment is given substantial deference on appeal. Bonaventura v. Leach, 670 N.E.2d 123, 125 (Ind.Ct.App.1996), trans. denied. Our standard of review is limited to determining whether the trial court abused its discretion. Bennett v. Andry, 647 N.E.2d 28, 31 (Ind.Ct.App.1995). An abuse of discretion may occur if the trial court’s decision is clearly against the logic and effect of the facts and circumstances before the court, or if the court has misinterpreted the law. McCullough v. Archbold Ladder Co., 605 N.E.2d 175, 180 (Ind.1993). We may affirm a general default judgment on any theory supported by the evidence adduced at trial. Breeden v. Breeden, 678 N.E.2d 423, 425 (Ind.Ct.App.1997). The trial court’s discretion is necessarily broad in this area because any determination of excusable neglect, surprise, or mistake must turn upon the unique factual background of each case. Siebert Oxidermo, Inc. v. Shields, 446 N.E.2d 332, 340 (Ind.1983). Moreover, no fixed rules or standards have, been established because the circumstances .of no two cases are alike. Id. A cautious approach to the grant of motions for default judgment is warranted in “cases involving material issues of fact, substantial amounts of money, or weighty policy determinations.” Green v. Karol, 168 Ind.App. 467, 473-74, 344 N.E.2d 106, 110-11 (1976). In addition, the trial court must balance the need for an efficient judicial system with the judicial preference for deciding disputes on the merits. Teegardin v. Maver’s, Inc., 622 N.E.2d 530, 533 (Ind.Ct.App.1993). Furthermore, reviewing the decision of the trial court, we will not reweigh the evidence or substitute our judgment for that of the trial court. Professional Laminate & Millwork, Inc. v. B & R Enterprises, 651 N.E.2d 1153, 1157 (Ind.Ct.App.1995). Upon a motion for relief from a default judgment, the burden is on the movant to show sufficient grounds for relief under Indiana Trial Rule 60(B). Jostens Learning Corp. v. Education Sys. Corp. of Indiana, 651 N.E.2d 1186, 1188 (Ind.Ct.App.1995), trans. denied.

*1254 B. Trial Rule 60(B)(1) Motion

The entry of a default judgment for failure to file a responsive pleading is authorized by Indiana Trial Rule 55(A). After a default judgment is entered, the defaulting party may seek to have it set aside through the procedures of Trial Rule 60(B). Ind. Trial Rule 55(C). Trial Rule 60(B) provides in pertinent part, that “[o]n motion and upon such terms as are just the court may relieve a party or his legal representative from an entry of default, final order, or final judgment, including a judgment by default, for the following reasons: (1) mistake, surprise, or excusable neglect....” T.R. 60(B)(1). A Trial Rule 60(B)(1) motion does not attack the substantive, legal merits of a judgment, but rather addresses the procedural, equitable grounds justifying the relief from the finality of a judgment. Blichert v. Brososky, 436 N.E.2d 1165, 1167 (Ind.Ct.App.1982). Moreover, a Trial Rule 60(B)(1) motion is 'addressed to the trial court’s equitable discretion, with the burden on the movant to affirmatively demonstrate that relief is necessary and just. Cazarus v. Blevins, 159 Ind.App. 512, 514, 308 N.E.2d 412, 414 (1974).

1. Excusable Neglect

There is no general rule as to what constitutes excusable neglect under Trial Rule 60(B)(1). In re Marriage of Ransom,

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719 N.E.2d 1249, 1999 Ind. App. LEXIS 2007, 1999 WL 1045639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kmart-corp-v-englebright-indctapp-1999.